Key Highlights

● Microsoft reported fiscal 2026 trailing Revenue of about $331.84 billion, up roughly 17.8%, with Net Income near $133.75 billion.

● Nexxen International reported record Q2 2026 results and raised full-year 2026 guidance after fiscal 2025 revenue of roughly $364.78 million.

● Lesaka Technologies reported fiscal Q4 net revenue growth of 20% to ZAR 6.33 billion, with adjusted EBITDA up 41% to ZAR 1.27 billion.

● Alarm.com Holdings reported fiscal 2025 revenue of roughly $1.01 billion, up about 7.6%, with net income near $132.57 million.

Microsoft (NASDAQ:MSFT), Nexxen International (NASDAQ:NEXN), Lesaka Technologies (NASDAQ:LSAK), Alarm.com Holdings (NASDAQ:ALRM) and Formula One Group (NASDAQ:FWONA) share an exchange and little else. Microsoft's fiscal year closed with revenue growth accelerating on artificial-intelligence demand, while smaller names fight their own battles for margin, scale and investor patience, and Formula One Group, a motorsport and media tracking stock, shares the exchange but almost nothing else with the rest of the group.

The Sector Backdrop: AI Concentration Versus Everything Else

The dominant fact of 2026 remains concentration. Microsoft carries a roughly $3.68 trillion market capitalization, and its fiscal 2026 trailing revenue of $331.84 billion dwarfs the combined sales of the four other companies here several times over. That gravity shapes sentiment for everything below it: capital continues to flow toward mega-cap cloud and AI infrastructure, while smaller software and services names must justify themselves on cash generation rather than narrative.

The rate environment matters here too. Higher-for-longer policy has punished unprofitable growth and rewarded companies that convert revenue into free cash flow. That helps a profitable niche operator like Alarm.com and pressures anything valued mainly on future promise. Advertising technology, emerging-market Fintech and connected-home software each carry idiosyncratic drivers, ad budgets, foreign-exchange swings and subscription retention, that have little to do with the AI capex cycle powering the index's largest members.

Nexxen International (NASDAQ:NEXN): Adtech Momentum Meets a Small-Cap Discount

Nexxen International is the advertising-technology name in the group, and 2026 has been a rebuilding year that appears to be paying off. The company reported what it described as record second-quarter results on August 12, 2026 and raised its full-year 2026 guidance. For fiscal 2025, revenue was roughly $364.78 million, essentially flat year over year, with net income near $25.04 million; trailing-twelve-month revenue has since ticked up to about $382.86 million.

Nexxen sits in the connected-TV and data-driven advertising corner of the market, where scale and first-party data increasingly decide winners. A market Capitalization near $510 million against those revenues signals a classic small-cap discount, the market is charging Nexxen for its size and cyclicality rather than rewarding its growth. Analyst consensus reportedly leans toward a buy rating with an average target around $14.64, implying meaningful upside if guidance holds.

If the raised 2026 outlook proves durable and connected-TV ad spend stays firm into the holiday quarter, Nexxen has room to re-rate; a softer ad market would just as quickly reverse the story.

Lesaka Technologies (NASDAQ:LSAK): Emerging-Market Payments Delivering on Guidance

Lesaka Technologies is the fintech outlier, a Southern-Africa-focused payments and financial-services group whose reporting is denominated partly in South African rand. On September 10, 2026 the company reported fiscal fourth-quarter and full-year results, stating that net revenue grew 20% to ZAR 6.33 billion and group adjusted EBITDA rose 41% to ZAR 1.27 billion, with all fiscal 2026 guidance measures met. Earlier quarters pointed the same way: third-quarter net revenue rose 16% and adjusted EBITDA climbed 45%.

The tension in Lesaka is between operational momentum and thin bottom-line profitability. Trailing revenue of about $721.55 million converts to net income of only around $2.67 million and Earnings Per Share near $0.03, so the company is scaling adjusted EBITDA far faster than reported net earnings, a gap typically driven by amortization, financing costs and currency translation. The stock closed near $4.27 on September 11, 2026, for a market capitalization of roughly $356 million.

Continued double-digit revenue and EBITDA growth would strengthen the case that Lesaka is nearing a durable-profit inflection, but rand Volatility and its Debt load remain the swing factors investors cannot ignore.

