Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
We have spent our careers looking for businesses that customers cannot easily leave, that can raise prices without losing them, and that are run by people who treat shareholders' money as their own. Microsoft passes the first two tests as convincingly as any large company we know, and it passes the third with a few caveats that we will spell out rather than paper over. The fiscal year that ended June 30, 2026 produced $331.8 billion of revenue, up 18 percent, $155.2 billion of operating income, up 21 percent, and $17.95 of diluted earnings per share. Azure crossed $100 billion of annual revenue. Contracted commercial backlog stands at $678 billion. Those are numbers that a company one-tenth this size would be proud of, and they came from a business that already had a quarter century of dominance behind it.
Recent filings analysed: 8-K (2026-09-02), 8-K (2026-07-29), 10-K (2026-07-29), 8-K (2026-06-05).
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