TLDR
- Microsoft stock trades at $504.94, down 0.34% on Sept 2, 2025.
- New GSA OneGov deal brings $6B in federal cloud savings over 3 years.
- $3.1B in savings available in the first year alone.
- Free Microsoft 365 Copilot offered to G5 government customers.
- Microsoft outperforms S&P 500 with strong multi-year returns.
Microsoft (NASDAQ: MSFT) shares were trading at $504.94, down 0.34%, as of 10:32 AM EDT on September 2, 2025.
The tech giant has entered into a sweeping agreement with the U.S. General Services Administration (GSA), offering more than $6 billion in potential savings over three years on cloud services.
The initiative falls under the OneGov strategy, which consolidates federal spending to cut costs. Microsoft will deliver $3.1 billion in savings in the first year alone, with discounts covering Microsoft 365 productivity subscriptions, Azure cloud infrastructure, Dynamics 365 business apps, and Sentinel cybersecurity services.
Copilot and AI Integration
A highlight of the agreement is Microsoft’s decision to provide federal workers with a free year of access to Copilot, its AI-powered assistant, for all G5 Microsoft 365 customers. Federal agencies can opt into the program through September 2026, benefiting from uniform pricing for up to three years.
CEO Satya Nadella emphasized the company’s commitment to driving AI adoption across government operations. “With this new agreement, we will help agencies strengthen security, improve citizen services, and save taxpayers over $3 billion in the first year alone,” Nadella said.
Josh Gruenbaum, commissioner of the GSA’s Federal Acquisition Service, said Microsoft’s tools remain critical across civilian and defense operations. He noted the deal will help shift federal procurement into a unified, AI-driven model.
Federal Modernization and AI Push
The agreement supports the Trump administration’s AI Action Plan by accelerating digital adoption across federal agencies. The GSA oversees about $110 billion of annual procurement, with IT accounting for nearly $80 billion of that total. The Microsoft partnership will likely boost efficiency and position the U.S. as a leader in AI-driven governance.
Microsoft’s discounts also extend to Azure Monitoring, Sentinel, and Entra ID Governance. Certain Dynamics 365 workloads will be offered at no cost for a year. Workshops on adoption and optimization will also be included.
Stock and Performance Overview
Microsoft has delivered strong performance compared to the broader market. Year-to-date, MSFT is up 20.43% versus an 8.85% gain for the S&P 500. Over one year, the stock gained 21.94% compared to the index’s 13.35%.
Three-year returns show a 102.07% gain, well above the S&P’s 63.14%. Over five years, Microsoft is up 127.30% against the S&P 500’s 78.79%.
The stock’s resilience underscores its status as one of the government’s most critical technology partners, with cloud and AI innovation driving continued growth.
