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Microsoft Stock Falls 1.4% After Green Card Suspension

Reuters (via Investing.com)2 min read5 sources

Why did Microsoft stock fall 1.4%?

Microsoft (MSFT) stock fell 1.35% to $522.61 on Thursday after the Labor Department suspended it from the green-card labor certification program, citing active federal investigations.

Key numbers

Microsoft close, Thursday (per [5])$522.61-1.35%
Companies suspended from PERM program8Microsoft, Adobe, 6 IT firms
US workers Microsoft laid off, per Vance6,000vs 6,300 H-1B visas
Microsoft green cards, per Vance~3,000nearly
H-1B approvals for targeted firms since 2009 (per [3])230,000+100,000+ labor certifications
Universities under J-1 visa probe9incl. Harvard, MIT

What happened

Microsoft (MSFT) stock fell 1.35% to $522.61 on Thursday after the Labor Department suspended it from the green-card labor certification program, citing active federal investigations. The department also suspended Adobe and six IT outsourcing firms, and will not accept or process their applications for permanent labor certification, the first step toward a green card. Vice President JD Vance said at a news conference that Microsoft laid off 6,000 American workers while benefiting from 6,300 H-1B work visas and nearly 3,000 green cards. Microsoft said 80% of its roughly 6,000 H-1B requests last year were for existing employees.

Why it matters

Microsoft's ability to keep skilled foreign employees long term is now in question, because a green card is the route to staying in the US permanently. The freeze pauses new applications and work on pending ones at eight companies, which could slow hiring and raise costs for tech and outsourcing firms. It also shows the administration is widening its crackdown on foreign-worker programs, with Vance saying the suspension will last as long as it needs to.

Who this affects

Marketmixed
Low impact
Microsoft slipped while Adobe and Cognizant rose; mixed reaction.
Companybearish
Medium impact
Microsoft faces frozen green-card filings and probes; negative.
Competitorsmixed
Medium impact
Seven other firms frozen too; Adobe and Cognizant shares rose.
Industrybearish
Medium impact
Tech and outsourcers face slower foreign-talent hiring; negative.

Microsoft vs Adobe, Cognizant, Infosys

MicrosoftMSFT$3.88T-1.35%26.4x
AdobeADBE$93.8B+3.56%9.0x
CognizantCTSH$27.0B+5.15%9.9x
InfosysINFY$42.3B+1.42%12.7x

As of 2026-10-08

How we got here

  1. Labor Department suspends Microsoft, Adobe and six IT firms from PERM green-card program.

  2. Vance accuses Microsoft of abusing visa system at news conference.

  3. Labor inspector general announces J-1 visa probe of nine universities.

  4. Microsoft shares close down 1.35%; Adobe and Cognizant close higher.

What to watch

  • Whether the Labor Department lifts or widens the suspensions, which Vance said last as long as needed.Q4 2026
  • Microsoft and Adobe responses to the federal investigations and any subpoenas.Q4 2026
  • Results of the J-1 visa probes at nine universities.Q4 2026

Educational content only. Not investment advice.

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