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Microsoft Corporation MSFT NDXSPXAI

Technology · Software - Infrastructure · United States
https://www.microsoft.com
Company Profile ↓
$384.93
-22.86% 1Y
Mkt Cap$2.86T
P/E22.91
P/B7.01
Div. Yield0.93%
52W High$538.66
52W Low$352.83
Book Value$55.78
EPS (TTM)$16.80

Company Overview

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.

Why Investors Should Care

Strong Return on Equity

Generates a return on equity of 34.0%, reflecting efficient use of shareholder capital.

Healthy Capital Returns

Return on capital employed stands at 26.9%.

Consistent Profit Growth

Net profit has compounded at 10.8% per year over the last five years.

Reasonable Valuation

Trades at a P/E of 22.9, below the sector median of 36.0.

Healthy Margins

Maintains a net profit margin of 39.3%.

Conservative Balance Sheet

Carries low leverage with a debt-to-equity ratio of 0.30.

Recent Developments

  • Jun 2025 Revenue of $281.72B (+14.9% YoY); net profit $101.83B.
  • Trailing 12 Months Year-on-year growth — revenue +18.3%, earnings +23.4%.
  • 5-Year Trend Long-term compounding — revenue CAGR 9.5%, profit CAGR 10.8%.

Growth & Price Performance

Compounded Sales Growth

5 Years:9.48%
1 Year:18.30%

Compounded Profit Growth

5 Years:10.85%
1 Year:23.40%

Stock Price Performance

1 Year:-22.86%
6 Months:-19.33%
3 Months:+0.36%
1 Month:-1.39%

Highlights auto-generated from reported financials and price data; not investment advice. Verify with official filings before acting.

AI Exposure AI Hyperscaler / AI Platform
Core Focus

Azure OpenAI, Copilot family across M365/GitHub/Windows/Security; multi-year partnership and equity stake in OpenAI.

Key Initiatives
  • Azure AI & OpenAI partnership Microsoft's deep OpenAI partnership and Azure AI services make Azure a leading platform for training and running frontier models — a major cloud-growth driver.
  • Copilot everywhere GenAI Copilots across Microsoft 365, GitHub, Dynamics and Windows monetise AI on a vast installed base, priced per seat.
  • AI infrastructure & custom silicon Massive data-centre capex plus custom Maia/Cobalt chips build out Microsoft's AI compute.
Why Investors Should Care
  • Best-positioned mega-cap for enterprise AI monetisation — net margin ~39%, ROE ~34%.
  • Copilot seats and Azure AI layer growth onto sticky enterprise relationships.
  • Enormous free cash flow funds the largest AI-capex program in software.
  • Capex intensity and OpenAI-relationship dynamics are key watch items.
AI Investment$80B+ FY26 capex, mostly AI data centers; ~$13B cumulative invested in OpenAI.
AI RevenueAzure AI services >$10B run-rate; M365 Copilot ramping at $30/user/mo.
ROI (Now)Azure AI accretive to operating margin; Copilot margins improving as Azure inference costs fall.
ROI (Expected)Mgmt sees AI as multi-hundred-billion-dollar opportunity; Copilot attach >30% of M365 base by 2027.

Curated from public filings and analyst commentary; figures are illustrative.

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Price Chart

Robinhood TradingView

Fundamental Growth Charts

Interactive charts for Revenue, Net Income, EBITDA, Free Cash Flow, EPS, ROE, ROCE, Gross/Net/Operating Margin and more — switch metric and period using the dropdowns above. CAGR is computed across the displayed window (quarterly CAGR is annualised). Visual growth charts make it easy to spot multi-year compounding trends at a glance — far faster than reading raw numbers in a table.

PROS

  • Strong return on equity of 34.0%.
  • Healthy ROCE of 26.9%.
  • Excellent profit margin of 39.3%.
  • Profit CAGR of 10.8% over 5 years.
  • Generates positive free cash flow.

CONS

  • Trading 28.5% below its 52-week high.
  • In a downtrend (50-DMA below 200-DMA).

* The pros and cons are auto-generated from financial metrics.

