Microsoft Earns 31% More Than It Did a Year Ago and Is Worth Less
The software giant increased its fiscal 2026 net income by 31%. The market cut what it pays for each dollar of those earnings by about a quarter.
Overview
Microsoft (NASDAQ:MSFT) has just reported what was possibly one of the best years in its history. In fiscal 2026 (the year ended June 30), revenue rose 18% to $331.8 billion, and net income grew 31% to $133.7 billion.
The stock, however, did not follow the same path. Microsoft's market cap, at about $3.59 trillion as of this writing, sits about 4.5% below where it was a year ago.
Details
How did this happen? The market put a different price on earnings. A year ago, investors paid about 37 times earnings for Microsoft. Today they pay about 27 times earnings.
Source
Originally published at www.fool.com.
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