04. Microsoft Corporation (NASDAQ:MSFT)
Return on Common Equity (TTM): 33.61%
YTD Share Price Gain as of June 23: 15.30%
Microsoft Corporation (NASDAQ:MSFT) just delivered another blowout quarter. The tech giant beat Wall Street expectations with earnings per share of $3.46, exceeding the forecast of $3.22. Revenue surged across segments, fueled largely by relentless growth in AI and cloud computing.
At the heart of Microsoft Corporation (NASDAQ:MSFT) momentum is Microsoft Cloud, which brought in a massive $42.4 billion in revenue, up 22% in constant currency. And driving that growth? AI. Azure’s AI services alone contributed 16 points to Azure's stunning 35% year over year growth. Microsoft’s strategic investments in AI infrastructure, such as faster GPUs, model optimization, and cost efficient silicon, are paying off in a big way. The company is now processing over 100 trillion tokens per quarter, highlighting soaring demand for its AI capabilities.
Microsoft Corporation (NASDAQ:MSFT) is not just scaling AI, it’s democratizing it. Over 70,000 enterprises are already using Foundry, its AI app factory, to build custom agents and applications. In just four months, more than 10,000 organizations have adopted its agent service. Meanwhile, the Phi model family has seen over 38 million downloads, and the company is pioneering lightweight AI with models like BitNet b1.58 that can even run on CPUs.
AI is also transforming Microsoft’s productivity suite. Microsoft 365 Copilot is now used by hundreds of thousands of organizations, including 90% of the Fortune 500. In fact, Microsoft 365 Commercial Cloud revenue grew 15% in constant currency, driven in part by Copilot adoption. In developer tools, GitHub Copilot now has over 15 million users, up 4x year over year, streamlining coding tasks through AI assistance.
The financials are equally impressive. Microsoft’s gross margin stands at 69%, and operating income rose 16% year over year, despite heavy AI infrastructure investments. Free cash flow hit $20.3 billion, and commercial bookings surged 18%, with long term customer commitments climbing sharply.
From enterprise software to cloud infrastructure to developer tools and AI agents, Microsoft Corporation (NASDAQ:MSFT) is firing on all cylinders. Its deep integration of AI across every product layer makes it a foundational player in the AI revolution, and a strong long term bet for investors.
