Stock · MSFT · Technology
United States · Large Cap · listed since 1986 · Revenue 12 mo. $331.8B
Price as of 11/06/2026
Summary
63.1 of 100
Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.
Analysis
What the price requires
If free cash flow stays at €60.1B (2026), it supports €667.9B. The remaining €3T of the market value assume it grows 23.6% a year for 10 years and not at all afterwards.
Required FCF growth per year
23.6%
no growth afterwards
Price to operating cash flow 21.6×, within its usual range.
Middle half of 20 quarters: 21.6× to 27.3×, median 25.9×.
Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.
with respect to the priced-in expectation
with respect to the priced-in expectation
AI summary of the 2026 annual report
A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.
Form 10-K, fiscal year ended 06/30/2026, filed 07/29/2026. Open the report at the SEC
| Segment | Share | Revenue |
|---|---|---|
| Productivity and Business Processes | 42.2% | $140B |
| Intelligent Cloud | 41.5% | $137.8B |
| More Personal Computing | 16.3% | $54.1B |
From the report's structured data (XBRL), not from the language model. The sum can differ slightly from group revenue.
Customers can use Azure through Microsoft's global datacenter network for computing, networking, storage, app services, AI and Internet of Things.
Customers can use Azure through our global network of datacenters for computing, networking, storage, mobile and web application services, AI, and Internet of Things.Microsoft 365 Commercial revenue is mainly affected by growth in the installed user base and in revenue per user, and by customers moving from Office on-premises licenses to Microsoft 365.
Microsoft 365 Commercial revenue is mainly affected by a combination of continued installed base growth and average revenue per user expansion, as well as the continued shift from Office licensed on-premises to Microsoft 365.LinkedIn offers paid solutions called Talent Solutions, Marketing Solutions, Premium Subscriptions and Sales Solutions.
LinkedIn offers monetized solutions designed to offer AI-enabled insights and productivity: Talent Solutions, Marketing Solutions, Premium Subscriptions, and Sales Solutions.Windows OEM revenue depends significantly on how many Windows licenses device makers (OEMs) buy and preinstall on the devices they sell.
Windows OEM revenue is impacted significantly by the number of Windows operating system licenses purchased by OEMs, which they pre-install on the devices they sell.Direct sales serve customers from large multinational companies and public sector organizations to small and medium-sized businesses.
Direct sales activities serve customers ranging from large multinational enterprises and public sector organizations to small and medium-sized businesses.LinkedIn revenue is mainly affected by demand from companies and professionals for subscriptions to Talent Solutions, Sales Solutions and Premium Subscriptions.
LinkedIn revenue is mainly affected by demand from enterprises and professionals for subscriptions to Talent Solutions, Sales Solutions, and Premium Subscriptions offeringsCompetitors of Office include software and global application vendors, web and mobile app companies, AI-first app companies and local app developers.
Competitors to Office include software and global application vendors, web-based and mobile application companies, AI-first application companies, as well as local application developers.Azure faces varied competition from cloud service providers and open-source offerings.
Azure faces diverse competition from cloud service providers and open-source offerings.Microsoft's AI offerings compete with AI products from hyperscalers, other emerging competitors and open-source offerings, many of which are also current or potential partners.
Our AI offerings compete with AI products from hyperscalers, as well as products from other emerging competitors and other open-source offerings, many of which are also current or potential partners.Microsoft has made and keeps making large capital and operating investments in AI models and cloud services, including datacenters, components and energy.
We have made and are continuing to make significant capital and operational investments to develop, train, deploy, and support AI models and related cloud-based services, including building and expanding datacenters, acquiring necessary components, and securing energy resources.If adoption of Microsoft's AI services is slower than expected, or customers do not keep using Azure for AI workloads at expected levels, Microsoft may not realize the expected returns on its investments.
If adoption of our AI services develops more slowly than expected, or if customers do not continue to utilize Azure for AI workloads at anticipated levels, we may not realize the expected returns on our investments.For certain critical device and datacenter components there are few suppliers, and these parts are in short supply.
There are limited suppliers for certain critical device and datacenter components, and those items are in short supply.Availability, reliability and cost of electrical power are critical for running and expanding Microsoft's datacenters.
The availability, reliability, and cost of electrical power are critical to the operation and expansion of our datacenters.Some agreements may let a government end the contract without cause and set higher liability limits for certain losses.
Some agreements may allow a government to terminate without cause and provide for higher liability limits for certain losses.Since the last quarter
Q1 → Q2 2026
5 more unchanged: Revenue, 12 mo., Gross margin, EBIT margin, Shares outstanding, Return on equity
Derivation
Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.
