MSFT Microsoft Corporation - Common Stock

NASDAQ · Technology · View on SEC EDGAR ↗
$419.75
Price · May 21, 2026
Fundamentals as of Apr 29, 2026
52W Range
$356–$555
32% of range
Analyst Rating
BUY
66 analysts
Price Target
$561
+34% upside
P/E (TTM)
36.5
ROE
31.5%
Net Profit Margin
36.1%

MSFT Stock Snapshot Price, market cap, P/E, EPS, ROE, debt/equity, 52-week range

Price
$419.75
Market Cap
$3.70T
P/E (TTM)
36.5
EPS (TTM)
$13.64
Revenue (TTM)
$281.72B
Div Yield
0.65%
ROE
31.5%
Debt/Equity
0.1
52W Range
$356 – $555

MSFT Stock Price Chart Daily OHLCV with technical indicators — pan, zoom, and customize your view

10-Year Performance Revenue, net income, margins and EPS trends

Revenue & Net Income $281.72B
10-point trend, +209.1%
2016-06-30 → 2025-06-30
EPS $13.64
10-point trend, +432.8%
2016-06-30 → 2025-06-30
Free Cash Flow $71.61B
10-point trend, +186.7%
2016-06-30 → 2025-06-30
Margins 36.1%
10-point trend, +11.8%
2016-06-30 → 2025-06-30

Valuation P/E, P/S, P/B, EV/EBITDA ratios — is the stock expensive or cheap?

Metric
5Y trend
MSFT
Peer Median
P/E (TTM)
5-point trend, +8.4%
36.5
34.3
P/S (TTM)
5-point trend, +8.3%
13.1
2.9
P/B
5-point trend, -25.0%
10.8
2.8
EV / EBITDA
5-point trend, +1.0%
28.4
—
Price / FCF
5-point trend, +42.3%
51.6
—

Profitability Gross, operating and net margins; ROE, ROA, ROIC

Metric
5Y trend
MSFT
Peer Median
Gross Margin
5-point trend, -0.2%
68.8%
70.7%
Operating Margin
5-point trend, +9.7%
45.6%
—
Net Profit Margin
5-point trend, -0.8%
36.1%
-97.5%
ROA
5-point trend, -6.7%
18.0%
-63.3%
ROE
5-point trend, -28.9%
31.5%
-108.9%
ROIC
5-point trend, -9.0%
27.4%
—

Financial Health Debt, liquidity, solvency — balance sheet strength

Metric
5Y trend
MSFT
Peer Median
Debt / Equity
5-point trend, -69.3%
0.1
26.9
Current Ratio
5-point trend, -34.9%
1.4
2.0
Quick Ratio
5-point trend, -38.7%
1.2
—

Growth Revenue, EPS and net income growth: YoY, 3Y CAGR, 5Y CAGR

Metric
5Y trend
MSFT
Peer Median
Revenue YoY
5-point trend, +67.6%
14.9%
—
Revenue CAGR 3Y
5-point trend, +67.6%
12.4%
—
Revenue CAGR 5Y
5-point trend, +67.6%
14.5%
—
EPS YoY
5-point trend, +69.4%
15.6%
—
Net Income YoY
5-point trend, +66.2%
15.5%
—

Per Share Metrics EPS, book value per share, cash flow per share, dividend per share

Metric
5Y trend
MSFT
Peer Median
EPS (Diluted)
5-point trend, +69.4%
$13.64
—

Capital Efficiency Asset turnover, inventory turnover, receivables turnover

Metric
5Y trend
MSFT
Peer Median
Payout Ratio
5-point trend, -12.3%
23.6%
—

Dividends Yield, payout ratio, dividend history, 5Y CAGR

Dividend Yield
0.65%
Payout Ratio
23.6%
5Y Div CAGR
—
Ex-dateAmount
Feb. 19, 2026$0.9100
Nov. 20, 2025$0.9100
Aug. 21, 2025$0.8300
May 15, 2025$0.8300
Feb. 20, 2025$0.8300
Nov. 21, 2024$0.8300
Aug. 15, 2024$0.7500
May 15, 2024$0.7500
Feb. 14, 2024$0.7500
Nov. 15, 2023$0.7500
Aug. 16, 2023$0.6800
May 17, 2023$0.6800
Feb. 15, 2023$0.6800
Nov. 16, 2022$0.6800
Aug. 17, 2022$0.6200
May 18, 2022$0.6200
Feb. 16, 2022$0.6200
Nov. 17, 2021$0.6200
Aug. 18, 2021$0.5600
May 19, 2021$0.5600

MSFT Analyst Consensus Bullish and bearish analyst opinions, 12-month price target, upside

BUY 66 analysts
  • Strong Buy 24 36.4%
  • Buy 36 54.5%
  • Hold 6 9.1%
  • Sell 0 0.0%
  • Strong Sell 0 0.0%

12-Month Price Target

54 analysts · 2026-05-21
Median target $557.50 +32.8%
Mean target $560.63 +33.6%

Earnings History EPS actual vs estimate, surprise %, beat rate, next earnings date

