Satya Nadella's Microsoft Now Has a $678 Billion Sales Backlog, Up 84% Year Over Year, After Azure Topped $100 Billion in Annual Revenue. Does That Growth Justify the Stock's Forward P/E of 25?
Microsoft stock looks cheap at current levels.
Overview
Microsoft (NASDAQ: MSFT) continues to deliver exceptional quarterly results, with cloud computing playing a major role. Not only was cloud revenue up by 27% year over year in its fiscal 2026 fourth quarter, but that growth came along with sales backlog growth of 84% year-over-year to $678 billion.
It also came during a period when Microsoft Azure topped $100 billion in annual recurring revenue. All of these details create the narrative of a growing business, and for investors considering buying now, Microsoft's forward P/E ratio of 25 is the icing on the cake.
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Originally published at www.fool.com.
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