Price as of 11/06/2026.
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Return on equity | 30.23% | 14.60% | Rank 79 |
| Return on capital (Greenblatt) | 41.27% | 29.77% | Rank 58 |
| EBIT margin | 46.78% | 17.40% | Rank 97 |
| FCF margin | 20.19% | 18.54% | Rank 59 |
| Gross margin | 67.94% | 48.47% | Rank 73 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Revenue growth, 1 year | 17.79% | 12.70% | Rank 66 |
| Earnings growth, 3 years per year | 22.83% | 9.54% | Rank 78 |
| Earnings growth, 5 years per year | 17.38% | 14.07% | Rank 59 |
| Sustainable growth (ROE × retained earnings) | 34.94% | 2.87% | Rank 97 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Earnings yield | 3.38% | 2.64% | Rank 62 |
| FCF yield | 1.65% | 3.06% | Rank 29 |
| EV/saleslower is better | 12.38 | 5.18 | Rank 19 |
| EV/EBITlower is better | 26.46 | 26.24 | Rank 50 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Share price, 1 year | −2.87% | −0.59% | Rank 45 |
| Share price, 6 months | 28.30% | −4.46% | Rank 83 |
| Share price, 3 months | 11.26% | −5.84% | Rank 78 |
| Distance from 52-week high | −4.53% | −33.23% | Rank 91 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Accruals (Sloan)lower is better | 13.11% | 1.65% | Rank 16 |
| Change in share countlower is better | −0.16% | −0.17% | Rank 50 |
| Dividend streak in years | 20 | 8 | Rank 94 |
| Price reaction to results, market-adjusted | −0.12% | −1.57% | Rank 61 |
| Metric | Stock | Sector median | Position in sector |
|---|---|---|---|
| Equity ratio | 58.33% | 53.98% | Rank 61 |
| Net debt/EBITDAlower is better | 0.25 | −0.20 | Rank 40 |
| Debt to equitylower is better | 0.29 | 0.33 | Rank 54 |
| Volatility, 1 yearlower is better | 32.90% | 50.37% | Rank 91 |
Ten years in figures
| Year | Revenue, $B | EBIT margin | FCF, $B | Shares | Net debt, $B |
|---|---|---|---|---|---|
| 2017 | 96.6 | 30.1% | 31.4 | 7.83B | 78.5 |
| 2018 | 110.4 | 31.8% | 32.3 | 7.79B | 69.9 |
| 2019 | 125.8 | 34.1% | 38.3 | 7.75B | 67.0 |
| 2020 | 143.0 | 37.0% | 45.2 | 7.68B | 57.4 |
| 2021 | 168.1 | 41.6% | 56.1 | 7.61B | 53.6 |
| 2022 | 198.3 | 42.1% | 65.1 | 7.54B | 47.3 |
| 2023 | 211.9 | 41.8% | 59.5 | 7.47B | 25.3 |
| 2024 | 245.1 | 44.6% | 74.1 | 7.47B | 48.8 |
| 2025 | 281.7 | 45.6% | 71.6 | 7.47B | 30.3 |
| 2026 | 331.8 | 46.8% | 67.0 | 7.45B | 107.9 |
5 of 7 StockScorer Score rules met · How the score is built
Microsoft Corporation mainly meets criteria in the Profitability category. Result from 18 strategies checked.
Microsoft Corporation is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.
5 of 7 rules met
8 of 11 points
Detail data
Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.
With a free account, you can see the match across all strategies checked in one complete overview.
Selected fundamental metrics for Microsoft Corporation.
| Metric | Stock | Sector |
|---|---|---|
| P/E ratio | 29.6 | 35.1 |
| P/B ratio | 8.9 | 5.5 |
| Return on equity (ROE) | 30.2% | 14.6% |
| Equity ratio | 58.3% | 54.0% |
| Debt-to-equity (D/E) | 0.29 | 0.33 |
| Dividend yield | 0.7% | 0.9% |
How comparable stocks in the same sector score in the StockScorer model.
| Symbol | Company | Rating |
|---|---|---|
| MSFT | Microsoft Corporationthis page | |
| PLTR | Palantir Technologies Inc. | Low4.5 |
| ORCL | Oracle Corporation | Low3.6 |
| PANW | Palo Alto Networks Inc | High6.4 |
| CRWD | Crowdstrike Holdings Inc | locked |
| FTNT | Fortinet Inc | locked |
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Learn more about the metrics in the metrics glossary or all rated stocks in the stock overview.
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