Veytics Intelligence
2026-10-26 · Yahoo

Microsoft’s $678B AI backlog is massive, but is the stock priced for perfection

Investing.com and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Investing.com — Microsoft Corporation (NASDAQGS:MSFT) heads into its first-quarter earnings report next week in an enviable position. At $526.50 per share, the stock trades within 4% of its record high, commanding a $3.95 trillion valuation backed by a massive $678 billion commercial backlog and accelerating 43% Azure growth. Yet trading at 96% of its 52-week peak leaves virtually no room for error. Capital expenditures reached $41 billion last quarter and are projected to top $50 billion per quarter in 2027, contributing to a year-over-year contraction in gross margins to 67%.

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