1 day ago
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Keith Noonan, The Motley Fool
Fri, May 8, 2026 astatine 9:07 AM CDT 3 min read
Microsoft (NASDAQ: MSFT) banal posted double-digit gains successful April's trading. The tech giant's stock terms gained 10.2% successful a period that saw the S&P 500 summation 10.4% and the Nasdaq Composite rally 15.3%.
Following immoderate large pullbacks earlier successful the year, Microsoft's valuation surged past period amid beardown bullish momentum for the broader market. The institution besides published its quarterly results astatine the extremity of the month, but investors were mixed connected the report.
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Investors aggressively bought backmost into tech stocks successful April
On the heels of bearish pressures crossed the archetypal 3 months of the year, Microsoft saw rebound momentum past period arsenic tech-sector investments came backmost into favour with investors. The rally successful the assemblage was driven by hopes for a solution to the Iran warfare and immoderate better-than-expected macroeconomic data.
On April 29, Microsoft published its results for the 3rd 4th of its 2026 fiscal twelvemonth -- which ended March 31. The institution recorded non-GAAP (adjusted) net per stock of $4.27 connected income of $82.89 cardinal successful the period, which beat the mean expert estimate's telephone for adjusted earnings of $4.06 per stock connected income of $81.39 billion. Sales were up 18% twelvemonth implicit twelvemonth successful the quarter, and net per stock were up astir 23% compared to the prior-year period.
Despite the income and net beats, immoderate aspects of the company's guardant guidance came successful beneath expectations -- and the banal really mislaid crushed successful the contiguous aftermath of the report. In the existent quarter, Microsoft is guiding for income betwixt $86.7 cardinal and $87.8 cardinal -- with the midpoint falling abbreviated of the erstwhile mean expert estimate's telephone for revenue of $87.53 billion. Meanwhile, guidance for an adjusted operating borderline of 44% this 4th besides came successful beneath the mean expert estimate's people for a margin of 44.6%.On the different hand, Microsoft banal has been gaining crushed successful May's trading.
The tech rally has continued successful May
As of this writing, Microsoft banal is up astir 2.1% successful May. Meanwhile, the S&P 500 has risen astir 2.3%, and the Nasdaq Composite is up 4.2%.
Despite the double-digit summation past month, Microsoft is inactive down 14% across 2026's trading. While the institution remains 1 of the strongest wide players successful the artificial quality space, immoderate investors are acrophobic that the concern could look disruption from rivals' AI technologies. Trading could beryllium bumpy successful the adjacent term, but Microsoft continues to look like a worthwhile semipermanent investment.
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