Microsoft (MSFT) Reports -13.6% Performance in Q1 2026 Investor Letter

AI Summary

Sustainable Growth Advisers (SGA) reported that its Global Growth Portfolio returned -13.6% (Gross) and -13.8% (Net) in Q1 2026, underperforming compared to MSCI ACWI's return of -3.2%. Microsoft (MSFT) closed at $399.76 on June 15, 2026, with a one-month return of -5.64% and a 52-week loss of 17.61%. Despite a 15% revenue increase and a 21% rise in EPS in constant currency, Azure's growth fell short of expectations, impacting investor sentiment. SGA highlighted the importance of high-quality businesses like Microsoft in navigating market volatility caused by geopolitical tensions and AI investment dynamics.