Microsoft (MSFT) Falls 16.8% Over Six Months Despite Revenue, EPS Growth

Microsoft Corp. (NASDAQ: MSFT) shares have dropped 16.8% to $420.75 over the six months ended May 13, 2026, underperforming the S&P 500’s 7.7% gain, even as the company maintained strong long-term growth and cash generation. Microsoft’s revenue rose to $318.3 billion over the past year from about $160 billion five years earlier, representing a 14.8% annualized growth rate. Over the same period, Amazon, Alphabet and Apple posted annualized growth of 12.1%, 16.5% and 6.8%, respectively. Earnings per share grew at an 18% compound annual rate over five years, outpacing revenue growth and indicating improved profitability on a per-share basis. Microsoft’s free cash flow margin averaged 27.3% over the same period. After the share-price decline, the stock trades at 22.4 times forward earnings.