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Sells Windows, Office/365, Azure cloud computing, and AI (Copilot) to consumers and enterprises worldwide.
Sells Windows, Office/365, Azure cloud computing, and AI (Copilot) to consumers and enterprises worldwide.
Earns mainly from recurring business subscriptions and cloud usage billed to companies, with Azure and Microsoft 365 the main engines; Windows licences and Xbox games are smaller. It is a major investor in OpenAI and builds that lab's models into Azure and Copilot. Activision Blizzard was bought in 2023 and LinkedIn in 2016.
Moat: wide (switching costs, installed base, scale). Office/Windows lock-in and deep enterprise IT relationships make switching costly across its whole stack.
Headquarters: Redmond, Washington, US · Founded: 1975 · Employees: 223,000
Size Microsoft (MSFT) is a United States Information Technology company (Packaged Software) with a market value of $3.94T, the 3rd largest of 3,117 United States companies the cockpit tracks. Shares closed at $530.61 on 6 Nov 2026.
Performance Over six months the shares gained 28.1%, against +9.4% for the median peer and -1.1% for the United States market (cap-weighted) — 8th highest of 21 in its peer set.
Growth Revenue grew 17.9% over the last twelve months (peer median +21.7%); the operating margin is 47.1% (peer median 22.5%).
Valuation It trades at 25.5× forward earnings against a peer median of 21.3× (10th most expensive of 21).
Price implies For today's price to make sense, revenue must grow about 17% a year for seven years (Req g). Recent delivered growth is +15%, so the hurdle is +3 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 13.9 points above its cost of capital (9.9% WACC).
Backlog Backlog (remaining performance obligations) was $683B at 30 Sep 2026, up 72% on a year earlier — 2.0 years of trailing revenue. Backlog detail →
Credit Microsoft has 39 bonds outstanding ($41.0B), rated AAA by the agencies and trading like AA at a weighted spread of 63 bp.
Short interest Short interest is 0.9% of the free float (15 Oct 2026).
Next results Next results expected around 26 Jan 2027 (exchange calendar; dates can move).
| TTM | FY2026 | FY2025 | FY2024 | FY2023 | |
|---|---|---|---|---|---|
| Revenue | $346B | $332B | $282B | $245B | $212B |
| Revenue growth | — | +18% | +15% | +16% | — |
| Gross profit | $234B | $225B | $194B | $171B | $146B |
| EBITDA | $205B | $194B | $163B | $132B | $104B |
| Net income | $143B | $134B | $102B | $88.1B | $72.4B |
| Free cash flow | $60.0B | $67.0B | $71.6B | $74.1B | $59.5B |
| Capital expenditure | $136B | $116B | $64.6B | $44.5B | $28.1B |
| Total debt | $134B | $129B | $112B | $97.9B | $79.4B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Microsoft MSFT | $3.94T | +28% | +18% | 47% | 25.5× | 17.2% |
| Amazon AMZN | $2.80T | -5% | +15% | 13% | 26.3× | n/a |
| Alphabet Inc. (Class A) GOOGL | $3.47T | -29% | +22% | 33% | 20.5× | 18.5% |
| Salesforce CRM | $176B | +18% | +11% | 22% | 14.6× | 13.7% |
| Oracle ORCL | $351B | -41% | +22% | 34% | 13.6× | n/a |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | MSFT | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +1.5% | -3.5% | 10th highest of 21 |
| 6-month return | +28.1% | +9.4% | 8th highest of 21 |
| Distance from 52-week high | -5.1% | -26.0% | 4th highest of 21 |
| Revenue growth (TTM) | +17.9% | +21.7% | 9th lowest of 21 |
| Operating margin | 47.1% | 22.5% | 2nd highest of 21 |
| Forward P/E | 25.5× | 21.3× | 10th most expensive of 21 |
| Growth the price implies (Req g, 7 yrs) | 17.2% | 28.2% | 8th least demanding of 18 |
| Growth delivered (Del g) | +14.6% | +14.6% | 9th lowest of 18 |
| Hurdle (Req g minus delivered) | +2.7 pp | +4.4 pp | 9th least demanding of 18 |
| ROIC minus cost of capital | +13.9 pp | +0.8 pp | 5th highest of 20 |
| EV / EBITDA | 19.5× | 18.4× | 8th cheapest of 15 |
| Net debt / EBITDA | 0.3× | 0.1× | 9th most indebted of 20 |
| Bond spread | 63 bp | 93 bp | 3rd tightest of 17 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Microsoft MSFT | United States | $3.94T | +28% | +18% | 47% | 25.5× | 17.2% | +14.6% |
| Palantir Technologies PLTR | United States | $386B | +16% | +87% | 46% | 69.8× | 56.6% | +32.6% |
| Oracle ORCL | United States | $351B | -41% | +22% | 34% | 13.6× | n/a | n/a |
| Sap SAP.DE | Germany | $276B | +49% | +8% | 29% | 29.8× | 14.9% | +6.1% |
| Palo Alto Networks PANW | United States | $257B | +51% | +24% | 5% | 75.0× | n/a | n/a |
| CrowdStrike CRWD | United States | $222B | +64% | +24% | -1% | 153.6× | 52.4% | +40.6% |
| Salesforce CRM | United States | $176B | +18% | +11% | 22% | 14.6× | 13.7% | +14.3% |
| AppLovin APP | United States | $131B | -16% | +29% | 78% | 20.0× | 28.2% | +30.4% |
| ServiceNow NOW | United States | $106B | +12% | +22% | 13% | 22.4× | 29.5% | +24.1% |
| SNOW SNOW | United States | $97.3B | +81% | +32% | -22% | 108.4× | 41.3% | +51.2% |
| Adobe ADBE | United States | $93.1B | -5% | +12% | 36% | 8.9× | 0.9% | +13.1% |
| Intuit INTU | United States | $91.3B | -14% | +14% | 29% | 14.8× | 3.1% | +17.4% |
| Cadence Design Systems CDNS | United States | $87.8B | -12% | +18% | 30% | 34.0× | 29.9% | +14.6% |
| Synopsys SNPS | United States | $86.3B | -13% | +46% | 12% | 25.6× | 39.2% | +13.9% |
| Prosus PRX.AS | Netherlands | $83.9B | -3% | +45% | 3% | 10.1× | 55.8% | +13.8% |
| Datadog DDOG | United States | $64.3B | -11% | +33% | 2% | 61.0× | n/a | n/a |
| Autodesk ADSK | United States | $54.7B | +7% | +19% | 23% | 20.1× | 18.1% | +13.7% |
| Constellation Software CSU.TO | Canada | $53.3B | +37% | +17% | 16% | 19.7× | 11.2% | +25.0% |
| Roper Technologies ROP | United States | $47.2B | +39% | +9% | 28% | 19.7× | 12.7% | +10.2% |
| Dassault Systemes DSY.PA | France | $39.0B | +32% | 0% | 26% | 19.2× | 8.3% | +7.0% |
| Atlassian TEAM | United States | $38.7B | +5% | +26% | 4% | 28.7× | 44.7% | +25.8% |
Microsoft has 39 bonds outstanding with $41.0B face value. The agencies rate it AAA; its bonds trade like AA. Weighted yield 5.60%, a spread of 63 bp over government bonds.
Microsoft reported $683B of remaining performance obligations at 30 Sep 2026, up 72% from a year earlier and down 0% from the previous quarter. That is 2.0 years of trailing revenue already under contract. Book-to-bill last quarter: 0.99.