The expected revenues, profits and free cash flows from Microsoft are expected to be great for the next 5 years. They have a solid AI strategy, a giant cloud infrastructure business and the software business is a cash cow.

The sentiment on MSFT stock has gotten very negative and the stock price is down 34% since November 2025.

The valuation of MSFT is attractive offering a 31% discount on the stock. The revenue growth, profit margins and free cash flow look excellent. Long term this is a lower risk higher return stock that could be a strong pillar of a portfolio.