(NASDAQ: MSFT) stock might not show up on many investors' radars today given its rally so far in 2023. The tech giant has gained over 30% this year, more than doubling the rally in the S 500 index.

That spike has lifted Microsoft's valuation to a level that might make it hard for shareholders to see market-beating returns in the short term. But investing isn't about the next quarter or even the next year. With that idea in mind, let's look at where Microsoft stock might be headed by 2026.

The company recently concluded an excellent fiscal year. Annual revenue rose 11% after accounting for currency exchange rate swings, to $212 billion. Operating earnings rose 14% to $90 billion, or over 40% of sales. That profit margin makes Microsoft among the most efficient companies on the planet and demonstrates the financial power of its tech empire.

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Source Fool.com