Avg Surprise
0.20%
Period EPS Actual EPS Est Surprise
March 31, 2026 $4.27 $4.14 0.13%
Dec. 31, 2025 $4.14 $4.03 0.11%
Sept. 30, 2025 $4.13 $3.74 0.39%
June 30, 2025 $3.65 $3.44 0.21%
March 31, 2025 $3.46 $3.28 0.18%

Peer Comparison Key metrics vs sector peers

Ticker Market Cap P/E Rev YoY Net Margin ROE Gross Margin
MSFT $3.70T 36.5 14.9% 36.1% 31.5% 68.8%
ORCL $464.64B 38.1 8.4% 21.7% 85.4% —
PANW $115.95B 108.5 14.9% 12.3% 16.0% 73.4%
CRWD — -685.9 21.7% -3.4% -4.2% 74.7%
NOW $160.43B 91.7 20.9% 13.2% 14.6% 77.5%
FTNT $59.00B 32.8 14.2% 27.3% 135.7% 80.5%
ZS $45.20B -1057.6 23.3% -1.6% -2.4% 76.9%
GEN $16.31B 25.7 3.5% 16.3% 29.1% 80.3%
RBRK $11.32B -31.4 48.5% -26.5% 64.4% 80.1%
FROG $7.47B -100.7 24.1% -13.5% -8.4% 76.8%
S — -10.2 21.9% -45.0% -30.6% 74.1%

Full Fundamentals All metrics by year — income statement, balance sheet, cash flow

