Greg Moskowitz

Microsoft Azure revenue growth re-accelerated to 43% year-over-year, beating expectations and guiding for 45% next quarter, demonstrating strong cloud momentum and competitive positioning, dispelling doubts about losing mojo. Accounting change for capex does not alter actual spending plans.

"Agent force... really picked up. It was at 540 million in annualized recurring revenue last quarter. It's now at 800 million." Additionally, the company has authorized a "$50 billion" buyback, signaling they see "uncommon value." The market is selling the stock based on a fear narrative (AI kills seat-based SaaS), but the data shows the new AI product (Agent Force) is compounding rapidly (nearly 50% sequential growth). Combined with a massive buyback floor, the stock is undervalued relative to its future margin potential and expected revenue reacceleration in the second half of the fiscal year. Long CRM as a contrarian play on AI adoption; the "cost" of software production is dropping while the high-value AI agent revenue is ramping up. The "Marketing and Commerce" segments are decelerating and are not expected to pick up in 2026, acting as a drag on overall performance. The "negative narrative" regarding AI disruption may persist for several quarters before the reacceleration is visible in earnings.