Satya Nadella's Microsoft Disclosed Azure Topped $100 Billion in Annual Sales for the First Time -- but MSFT Has Trailed the Market All Year. Is the Stock Still a Buy?

Microsoft announced Azure surpassed $100 billion in annual revenue for the first time, with fiscal 2026 revenue up 18% to $332 billion and net income rising 31% to $134 billion. However, the stock has only gained 3% in 2026 and underperformed the market due to concerns about massive capital expenditures ($116 billion), perceived AI platform weaknesses, and higher valuation multiples compared to competitors like Alphabet and Amazon.