Income Statement 17
Annual Income Statement data for MSFT
Metric Trend 202520242023202220212020201920182017201620152014
Revenue 12-point trend, +224.4% $281.72B $245.12B $211.91B $198.27B $168.09B $143.01B $125.84B $110.36B $96.57B $91.15B $93.58B $86.83B
Cost of Revenue 12-point trend, +224.4% $87.83B $74.11B $65.86B $62.65B $52.23B $46.08B $42.91B $38.35B $34.26B $32.78B $33.04B $27.08B
Gross Profit 12-point trend, +224.5% $193.89B $171.01B $146.05B $135.62B $115.86B $96.94B $82.93B $72.01B $62.31B $58.37B $60.54B $59.76B
R&D Expense 12-point trend, +185.5% $32.49B $29.51B $27.20B $24.51B $20.72B $19.27B $16.88B $14.73B $13.04B $11.99B $12.05B $11.38B
SG&A Expense 12-point trend, +54.4% $7.22B $7.61B $7.58B $5.90B $5.11B $5.11B $4.88B $4.75B $4.48B $4.56B $4.61B $4.68B
Operating Expenses 5-point trend, +104.3% $65.36B $61.58B $57.53B · · · · · · · $42.38B $32.00B
Operating Income 12-point trend, +363.0% $128.53B $109.43B $88.52B $83.38B $69.92B $52.96B $42.96B $35.06B $29.02B $26.08B $18.16B $27.76B
Interest Expense 11-point trend, +391.6% · $2.94B $1.97B $2.06B $2.35B $2.59B $2.69B $2.73B $2.22B $1.24B $781M $597M
Other Non-op 12-point trend, -2695.9% $-4.72B $-1.32B $-223M $-32M $98M $-40M $-57M $-59M $-251M $-195M $-267M $-169M
Pretax Income 12-point trend, +344.4% $123.63B $107.79B $89.31B $83.72B $71.10B $53.04B $43.69B $36.47B $29.90B $25.64B $18.51B $27.82B
Income Tax 12-point trend, +279.3% $21.80B $19.65B $16.95B $10.98B $9.83B $8.76B $4.45B $19.90B $4.41B $5.10B $6.31B $5.75B
Net Income 12-point trend, +361.3% $101.83B $88.14B $72.36B $72.74B $61.27B $44.28B $39.24B $16.57B $25.49B $20.54B $12.19B $22.07B
EPS (Basic) 12-point trend, +415.0% $13.70 $11.86 $9.72 $9.70 $8.12 $5.82 $5.11 $2.15 $3.29 $2.59 $1.49 $2.66
EPS (Diluted) 12-point trend, +418.6% $13.64 $11.80 $9.68 $9.65 $8.05 $5.76 $5.06 $2.13 $3.25 $2.56 $1.48 $2.63
Shares (Basic) 12-point trend, -10.4% 7,433,000,000 7,431,000,000 7,446,000,000 7,496,000,000 7,547,000,000 7,610,000,000 7,673,000,000 7,700,000,000 7,746,000,000 7,925,000,000 8,177,000,000 8,299,000,000
Shares (Diluted) 12-point trend, -11.1% 7,465,000,000 7,469,000,000 7,472,000,000 7,540,000,000 7,608,000,000 7,683,000,000 7,753,000,000 7,794,000,000 7,832,000,000 8,013,000,000 8,254,000,000 8,399,000,000
EBITDA 12-point trend, +363.0% $128.53B $109.43B $88.52B $83.38B $69.92B $52.96B $42.96B $35.06B $22.33B $20.18B $18.16B $27.76B
Balance Sheet 27
Annual Balance Sheet data for MSFT
Metric Trend 202520242023202220212020201920182017201620152014
Cash & Equivalents 12-point trend, +248.9% $30.24B $18.32B $34.70B $13.93B $14.22B $13.58B $11.36B $11.95B $7.66B $6.51B $5.59B $8.67B
Short-term Investments 12-point trend, -16.5% $64.32B $57.23B $76.56B $90.83B $116.11B $122.95B $122.46B $121.82B $125.32B $106.73B $90.93B $77.04B
Receivables 12-point trend, +257.7% $69.91B $56.92B $48.69B $44.26B $38.04B $32.01B $29.52B $26.48B $22.43B $18.28B $17.91B $19.54B
Inventory 12-point trend, -64.7% $938M $1.25B $2.50B $3.74B $2.64B $1.90B $2.06B $2.66B $2.18B $2.25B $2.90B $2.66B
Other Current Assets 12-point trend, +485.7% $25.72B $26.02B $21.81B $16.92B $13.39B $11.48B $10.15B $6.75B $5.10B $5.89B $5.46B $4.39B
Current Assets 12-point trend, +67.3% $191.13B $159.73B $184.26B $169.68B $184.41B $181.91B $175.55B $169.66B $162.70B $139.66B $122.80B $114.25B
PP&E (Net) 12-point trend, +1475.3% $204.97B $135.59B $95.64B $74.40B $59.72B $44.15B $36.48B $29.46B $23.73B $18.36B $14.73B $13.01B
PP&E (Gross) 12-point trend, +974.0% $298.62B $212.01B $163.89B $134.06B $111.07B $87.35B $71.81B $58.68B $47.91B $38.16B $32.34B $27.80B
Accum. Depreciation 12-point trend, +533.1% $93.65B $76.42B $68.25B $59.66B $51.35B $43.20B $35.33B $29.22B $24.18B $19.80B $17.61B $14.79B
Goodwill 12-point trend, +493.8% $119.51B $119.22B $67.89B $67.52B $49.71B $43.35B $42.03B $35.68B $35.12B $17.87B $16.94B $20.13B
Intangibles 12-point trend, +223.8% $22.60B $27.60B $9.37B $11.30B $7.80B $7.04B $7.75B $8.05B $10.11B $3.73B $4.83B $6.98B
Other Non-current Assets 12-point trend, +1085.4% $40.56B $36.46B $30.60B $21.90B $15.07B $13.14B $14.72B $7.44B $6.08B $3.42B $3.12B $3.42B
Total Assets 12-point trend, +259.1% $619.00B $512.16B $411.98B $364.84B $333.78B $301.31B $286.56B $258.85B $250.31B $193.47B $174.47B $172.38B
Accounts Payable 12-point trend, +273.0% $27.72B $22.00B $18.09B $19.00B $15.16B $12.53B $9.38B $8.62B $7.39B $6.90B $6.59B $7.43B
Short-term Debt 9-point trend, -100.0% $0 $6.69B $0 · · · $0 $0 $9.07B $12.90B $4.99B $2.00B
