Microsoft Corp (MSFT)
Information Technology · Systems Software · US stock · S&P 500 component
$521.08
▼ -11.87 (2.23%)
Fair valueFair
$557 +6.9% to fair value
$278fair band $474–$675$835
Day's range
$520.30 – $533.60
52-week range
$349.20 – $553.72
About Microsoft Corp
Microsoft is a global technology company that makes software, cloud services, devices and online platforms. Its main offerings include the Azure cloud platform, Windows, its Office productivity tools, Dynamics business applications, LinkedIn, Xbox gaming and Surface devices. Revenue comes from subscriptions, software licences, usage-based cloud fees, advertising and hardware sales, with business customers contributing a very large share of the total.
Sales reached $331.8 billion in the last twelve months, having grown 16.1% a year over the past three years. Operating profit equals 46.8% of revenue. Return on invested capital is 29%. Net debt to EBITDA is -0.1 times, which means the company holds more cash than debt. It pays a dividend, and the yield is 0.7%. Overall, the X-Ray Score is 61 out of 100.
Price chart
52-wk range $349.20 – $553.72Volume 21,104,652Daily, split-adjusted
Vitals
Market cap$3.88T
52-week range$349.20 – $553.72
Volume (last day)21,104,652
P/E (TTM)29.0
EBIT / EV yield4.0%
Free-cash-flow yield1.7%
Dividend yield0.7%
Revenue (TTM)$331.8B
Net income (TTM)$133.7B
Operating margin46.8%
Return on capital29.3%
Debt incl. leases$62.2B
Cash & securities$76.8B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$557middle half of models $493 – $589
Fair
+6.9% to fair value
Average of the 11 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $521
Undervalued < $474Fair $474 – $675Overvalued > $675
P/E multiple
$528
P/B multiple
$604
P/S multiple
$574
EV/EBITDA multiple
$734
EV/EBIT multiple
$831
EV/revenue multiple
$556
10-year DCF, EBITDA exit
$458
5-year DCF, EBITDA exit
$561
10-year DCF, revenue exit
$439
5-year DCF, revenue exit
$535
10-year DCF, growth exit · not used
$169
5-year DCF, growth exit · not used
$206
Dividend discount, stable · not used
$155
Dividend discount, multi-stage · not used
$197
Earnings power value
$304
Growth the price implies
24.5%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Average business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Fair
54/100
Priced about in line with its sector.
See the numbers →
EBIT / EV yield4.0%
Free-cash-flow yield1.7%
Fair value vs price1.1×
Growth
Fair
63/100
Growing at a typical pace for its sector.
See the numbers →
Revenue growth (3y)16.1%
EPS growth (3y)22.9%
Growth consistency100%
Profitability
Fair
69/100
Returns on capital are typical for its sector.
See the numbers →
Return on invested capital29.3%
Operating margin46.8%
Gross profitability29.7%
Financial health
Fair
62/100
Balance sheet is in typical shape for its sector.
See the numbers →
Piotroski F-Score6 / 9
Net debt / EBITDA-0.1×
Interest coverNo interest cost
Dividends
Weak
48/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield0.7%
Dividends vs free cash flow40%
Dividend growth10.1%
Quarterly results: last 6 quarters
+13.3%
Mar '25
+18.1%
Jun '25
+18.4%
Sep '25
+16.7%
Dec '25
+18.3%
Mar '26
+17.7%
Jun '26
Revenue against the same quarter a year earlier. Latest quarter revenue $90.0B.
Compare with peers
FTNT Fortinet, Inc.59 GEN Gen Digital Inc.59 NOW ServiceNow, Inc.48 TWLO Twilio Inc43Other Systems Software companies by X-Ray Score.
SWOT analysis: Microsoft Corp
Strengthsinside the company
- Return on invested capital is 29.3%, against a median of 3.6% for industry peers.
- Operating margin of 46.8% is well above the 8.7% median of industry peers, a sign of pricing power or lower costs.
