MSFT — Microsoft Corporation $492.81

SOFTWARE · Generated 2026-08-04 21:27

Price graph

52-Week Range
349.20 – 553.72
P/E (TTM)
27.47
EPS (TTM)
17.94
Earnings Date (est.)
Jul 29, 2026
Forward Dividend & Yield
3.64 (75.00%)
Ex-Dividend Date
Aug 20, 2026
1y Target Est
562.73

Price vs Rates, Inflation & Volume (long-term)

Dotted = market-implied expectation (next ~12 mo), not a prediction.

Quality Scorecard Growth

B79/100
Pricing power (gross margin) 68% Gross margin 68% — wide margins, likely pricing power
Return on equity 34% ROE 34% — high returns on capital
Leverage (net debt / EBITDA) 0.3x Net debt / EBITDA 0.3x — low leverage
Interest coverage 51x EBIT covers interest 51x — comfortably covered
Earnings consistency (revenue) 0/3 down 0 revenue-down year(s) in 3 — no down years
Earnings growth (net income YoY) +31% Net income +31% YoY — earnings growing
Cash conversion (CFO/NI) 137% Operating cash ÷ net income 137% — earnings convert to cash
Operating margin trend eroding Operating margin eroding
🟡 Revenue growth 18% Revenue +18% — moderate growth
🟡 Growth trajectory holding steady YoY +18% vs +15% prior 2-yr avg — holding steady
Dilution control -0.1%/yr Shares -0.1% YoY — dilution controlled
🟡 Rule of 40 38 growth 18% + FCF margin 20% = 38 — approaching

Growth-stage checklist (proxy metrics from yfinance). 12 of 12 criteria scored. Not financial advice.

Buy-Now Score

77/100
Quality ×40%79
Trajectory ×30%88
Valuation ×30%64

Comparative rank: 40% Quality + 30% Trajectory + 30% Valuation — higher = better buy now. Not financial advice.

Valuation

$157.88$619.00
Price $492.81DCF $175.42 (-64%)Analyst $562.73 (+14%)MarketGist fair $485.26 (-2%)

DCF: 16% start growth → 2.5%, 10.0% discount (band $132.57–$236.14). Analyst: 53 analysts. MarketGist fair = 80% analyst + 20% DCF. Not financial advice.

Key Trends (6-yr)

GAAP EPS
▲ +31.6% YoY
Sales
▲ +17.8% YoY
Shares Outstanding
▼ -0.2% YoY

Company Overview

Basic Information

Company Name: Microsoft Corporation
Symbol: MSFT
Exchange: NMS
Sector: Technology
Industry: Software - Infrastructure

Company Details

Country: United States
City: Redmond
Employees: 223,000
Market Cap: $3.66T

Business Description

Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. It operates through three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, Microsoft 365 Copilot, and Windows Commercial on-premises and Office licensed on-premises. This segment also provides Microsoft 365 Consumer products and cloud services; LinkedIn, including talent solutions, marketing solutions, subscriptions, and sales solutions; Dynamics 365, a set of cloud-based applications; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services; cloud and AI consumption-based services, GitHub cloud services, health and life sciences cloud services, as well as virtual desktop offerings, and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related client access licenses; and enterprise support services, industry solutions, Microsoft partner network, and learning experience. The More Personal Computing segment provides Windows OEM licensing and devices comprising Surface and PC accessories; XBOX hardware, and XBOX first- and third-party content and services; XBOX Game Pass and other subscriptions; XBOX Cloud Gaming, advertising, and other cloud services; and search advertising consisting of Bing, Copilot, Microsoft News, Microsoft Edge, and third-party affiliates. It sells its products through partners and retail networks. The company was founded in 1975 and is headquartered in Redmond, Washington.

Key Metrics

Price & Valuation

Current Price
$492.81
Market Cap
$3.66T
P/E Ratio
27.47
Forward P/E
21.00
PEG Ratio
1.52
Price to Book
8.27

Profitability

Profit Margin: 40.30%
Operating Margin: 45.11%
Gross Margin: 67.94%
Return on Equity (ROE): 34.04%
Return on Assets (ROA): 14.09%
Revenue Growth: 17.70%

Financial Health

Current Ratio: 1.23
Quick Ratio: 1.10
Debt to Equity: 29.12
Total Debt: $128.81B
Total Cash: $76.65B
Beta: 1.10

Trading & Analyst Info

52-Week Range

52-Week High: $553.72
52-Week Low: $349.20
50-Day Average: $399.40
200-Day Average: $433.58

Analyst Recommendations

Recommendation: STRONG_BUY
Target Mean Price: $562.73
Target High: $870.00
Target Low: $400.00

Quarterly Verdict

🟢 84/100

Worth buying

Quality grade B; 3 improving / 2 weakening metrics YoY.