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Valuation

Stock P/E
22.91
Industry PE
36.02
Forward P/E
19.90
PEG Ratio
1.20
Book Value
$55.78
Price to Book
7.01
P/S
9.12
EV/EBITDA
15.99
Dividend Yield
0.93%

Growth (CAGR)

Revenue 5Y
9.48%
Profit 5Y
10.85%
Revenue (YoY)
18.30%
Earnings (YoY)
23.40%

Profitability & Returns

ROCE
26.90%
ROE
34.01%
ROA
14.81%
Profit Margin
39.34%
Op Margin
46.33%
Gross Margin
68.31%
EPS (Latest Qtr)
$4.27
EPS (TTM)
$16.80

Balance Sheet & Liquidity

Debt/Equity
0.30
Quick Ratio
1.14
Current Ratio
1.28
Debt
$125.43B
Total Assets
$694.23B
Current Assets
$175.33B
Working Capital
$49.91B

Ownership

Promoter Holding
0.08%
Chg in Prom Hold
-0.00%
FII / Inst Holding
75.71%
Chg in FII Hold
-0.07%

Financial Snapshot

Enterprise Value
$2.86T
Total Revenue (TTM)
$318.27B
EBITDA
$184.46B
Free Cash Flow
$37.01B
Operating Cash Flow
$170.14B
Shares Outstanding
7.43B
Gross Margin
68.31%
Payout Ratio
20.73%

Peer comparison

Peer companies in the same sector (Technology).

#NameCMP $P/E Mkt CapDiv Yld % ROCE %ROE % Rev CAGR 5Y %Profit CAGR 5Y %
1 MSFT Microsoft Corporation NDXSPXAI 384.93 22.91 $2.86T 0.93% 26.90% 34.01% 9.48% 10.85%
2 NVDA NVIDIA Corporation NDXSPXAI 211.80 32.43 $5.13T 0.49% 74.66% 114.29% 24.64% 32.12%
3 AAPL Apple Inc. NDXSPX 314.86 38.07 $4.62T 0.37% 68.72% 141.47% 1.81% 3.92%
4 TSM Taiwan Semiconductor Manufacturing Company Limited AI 420.39 36.18 $2.18T 0.90% 30.20% 36.21% 18.94% 19.57%
5 AVGO Broadcom Inc. NDXSPXAI 389.11 64.85 $1.85T 0.68% 16.70% 37.28% 24.38% 26.24%
6 MU Micron Technology, Inc. NDXSPXAI 983.12 46.37 $1.11T 0.06% 13.69% 39.82% 13.68% 26.02%
7 AMD Advanced Micro Devices, Inc. NDXSPXAI 548.13 181.50 $893.78B 0.00% 6.33% 8.06% 13.64% 48.64%
8 ASML ASML Holding N.V. NDXAI 1,775.64 59.55 $684.36B 0.47% 42.97% 52.24% 15.55% 19.55%
9 INTC Intel Corporation NDXSPXAI 107.76 -179.60 $541.60B 0.00% -1.23% -2.91% 1.80% -
Financial Statements Quarterly Results · Profit & Loss · Balance Sheet · Cash Flows · Ratios

Quarterly Results

Figures in USD.

Metric Jun 2015Sep 2015Dec 2015Mar 2016Jun 2016Sep 2016Dec 2016Mar 2017Jun 2017Sep 2017Dec 2017Mar 2018Jun 2018Sep 2018Dec 2018Mar 2019Jun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Sep 2021Dec 2021Mar 2022Sep 2022Dec 2022Mar 2023Sep 2023Dec 2023Mar 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Revenue -----21.93B25.83B23.21B25.61B24.54B28.92B26.82B30.09B29.08B32.47B30.57B33.72B33.05B36.91B35.02B38.03B37.15B43.08B41.71B45.32B51.73B49.36B50.12B52.75B52.86B56.52B62.02B61.86B65.58B69.63B70.07B76.44B77.67B81.27B82.89B
Cost of Revenue -----------------------------------21.92B24.01B24.04B25.98B26.83B
Gross Profit 14.71B13.17B13.92B12.81B12.63B14.08B15.93B15.15B17.15B16.26B17.85B17.55B20.34B19.18B20.05B20.40B23.30B22.65B24.55B24.05B25.69B26.15B28.88B28.66B31.67B34.77B33.74B34.67B35.26B36.73B40.22B42.40B43.35B45.49B47.83B48.15B52.43B53.63B55.30B56.06B
Operating Expenses -----------------------------------16.15B18.10B15.67B17.02B17.66B
Operating Income -2.05B5.79B6.03B5.28B3.08B6.71B7.91B6.72B7.68B7.71B8.68B8.29B10.38B9.96B10.26B10.34B12.40B12.69B13.89B12.97B13.41B15.88B17.90B17.05B20.24B22.25B20.36B21.52B20.40B22.35B26.89B27.03B27.58B30.55B31.65B32.00B34.32B37.96B38.27B38.40B
EBITDA -----------------------------------39.70B44.43B48.06B58.18B50.28B
Interest Expense -----------------------------------594.00M615.00M698.00M736.00M778.00M
Pretax Income -----------------------------------31.38B32.62B34.30B48.25B39.34B
Tax Provision -----------------------------------5.55B5.38B6.55B9.79B7.56B
Net Income -3.19B4.90B5.02B3.76B3.12B5.67B6.27B5.49B8.07B6.58B-6.30B7.42B8.87B8.82B8.42B8.81B13.19B10.68B11.65B10.75B11.20B13.89B15.46B15.46B20.50B18.77B16.73B17.56B16.43B18.30B22.29B21.87B21.94B24.67B24.11B25.82B27.23B27.75B38.46B31.78B
Diluted EPS -0.400.610.620.470.390.720.800.701.030.84-0.820.951.141.141.081.141.711.381.511.401.461.822.032.032.712.482.222.352.202.452.992.932.943.303.233.463.653.725.164.27
R&D Expense -2.96B2.90B2.98B-3.11B3.06B3.35B-3.57B3.50B3.71B-3.98B4.07B4.32B-4.57B4.60B4.89B-4.93B4.90B5.20B5.60B5.76B6.31B6.63B6.84B6.98B6.66B7.14B7.65B7.54B7.92B8.20B-8.15B8.50B8.91B

