Microsoft is Consolidating and Will Be More Expensive Soon, So I Keep Buying

Microsoft's Azure has reached a major milestone, surpassing $100 billion in annual revenue and growing 43% year-over-year. The company's partnership with OpenAI provides a significant moat against competitors Amazon and Alphabet, with a $250 billion contract for Azure services through 2032. Commercial remaining performance obligations have reached $678 billion, an 84% increase year-over-year, and the operating margin is 46.78%.

Microsoft has already delivered five consecutive EPS beats, with a projected EPS of $17.28 for fiscal year 2026. The company is investing heavily in AI infrastructure, with capex guiding to $175 billion for fiscal year 2026, which will drive future growth. The strong operating margin, high ROIC, and $678 billion contracted backlog make Microsoft an attractive investment option for long-term growth.

Analysts are predicting a consensus target of $569.56 for Microsoft's stock, and the author believes the time is right to buy shares before the consolidation phase ends.