➕ Pricing power (gross margin): Gross margin 68% — wide margins, likely pricing power
➕ Return on equity: ROE 34% — high returns on capital
➕ Leverage (net debt / EBITDA): Net debt / EBITDA 0.3x — low leverage
➕ Interest coverage: EBIT covers interest 51x — comfortably covered
➕ Earnings consistency (revenue): 0 revenue-down year(s) in 3 — no down years
➕ Earnings growth (net income YoY): Net income +31% YoY — earnings growing
➕ Cash conversion (CFO/NI): Operating cash ÷ net income 137% — earnings convert to cash
➖ Operating margin trend: Operating margin eroding
➕ Dilution control: Shares -0.1% YoY — dilution controlled
➕ Revenue +17.7% YoY
➕ Net income +31.3% YoY
➖ Free cash flow -23.2% YoY
➖ Cash -30.8% YoY
➕ Debt -6.2% YoY

Heuristic from the Quality Scorecard + quarter-over-quarter trends. Not financial advice.

Financial Statements

Income Statement (Annual)

Item2026-06-302025-06-302024-06-302023-06-30
Tax Effect Of Unusual Items$1.11B$-77.22M$-100.09M$-2.85M
Tax Rate For Calcs$0.19$0.18$0.18$0.19
Normalized EBITDA$201.79B$155.88B$132.23B$105.16B
Total Unusual Items$5.72B$-438.00M$-549.00M$-15.00M
Total Unusual Items Excluding Goodwill$5.72B$-438.00M$-549.00M$-15.00M
Net Income From Continuing Operation Net Minority Interest$133.75B$101.83B$88.14B$72.36B
Reconciled Depreciation$38.53B$29.43B$20.96B$13.86B
Reconciled Cost Of Revenue$106.37B$87.83B$74.11B$65.86B
EBITDA$207.52B$155.44B$131.68B$105.14B
EBIT$168.99B$126.01B$110.72B$91.28B
Net Interest Income$250.00M$262.00M$222.00M$1.03B
Interest Expense$3.05B$2.38B$2.94B$1.97B
Interest Income$3.30B$2.65B$3.16B$2.99B
Normalized Income$129.13B$102.19B$88.58B$72.37B
Net Income From Continuing And Discontinued Operation$133.75B$101.83B$88.14B$72.36B

Showing 15 of 47 rows

Balance Sheet (Annual)

Item2026-06-302025-06-302024-06-302023-06-302022-06-30
Ordinary Shares Number$7.43B$7.43B$7.43B$7.43BN/A
Share Issued$7.43B$7.43B$7.43B$7.43BN/A
Net Debt$19.36B$12.91B$33.31B$12.53BN/A
Total Debt$56.83B$60.59B$67.13B$59.97BN/A
Tangible Book Value$304.13B$201.37B$121.66B$128.97BN/A
Invested Capital$482.68B$386.63B$320.11B$253.46BN/A
Working Capital$38.88B$49.91B$34.45B$80.11BN/A
Net Tangible Assets$304.13B$201.37B$121.66B$128.97BN/A
Capital Lease Obligations$16.53B$17.44B$15.50B$12.73BN/A
Common Stock Equity$442.39B$343.48B$268.48B$206.22BN/A
Total Capitalization$473.45B$383.63B$311.17B$248.21BN/A
Total Equity Gross Minority Interest$442.39B$343.48B$268.48B$206.22BN/A
Stockholders Equity$442.39B$343.48B$268.48B$206.22BN/A
Gains Losses Not Affecting Retained Earnings$-3.28B$-3.35B$-5.59B$-6.34BN/A
Other Equity Adjustments$-3.28B$-3.35B$-5.59B$-6.34BN/A

Showing 15 of 79 rows

Cash Flow Statement (Annual)

Item2026-06-302025-06-302024-06-302023-06-302022-06-30
Free Cash Flow$66.99B$71.61B$74.07B$59.48BN/A
Repurchase Of Capital Stock$-22.27B$-18.42B$-17.25B$-22.25BN/A
Repayment Of Debt$-3.00B$-3.22B$-29.07B$-2.75BN/A
Issuance Of Debt$0.00$0.00$24.39B$0.00N/A
Issuance Of Capital Stock$2.01B$2.06B$2.00B$1.87BN/A
Capital Expenditure$-115.95B$-64.55B$-44.48B$-28.11BN/A
End Cash Position$20.93B$30.24B$18.32B$34.70BN/A
Beginning Cash Position$30.24B$18.32B$34.70B$13.93BN/A
Effect Of Exchange Rate Changes$-196.00M$63.00M$-210.00M$-194.00MN/A
Changes In Cash$-9.11B$11.86B$-16.18B$20.97BN/A
Financing Cash Flow$-52.55B$-51.70B$-37.76B$-43.94BN/A
Cash Flow From Continuing Financing Activities$-52.55B$-51.70B$-37.76B$-43.94BN/A
Net Other Financing Charges$-2.84B$-2.29B$-1.31B$-1.01BN/A
Cash Dividends Paid$-26.45B$-24.08B$-21.77B$-19.80BN/A
Common Stock Dividend Paid$-26.45B$-24.08B$-21.77B$-19.80BN/A

Showing 15 of 59 rows

Data via yfinance. Prices may be delayed. · Privacy

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