Microsoft (MSFT)
Information Technology · $3.70T market cap · SEC CIK 0000789019
$498.00
▼-0.72% on the day
close of Sep 22, 2026
68
Screens well
fundamentals score out of 100
fundamentals score out of 100
Next reports on Oct 27, 2026, with analysts expecting $4.82 in earnings per share.
The case for MSFT
- Earns 33% back on shareholder equity.
- Generated $71.6B of free cash flow in FY2025, 25% of revenue.
- 40% of revenue drops through to net profit.
- Revenue growing 17.8% year over year.
- Earnings per share up 31.6%.
- A PEG of 0.88: a P/E of 27.7× is low for EPS growing 32%.
The case against
- Weakest against its peers: price/sales of 11.1× is higher than 65% of Information Technology companies.
- Its weakest area is value (45/100): 27.7× earnings, 11.1× sales, 1.9% free-cash yield.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 45 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 71 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 82 |
| Momentumhow the price has behaved lately | 68 |
| Stabilityhow violently it moves, what it owes and what it pays you | 79 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 27.7× |
|---|---|
| Price / book | 6.26× |
| Price / sales | 11.1× |
| Revenue growth (YoY) | +17.8% |
| EPS growth (YoY) | +31.6% |
| Gross margin | 68% |
| Operating margin | 47% |
| Net margin | 40% |
| Return on equity | 33% |
| Debt / equity | 0.24× |
| Current ratio | 1.23 |
| Dividend yield | 0.79% |
| Beta | 1.06 |
| 52-week range | $349.20 – $553.72 |
| Position in that range | 73% of the way up |
| 3-month return | +32.2% |
| 1-year return | -3.2% |
Five years of financials, as filed
Pulled from Microsoft's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $282B | $245B | $212B | $198B | $168B |
| Gross profit | $194B | $171B | $146B | $136B | $116B |
| Operating income | $129B | $109B | $88.5B | $83.4B | $69.9B |
| Net income | $102B | $88.1B | $72.4B | $72.7B | $61.3B |
| Operating cash flow | $136B | $119B | $87.6B | $89.0B | $76.7B |
| Capital expenditure | $64.6B | $44.5B | $28.1B | $23.9B | $20.6B |
| Total assets | $665B | $534B | $471B | $365B | $340B |
| Total liabilities | $274B | $231B | $232B | $181B | $180B |
| Shareholder equity | $391B | $303B | $238B | $183B | $160B |
| Cash | $24.3B | $17.5B | $17.3B | $15.6B | $20.6B |
| Long-term debt | $35.4B | $39.7B | $44.9B | $44.1B | $48.3B |
| Free cash flow | $71.6B | $74.1B | $59.5B | $65.1B | $56.1B |
| Gross margin | 68.8% | 69.8% | 68.9% | 68.4% | 68.9% |
| Operating margin | 45.6% | 44.6% | 41.8% | 42.1% | 41.6% |
| Net margin | 36.1% | 36.0% | 34.1% | 36.7% | 36.5% |
| Diluted shares | 7.5B | 7.5B | 7.5B | 7.5B | 7.6B |
Share count is essentially flat over 4 years.
Risk factors MSFT lists in its 10-K
- We make significant investments in products and services that may not achieve expected returns
- Acquisitions, joint ventures, and strategic alliances could have an adverse effect on our business
- Cyberattacks and security vulnerabilities could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position
- Security of our information technology
- Security of our products, services, devices, and customers’ data
- Development and deployment of defensive measures
- Disclosure and misuse of personal data could result in liability and harm our reputation
- We may not be able to protect information in our products and services from use by others
- Abuse of our platforms may harm our reputation or user engagement
- Advertising, professional, marketplace, and gaming platform abuses
- Our products and services, how they are used by customers, and how third-party products and services interact with them, may present security, privacy, and execution risks
- Issues in the development, deployment, and use of AI may result in reputational or competitive harm or liability
- We may be unable to develop and expand adequate infrastructure
- We may experience outages, disruptions, or capacity constraints if we fail to maintain and operate adequate infrastructure or secure the resources necessary to support it