Microsoft Corporation MSFT

Information TechnologySoftware & IT ServicesUnited States of America

Last close 521.91 USD on Nov 1, 2026, +8.6% year to date

Quant rating

Quant rating A Rank 52 of 389 in Information Technology

Growth B 105 of 389
Valuation C 168 of 389
Quality A 56 of 389
Revisions B 101 of 389
Momentum B 126 of 389

Wall Street consensus Buy (1.69)Average target 629.22 USD +20.6%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 3.88T
Enterprise value: 3.92T
52-week range: 349.20 – 551.14
3-year range: 346.07 – 551.14
Dividend yield: 0.75%
Beta (5 years): 1.04
Shares outstanding: 7,426M
Next earnings: Jan 28, 2027

About the company

Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily includes Microsoft 365 Commercial products and cloud services, Microsoft 365 Consumer products and cloud services, LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services comprising cloud and AI consumption-based services, GitHub cloud services, Health and Life Sciences cloud services, and other cloud services; and Server products consist of SQL Server, Windows Server, Visual Studio, System Center, related Client Access Licenses, and other on-premises offerings. The More Personal Computing segment primarily comprises Windows and Devices, XBOX, and Search advertising.

Growth and profitability fiscal year ends June 30

Growth and profitability by fiscal year
	2026	2025	2024	2023	2022	5Y avg
Revenue (mil)	331,839	281,724	245,122	211,915	198,270	–
Revenue growth	17.8%	14.9%	15.7%	6.9%	18.0%	14.6%
EPS (basic, normalized)	17.28	13.64	11.80	9.81	9.21	–
EPS growth	26.7%	15.6%	20.3%	6.5%	–	–
Gross margin	67.9%	68.8%	69.8%	68.9%	68.4%	68.8%
Net margin	40.3%	36.1%	36.0%	34.1%	36.7%	36.6%
ROE	34.0%	33.3%	37.1%	38.8%	47.2%	38.1%

Balance sheet, last quarter
Cash & short-term investments (mil)	64,509
Current ratio	1.22x
Long-term debt (mil)	97,058
Net debt (mil)	41,945
Total equity (mil)	470,509
Net debt / equity	0.09x
Net debt / EBITDA	0.22x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2026 actual	331,839	+17.8%	11.8x	193,771	+23.5%	20.2x	17.28	+26.7%	30.2x
2027	394,009	+18.7%	9.9x	241,857	+24.8%	16.2x	19.91	+15.2%	26.2x
2028	474,250	+20.4%	8.3x	298,114	+23.3%	13.1x	23.85	+19.8%	21.9x
2029	579,623	+22.2%	6.8x	371,449	+24.6%	10.5x	29.38	+23.2%	17.8x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2027	394,009	+0.8%	+1.3%	+3.0%	19.91	+0.9%	+1.5%	+3.1%
2028	474,250	+1.6%	+1.9%	+5.3%	23.85	+1.4%	+2.4%	+5.2%
2029	579,623	+2.3%	+4.0%	+9.5%	29.38	+1.8%	+4.8%	+12.2%

Earnings surprises EPS beat in 4 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	61,858	64,727	65,585	69,632	70,066	76,441	77,673	81,273	82,886	90,007
Sales mean (mil)	60,804	64,388	64,508	68,784	68,421	73,827	75,329	80,266	81,393	87,621
Surprise	+1.7%	+0.5%	+1.7%	+1.2%	+2.4%	+3.5%	+3.1%	+1.3%	+1.8%	+2.7%
EPS reported	2.94	2.95	3.30	3.23	3.46	3.65	4.13	4.14	4.27	4.74
EPS mean	2.82	2.93	3.10	3.11	3.22	3.37	3.67	3.96	4.06	4.24
Surprise	+4.3%	+0.5%	+6.5%	+3.8%	+7.4%	+8.3%	+12.7%	+4.7%	+5.1%	+11.7%

Peer comparison Software & IT Services

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
MSFT Microsoft Corporation	3.88T	0.22x	40.3%	8.24x	26.2x	21.9x	16.2x	13.1x
GOOGL Alphabet Inc.	3.43T	−0.67x	32.8%	5.08x	14.1x	18.6x	14.3x	10.9x
0700 Tencent Holdings Limited	444.6B	0.29x	29.9%	2.61x	11.2x	10.8x	8.5x	7.8x
META Meta Platforms, Inc.	1.60T	0.01x	37.1%	5.77x	21.3x	18.2x	11.4x	8.9x
PLTR Palantir Technologies Inc.	442.4B	−4.08x	36.3%	45.26x	115.0x	79.2x	87.2x	57.0x
ORCL Oracle Corporation	396.1B	2.81x	26.6%	5.92x	16.0x	11.9x	9.4x	6.6x
Mean		−0.24x	33.8%	12.15x	34.0x	26.8x	24.5x	17.4x
Median		0.11x	34.6%	5.84x	18.7x	18.4x	12.9x	9.9x