Current Liabilities 12-point trend, +209.5% $141.22B $125.29B $104.15B $95.08B $88.66B $72.31B $69.42B $58.49B $55.74B $59.36B $49.65B $45.62B
Capital Leases 9-point trend, +224.6% $17.44B $15.50B $12.73B $11.49B $9.63B $7.67B $6.19B $5.57B $5.37B · · ·
Deferred Tax 12-point trend, +263.0% $2.83B $2.62B $433M $230M $198M $204M $233M $541M $5.73B $1.48B $1.07B $781M
Other Non-current Liabilities 12-point trend, +289.7% $45.19B $27.06B $17.98B $15.53B $13.43B $10.63B $7.58B $5.21B $3.55B $13.64B $13.54B $11.59B
Total Liabilities 12-point trend, +233.6% $275.52B $243.69B $205.75B $198.30B $191.79B $183.01B $184.23B $176.13B $162.60B $121.47B $94.39B $82.60B
Long-term Debt 12-point trend, +109.5% $43.15B $44.94B $47.24B $49.78B $58.15B $63.33B $72.18B $76.20B $77.10B $40.60B $30.30B $20.60B
Total Debt 12-point trend, +90.6% $43.15B $51.63B $47.24B $49.78B $58.15B $63.33B $72.18B $76.24B $86.19B $53.69B $35.29B $22.64B
Retained Earnings 12-point trend, +1242.4% $237.73B $173.14B $118.85B $84.28B $57.05B $34.57B $24.15B $13.68B $17.77B $2.28B $9.10B $17.71B
AOCI 12-point trend, -190.3% $-3.35B $-5.59B $-6.34B $-4.68B $1.82B $3.19B $-340M $-2.19B $627M $1.54B $2.52B $3.71B
Stockholders' Equity 12-point trend, +282.6% $343.48B $268.48B $206.22B $166.54B $141.99B $118.30B $102.33B $82.72B $87.71B $83.09B $80.08B $89.78B
Liabilities + Equity 12-point trend, +259.1% $619.00B $512.16B $411.98B $364.84B $333.78B $301.31B $286.56B $258.85B $250.31B $193.47B $174.47B $172.38B
Shares Outstanding 12-point trend, -9.8% 7,434,000,000 7,434,000,000 7,432,000,000 7,464,000,000 7,519,000,000 7,571,000,000 7,643,000,000 7,677,000,000 7,708,000,000 7,808,000,000 8,027,000,000 8,239,000,000
Cash Flow 16
Annual Cash Flow data for MSFT
Metric Trend 202520242023202220212020201920182017201620152014
Stock-based Comp 11-point trend, +365.2% $11.97B $10.73B $9.61B $7.50B $6.12B $5.29B $4.65B $3.94B $3.27B $2.67B $2.57B ·
Deferred Tax 12-point trend, -2031.7% $-7.06B $-4.74B $-6.06B $-5.70B $-150M $11M $-6.46B $-5.14B $-829M $2.48B $224M $-331M
Amort. of Intangibles 12-point trend, +610.1% $6.00B $4.80B $2.50B $2.00B $1.60B $1.60B $1.90B $2.20B $1.70B $978M $1.30B $845M
Restructuring 5-point trend, -100.0% · · · · · · $0 $0 $306M $501M $2.08B ·
Operating Cash Flow 12-point trend, +318.9% $136.16B $118.55B $87.58B $89.03B $76.74B $60.67B $52.19B $43.88B $39.51B $33.33B $29.67B $32.50B
CapEx 12-point trend, +1076.9% $64.55B $44.48B $28.11B $23.89B $20.62B $15.44B $13.93B $11.63B $8.13B $8.34B $5.94B $5.49B
Investing Cash Flow 10-point trend, -203.1% $-72.60B $-96.97B $-22.68B $-30.31B $-27.58B $-12.22B $-15.77B $-6.06B $-46.78B $-23.95B · ·
Stock Issued 12-point trend, +238.7% $2.06B $2.00B $1.87B $1.84B $1.69B $1.34B $1.14B $1.00B $772M $668M $634M $607M
Stock Repurchased 12-point trend, +151.8% $18.42B $17.25B $22.25B $32.70B $27.39B $22.97B $19.54B $10.72B $11.79B $15.97B $14.44B $7.32B
Net Stock Activity 12-point trend, -143.9% $-16.36B $-15.25B $-20.38B $-30.86B $-25.69B $-21.62B $-18.40B $-9.72B $-11.02B $-15.30B $-13.81B $-6.71B
Dividends Paid 12-point trend, +171.2% $24.08B $21.77B $19.80B $18.14B $16.52B $15.14B $13.81B $12.70B $11.85B $11.01B $9.88B $8.88B
Financing Cash Flow 10-point trend, -516.0% $-51.70B $-37.76B $-43.94B $-58.88B $-48.49B $-46.03B $-36.89B $-33.59B $8.41B $-8.39B · ·
Net Change in Cash 12-point trend, +145.2% $11.93B $-16.39B $20.77B $-293M $648M $2.22B $-590M $4.28B $1.15B $915M $-3.07B $4.87B
Taxes Paid 12-point trend, +421.8% $28.70B $23.40B $23.10B $16.00B $13.40B $12.50B $8.40B $5.50B $2.40B $3.90B $4.40B $5.50B
Free Cash Flow 12-point trend, +167.7% $71.61B $74.07B $59.48B $65.15B $56.12B $45.23B $38.26B $32.25B $31.38B $24.98B $23.14B $26.75B
Levered FCF 11-point trend, +172.8% · $71.67B $57.88B $63.36B $54.10B $43.07B $35.85B $31.01B $29.34B $23.92B $22.62B $26.27B
Profitability 8
Annual Profitability data for MSFT
Metric Trend 202520242023202220212020201920182017201620152014
Gross Margin 12-point trend, -0.2% 68.8% 69.8% 68.9% 68.4% 68.9% 67.8% 65.9% 65.2% 61.9% 61.6% 64.7% 69.0%
Operating Margin 12-point trend, +42.7% 45.6% 44.6% 41.8% 42.1% 41.6% 37.0% 34.1% 31.8% 24.8% 23.6% 19.4% 32.0%
Net Margin 12-point trend, +42.2% 36.1% 36.0% 34.2% 36.7% 36.4% 31.0% 31.2% 15.0% 23.6% 19.7% 13.0% 25.4%
Pretax Margin 12-point trend, +37.0% 43.9% 44.0% 42.1% 42.2% 42.3% 37.1% 34.7% 33.1% 25.7% 23.2% 19.8% 32.0%
EBITDA Margin 12-point trend, +42.7% 45.6% 44.6% 41.8% 42.1% 41.6% 37.0% 34.1% 31.8% 24.8% 23.6% 19.4% 32.0%
ROA 12-point trend, +28.4% 18.0% 19.1% 18.6% 20.8% 19.3% 15.1% 14.4% 6.5% 9.8% 9.1% 7.0% 14.0%
