MSFT

Microsoft Corporation

$533.52

+0.84% 2026-10-19

Information TechnologyS&P 500

1M 3M 6M 1Y 2Y

MSFTSPY

-1.4%

+8.0%

+32.9%

+28.1%

YTD

+11.0%

+4.7%

Grades vs sector

Momentum

38th pct in sector

C-

12-1 return: -0.1%
Percentile within its GICS sector across the S&P 1500.

Growth

55th pct in sector

C+

Revenue growth (YoY): +17.7%
Percentile within its GICS sector across the S&P 1500.

Value

44th pct in sector

Forward E/P: 4.5% · EBITDA/EV: 4.9%
Percentile within its GICS sector across the S&P 1500.

Profitability

88th pct in sector

A-

Profit margin: +40.3% · Return on equity: +34.0%
Percentile within its GICS sector across the S&P 1500.

Revisions

no data

–

EPS estimate change, 30 days (current FY): –
30-day change in analysts' current-year EPS estimate; graded across covered stocks.

Our models

Not held by any of our 3 live models right now.

Momentum Top 15

rank 347 of 499 · 12-1 momentum % -1.2

Quality Growth

rank 68 of 360 · Composite (0-1) 0.7

Momentum Blend

not in the current book

Key stats

Market cap$4.0T

P/E (trailing)29.7

P/E (forward)22.5

52-week range349.20 – 553.72

Revenue growth (YoY, latest qtr)+17.7%

Dividend yield0.74%

Analyst consensusStrong Buy (53)

Mean price target$599.28 (+12%)

Valuation & fundamentals

Bottom line

Looks expensive

Model read-out from the numbers below, not advice. Score -3 (DCF counts double).

▼DCF (base case)below the price by 47%

▼Forward P/E vs sector22.5x vs median 16.9x

•Piotroski F-score6/9

▲Altman Z9.3 (safe)

▲Net debt / EBITDA-0.2x

•Analyst target+12% (53 analysts)

Discounted cash flow

Bear

$168

-69%

growth 10% · disc. 10.7% · term. 2.0%

Base

$285

-47%

growth 17% · disc. 9.7% · term. 2.5%

Bull

$450

-16%

growth 21% · disc. 8.7% · term. 3.0%

A DCF starts from trailing free cash flow, so it can overstate value if the last 12 months were unusually strong (or weak). Use the bear case or edit the starting cash flow if so.

Reverse DCFfor context, not a signal

Today's price assumes free cash flow grows about 22% a year for 10 years.

Implied

+22%/yr

FCF, last 3 yrs

+4%/yr

FCF, last 5 yrs

+4%/yr

Revenue, last 3 yrs

+16%/yr

Revenue, last 5 yrs

+15%/yr

Same inputs as the DCF above: trailing free cash flow 67.0B, 9.7% discount rate, 2.5% growth after year 10, net cash and today's share count. Actual growth rates are compound annual rates from SEC annual filings through FY2026; "n/a" means too little history or a negative starting year.

Edit assumptions · recalculates instantly

Your value per share–

Free cash flow = operating cash flow − capital spending, trailing 12 months (FY to 2026-06-30). Growth default: average of 3-year revenue CAGR and latest revenue growth, capped at 30%. Years 6–10 fade linearly to terminal growth. Discount rate = 4.25% risk-free assumption + beta 1.10 × 5% equity premium, kept within 7–13%. Bear: lower growth, +1 pt discount, 2% terminal. Bull: higher growth, −1 pt, 3%.

Multiples vs Information Technology

P/E (trailing)

sector median 35.9× · 41st pct

29.7×
cheaper

Forward P/E

sector median 16.9× · 67th pct

22.5×
pricier

EV / EBITDA

sector median 20.8× · 59th pct

25.3×
pricier

Price / sales

sector median 4.6× · 83rd pct

11.9×
pricier

Price / book

sector median 5.1× · 72nd pct

9.0×
pricier

FCF yield

sector median 3.5% · 24th pct

1.7%
pricier

Forward EPS $23.72 vs trailing $17.95 (+32% expected growth). Forward P/E uses analysts' next-12-month estimate.

