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Pershing Square Builds Microsoft Position During First-Quarter Pullback

Bill Ackman's Pershing Square Capital Management established a core holding in Microsoft during the first quarter, capitalizing on a sharp decline in the software giant's valuation. The hedge fund began accumulating shares in February after Microsoft's stock fell following disappointing fiscal second-quarter results. Ackman noted the company acquired shares at 21 times forward earnings—a multiple broadly aligned with the broader market and substantially below Microsoft's historical trading levels. Microsoft shares have declined more than 26 percent from July 2025 highs. Ackman dismissed investor concerns about the company's competitive positioning in artificial intelligence and Azure cloud growth durability, pointing to the entrenched position of its M365 productivity suite and underlying security infrastructure across enterprise customers.