Profit & Loss (Annual)

Figures in USD.

Metric Jun 2008Jun 2009Jun 2010Jun 2011Jun 2012Jun 2013Jun 2014Jun 2015Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021Jun 2022Jun 2023Jun 2024Jun 2025
Revenue 60.42B58.44B62.48B69.94B73.72B77.85B86.83B93.58B91.15B96.57B110.36B125.84B143.01B168.09B198.27B211.91B245.12B281.72B
Cost of Revenue --------------62.65B65.86B74.11B87.83B
Gross Profit 48.82B46.28B50.09B54.37B56.19B57.46B59.76B60.54B58.37B62.31B72.01B82.93B96.94B115.86B135.62B146.05B171.01B193.89B
Operating Expenses --------------52.24B57.53B61.58B65.36B
Operating Income 22.27B20.36B24.10B27.16B21.76B26.76B27.76B18.16B26.08B29.02B35.06B42.96B52.96B69.92B83.38B88.52B109.43B128.53B
EBITDA --------------100.24B105.14B133.01B160.16B
Interest Expense --------------2.06B1.97B2.94B2.38B
Pretax Income --------------83.72B89.31B107.79B123.63B
Tax Provision --------------10.98B16.95B19.65B21.80B
Net Income 17.68B14.57B18.76B23.15B16.98B21.86B22.07B12.19B20.54B25.49B16.57B39.24B44.28B61.27B72.74B72.36B88.14B101.83B
Diluted EPS 1.871.622.102.692.002.582.631.482.563.252.135.065.768.059.659.6811.8013.64
R&D Expense 8.16B9.01B8.71B9.04B9.81B10.41B11.38B12.05B11.99B13.04B14.73B16.88B19.27B20.72B24.51B27.20B29.51B32.49B

Balance Sheet (Annual)

Figures in USD.

Metric Jun 2007Jun 2008Jun 2009Jun 2010Jun 2011Jun 2012Jun 2013Jun 2014Jun 2015Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021Jun 2022Jun 2023Jun 2024Jun 2025
Total Assets --77.89B86.11B108.70B121.27B142.43B172.38B174.47B193.47B250.31B258.85B286.56B301.31B-364.84B411.98B512.16B619.00B
Current Assets ---------------169.68B184.26B159.73B191.13B
Cash & Equivalents 6.11B10.34B6.08B5.50B9.61B6.94B3.80B8.67B5.59B6.51B7.66B11.95B11.36B13.58B-13.93B34.70B18.32B30.24B
Inventory ---------------3.74B2.50B1.25B938.00M
Receivables ---------------44.26B48.69B56.92B69.91B
Total Liabilities ---39.94B51.62B54.91B63.49B82.60B94.39B121.47B162.60B176.13B184.23B183.01B-198.30B205.75B243.69B275.52B
Current Liabilities --27.03B26.15B28.77B32.69B37.42B45.62B49.65B59.36B55.74B58.49B69.42B72.31B-95.08B104.15B125.29B141.22B
Long Term Debt --3.75B4.94B11.92B10.71B12.60B20.64B27.81B40.56B76.07B72.24B66.66B59.58B-47.03B41.99B42.69B40.15B
Total Debt ---------------61.27B59.97B67.13B60.59B
Total Equity -36.29B39.56B46.17B57.08B66.36B78.94B89.78B80.08B83.09B87.71B82.72B102.33B118.30B-166.54B206.22B268.48B343.48B
Shares Outstanding ---------------7.46B7.43B7.43B7.43B

Cash Flows (Annual)

Figures in USD.

