Microsoft Stock Edges Higher After Steep First‑Half Slide
A sector rotation into software and a new five‑year enterprise AI deal have helped lift the shares even as heavy AI data‑center spending and possible job cuts keep investors cautious.
Overview
- Microsoft shares climbed about 3% on Wednesday, July 2, and extended modest gains in premarket trading the next day.
- The stock plunged roughly 23% in the first half of 2026, with June down about 17% and marking the company’s weakest opening six months since 2000.
- Haleon signed a five‑year agreement to deploy Microsoft 365 Copilot, Azure and other AI and cloud tools across its global operations, representing another large enterprise commitment to Microsoft’s AI stack.
- Business Insider reported that Microsoft may cut fewer than 2.5% of its roughly 228,000 employees after its June 30 fiscal‑year review, with sales, consulting and Xbox roles cited as possible targets; the company has not confirmed the reductions.
- Wall Street remains broadly positive—TipRanks shows 35 of 36 analysts rate Microsoft a Buy with an average 12‑month target near $562—however investors are watching the company’s multiyear, high‑cost AI and data‑center build and Microsoft’s new enterprise AI unit that aims to speed customer deployments.