Microsoft Stock Sparks Fresh Interest In 3 Cloud Software Names

Cloud computing is back in focus after Microsoft reported Q4 revenue and earnings above expectations, with Azure revenue for the year crossing US$100b and Q4 Azure revenue up 31.6%. Net income reached US$35.77b, helped by a US$3.2b gain from its Anthropic investment, even as free cash flow fell 23% following a 69% surge in capital spending. With Microsoft shares up 3% in extended trading after the release, many investors are re-checking cloud related exposure. This article looks at 3 financially solid stocks from a Cloud Computing Leaders screener that appear positively exposed to this news.

Topicus.com (TSXV:TOI)

Overview: Topicus.com is a Netherlands based software group that builds and runs specialised, mission critical cloud and on premise systems for sectors such as education, healthcare, government, finance, real estate and professional services, often becoming the core workflow platform for customers.

Operations: Topicus.com generates about €1.63b in revenue from Software & Programming, largely tied to vertical market software solutions and related services.

Market Cap: CA$8.32b

Topicus.com provides exposure to vertical market software that is closely linked to the ongoing shift toward cloud based, sector specific platforms, which is supported by the same structural demand that supports Microsoft Azure. Analysts expect strong earnings growth and see sizeable upside to current estimates of fair value, yet the stock still trades on a P/S below many peers. The trade off is that profit margins have narrowed and funding relies on external borrowing, so execution and capital allocation are important. With Q2 2026 results due on 5 August and recent one off items affecting reported numbers, the next few quarters could be important for how the market prices this story.

Topicus.com’s sector focused cloud platforms and external funding mix create a story that many investors may only be half seeing right now. To understand what current pricing could be missing, start with the 3 key rewards and 2 important warning signs

Lightspeed Commerce (TSX:LSPD)

Overview: Lightspeed Commerce provides cloud based point of sale, payments and commerce software that helps retailers, restaurants and other merchants manage everything from checkout and inventory to online orders, loyalty and customer marketing across multiple locations.

Operations: Lightspeed Commerce generates about US$1.23b in revenue from Software & Programming, with the United States contributing roughly US$789.3m and the rest spread across Canada, Australia, the United Kingdom and other markets.

Market Cap: CA$2.01b

Lightspeed Commerce sits at the intersection of cloud software and digital payments. This puts it in the spotlight when a heavyweight like Microsoft reports strong Azure demand and investors refocus on recurring revenue platforms. The company is still loss making, yet analysts expect earnings to turn positive over the next few years as operating efficiency improves and payment penetration rises, helped by AI and automation work that management highlights on recent earnings calls. A low P/S multiple and active buybacks suggest the market is cautious about competition, pricing power and funding risks, even while analysts see the stock trading well below their cash flow estimates. The real question is whether that caution is creating an opportunity or a warning.

Lightspeed Commerce’s low P/S and upcoming shift toward profitability are only half the story. See how the full revenue engine, cash flow path and competitive position line up in the analysis report for Lightspeed Commerce

AvePoint (AVPT)

Overview: AvePoint is a cloud native software company that helps organisations manage, protect and govern their data across Microsoft 365, Azure and other major SaaS platforms, including Salesforce and Google. Its platform focuses on backup, compliance, data governance and modernising legacy systems into AI ready, cloud based workflows.

Operations: AvePoint generates about US$443.7m in revenue from Software & Programming, with the United States contributing around US$169.3m and the rest spread across Europe, the wider EMEA region and Asia Pacific.

Market Cap: US$2.74b

AvePoint operates at the intersection of Microsoft Azure demand and the rising need for secure, compliant data management. The company is now profitable, generates cash, and is tightly integrated with Microsoft 365. It is also gradually extending into other clouds and AI focused governance tools, which may broaden its opportunity set over time. Analysts currently report a sizeable gap between the share price and their estimates of fair value, and AvePoint has retired more than 11% of its shares through buybacks. On the other hand, the business trades on a premium P/E, is heavily reliant on Microsoft, and has relied entirely on external funding. That mix of stronger fundamentals and concentration risk is a key factor for many investors to consider.

AvePoint’s profitable, cash generating link to Microsoft 365 and Azure appears to be an underappreciated bridge between cloud demand and governance needs. Get the full story in the full narrative for AvePoint

The three stocks covered here are only a starting point, with the full Cloud Computing Leaders screener surfacing 44 more large, financially sound cloud related companies that each carry their own compelling narrative. Use Simply Wall St to identify, filter and analyze the specific catalysts and storylines that matter to you, so you can focus on the highest conviction opportunities in this theme.

Take Control of Your Investment Journey

If AvePoint or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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