Pershing Square accumulated 5.65 million Microsoft shares after February’s post-earnings dip, citing attractive valuation.
Bill Ackman’s Pershing Square Capital Management disclosed a $2.09 billion stake in Microsoft, comprising 5.65 million shares as of Q1 2026. The position was built starting in February after Microsoft’s stock declined following its fiscal second-quarter earnings report.
Ackman highlighted the entry point at 21 times forward earnings, aligning with the broader market multiple and below Microsoft’s historical average. The stake’s value rose to approximately $2.3 billion by May 15, reflecting a quick gain on the investment.
The disclosure underscores Ackman’s view that Microsoft, despite its dominance, traded at a rare discount relative to its long-term valuation metrics. The move contrasts with typical hedge fund disclosures, which often lack detailed rationale.