Microsoft Lags Magnificent Seven Despite $37B AI Run Rate Surge

Microsoft shares are the worst-performing Magnificent Seven stock in 2026, down roughly 13% year-to-date. Fiscal Q3 results showed revenue climbing 18% to $82.9 billion and non-GAAP EPS rising 21%, while the AI business reached a $37 billion annual revenue run rate, up 123% year-over-year with Copilot at 20 million paid seats. Heavy investment is the counterweight: planned 2026 capital expenditures of about $190 billion, up 61%, are pressuring gross margins via data-center depreciation. The stock now trades near 22 times forward earnings with a 0.9% yield, presenting a cheaper entry point within the group but leaving execution and OpenAI concentration risks for investors to monitor.