In 2024 and 2025, the Magnificent Seven stocks often traded as a block. That meant what was good for one was generally good for all, and vice versa. In 2026, that correlation has weakened. Ironically, the same factor that brought them together (AI) is now breaking them apart.

Microsoft Today

$521.91 -8.23 (-1.55%)

As of 10/30/2026 04:00 PM Eastern

52-Week Range $349.20 ▼

$551.15

Dividend Yield 0.75%

P/E Ratio 27.24

Price Target $609.54

For investors, that means it's time to separate the winners from the losers. The dividing line is simple. Can a company turn AI spending into revenue fast enough to keep cash flowing? Microsoft NASDAQ: MSFT just delivered an earnings report that shows why it's one of the winners heading into 2027.

For the first quarter of its fiscal year 2027 (FY2027) , Microsoft delivered revenue of $92.28 billion and adjusted earnings per share (EPS) of $4.89. Both beat analysts’ forecasts of roughly $90.6 billion and $4.73.…