With a net income margin of 39.34% and upside potential of 32.20%, Microsoft Corporation (NASDAQ:MSFT) ranks among the best extremely profitable stocks to buy according to Wall Street analysts. The company reported net income of $101.83 billion for the recently completed fiscal year (FY25).
That momentum remains intact in the current year, with Microsoft Corporation (NASDAQ:MSFT) reporting a strong fiscal third quarter of 2026.
On April 29, 2026, Microsoft Corporation (NASDAQ:MSFT) reported revenue of $82.9 billion, with Azure growing 40% year over year. The company’s AI business crossed a $37 billion annualized revenue run rate, up 123% year-over-year. Reported EPS came in at $4.27, above the $4.06 consensus. Nearly 90% of Fortune 500 companies now run active AI agents built with Copilot Studio, management said.
Building on that strength, Microsoft Corporation (NASDAQ:MSFT) is accelerating its push into one of the world’s fastest-growing technology markets.
On May 19, 2026, Reuters reported that Microsoft Corporation (NASDAQ:MSFT)’s largest data center in India is on track to open by mid-2026. Puneet Chandok, president of Microsoft India and South Asia, told Reuters there is “massive demand” for Azure cloud services and the $30-a-month Copilot 365 AI assistant in the country. He added that Microsoft is “the fastest out of the gates” among rivals building out data center capacity in India, describing the upcoming Hyderabad facility as the company’s biggest in the country.
The Hyderabad center is part of a $17.5 billion investment Microsoft Corporation (NASDAQ:MSFT) announced in India late last year, its largest outlay in Asia, following a $3 billion commitment made earlier in 2025. Copilot customers there already include Infosys, Cognizant, and Tata Consultancy Services, each with roughly 50,000 licenses. Chandok noted that hiring for AI development roles is becoming increasingly difficult, calling it a “war for talent” as demand outpaces supply.
Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.
While we acknowledge the risk and potential of MSFT 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 MSFT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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