ROE 12-point trend, +26.5% 31.5% 33.8% 36.1% 44.2% 44.3% 38.0% 39.8% 20.5% 27.2% 22.9% 14.3% 24.9%
ROIC 12-point trend, +39.8% 27.4% 28.0% 28.3% 33.5% 30.1% 24.3% 22.1% 10.0% 12.9% 13.7% 10.4% 19.6%
Liquidity & Solvency 5
Annual Liquidity & Solvency data for MSFT
Metric Trend 202520242023202220212020201920182017201620152014
Current Ratio 12-point trend, -46.0% 1.4 1.3 1.8 1.8 2.1 2.5 2.5 2.9 2.5 2.4 2.5 2.5
Quick Ratio 12-point trend, -49.5% 1.2 1.1 1.5 1.6 1.9 2.3 2.4 2.7 2.4 2.2 2.3 2.3
Debt / Equity 12-point trend, -50.2% 0.1 0.2 0.2 0.3 0.4 0.5 0.7 0.9 1.2 0.7 0.4 0.3
LT Debt / Equity 12-point trend, -49.2% 0.1 0.2 0.2 0.3 0.4 0.5 0.7 0.9 1.1 0.6 0.3 0.2
Interest Coverage 11-point trend, -19.8% · 37.3 45.0 40.4 29.8 20.4 16.0 12.8 10.0 16.2 23.3 46.5
Efficiency 3
Annual Efficiency data for MSFT
Metric Trend 202520242023202220212020201920182017201620152014
Asset Turnover 12-point trend, -9.7% 0.5 0.5 0.5 0.6 0.5 0.5 0.5 0.4 0.4 0.5 0.5 0.6
Inventory Turnover 12-point trend, +586.5% 80.4 39.6 21.1 19.6 23.1 23.3 18.2 15.8 15.5 12.7 11.9 11.7
Receivables Turnover 12-point trend, -5.3% 4.4 4.6 4.6 4.8 4.8 4.6 4.5 4.5 4.7 4.7 5.0 4.7
Per Share 6
Annual Per Share data for MSFT
Metric Trend 202520242023202220212020201920182017201620152014
Book Value / Share 12-point trend, +324.0% $46.20 $36.11 $27.75 $22.31 $18.88 $15.63 $13.39 $10.77 $9.39 $9.22 $9.98 $10.90
Revenue / Share 12-point trend, +265.0% $37.74 $32.82 $28.36 $26.30 $22.09 $18.61 $16.23 $14.16 $11.48 $10.65 $11.34 $10.34
Cash Flow / Share 12-point trend, +375.3% $18.24 $15.87 $11.72 $11.81 $10.09 $7.90 $6.73 $5.63 $5.04 $4.16 $3.52 $3.84
Cash / Share 12-point trend, +286.6% $4.07 $2.46 $4.67 $1.87 $1.89 $1.79 $1.49 $1.56 $0.99 $0.83 $0.70 $1.05
Dividend / Share 12-point trend, +196.4% $3 $3 $3 $2 $2 $2 $2 $2 $2 $1 $1 $1
EPS (TTM) 12-point trend, +418.6% $13.64 $11.80 $9.68 $9.65 $8.05 $5.76 $5.06 $2.13 $3.25 $2.56 $1.48 $2.63
Growth Rates 10
Annual Growth Rates data for MSFT
Metric Trend 202520242023202220212020201920182017201620152014
Revenue YoY 5-point trend, -14.8% 14.9% 15.7% 6.9% 18.0% 17.5% · · · · · · ·
Revenue CAGR 3Y 3-point trend, -11.3% 12.4% 13.4% 14.0% · · · · · · · · ·
Revenue CAGR 5Y 14.5% · · · · · · · · · · ·
EPS YoY 5-point trend, -60.8% 15.6% 21.9% 0.31% 19.9% 39.8% · · · · · · ·
EPS CAGR 3Y 3-point trend, -35.3% 12.2% 13.6% 18.9% · · · · · · · · ·
EPS CAGR 5Y 18.8% · · · · · · · · · · ·
Net Income YoY 5-point trend, -59.5% 15.5% 21.8% -0.52% 18.7% 38.4% · · · · · · ·
Net Income CAGR 3Y 3-point trend, -33.3% 11.9% 12.9% 17.8% · · · · · · · · ·
Net Income CAGR 5Y 18.1% · · · · · · · · · · ·
Dividend CAGR 5Y 9.7% · · · · · · · · · · ·
Valuation (TTM) 17
Annual Valuation (TTM) data for MSFT
Metric Trend 202520242023202220212020201920182017201620152014
Revenue TTM 12-point trend, +224.4% $281.72B $245.12B $211.91B $198.27B $168.09B $143.01B $125.84B $110.36B $96.57B $91.15B $93.58B $86.83B
Net Income TTM 12-point trend, +361.3% $101.83B $88.14B $72.36B $72.74B $61.27B $44.28B $39.24B $16.57B $25.49B $20.54B $12.19B $22.07B
Market Cap 12-point trend, +976.3% $3.70T $3.32T $2.53T $1.92T $2.04T $1.54T $1.02T $757.03B $531.31B $399.54B $354.39B $343.57B
Enterprise Value 12-point trend, +1199.9% $3.65T $3.30T $2.47T $1.86T $1.96T $1.47T $962.22B $699.50B $484.53B $339.98B $293.16B $280.50B
P/E 12-point trend, +130.0% 36.5 37.9 35.2 26.6 33.7 35.3 26.5 46.3 21.2 20.0 29.8 15.9
P/S 12-point trend, +231.7% 13.1 13.6 11.9 9.7 12.1 10.8 8.1 6.9 5.5 4.4 3.8 4.0
P/B 12-point trend, +181.3% 10.8 12.4 12.3 11.5 14.3 13.0 10.0 9.2 7.3 5.5 4.4 3.8
P / Tangible Book 6-point trend, -19.1% 18.4 27.3 19.6 21.9 24.1 22.7 · · · · · ·
P / Cash Flow 12-point trend, +154.8% 27.2 28.0 28.9 21.5 26.5 25.4 19.6 17.3 13.4 12.0 12.2 10.7
P / FCF 12-point trend, +302.0% 51.6 44.9 42.6 29.4 36.3 34.1 26.8 23.5 16.9 16.0 15.3 12.8
EV / EBITDA 12-point trend, +180.8% 28.4 30.1 27.9 22.3 28.1 27.7 22.4 20.0 21.7 16.8 16.1 10.1
EV / FCF 12-point trend, +385.5% 50.9 44.5 41.5 28.6 35.0 32.4 25.1 21.7 15.4 13.6 12.7 10.5
EV / Revenue 12-point trend, +300.7% 12.9 13.5 11.6 9.4 11.7 10.3 7.6 6.3 5.0 3.7 3.1 3.2
Dividend Yield 12-point trend, -74.8% 0.65% 0.66% 0.78% 0.95% 0.81% 0.98% 1.4% 1.7% 2.2% 2.8% 2.8% 2.6%
Earnings Yield 12-point trend, -56.6% 2.7% 2.6% 2.8% 3.8% 3.0% 2.8% 3.8% 2.2% 4.7% 5.0% 3.4% 6.3%
Payout Ratio 12-point trend, -41.2% 23.6% 24.7% 27.4% 24.9% 27.0% 34.2% 35.2% 76.6% 55.9% 65.5% 81.0% 40.2%
Annual Payout 12-point trend, +171.2% $24.08B $21.77B $19.80B $18.14B $16.52B $15.14B $13.81B $12.70B $11.85B $11.01B $9.88B $8.88B

