How Microsoft Pulled off ‘One of the Best Tech Acquisitions of the Last Decade’

1 week ago 7

Joel South

Sat, May 9, 2026 astatine 7:00 AM CDT 3 min read

Quick Read

Trey Lockerbie called Microsoft’s (MSFT) $7.5B GitHub acquisition “maybe 1 of the champion exertion acquisitions of the past decade” for its dominance successful AI coding.
Nearly 140,000 organizations usage GitHub Copilot Enterprise (tripled YoY) and the AI concern deed a $37B yearly tally complaint (up 123% YoY), validating the flywheel.
GitHub usage-based pricing launches June 1, 2026, pressuring Q4 margins but positioning for longer-term gross acceleration arsenic the developer pipeline drives Azure unreality growth.
The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Microsoft wasn't 1 of them. Get them present FREE.

On a caller occurrence of We Study Billionaires (TIP813), big Trey Lockerbie laid retired a bull lawsuit for Microsoft (NASDAQ:MSFT)'s GitHub acquisition. "$7.5 cardinal for the world's astir ascendant coding platform, and which is besides present the world's astir adopted AI coding tool, and past besides the superior transmission done which Microsoft acquires developers who marque unreality decisions," Lockerbie called it "maybe 1 of the champion exertion acquisitions of the past decade."

Microsoft announced the GitHub woody successful June 2018 and closed it that October for $7.5 billion. Since closing, MSFT shares person returned 340%, with the banal astatine $415.40 arsenic of May 8, and a marketplace headdress of astir $3.08 trillion. The acquisition terms is present a rounding mistake against Microsoft's scale.

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Microsoft wasn't 1 of them. Get them present FREE.

The GitHub Flywheel Is Showing Up successful the Numbers

On the Q3 FY2026 net call, CEO Satya Nadella made the developer communicative central. "GitHub itself is seeing unprecedented maturation driven by the proliferation of agentic coding, and we are hard astatine enactment to standard and conscionable this demand," helium said. He disclosed that astir 140,000 organizations present usage GitHub Copilot successful Enterprise, astir tripled twelvemonth implicit year, and that GitHub Copilot CLI usage is astir doubling period implicit month.

The financials are arsenic striking. Microsoft reported Q3 FY26 gross of $82.89 billion, up 18% twelvemonth implicit year, and EPS of $4.27 versus a $4.07 estimate. The AI concern surpassed an yearly gross tally complaint of $37 billion, up 123% twelvemonth implicit year, and commercialized remaining show obligations deed $627 billion, up 99%. Full results are successful the Q3 FY26 8-K.