Microsoft (MSFT) Exhibited Terrific Organic Revenue Growth in Q2

Wedgewood Partners, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, Wedgewood Composite’s net return was 7.1% compared to the Standard & Poor’s 10.9%, the Russell 1000 Growth Index’s 17.8%, and the Russell 1000 Value Index’s 3.8% return for the same period. In addition, you can check the fund’s best 5 holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Wedgewood Partners highlighted stocks such as Microsoft Corporation (NASDAQ:MSFT). Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops and supports software, services, devices, and solutions. The one-month return of Microsoft Corporation (NASDAQ:MSFT) was 7.18%, and its shares gained 17.06% of their value over the last 52 weeks. On July 16, 2025, Microsoft Corporation (NASDAQ:MSFT) stock closed at $511.70 per share, with a market capitalization of $3.803 trillion.

Wedgewood Partners stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its second quarter 2025 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) was also a top contributor to portfolio performance during the quarter. The Company showed continued terrific organic revenue growth of +15% and +19% growth in operating income (foreign exchange-neutral, respectively), helped by continued seat growth in Office365. It also showed a key acceleration in its Azure cloud infrastructure business, driven by demand for AI-compute capacity. We added to our position before the strong rally, given that valuations had contracted to levels that were starting to discount away upside from Microsoft’s solid positioning in AI.”

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A development team working together to create the next version of Windows.

Microsoft Corporation (NASDAQ:MSFT) is in second position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 284 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of the first quarter compared to 317 in the previous quarter. In the fiscal third quarter of 2025, Microsoft Corporation (NASDAQ:MSFT) reported $70.1 billion in revenues, up 13% year-over-year. While we acknowledge the risk and potential of IQV as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IQV and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Microsoft Corporation (NASDAQ:MSFT) and shared the list of AI stocks investors are watching closely. Microsoft Corporation (NASDAQ:MSFT) contributed to Vulcan Value Partners’ performance during Q2 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.