Ackman's Pershing Square Buys Into Microsoft
Pershing Square acquired a significant stake in Microsoft during Q1 2026, capitalizing on a stock pullback and viewing it as a core holding.
Atlas Newsdesk ·
Hedge fund Pershing Square, led by Bill Ackman, established a new position in Microsoft during the first quarter of 2026, according to a disclosure made on Friday. The firm began accumulating shares in February after Microsoft's stock experienced a decline following its fiscal second-quarter earnings report. This investment is considered a "core holding" for Pershing Square.
Ackman stated that the acquisition was made at a valuation of 21 times forward earnings, which is comparable to the broader market multiple and below Microsoft's historical trading average. Microsoft shares had fallen over 26% from their July 2025 peak, driven by concerns regarding AI competition and the growth trajectory of its Azure cloud business. Pershing Square views this pullback as an opportunity to invest in a dominant technology company at a compelling valuation.
Pershing Square's analysis suggests that investor concerns about
Pershing Square's analysis suggests that investor concerns about Microsoft's AI competitive positioning and Azure's growth durability are overstated. The firm highlighted the embedded nature of Microsoft's M365 Office suite within enterprises, citing its security, compliance, and identity infrastructure as key differentiators.
Ackman expressed encouragement regarding Microsoft's R&D focus on Copilot, its AI agent integrated across M365, anticipating improved product velocity and customer adoption.