- Revenue has grown 16.1% a year over three years (median 17.0% for industry peers).
- Earnings per share have compounded at 22.9% a year over three years.
Weaknessesinside the company
- No clear weakness in the figures we track.
Opportunitiesvaluation and setting
- Trades at 29.0x earnings, 63% below the 78.8x median of industry peers.
- Our Market Compass rates the backdrop for Information Technology as favourable.
- Price momentum is strong on the weekly and monthly signals (trends can reverse).
Threatsvaluation and setting
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare MSFT with peers and sector
Medians of 6 Systems Software peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): PANW 33, CRWD 33, NOW 48, FTNT 59, TWLO 43, GEN 59.
| Metric | MSFT | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 61 | 46 | 50 |
| Valuation | 54 | 38 | 50 |
| Growth | 63 | 66 | 54 |
| Profitability | 69 | 41 | 49 |
| Financial health | 62 | 33 | 49 |
| Dividends | 48 | – | 51 |
Sector leaders: highest X-Ray Score in Information Technology
MSFT ranks #14 of 75 in Information Technology and #1 of 7 in Systems Software by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for MSFT
Each factor is rated by where MSFT stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 9 Good · 10 Average · 4 Bad of 23
Growth: 2 · 1 · 0
Profitability: 3 · 2 · 0
Financial strength: 2 · 2 · 0
Valuation: 0 · 3 · 2
Cash flow: 1 · 2 · 1
Efficiency: 1 · 0 · 1
| Factor | MSFT | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +16.1% | Good beats 78% | +9.7% | – | – |
| Revenue growth, last year | +17.8% | Average beats 65% | +13.7% | +15.7% | ▲ Better |
| EPS growth, 3 years a year | +22.9% | Good beats 71% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 67.9% | Average beats 64% | 57.8% | 68.8% | ≈ In line |
| Operating margin | 46.8% | Good beats 91% | 20.3% | 44.6% | ≈ In line |
| Net margin | 40.3% | Good beats 89% | 17.8% | 36.1% | ▲ Better |
| Return on invested capital | 29.3% | Good beats 67% | 19.4% | – | – |
| Return on equity | 30.2% | Average beats 62% | 21.0% | 32.8% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | -0.1x | Good beats 78% | 0.8x | -0.4x | ▼ Worse |
| Interest cover | 50.9x | Good beats 87% | 23.0x | 45.0x | ▲ Better |
| Current ratio | 1.23 | Average beats 34% | 1.57 | 1.35 | ≈ In line |
| Piotroski F-score | 6 / 9 | Average beats 43% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 29.0x | Average beats 62% | 33.6x | 35.2x | ▲ Better |
| Price / book | 8.8x | Average beats 45% | 8.3x | 11.6x | ▲ Better |
| Price / sales | 11.7x | Bad beats 26% | 6.9x | 12.0x | ≈ In line |
| EV / EBITDA | 24.9x | Average beats 49% | 24.7x | 28.0x | ▲ Better |
| Free cash flow yield | 1.7% | Bad beats 23% | 3.4% | 2.3% | ≈ In line |
| Cash flow | |||||
| Free cash flow margin | 20.2% | Average beats 38% | 22.3% | 28.1% | ▼ Worse |
| Cash from operations / net income | 1.37 | Average beats 48% | 1.39 | 1.34 | ≈ In line |
| Free cash flow growth, 3 years a year | +4.0% | Bad beats 25% | +15.4% | – | – |
| Accruals (lower is better) | −6.5% | Good beats 70% | −4.4% | – | – |
| Efficiency | |||||
| Inventory turnover | 76.1x | Good beats 99% | 3.9x | 59.5x | ▲ Better |
