MSFT
SP100NasdaqGSMicrosoft Corporation
Technology · Software - Infrastructure · United States
Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The Productivity and Business Processes segment offers Microsoft 365 commercial, enterprise mobility + security, windows commercial, power BI, exchange, sharepoint, Microsoft teams, security and compliance, and copilot; Microsoft 365 commercial products, such as Windows commercial on-premises and office licensed services; Microsoft 365 consumer products and cloud services, including Microsoft 365 consumer subscriptions, office licensed on-premises, and other consumer services; LinkedIn; dynamics products and cloud services, such as dynamics 365, cloud-based applications, and on-premises ERP and CRM applications. Its Intelligent Cloud segment provides Server products and cloud services comprising Azure and other cloud services, GitHub, Nuance Healthcare, virtual desktop offerings, and other cloud services; server products, including SQL and windows server, visual studio and system center related client access licenses, and other on-premises offerings; enterprise and partner services, such as enterprise support and nuance professional services, industry solutions, Microsoft partner network, and learning experience. The Personal Computing segment provides windows and devices, such as Windows OEM licensing and devices and surface and PC accessories; gaming services and solutions, such as Xbox hardware, content, and services, first- and third-party content Xbox game pass, subscriptions, and cloud gaming, advertising, and other cloud services; search and news advertising services. It sells its products through OEMs, distributors, and resellers; and online and retail stores. The company has a strategic collaboration with Mayo Clinic, Inc. for the development of a frontier AI model for healthcare; and Global Objects, Inc. to build a retrieval-grounded generative AI world model. The company was founded in 1975 and is headquartered in Redmond, Washington.
www.microsoft.com ↗Shares trade at a moderate 23.3× trailing earnings, easing to 20.2× on forward estimates. Profitability shows a net margin of 39.3% and return on equity of 34.0%. Leverage is modest at 0.3× net debt/EBITDA. Revenue grew 18.3% year-on-year. It yields 0.9% in dividends. The mean analyst target of USD561.11 sits 43.7% above the current price (Strong Buy, 55 analysts).
business model
Microsoft runs three reportable segments spanning cloud infrastructure, productivity software, and personal computing. The core thesis is enterprise cloud: Azure plus a commercial software franchise (Microsoft 365, Dynamics, GitHub, security) sold largely on high-retention subscriptions, now amplified by an AI (Copilot) upsell layer built on its OpenAI partnership.
revenue segments
Intelligent Cloud (Azure, server products, enterprise services) is the growth driver; Productivity & Business Processes (Microsoft 365, LinkedIn, Dynamics); and More Personal Computing (Windows, devices, Xbox/gaming including Activision Blizzard, and search/advertising).
key dependencies
Azure capacity expansion depends on massive data-center capex and access to AI accelerators (heavily Nvidia GPUs, plus in-house Maia silicon). The OpenAI relationship underpins much of the AI narrative. Enterprise IT budgets and seat-based licensing drive the recurring base.
competitors
Amazon AWS and Google Cloud in infrastructure; Google Workspace and Salesforce/Slack in productivity and collaboration; ServiceNow and SAP in enterprise apps; Sony/Nintendo in gaming; Google in search.
moat
Deep enterprise distribution and bundling, extremely high switching costs across identity (Active Directory/Entra), Office, and Windows, a broad security suite, and a developer platform (GitHub, VS Code, Azure). Bundling Copilot across the stack gives a distribution advantage in enterprise AI.
risks
AI capex is enormous and returns are still being proven; cloud growth deceleration would pressure a premium multiple; dependence on Nvidia supply and on the evolving OpenAI relationship; antitrust and bundling scrutiny; and macro-driven enterprise IT spending cycles.
Financials & metrics
as of 28 Aug 2026Price is closer to the high end of its range. Green = nearer the yearly low, red = nearer the high — a position indicator, not a buy/sell signal.
Tap any metric for an explanation.● provider● computedN/A not available from source
Valuation history is being recorded
We snapshot P/E and price targets daily. This chart fills in over the coming days.
Full financial statements
Income statement
| Line item | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
| Total revenue | $331.84B | $281.72B | $245.12B | $211.91B | — |
| Cost of revenue | $106.37B | $87.83B | $74.11B | $65.86B | — |
| Gross profit | $225.47B | $193.89B | $171.01B | $146.05B | — |
| Operating expense | $70.23B | $65.36B | $61.58B | $57.53B | — |
| R&D | $35.56B | $32.49B | $29.51B | $27.20B | — |
| Operating income | $155.24B | $128.53B | $109.43B | $88.52B | — |
| Interest expense | $3.05B | $2.38B | $2.94B | $1.97B | — |
| Pretax income | $165.93B | $123.63B | $107.79B | $89.31B | — |
| Tax provision | $32.19B | $21.80B | $19.65B | $16.95B | — |
| Net income | $133.75B | $101.83B | $88.14B | $72.36B | — |
| EBITDA | $207.52B | $155.44B | $131.68B | $105.14B | — |
| Diluted EPS | $17.95 | $13.64 | $11.80 | $9.68 | — |
Balance sheet
| Line item | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
| Total assets | $758.38B | $619.00B | $512.16B | $411.98B | — |
| Current assets | $207.71B | $191.13B | $159.73B | $184.26B | — |
| Cash & equivalents | $20.93B | $30.24B | $18.32B | $34.70B | — |
| Inventory | $1.40B | $938.00M | $1.25B | $2.50B | — |
| Total liabilities | $315.99B | $275.52B | $243.69B | $205.75B | — |
| Current liabilities | $168.82B | $141.22B | $125.29B | $104.15B | — |
| Total debt | $56.83B | $60.59B | $67.13B | $59.97B | — |
| Long-term debt | $31.07B | $40.15B | $42.69B | $41.99B | — |
| Shareholders' equity | $442.39B | $343.48B | $268.48B | $206.22B | — |
| Retained earnings | $328.26B | $237.73B | $173.14B | $118.85B | — |
| Working capital | $38.88B | $49.91B | $34.45B | $80.11B | — |
Cash flow
| Line item | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
| Operating cash flow | $182.94B | $136.16B | $118.55B | $87.58B | — |
| Investing cash flow | -$139.50B | -$72.60B | -$96.97B | -$22.68B | — |
| Financing cash flow | -$52.55B | -$51.70B | -$37.76B | -$43.94B | — |
| Capital expenditure | -$115.95B | -$64.55B | -$44.48B | -$28.11B | — |
| Free cash flow | $66.99B | $71.61B | $74.07B | $59.48B | — |
| Dividends paid | -$26.45B | -$24.08B | -$21.77B | -$19.80B | — |
| Share buybacks | -$22.27B | -$18.42B | -$17.25B | -$22.25B | — |
| End cash position | $20.93B | $30.24B | $18.32B | $34.70B | — |
Reported figures from public filings via Yahoo Finance. Line coverage varies by company. Not investment advice.
Dividends
Analyst assessment
as of 28 Aug 2026Aggregate consensus only. Named per-analyst targets require a premium source and are not shown; the data model is ready to hold them if one is added.
Technicals
as of 27 Aug 2026News
Sector peers
Notes & alerts
Sign in to keep a private research note and set price alerts for MSFT.