The Ultimate Utility: Why Microsoft is Still one of the Best Businesses on Earth!

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Is Microsoft actually a "Utility" hiding in a Tech wrapper?

In today’s video, we are breaking down Microsoft’s (MSFT) fiscal Q2 2026 results. Despite a massive beat on both the top and bottom lines, the stock has faced significant pressure. Is the "OpenAI reliance" finally a red flag, or is this the best buying opportunity we’ve seen in years?

In this video, we cover:
The Three Core Pillars: We dive into the performance of Productivity and Business Processes (Office 365, LinkedIn), Intelligent Cloud (Azure), and More Personal Computing (Windows, Xbox).

Growth That Defies Gravity: MSFT just reported 17% revenue growth and 24% EPS growth (Non-GAAP). When you look at their 10-20 year historical averages (which hovered around 10-12%), Microsoft is actually accelerating in its mature stage. We look at why this "Rate of Change" matters more than the raw numbers.

The Cloud Build-Up: Microsoft is spending billions on Capex ($37.5B this quarter alone!). We discuss the transition from "building the house" to "renting the rooms" and why the capacity constraints in Azure are actually a high-quality problem.

The "OpenAI" Dirty Word: Right now, mentioning OpenAI to an analyst is like swearing in church. With 45% of Microsoft’s $625B backlog (RPO) tied to OpenAI commitments, the market is terrified of "concentration risk." We discuss why the market is overreacting to this partnership.

The Copilot Uplift: While the market worries about today’s costs, they are missing the easy "uplift" in licensing. With 15 million paid seats and counting, the transition from trial to "default" workflow is an inevitable revenue tailwind for the out years.

The Utility Business Model: Why Microsoft’s ecosystem is essentially the "Digital Water & Power" of the modern enterprise.

Microsoft isn't just growing; it’s outperforming its own legacy. Use these numbers to show how the "Rate of Change" has shifted.

Period Revenue CAGR (Avg Growth); EPS CAGR (Avg Growth)
Last 20 Years (2005-2025)~10.5%~11.8%
Last 10 Years (2015-2025)~12.2%~24.8%
Current (Q2 2026 YoY)17%24% (Non-GAAP)
#msft #microsoft #stockmarket #investing #ai #azure #openai #techstocks