Here’s What Weighed on Microsoft Corporation’s (MSFT) Performance in Q1

Here’s What Weighed on Microsoft Corporation’s (MSFT) Performance in Q1 Soumya Eswaran Thu, June 25, 2026 at 6:23 PM GMT+2 3 min read MSFT Antipodes Partners  published its "Antipodes Global Strategy" first-quarter 2026 investor letter, highlighting the key performance stocks, portfolio changes, and the market outlook. A copy of the letter can be  downloaded here . The first quarter of 2026 was highly volatile.

Early optimism shifted to a historic energy shock caused by US-Israeli strikes on Iran. Global equities dropped 3. 2% in USD, with US equities falling 4.

6%, and value stocks outperformed growth stocks as the rotation away from mega-cap tech accelerated due to AI fears. The strategy outperformed the benchmark over the quarter and the 12 months to March 31, 2026. Exposure in North America, Korea, Western Europe, and Latin America regions boosted performance, while Canada and the UK lagged.

Energy, consumer discretionary, industrials, and healthcare sectors led the performance, while financials, real estate, and materials lagged. To manage risk, the firm increased its holdings in defensive sectors during the quarter. For insights into their key selections for 2026, please review the Strategy's top five holdings.

In its first-quarter 2026 investor letter, Antipodes Global Strategy highlighted Microsoft Corporation (NASDAQ: MSFT ). Microsoft Corporation (NASDAQ:MSFT) is a multinational software company that develops and supports software, services, devices, and solutions, holding dominant positions in software, cloud infrastructure, generative AI, and gaming. On June 24, 2026, Microsoft Corporation (NASDAQ:MSFT) closed at $365.

46 per share. One-month return of Microsoft Corporation (NASDAQ:MSFT) was -11. 70%, and its shares lost 25.

05% over the past 52 weeks. Microsoft Corporation (NASDAQ:MSFT) has a market capitalization of $2. 71 trillion.

Antipodes Global Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q1 2026 investor letter: "Microsoft Corporation (NASDAQ:MSFT) saw a sharp correction amid the broader software sector selloff. Despite reporting strong Q2 earnings, elevated AI-related capital spending and concerns about potentially decelerating cloud growth and near-term monetisation weighed on investor sentiment. " Microsoft (MSFT) Stock: Truist Raises Price Target to $675, Reiterates Buy Microsoft Corporation (NASDAQ:MSFT) ranks second on our list of  40 Most Popular Stocks Among Hedge Funds .

According to our database, 282 hedge fund portfolios held Microsoft Corporation (NASDAQ:MSFT) at the end of the first quarter, compared to 312 in the previous quarter. In the third quarter of fiscal 2026, Microsoft Corporation (NASDAQ:MSFT) reported  revenue  of $82. 9 billion, marking an increase of 18% and 15% in constant currency.

 While we acknowledge the potential of Microsoft Corporation (NASDAQ:MSFT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock . Story Continues In  another article , we covered Microsoft Corporation (NASDAQ:MSFT) and shared the list of most promising AI stocks to buy and hold for the next years.

In addition, please check out our hedge fund investor letters Q1 2026  page for more investor letters from hedge funds and other leading investors. READ NEXT:  33 Stocks That Should Double in 3 Years  and  15 Stocks That Will Make You Rich in 10 Years . Disclosure: None.

This article is originally published at Insider Monkey .