# Microsoft Corp (MSFT) — Stock CV

Microsoft Corp 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.

> Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite.

## Identity

- **Ticker**: MSFT
- **Sector**: Technology
- **Industry**: Software—Application
- **Headquarters**: REDMOND, WA
- **Employees**: 223 000
- **Website**: https://www.microsoft.com
- **Market cap**: $3.97T
- **Last price**: $534.80
- **Financial profile**: Strong

## Vitals (TTM)

- **Revenue**: $332B
- **Net income**: $134B
- **Free cash flow**: $67.0B
- **Net debt**: $52.0B
- **P/E**: 29.7
- **Revenue growth (YoY)**: 17.8%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 42 |
| Growth | 80 |
| Profitability | 100 |
| Health | 82 |
| Quality | 75 |
| Moat | 100 |

## Qualifications (beginner checklist) — 11 of 11 passed

- [x] Revenue growing — +17.8% YoY
- [x] Profitable — $134B TTM
- [x] Profit growing — +22.8% YoY
- [x] Generates cash — $67.0B TTM
- [x] Debt under control — ~0.8y of cash flow to repay
- [x] Established company — $3.97T market cap
- [x] Not printing shares — -2.0% shares over ~5y
- [x] Proven track record — 11/11 profitable years
- [x] Financially stable — Altman Z 9.3 — safe
- [x] Pays a dividend — yield 0.67%
- [x] Valuation not extreme — P/E 29.7

## Experience (career milestones)

- **FY2026** — Best year on record: $134B net income
- **Oct 13, 2023** — Acquired Activision Blizzard: $69B — the largest gaming deal ever
- **Jan 18, 2022** — Microsoft announced the acquisition of American video game developer and holding company…
- **Mar 9, 2021** — The acquisition was finalized at $8.1 billion and ZeniMax Media became part of Microsoft's Xbox…
- **FY2018** — Revenue crossed $100B: $110B for the year
- **Jun 4, 2018** — Microsoft officially announced the acquisition of GitHub for $7.5 billion, a deal that closed on…
- **FY2016** — Profitable every year on record: 11 consecutive profitable years in our data
- **FY2016** — Revenue already above $50B: $85.3B in first reported year
- **FY2016** — Positive free cash flow every year since: 11-year streak
- **Apr 25, 2014** — Microsoft acquired Nokia Devices and Services for $7.2 billion
- **2012** — The Surface was unveiled in June 2012, becoming the first computer in the company's history to have its hardware…
- **2011** — Also in 2011, Microsoft saw its largest acquisition by taking over Skype
- **Feb 12, 2009** — Microsoft announced its intent to open a chain of Microsoft-branded retail stores
- **2001** — Xbox: entered the console wars
- **Mar 13, 1986** — IPO on Nasdaq: went public at $21 per share
- **Nov 20, 1985** — Windows 1.0: a graphical shell over DOS
- **1981** — MS-DOS: the IBM PC deal that made Microsoft the standard
- **Apr 4, 1975** — Founded in Albuquerque: Bill Gates and Paul Allen, a BASIC interpreter for the Altair

## 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

- None stand out in the data.

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $198B | $72.7B | $65.1B |
| FY2023 | $212B | $72.4B | $59.5B |
| FY2024 | $245B | $88.1B | $74.1B |
| FY2025 | $282B | $102B | $71.6B |
| FY2026 | $332B | $134B | $67.0B |

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Source: https://stockcv.com/MSFT — derived from company filings; may be delayed or incomplete. Information, not investment advice.