Microsoft’s MSFT shares are on the rise, driven by strong demand for Office 365 subscriptions in both commercial and consumer segments. Fiscal first-quarter results show a 17% increase in Microsoft 365 Commercial cloud revenues and a 26% surge in Microsoft 365 Consumer cloud revenues, with a focus on AI-enhanced productivity tools like Copilot.

Microsoft announced price increases effective July 2026 to drive Copilot adoption and sustain revenue growth. With 900 million monthly active users engaging AI features, commercial remaining performance obligations at $392 billion, and rapid AI tool acceptance, Office 365’s subscription trajectory looks set for further expansion, especially in enterprise settings.

Apple and Google take different subscription strategies, with Apple focusing on iCloud storage and Google maintaining a strong market share in productivity software. Both companies raised prices to boost subscription margins, contrasting Microsoft’s deeper penetration in dedicated enterprise productivity platforms. Microsoft’s valuation, with a Value Score of D, indicates room for growth and competitive positioning.

Microsoft’s forward trajectory includes a 14.3% year-over-year growth in fiscal 2026 earnings, as per the Zacks Consensus Estimate. With a Zacks Rank #3 (Hold), Microsoft continues to navigate a dynamic market landscape. Investors eyeing the next wave of AI explosion can explore opportunities with Zacks’ AI Boom 2.0 report, highlighting under-the-radar companies poised for significant growth and wealth creation in the evolving AI sector.

Read more at Nasdaq: MSFT’s Office 365 Subscription Growth Picks Up: Sign of More Upside?