Backlog (remaining performance obligations)

RPO

$684.0B

as of 2026-06-30

vs a year ago

+82%

YoY

× TTM revenue

2.06×

coverage

24-09

24-12

25-03

25-06

25-09

25-12

26-03

26-06

Contracted revenue not yet recognized, from SEC filings (XBRL tag RevenueRemainingPerformanceObligation).

Quality & financial health

Gross margin

67.9%

Operating margin

46.8%

FCF margin

20.2%

Net margin

40.3%

Return on equity

30.2%

Return on invested capital

30.8%

Net debt / EBITDA

-0.2×

Current ratio

1.2×

Interest cover

50.9×

Cash conversion (OCF/NI)

1.4×

Piotroski F-score 6/9 · last two fiscal years

✓ Positive net income✓ Positive operating cash flow✓ Return on assets improved✓ Cash flow above net income✓ Long-term debt / assets fell✗ Current ratio improved✓ No share dilution✗ Gross margin improved✗ Asset turnover improved

Altman Z-score 9.3 (safe zone; above 3.0 = safe, below 1.8 = distress). Not meaningful for banks and insurers.

Analysts

Mean target

$599

+12%

Analysts

Strong Buy

Range

$440–$870

low – high

● price · ◆ mean target

Annual history

FY	Revenue	Net income	Free cash flow
2026	$331.8B	$133.7B	$67.0B
2025	$281.7B	$101.8B	$71.6B
2024	$245.1B	$88.1B	$74.1B
2023	$211.9B	$72.4B	$59.5B
2022	$198.3B	$72.7B	$65.1B
2021	$168.1B	$61.3B	$56.1B

From the company's 10-K filings via SEC XBRL. 3-year revenue CAGR +16.1%.

Earnings

Next report: 2026-10-28 · after close · EPS est 4.72

EstimateActual (beat)Actual (miss)

Report	EPS est	Actual	Surprise
2026-07-29	4.24	4.74	+11.8%
2026-04-29	4.07	4.27	+4.9%
2026-01-28	3.92	4.14	+5.7%
2025-10-29	3.66	4.13	+12.7%
2025-07-30	3.38	3.65	+8.1%
2025-04-30	3.22	3.46	+7.4%
2025-01-29	3.12	3.23	+3.5%
2024-10-30	3.11	3.30	+6.1%

Quarterly revenue

Quarter	Revenue	YoY
2026-06-30	$90.0B	+17.7%
2026-03-31	$82.9B	–
2025-12-31	$81.3B	–
2025-09-30	$77.7B	–
2025-06-30	$76.4B	–

Analyst actions

Bernstein

2026-10-19 · main

Outperform → Outperform
PT $662

StoneX

2026-10-16 · main

Buy → Buy
PT $600

UBS

2026-10-15 · main

Buy → Buy
PT $675

Citigroup

2026-10-15 · main

Buy → Buy
PT $636

Mizuho

2026-10-15 · main

Outperform → Outperform
PT $600

Jefferies

2026-10-15 · main

Buy → Buy
PT $650

Recent dividends

2026-08-20: $0.910 · 2026-05-21: $0.910 · 2026-02-19: $0.910 · 2025-11-20: $0.910 · 2025-08-21: $0.830 · 2025-05-15: $0.830 · 2025-02-20: $0.830 · 2024-11-21: $0.830

Insider trades

Hood Amy

EVP, Chief Financial Officer · 2026-10-13

SELL
$1.8M

Hood Amy

EVP, Chief Financial Officer · 2026-10-13

SELL
$1.6M

Hood Amy

EVP, Chief Financial Officer · 2026-10-13

SELL
$541.6K

Hood Amy