Alarm.com Holdings (NASDAQ:ALRM): The Quiet Compounder of Connected-Home Software

Alarm.com Holdings is arguably the cleanest software-and-services fit in this group, a subscription Business built on smart-home, security and commercial-monitoring SaaS. Fiscal 2025 revenue reached roughly $1.01 billion, up about 7.6%, with net income near $132.57 million. The company reported second-quarter 2026 results on August 6, 2026, and guided SaaS and license revenue of roughly $185.5 million to $185.7 million for the period, with third-quarter 2026 SaaS and license revenue guided to about $189.8 million to $190.0 million.

Alarm.com embodies the profitable-niche model that a cautious market currently prizes. Its recurring SaaS and license revenue is the metric that matters, because it strips out lower-margin hardware sales and shows the durable, high-retention core. With a market capitalization near $2.72 billion and a reported buy consensus around a $63 target, the stock is valued as a steady compounder rather than a hyper-growth story.

The bull case rests on the recurring-revenue base continuing its mid-to-high single-digit climb and on AI features deepening customer engagement; a slowdown in new-subscriber additions or hardware-partner attrition would be the risk to watch.

Formula One Group (NASDAQ:FWONA): The Media Outlier in a Technology Basket

Formula One Group is a Liberty Media tracking stock tied to the commercial rights of the FIA Formula One World Championship, a sports-media and live-entertainment business rather than a software or AI-services company. It trades on the same exchange as the rest of this group but operates on an entirely different set of drivers.

FWONA carries a market capitalization near $23.73 billion, with a share price around $87.03 on September 11, 2026 and trailing revenue of roughly $4.02 billion, up about 8.2%. Net income of about $222 million was down roughly 20% year over year, and the reported price-to-earnings ratio near 107 reflects how the market values media rights and Franchise Scarcity rather than current earnings.

Formula One's Investment case runs on global rights deals, race-calendar expansion, sponsorship and a growing US audience, drivers with no relationship to the cloud-and-AI trade. A reported strong buy consensus and roughly $111 target suggest continued optimism, but the valuation leaves little room for disappointment.

Microsoft (NASDAQ:MSFT): The Gravitational Center of the AI Trade

Microsoft is the anchor of this group. For fiscal 2026, trailing revenue reached about $331.84 billion, up roughly 17.8%, with net income near $133.75 billion, up about 31.3%, and earnings per share around $17.95. Shares traded near $495.63 in mid-September against a 52-week range of $349.20 to $553.72, with the next earnings report scheduled for October 28, 2026. The company has flagged plans to expand data-center capacity toward 38 gigawatts by 2032.

Microsoft's accelerating growth and expanding margins are the clearest evidence that AI is now a revenue engine, not just a cost. Its roughly $3.68 trillion valuation and a price-to-earnings ratio near 28 look demanding, yet cheaper than many hyper-growth peers precisely because the earnings are real and rising. The company sits at the intersection of cloud, productivity software and AI monetization, the exact combination the market is paying up for.

The bull case depends on AI Demand outrunning the enormous Capital Expenditure funding it; the risk is that data-center spending compresses free Cash Flow faster than AI revenue scales. The October 28 print will be the near-term referee.

What Investors Should Watch

The most important dates are concrete. Microsoft reports on October 28, 2026, and its cloud and AI commentary will set the tone for the entire Composite. Nexxen's ability to sustain its raised 2026 guidance through the seasonally critical fourth-quarter ad market is the key test for the small-cap adtech thesis.

For Lesaka, watch whether double-digit rand revenue growth finally converts into meaningful US-dollar net income, and how currency moves affect reported results. Alarm.com's recurring SaaS and license trajectory against its own guidance is the metric that matters most, and for Formula One Group, rights renewals, sponsorship and audience growth, not technology spending, will drive the story.

One Exchange, Five Unrelated Businesses

Microsoft demonstrates AI turning into durable profit at unprecedented scale; Alarm.com shows the appeal of a profitable subscription niche; Nexxen and Lesaka are smaller, higher-variance turnaround-and-scale stories in advertising and emerging-market fintech; and Formula One Group is a media asset that simply happens to trade nearby. Concentration at the top is real, opportunity below it is uneven, and diligence on each company's specific cash flows, not the sector label, is what separates signal from noise.