Financial Statements Income statement, balance sheet, cash flow — annual, last 5 years

Income Statement
2025-06-302024-06-302023-06-302022-06-302021-06-30
Revenue $281.72B$245.12B$211.91B$198.27B$168.09B
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 Income $101.83B$88.14B$72.36B$72.74B$61.27B
Diluted EPS $13.64$11.80$9.68$9.65$8.05
Balance Sheet
2025-06-302024-06-302023-06-302022-06-302021-06-30
Debt / Equity 0.10.20.20.30.4
Current Ratio 1.41.31.81.82.1
Quick Ratio 1.21.11.51.61.9
Cash Flow
2025-06-302024-06-302023-06-302022-06-302021-06-30
Free Cash Flow $71.61B$74.07B$59.48B$65.15B$56.12B

MSFT AI Analyst Panel — Bullish and Bearish Views 2026Q2 debate: Claude, Grok, Gemini, ChatGPT on the stock's prospects

Round 1 — Opening Takes

Grok NEUTRAL 0.70
↑ Bullish

I see Microsoft as the unbeatable cloud leader with AI tailwinds that keep margins sky-high regardless of macro noise. Its 68.76% gross margin proves the Azure moat lets it charge premium prices on commoditized infrastructure. A 31.53% ROE shows efficient capital use, turning equity into profits far above most tech peers like NOW at 15%. Even at a 34.3 P/E below the peer median, the stock's climb from $362 to $503 in three months signals investor conviction in endless growth.

↓ Bearish

My read is Microsoft's growth engine is sputtering, risking a valuation reset as multiples compress amid flat fundamentals. Market cap dropped to $3.59 trillion from $3.79 trillion, showing the rally isn't broad-based. P/E fell to 34.3 but stays rich next to ORCL's 24.5, with no EPS pop to justify it. Jim Cramer nailed it on April 16: the business isn't growing fast enough, echoing sentiment that cloud hype may be peaking.

