What Makes Microsoft Corporation (MSFT) a Strong Long-Term Bet?

Vulcan Value Partners’ Q1 2026 investor letter highlights Microsoft (MSFT.OQ) as both a recent detractor to fund performance and a compelling long-term buy amid AI-driven market volatility. Microsoft reported a strong quarter — revenues +15% and operating profits +19% (constant currency) — with Azure growing ~38% CC. The firm argues Microsoft is competitively entrenched, benefits from its OpenAI stake, and is trading at an attractive valuation with a substantial margin of safety. Shares closed at $424.16 on April 21, 2026, and the company’s large market cap and robust free cash flow underpin Vulcan’s view that current turbulence creates buying opportunities for long-term investors.