| Days sales outstanding | 89 days | Bad beats 12% | 63 days | 85 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 9 Good · ● 5 Average · ● 2 BadCash quality
Earnings backed by cashGood
Free-cash-flow yieldBad
Risk models
Altman Z''Average
Piotroski F-ScoreAverage
Growth
EPS growth (3y)Good
Free-cash-flow growth (3y)Bad
Revenue growth (3y)Good
Growth consistencyGood
Balance sheet
Current ratioAverage
Net debt / EBITDAGood
Interest coverGood
Valuation
Fair value vs priceGood
EBIT / EV yieldAverage
Profitability
Return on invested capitalGood
Operating marginGood
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 62/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $198.3B | $211.9B | $245.1B | $281.7B | $331.8B |
| Operating income | $83.4B | $88.5B | $109.4B | $128.5B | $155.2B |
| Net income | $72.7B | $72.4B | $88.1B | $101.8B | $133.7B |
| Operating cash flow | $89.0B | $87.6B | $118.5B | $136.2B | $182.9B |
| Operating margin | 42.1% | 41.8% | 44.6% | 45.6% | 46.8% |
| Free cash flow | $65.1B | $59.5B | $74.1B | $71.6B | $67.0B |
| Diluted EPS | $9.65 | $9.68 | $11.80 | $13.64 | $17.95 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bullish
9 bullish · 2 neutral · 5 bearish
Weekly
Strongly bullish
11 bullish · 1 neutral · 0 bearish
Monthly
Strongly bullish
7 bullish · 1 neutral · 0 bearish
Moving averages (daily)
| SMA 10 | 534.1 | Bearish |
| EMA 10 | 529.8 | Bearish |
| SMA 20 | 526.3 | Bearish |
| EMA 20 | 524.8 | Bearish |
| SMA 50 | 507.8 | Bullish |
| EMA 50 | 504.1 | Bullish |
| SMA 100 | 458.7 | Bullish |
| EMA 100 | 477.8 | Bullish |
| SMA 200 | 435.1 | Bullish |
| EMA 200 | 459.1 | Bullish |
Oscillators (daily)
| RSI (14) | 50.52 | Neutral |
| MACD (12, 26) | 8.15 | Bullish |
| Momentum (12) | -1.55 | Bearish |
| Stochastic %K (14) | 7.08 | Bullish |
| Williams %R (14) | -92.92 | Bullish |
| CCI (20) | -11.96 | Neutral |
Pivot points (classic, last session)
S3 503.1 | S2 511.7 | S1 516.4 | Pivot 525.0 | R1 529.7 | R2 538.3 | R3 543.0 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
3.64 USD
Yield on today's price
0.70%
Frequency
Quarterly
Next ex-dividend date
19 Nov 2026
| Ex-dividend date | Amount per share |
|---|---|
| (upcoming) | 0.9800 |
| 0.9100 | |
| 0.9100 | |
| 0.9100 | |
| 0.9100 | |
| 0.8300 | |
| 0.8300 | |
| 0.8300 | |
| 0.8300 | |
| 0.7500 | |
| 0.7500 | |
| 0.7500 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold MSFT
| ETF | Share of the fund |
|---|---|
| MSFU Daily MSFT Bull 2X | 11.08% |
| FTEC Fidelity MSCI Information Technology I... | 10.93% |
| IYW iShares U.S. Technology | 10.68% |
| DSI iShares MSCI KLD 400 Social | 9.49% |
| VGT Vanguard Information Technology | 9.46% |
| VOOG Vanguard S&P 500 Growth | 9.29% |
| SNPE Xtrackers S&P 500 ESG | 9.19% |
| VONG Vanguard Russell 1000 Growth | 8.96% |
The eight funds with the largest weight in MSFT among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
MSFT stock splits
MSFT has split its stock 8 times since 1990. The latest was a 2-for-1 split on 18 Feb 2003.
Full MSFT stock split history →MSFT SEC filings
DEF 14ASEC EDGAR
Proxy statement
8-KSEC EDGAR
Regulation FD disclosure
10-KSEC EDGAR
Annual report
8-KSEC EDGAR
Results of operations
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.