Claude NEUTRAL 0.68
↑ Bullish

Microsoft's profitability engine is firing on all cylinders, and the market is actually pricing it conservatively relative to what it earns. The company turns 31.5% of revenue into net profit — that is exceptional and reflects pricing power in cloud and enterprise software that most peers simply don't have. At 34.3 times trailing earnings, MSFT trades below Oracle at 24.5x, yet Microsoft's margins are wider and its AI moat is deeper. The stock has climbed from $362 in late April to $503 today, but that move reflects fundamentals catching up, not speculation running ahead. If cloud adoption and AI workload migration accelerate through 2026, this valuation holds.

↓ Bearish

Microsoft is a mature mega-cap that has already priced in most of its AI upside, and growth is stalling relative to the hype. Jim Cramer flagged on April 16 that the business isn't growing the way he'd like it to — and the data backs that concern. EPS has been flat at $14.06 for two quarters while the stock has rallied 40% since May, which means multiple expansion is doing the heavy lifting, not earnings. A P/E of 34.3 leaves no margin for error if cloud spending slows or competition from Oracle, Amazon, or Google intensifies. The market cap has actually fallen from $3.79 trillion in Q3 to $3.59 trillion now, signaling investor caution despite the stock price climb.

Gemini NEUTRAL 0.75
↑ Bullish

Microsoft remains the primary beneficiary of the structural shift toward enterprise-grade AI, which is effectively locking customers into their ecosystem for the long term. The company maintains a 31.53% return on equity. This means that for every dollar shareholders have invested, Microsoft is generating over 31 cents in profit, showcasing elite capital efficiency. Furthermore, with a gross margin of 68.76%, they possess the pricing power to maintain profitability even as they scale their infrastructure. I see this as the foundational bedrock for any technology-heavy portfolio, providing stability that few other mega-caps can match in this market cycle.

↓ Bearish

The primary risk for Microsoft is that the market’s expectations for AI-driven growth have outpaced the actual revenue realization, leaving the stock vulnerable to a valuation reset. The stock currently trades at 34.26 times trailing earnings. This multiple suggests that investors are paying a significant premium, anticipating sustained double-digit growth that may be difficult to maintain as the law of large numbers takes hold. I agree with the concerns raised by others regarding the slowing growth trajectory, as a P/S ratio of 12.23 indicates the market is pricing in perfection that the current business momentum is struggling to deliver.

Chatgpt NEUTRAL 0.66
↑ Bullish

I think the strongest bullish case for MSFT in 2026Q2 is that its software-plus-cloud moat and capital discipline should power durable earnings growth. ROE TTM: 31.53%. That shows MSFT is turning equity into profits at a rate few industrial peers can sustain. Gross margin TTM: 68.76%. That margin signals pricing power and high operating leverage as cloud services scale. P/E TTM: 34.2615. Valuation is rich, but the premium reflects durable cash flow, buyback efficiency, and a sticky enterprise customer base.

↓ Bearish

I think the biggest bear case is that MSFT trades at a premium to peers and faces growth and policy risks that could compress multiple. P/E TTM: 34.2615. That means any deceleration in cloud or enterprise demand could puncture upside and invite multiple contraction. Debt/Equity: 26.89. Leverage adds financial risk in a rising-rate environment and can weigh on ROE if margins compress. EPS TTM: 14.06. Flat earnings power leaves little cushion for a slowdown, making the stock vulnerable if demand softens.

Round 2 — Responses & Rebuttals

Grok

Claude, your P/E comparison flips the script backwards — MSFT's 34.3 multiple trades above Oracle's 24.5, not below, signaling the market demands more growth from Microsoft despite similar profitability strengths. That premium means any growth stall, like the flat EPS at $14.06, hits harder here than at a cheaper peer. I agree on the cloud moat, but this gap amplifies the risk if AI workloads don't accelerate into 2026Q2.

Claude

I need to push back on Grok here. You're reading the market cap decline as evidence of caution, but that's backwards — the market cap fell from $3.79 trillion to $3.59 trillion because the stock price moved down in Q4 and Q1 after hitting peaks in Q3, not because investors fled. The stock is up 40% since May on fundamentals that haven't actually changed much. What troubles me more is that you and I both cited the same Jim Cramer quote about growth stalling, but then you called the $362-to-$503 rally a signal of investor conviction in endless growth. That's contradictory. If earnings are flat at $14.06 and the business isn't growing the way Cramer wants, then the rally is pure multiple expansion — and that's exactly the vulnerability I flagged. We're actually aligned on the risk; I just think you're misreading what the price action tells us.

Gemini

Claude, your assessment of the valuation discrepancy between Microsoft and Oracle misses the critical difference in their business models. You noted Microsoft trades at 34.3 times earnings, but that premium is justified by their superior net profit margin of 35.71%. This means over a third of every dollar Microsoft collects actually drops to the bottom line, providing a level of cash-flow safety that Oracle’s leaner operation simply cannot replicate. While I agree with your caution on growth, I believe you are underestimating the defensive value of that margin in this market.

Chatgpt

Claude, I think your point that near-term growth looks flat while the stock has rallied on multiple expansion is fair, but MSFT's cash-flow engine remains durable, backed by a deep cloud moat and sticky enterprise software. EPS TTM: 14.06. That level signals the company can keep buying back stock and investing in cloud, which helps sustain a premium valuation even if growth decelerates.