Technical analysis

1M+2.5%
3M+32.9%
1Y−2.9%
3Y+61.9%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Microsoft Corporation, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Total revenue	331,839	281,724	245,122	211,915	198,270	168,088
Cost of revenue	106,374	87,831	74,114	65,863	62,650	52,232
Gross profit	225,465	193,893	171,008	146,052	135,620	115,856
Selling, general & administrative expenses	34,666	32,877	32,065	29,163	27,725	25,224
Research & development	35,562	32,488	29,510	27,195	24,512	20,716
Interest expense (income), operating	–	–	–	–	–	–
Unusual expense (income)	178	943	206	1,201	101	13.0
Other operating expenses	0	0	0	0	0	0
Operating income	155,059	127,585	109,227	88,493	83,282	69,903
Net interest income (expense)	12,683	767	−121	1,041	466	1,101
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−1,808	−4,725	−1,319	−223	−32.0	98.0
Net income before taxes	165,934	123,627	107,787	89,311	83,716	71,102
Provision for taxes	32,185	21,795	19,651	16,950	10,978	9,831
Minority interest	–	–	–	–	–	–
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	133,749	101,832	88,136	72,361	72,738	61,271
Extraordinary items	–	–	–	–	–	–
Net income	133,749	101,832	88,136	72,361	72,738	61,271
EBIT, normalized	155,237	128,528	109,433	89,694	83,383	69,916
EBITDA, normalized	194,237	156,528	129,433	103,555	97,983	81,602
Basic EPS, normalized	17.28	13.64	11.80	9.81	9.21	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Microsoft Corporation, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Assets
Cash & short-term investments	76,843	94,565	75,543	111,262	104,757	130,334
Receivables	108,676	78,105	67,424	48,688	44,261	38,043
Total inventory	1,397	938	1,246	2,500	3,742	2,636
Prepaid expenses	–	–	–	–	–	–
Other current assets	20,794	17,523	15,521	21,807	16,924	13,393
Total current assets	207,710	191,131	159,734	184,257	169,684	184,406
Property, plant & equipment	337,253	229,789	154,552	109,987	87,546	70,803
Goodwill	119,651	119,509	119,220	67,886	67,524	49,711
Intangibles	18,609	22,604	27,597	9,366	11,298	7,800
Long-term investments	36,348	15,405	14,600	9,879	6,891	5,984
Note receivable	5,500	5,200	4,900	4,500	3,800	3,400
Other long-term assets	33,305	35,365	31,560	26,101	18,097	11,675
Total assets	758,376	619,003	512,163	411,976	364,840	333,779
Liabilities
Accounts payable	42,416	27,724	21,996	18,095	19,000	15,163
Payable/accrued	–	–	–	–	–	–
Accrued expenses	20,338	19,133	16,144	13,418	12,889	12,019
Short-term debt	0	0	6,693	0	0	0
Current portion of long-term debt	13,517	6,171	4,598	6,444	3,809	8,863
Other current liabilities	92,554	88,190	75,855	66,192	59,384	52,612
Total current liabilities	168,825	141,218	125,286	104,149	95,082	88,657
Long-term debt	93,371	83,152	67,484	57,860	60,874	61,824
Minority interest	–	–	–	–	–	–
Other liabilities	53,793	51,154	50,916	43,744	42,342	41,310
Total liabilities	315,989	275,524	243,686	205,753	198,298	191,791
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	46,419	46,462	46,462	46,450	46,650	46,994
Additional paid-in capital	70,987	62,632	54,460	47,268	40,289	36,117
Retained earnings (accumulated deficit)	328,265	237,731	173,144	118,848	84,281	57,055
Treasury stock	–	–	–	–	–	–
Other equity	−3,284	−3,347	−5,590	−6,343	−4,678	1,822
Total equity	442,387	343,479	268,477	206,223	166,542	141,988
Total liabilities & shareholders' equity	758,376	619,003	512,163	411,976	364,840	333,779

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Microsoft Corporation, fiscal years, most recent first
	2026	2025	2024	2023	2022	2021
Operating activities
Net income	133,749	101,832	88,136	72,361	72,738	61,271
Depreciation, depletion & amortization	38,534	34,153	22,287	13,861	14,460	11,686
Deferred taxes	14,189	−7,056	−4,738	−6,059	−5,702	−150
Non-cash items	1,358	12,583	11,039	9,807	7,093	4,869
Changes in working capital	−4,895	−5,350	1,824	−2,388	446	−936
Cash from operations	182,935	136,162	118,548	87,582	89,035	76,740
Investing activities
Capital expenditures	−115,948	−64,551	−44,477	−28,107	−23,886	−20,622
Other investing cash flows	−23,552	−8,048	−52,493	5,427	−6,425	−6,955
Cash from investing	−139,500	−72,599	−96,970	−22,680	−30,311	−27,577
Financing activities
Financing cash flow items	−2,839	−2,291	−1,309	−1,006	−863	−2,523
Cash dividends paid	−26,445	−24,082	−21,771	−19,800	−18,135	−16,521
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−23,262	−25,326	−14,677	−23,129	−39,878	−29,442
Cash from financing	−52,546	−51,699	−37,757	−43,935	−58,876	−48,486
Foreign exchange effects	−196	63.0	−210	−194	−141	−29.0
Net change in cash	−9,307	11,927	−16,389	20,773	−293	648
Free cash flow	66,987	71,611	74,071	59,475	65,149	56,118

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 1, 2026 after market close.