Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite.
It is a $3.97T technology company. Revenue grew 17.8% over the last year, it keeps 40¢ of every dollar of sales as profit, and its net debt equals ~0.8 years of free cash flow. It trades at 29.7× earnings — around the middle of its own history.
- Website
- microsoft.com
- Location
- Redmond, WA
- Employees
- 223 000
- Sector
- Technology
- Founded
- 1975
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong growth, profitability, health, quality and moat; Valuation lags behind.
Valuation42
- P/E vs own history39th pct · 20/25
- FCF yield1.7% · 5/25
- P/S12.0x · 5/25
- EV/EBITDA21.0x · 12/25
Growth80
- Revenue CAGR13.7% · 20/25
- Net income CAGR16.4% · 20/25
- EPS CAGR ~5Y17.4% · 20/25
- Fwd implied growth22.8% · 20/25
Profitability100
- ROIC27.1% · 25/25
- ROE33.2% · 25/25
- Net margin40.3% · 25/25
- Operating margin46.7% · 25/25
Health82
- Altman Z9.35 · 25/25
- Current ratio1.23 · 12/25
- Interest coverage891.8x · 25/25
- Net cash / debtD/A 7% · 20/25
Quality75
- Piotroski F6/9 · 15/25
- Beneish M-3.29 · 25/25
- FCF conversion58% · 15/25
- Margin stabilityσ 7.7% · 20/25
Moat100
- ROIC >12% years11/11 yrs · 25/25
- Median gross margin67.9% · 25/25
- FCF-positive years11/11 yrs · 25/25
- Worst-year net marginworst 15.0% · 25/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2026FinancialBest year on record$134B net income
- Oct 13, 2023AcquisitionAcquired Activision Blizzard$69B — the largest gaming deal ever
- Jan 18, 2022AcquisitionMicrosoft announced the acquisition of American video game developer and holding company…
- Mar 9, 2021AcquisitionThe acquisition was finalized at $8.1 billion and ZeniMax Media became part of Microsoft's Xbox…
- FY2018FinancialRevenue crossed $100B$110B for the year
- Jun 4, 2018AcquisitionMicrosoft officially announced the acquisition of GitHub for $7.5 billion, a deal that closed on…
- FY2016FinancialProfitable every year on record11 consecutive profitable years in our data
- FY2016FinancialRevenue already above $50B$85.3B in first reported year
- FY2016FinancialPositive free cash flow every year since11-year streak
- Apr 25, 2014AcquisitionMicrosoft acquired Nokia Devices and Services for $7.2 billion
- 2012ProductThe Surface was unveiled in June 2012, becoming the first computer in the company's history to have its hardware…
- 2011AcquisitionAlso in 2011, Microsoft saw its largest acquisition by taking over Skype
- Feb 12, 2009ProductMicrosoft announced its intent to open a chain of Microsoft-branded retail stores
- 2001ProductXboxentered the console wars
- Mar 13, 1986IPOIPO on Nasdaqwent public at $21 per share
- Nov 20, 1985ProductWindows 1.0a graphical shell over DOS
- 1981ProductMS-DOSthe IBM PC deal that made Microsoft the standard
- Apr 4, 1975FoundedFounded in AlbuquerqueBill Gates and Paul Allen, a BASIC interpreter for the Altair
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (67.9%)
- Strongly profitable — 40.3% net margin
- Revenue growing 17.8% year over year
- Strong cash conversion — FCF is 20.2% of revenue
- Could repay net debt from ~0.7 years of free cash flow
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+17.8% YoY
- Profitable — makes more than it spends$134B TTM
- Profit growing — earnings are higher than last year+22.8% YoY
- Generates cash — cash left after running and investing$67.0B TTM
- Debt under control — could handle its obligations~0.8y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$3.97T market cap
- Not printing shares — share count not ballooning — you keep your slice-2.0% shares over ~5y
- Proven track record — years of profitability behind it11/11 profitable years
- Financially stable — balance sheet not near distressAltman Z 9.3 — safe
- Pays a dividend — returns cash to shareholdersyield 0.67%
- Valuation not extreme — price not wildly above earningsP/E 29.7
Peer comparisonMicrosoft Corp vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| MSFT this company | $4.0T | 29.7 | +17.8% | 40.3% | Strong |
| NVDA Nvidia Corp | $5.5T | 28.6 | +83.4% | 63.7% | Mixed |
| AAPL Apple Inc. | $4.9T | 38.1 | +14.2% | 27.6% | Strong |
| GOOGL Alphabet Inc. | $4.3T | 17.6 | +20.1% | 54.8% | Mixed |
| SPCX Space Exploration Technologies Corp. | $2.1T | — | +33.2% | -34.0% | Strained |
| META Meta Platforms, Inc. | $1.8T | 26.9 | +27.7% | 29.8% | Mixed |
| AVGO Broadcom Inc. | $1.7T | 45.1 | +48.7% | 42.9% | Mixed |
Head-to-head: MSFT vs NVDA · MSFT vs AAPL · MSFT vs GOOGL
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2026. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/MSFT
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of MSFT on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $534.80 · market cap $3.97T.