Key Takeaways
- • Bill Ackman's Pershing Square disclosed a new stake in Microsoft on May 15, 2026, citing the tech giant's "highly compelling valuation" after the stock declined more than 15% year-to-date.
- • Pershing Square began accumulating the Microsoft position in February 2026 following disappointing December quarter results that revealed slower cloud computing growth and elevated capital spending plans.
- • Ackman identified Microsoft's Azure cloud-computing division and M365 Office productivity suite (including the $30-per-month Copilot AI assistant) as two of the most valuable enterprise technology franchises, positioning the company at the center of enterprise AI adoption.
- • Ackman dismissed investor concerns over competitive threats from Google and Amazon in cloud services and characterized recent changes to the OpenAI partnership—which stripped Microsoft of exclusive resale rights—as "overblown."
- • Pershing Square USA, Ackman's newly launched closed-end fund that raised $5 billion in April 2026, has also made Microsoft a core holding, though it will not file regulatory disclosure on the position.
Summary
Bill Ackman's Pershing Square announced on May 15, 2026, that it has taken a new position in Microsoft, with the disclosure set to appear in a regulatory filing later that day. Ackman made the announcement via social media platform X, characterizing Microsoft's current valuation as "highly compelling" and framing the investment as part of Pershing Square's broader strategy of deploying capital into technology companies with attractive valuations and long-term growth potential.
The hedge fund began building its Microsoft position in February 2026, following a significant decline in the company's stock price after its December quarter results disappointed Wall Street. The earnings report had highlighted slower cloud computing growth across the Azure division alongside Microsoft's announcement of substantial capital expenditure increases. These developments sent Microsoft shares down more than 15% for the year, creating what Ackman viewed as an attractive entry point.
Ackman identified two core business segments driving his conviction: Azure, the company's enterprise cloud-computing division, and the M365 Office productivity suite, which encompasses Excel, Word, and the Copilot AI assistant priced at $30 per month. According to Ackman, these franchises represent among the most valuable enterprise technology businesses globally and position Microsoft at the center of accelerating AI adoption by corporations. Regarding market concerns, Ackman contended that investor worries about competitive pressure from Google and Amazon in cloud services, as well as recent modifications to the OpenAI partnership that removed Microsoft's exclusive resale rights for OpenAI technology on its cloud platform, have been significantly overblown.
Ackman further endorsed Microsoft's $190 billion capital spending plan for 2026, arguing that this investment level is essential to drive future revenue growth and maintain competitive positioning. Pershing Square USA, the newly launched closed-end fund that completed a $5 billion initial public offering in April 2026, has also designated Microsoft as a core holding. However, this fund vehicle will not file separate regulatory disclosure of the position.
The hedge fund began building its Microsoft position in February 2026, following a significant decline in the company's stock price after its December quarter results disappointed Wall Street. The earnings report had highlighted slower cloud computing growth across the Azure division alongside Microsoft's announcement of substantial capital expenditure increases. These developments sent Microsoft shares down more than 15% for the year, creating what Ackman viewed as an attractive entry point.
Ackman identified two core business segments driving his conviction: Azure, the company's enterprise cloud-computing division, and the M365 Office productivity suite, which encompasses Excel, Word, and the Copilot AI assistant priced at $30 per month. According to Ackman, these franchises represent among the most valuable enterprise technology businesses globally and position Microsoft at the center of accelerating AI adoption by corporations. Regarding market concerns, Ackman contended that investor worries about competitive pressure from Google and Amazon in cloud services, as well as recent modifications to the OpenAI partnership that removed Microsoft's exclusive resale rights for OpenAI technology on its cloud platform, have been significantly overblown.
Ackman further endorsed Microsoft's $190 billion capital spending plan for 2026, arguing that this investment level is essential to drive future revenue growth and maintain competitive positioning. Pershing Square USA, the newly launched closed-end fund that completed a $5 billion initial public offering in April 2026, has also designated Microsoft as a core holding. However, this fund vehicle will not file separate regulatory disclosure of the position.
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