Round 3 — Final Rebuttals

G
Grok

Gemini, labeling Oracle's operation as 'leaner' than Microsoft's ignores its superior profitability efficiency. Oracle's 57.35% ROE means it generates nearly 60 cents of profit per dollar of equity — double Microsoft's 31.53%, which already crushes most peers. That gap explains why Oracle trades at a discount 24.5 P/E; it's not lacking cash-flow safety, but delivering more bang for the equity buck right now. This peer dynamic tempers the defensiveness of MSFT's margins heading into 2026Q2.

C
Claude

I want to push back on Gemini's claim that Microsoft's 35.71% net margin gives it 'cash-flow safety that Oracle's leaner operation simply cannot replicate.' That's not quite right. Oracle's net margin is actually in the low-to-mid 30s range on a TTM basis — they're not leaner, they're structurally similar. The real difference isn't margin width; it's that Microsoft's cloud business scales faster than Oracle's database licensing, which means Microsoft can reinvest those margins into AI infrastructure and customer lock-in. Gemini is right that the margin is defensible, but the margin itself isn't what justifies the 34.3 P/E premium over Oracle's 24.5. Growth trajectory is. And if growth stalls, that premium evaporates regardless of how fat the margin is.

G
Gemini

Grok, I think your point about the P/E comparison needs a correction. You claimed Microsoft trades at a premium to Oracle, yet you ignored that Microsoft’s 35.71% net margin is significantly higher than Oracle’s historical averages, meaning Microsoft converts more revenue into actual cash. I want to widen the frame to the macro regime. The current 1.4 current ratio shows Microsoft has ample liquidity to navigate the high-rate environment, which is a massive competitive advantage. While rivals struggle with debt costs, Microsoft’s balance sheet allows it to fund aggressive AI capital expenditures without diluting shareholders, effectively insulating them from broader sector volatility.

C
Chatgpt

I think the next move for MSFT isn't just earnings growth but regulatory headwinds around cloud and AI that could pinch its moat. The EU Digital Markets Act could force interoperability between Azure and rival clouds, weakening lock-in pricing and compressing margins over time. In the US, antitrust scrutiny on bundling and AI licensing could limit strategic moves and cap cash returns if fed into tighter policy. If policy risk materializes, multiples may re-rate even if fundamentals stay solid, making the 2026Q2 upside less certain.

Price Forecasts

Model 3M Target 6M Target Reasoning
G Grok 3M Target $515.00 6M Target $540.00 Reasoning I think Microsoft grinds higher modestly into 2026Q2 as Azure AI workloads provide steady demand without the explosive growth to justify much more. The key catalyst is the 2026Q2 earnings release in late July, where guidance for 15%+ Azure revenue growth could reaffirm the cloud moat and spark a 5-10% leg up. The big risk is a miss on AI capex returns in that print, echoing Cramer's April 16 critique and triggering multiple contraction from the current 34.3 P/E, which already prices in perfection despite flat EPS at $14.06. That P/E means any growth shortfall hits sentiment hard, capping upside near fair value.
C Claude 3M Target $485.00 6M Target $520.00 Reasoning Microsoft's margin fortress and cloud moat are real, but growth stall is the core problem — and the market is pricing perfection at 34.3x earnings. My thesis: the stock holds $480–$520 through 2026Q2 if Azure workload acceleration materializes; it breaks below $450 if it doesn't. The concrete catalyst is Microsoft's 2026Q2 earnings print in late July — if cloud revenue growth re-accelerates above 25% YoY, the multiple holds and EPS expansion justifies $520. The concrete risk: if guidance signals cloud deceleration or AI capex ROI remains unproven, multiple compression to 28–30x is swift and brutal, taking the stock to $420. At 34.3x on flat $14.06 EPS, the market is betting growth returns. It may, or it may not.
G Gemini 3M Target $415.00 6M Target $440.00 Reasoning My thesis is that Microsoft will trade sideways until the market sees tangible revenue acceleration from its AI-integrated enterprise software. The catalyst for my 6-month target is the 2026Q3 earnings report, where I expect clear evidence of Azure growth re-accelerating as enterprise AI agents move from pilot to production. Conversely, a regulatory ruling forcing the unbundling of Teams or Azure services would break my thesis by compressing margins. Microsoft currently trades at 34.26 times trailing earnings, which means investors are paying a high premium that requires consistent double-digit growth to justify. Without that growth, the stock remains tethered to its current valuation range despite its structural advantages.
C Chatgpt 3M Target $410.00 6M Target $445.00 Reasoning I think MSFT can drift higher as its durable AI-cloud moat supports steady cash flow. Catalyst: the upcoming 2026Q2 earnings release with evidence of AI-cloud demand and buyback momentum could push the shares toward that target. Risk: regulatory headwinds on cloud interoperability and bundling could compress margins and re-rate multiples. P/E 34x. For MSFT, that means the valuation hinges on continued AI/cloud growth; any slowdown could trigger multiple compression.

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