Metric Jun 2008Jun 2009Jun 2010Jun 2011Jun 2012Jun 2013Jun 2014Jun 2015Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021Jun 2022Jun 2023Jun 2024Jun 2025
Operating Cash Flow 21.61B19.04B24.07B26.99B31.63B28.83B--33.33B39.51B43.88B52.19B60.67B-89.03B87.58B118.55B136.16B
Investing Cash Flow -4.59B-15.77B-11.31B-14.62B-24.79B-23.81B---23.95B-46.78B-6.06B-15.77B-12.22B--30.31B-22.68B-96.97B-72.60B
Financing Cash Flow -12.93B-7.46B-13.29B-8.38B-9.41B-8.15B---8.39B8.41B-33.59B-36.89B-46.03B--58.88B-43.94B-37.76B-51.70B
Capital Expenditure -3.18B-3.12B-1.98B-2.35B-2.31B-4.26B-5.49B-5.94B-8.34B-8.13B-11.63B-13.93B-15.44B--23.89B-28.11B-44.48B-64.55B
Free Cash Flow 18.43B15.92B22.10B24.64B29.32B24.58B--24.98B31.38B32.25B38.26B45.23B-65.15B59.48B74.07B71.61B
Net Change in Cash ---------------152.00M20.97B-16.18B11.86B
Share Buybacks 12.53B9.35B11.27B11.55B5.03B5.36B7.32B14.44B15.97B11.79B10.72B19.54B22.97B27.39B32.70B22.25B17.25B18.42B

Ratios (Annual)

Figures in %.

Metric Jun 2008Jun 2009Jun 2010Jun 2011Jun 2012Jun 2013Jun 2014Jun 2015Jun 2016Jun 2017Jun 2018Jun 2019Jun 2020Jun 2021Jun 2022Jun 2023Jun 2024Jun 2025
Gross Margin % 80.8%79.2%80.2%77.7%76.2%73.8%68.8%64.7%64.0%64.5%65.2%65.9%67.8%68.9%68.4%68.9%69.8%68.8%
Operating Margin % 36.9%34.8%38.6%38.8%29.5%34.4%32.0%19.4%28.6%30.1%31.8%34.1%37.0%41.6%42.1%41.8%44.6%45.6%
Net Margin % 29.3%24.9%30.0%33.1%23.0%28.1%25.4%13.0%22.5%26.4%15.0%31.2%31.0%36.5%36.7%34.1%36.0%36.1%
ROE % 48.7%36.8%40.6%40.6%25.6%27.7%24.6%15.2%24.7%29.1%20.0%38.3%37.4%-43.7%35.1%32.8%29.6%
ROCE % -40.0%40.2%34.0%24.6%25.5%21.9%14.5%19.4%14.9%17.5%19.8%23.1%-30.9%28.8%28.3%26.9%

Shareholding Pattern

Insiders
0.08%
Institutions
75.71%
Public Float
75.77%

Top Institutional Holders

#Holder% HeldSharesValue
1 Blackrock Inc. 7.99% 593.33M $228.81B
2 Vanguard Capital Management LLC 6.50% 482.56M $186.09B
3 State Street Corporation 4.13% 306.71M $118.28B
4 FMR, LLC 2.56% 190.21M $73.35B
5 Geode Capital Management, LLC 2.54% 188.50M $72.69B
6 Vanguard Portfolio Management LLC 2.25% 167.49M $64.59B
7 JPMORGAN CHASE & CO 1.71% 127.13M $49.03B
8 Morgan Stanley 1.68% 124.88M $48.16B
9 Price (T.Rowe) Associates Inc 1.58% 117.24M $45.21B
10 Capital Research Global Investors 1.29% 96.09M $37.06B

Analyst View

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Latest News

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MSFT — Frequently Asked Questions

What is the current share price of Microsoft Corporation (MSFT)?

As of 2026-07-14 21:23 PDT, Microsoft Corporation (MSFT) trades at $384.93 on NasdaqGS. Its 52-week range is $352.83 to $538.66.

What is the market capitalisation of MSFT?

Microsoft Corporation (MSFT) has a market capitalisation of $2.86T on NasdaqGS.

What is the P/E ratio of MSFT?

MSFT trades at a trailing price-to-earnings (P/E) ratio of 22.91. The industry average P/E is 36.02. Its price-to-book (P/B) ratio is 7.01.

Does MSFT pay a dividend?

Microsoft Corporation (MSFT) currently offers a dividend yield of 0.93%.

What is the return on equity (ROE) of MSFT?

MSFT has a return on equity (ROE) of 34.01%. Its return on capital employed (ROCE) is 26.90%.

Is MSFT a good stock to buy?

This page provides a data-driven analysis of Microsoft Corporation (MSFT), including valuation ratios, profitability, growth trends, auto-generated pros and cons, peer comparison and AI exposure. Review these fundamentals alongside your own research and risk tolerance. This is informational content, not investment advice.

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