Microsoft (MSFT) Slid Despite Delivering Strong Results and Value Growth

2 hours ago 1

Soumya Eswaran

Tue, January 27, 2026 astatine 6:09 AM CST 4 min read

Investment absorption company Vulcan Value Partners recently released its fourth-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. All the strategies of Vulcan Value Partners delivered affirmative results successful the year. The Large Cap Composite (Net) returned -1.5% successful Q4 and 7.9% YTD, the Small Cap Composite (Net) gained 3.2% successful Q4 and 9.5% YTD, The Focus Composite (Net) retuned 0.1% successful Q4 and 7.1% YTD, Focus Plus Composite (Net) returned 0.1% successful Q4 and 6.2% YTD and the All-Cap Composite (Net) returned 1.3% successful Q4 and 10.7% YTD. Despite overvalued markets, the steadfast improved its price-to-value ratios portion inactive achieving affirmative returns, prioritizing information and semipermanent gains implicit short-term performance. This concern echoes the precocious 1990s dot-com bubble, wherever hype and precocious valuations led to a crash, and today’s AI disruptions look to reflector that pattern, with investors risking overpaying for promising businesses. The steadfast is addressing specified situations by sticking to its concern discipline. For much accusation connected the firm’s champion picks successful 2025, delight cheque its apical 5 holdings. In addition, delight cheque the firm’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Vulcan Value Partners highlighted stocks similar Microsoft Corporation (NASDAQ:MSFT). Vulcan Value Partners exited its holdings successful Microsoft Corporation (NASDAQ:MSFT) from its Focus Strategy during the quarter. Microsoft Corporation (NASDAQ:MSFT) is simply a multinational bundle institution that develops and supports software, services, devices, and solutions. The one-month instrumentality of Microsoft Corporation (NASDAQ:MSFT) was -3.53%, and its shares gained 5.16% of their worth implicit the past 52 weeks. On January 26, 2026, Microsoft Corporation (NASDAQ:MSFT) banal closed astatine $470.28 per share, with a marketplace capitalization of $3.496 trillion.

Vulcan Value Partners stated the pursuing regarding Microsoft Corporation (NASDAQ:MSFT) successful its 4th fourth 2025 capitalist letter:

"Microsoft Corporation (NASDAQ:MSFT) is the world’s largest bundle institution with a wide scope of offerings including Microsoft Office, Gaming, Azure unreality computing, LinkedIn, and more. Despite the banal being down, Microsoft delivered different beardown 4th and our worth grew nicely. Azure grew astatine a robust +39% changeless currency, which we thought was beauteous darn good. Additionally, the institution said that it would summation superior spending arsenic it continues to physique capableness to conscionable lawsuit demand, which continues to outstrip supply. Microsoft is profoundly entrenched wrong its lawsuit base, has precocious switching costs, and is benefiting from maturation tailwinds specified arsenic unreality computing and artificial intelligence. We deliberation an underappreciated spot of Microsoft’s concern exemplary is that not lone are its products designed to enactment together, but they are besides much economical for the lawsuit erstwhile aggregate products are bundled together. This bundling attack positions Microsoft good to summation stock astatine the disbursal of little good positioned competitors implicit time."