Microsoft

US · MSFT #5 by market cap Listed 1986 AI Rating B 71

499.70 -10.42 -2.04%

Collector offline (last heartbeat: 15917s ago) · 2026-09-04 20:01

Pre-market 510.21 +0.02%

After-hours 499.41 -0.06%

Overnight 509.22 -0.18%

Mkt cap: 3.71T
P/E (TTM): 27.84
P/B: 8.39
EPS: 17.95
Div yield: 0.71%
52W pos: 75%

Revenue annual, last 8 years

Latest year +17.79% YoY

Margins

Gross margin: 67.94%
Operating margin: 46.78%
Net margin: 40.31%

Key ratios & quality

Enterprise value: 3.67T
PEG ratio: 1.23
Altman Z-Score: 8.83

PEG uses trailing P/E against the 3-year net income growth rate (22.72%/yr) since forward earnings estimates aren't available here, so this is not a "forward PEG." Altman Z-Score below ~1.8 suggests financial distress risk, above ~3.0 suggests low risk; the model is most reliable for industrial/manufacturing companies and less meaningful for banks and other financial firms.

✦ AI Financial Health how this is computed

Good

Altman Z-Score is 8.83, above the 3.0 "safe zone" threshold.
Most reliable for industrial/manufacturing companies; less meaningful for banks, insurers and other financials.

Income statement

Line item	2019	2020	2021	2022	2023	2024	2025	2026
Revenue	125.84B	143.02B	168.09B	198.27B	211.92B	245.12B	281.72B	331.84B
Gross profit	82.93B	96.94B	115.86B	135.62B	146.05B	171.01B	193.89B	225.47B
Selling & admin expenses	23.10B	24.71B	25.22B	27.73B	30.33B	32.07B	32.88B	34.67B
Research & development	16.88B	19.27B	20.72B	24.51B	27.20B	29.51B	32.49B	35.56B
Operating profit	42.96B	52.96B	69.92B	83.38B	88.52B	109.43B	128.53B	155.24B
Pretax profit	43.69B	53.04B	71.10B	83.72B	89.31B	107.79B	123.63B	165.93B
Tax	4.45B	8.76B	9.83B	10.98B	16.95B	19.65B	21.80B	32.19B
Net profit	39.24B	44.28B	61.27B	72.74B	72.36B	88.14B	101.83B	133.75B
Basic EPS	5	6	8	10	10	12	14	18
Diluted EPS	5.06	5.76	8.05	9.65	9.68	11.80	13.64	17.95

Line item	2025-03	2025-06	2025-09	2025-12	2026-03	2026-06
Revenue	70.07B	76.44B	77.67B	81.27B	82.89B	90.01B
Gross profit	48.15B	52.43B	53.63B	55.30B	56.06B	60.48B
Selling & admin expenses	7.95B	9.28B	7.52B	8.52B	8.75B	9.88B
Research & development	8.20B	8.83B	8.15B	8.50B	8.92B	10.00B
Operating profit	32.00B	34.32B	37.96B	38.28B	38.40B	40.60B
Pretax profit	31.38B	32.62B	34.30B	48.25B	39.34B	44.05B
Tax	5.55B	5.38B	6.55B	9.79B	7.56B	8.28B
Net profit	25.82B	27.23B	27.75B	38.46B	31.78B	35.77B
Basic EPS	3	4	4	5	4	5
Diluted EPS	3.46	3.65	3.72	5.16	4.27	4.81

Balance sheet

Line item	2019	2020	2021	2022	2023	2024	2025	2026
Total current assets	175.55B	181.92B	184.41B	169.68B	184.26B	159.73B	191.13B	207.71B
Cash & ST investments	133.83B	136.49B	130.26B	104.75B	111.26B	75.53B	94.56B	76.65B
Inventory	2.06B	1.90B	2.64B	3.74B	2.50B	1.25B	938.00M	1.40B
Total assets	286.56B	301.31B	333.78B	364.84B	411.98B	512.16B	619.00B	758.38B
Total current liabilities	69.42B	72.31B	88.66B	95.08B	104.15B	125.29B	141.22B	168.83B
Short-term debt	5.52B	3.75B	8.07B	2.75B	5.25B	8.94B	3.00B	9.23B
Long-term debt	66.66B	59.58B	50.07B	47.03B	41.99B	42.69B	40.15B	31.07B
Total liabilities	184,226,000,000.00	183,007,000,000.00	191,791,000,000.00	198,298,000,000.00	205,753,000,000.00	243,686,000,000.00	275,524,000,000.00	315,989,000,000.00
Total equity	102.33B	118.30B	141.99B	166.54B	206.22B	268.48B	343.48B	442.39B
Retained earnings	24.15B	34.57B	57.06B	84.28B	118.85B	173.14B	237.73B	328.27B

Line item	2025-03	2025-06	2025-09	2025-12	2026-03	2026-06
Total current assets	156.64B	191.13B	189.07B	180.19B	175.33B	207.71B
Cash & ST investments	79.61B	94.56B	102.01B	89.46B	78.23B	76.65B
Inventory	848.00M	938.00M	1.13B	1.06B	1.22B	1.40B
Total assets	562.62B	619.00B	636.35B	665.30B	694.23B	758.38B
Total current liabilities	114.21B	141.22B	135.00B	130.01B	136.66B	168.83B
Short-term debt	3.00B	3.00B	7.83B	4.84B	8.84B	9.23B
Long-term debt	39.88B	40.15B	35.38B	35.43B	31.42B	31.07B
Total liabilities	240,733,000,000.00	275,524,000,000.00	273,275,000,000.00	274,427,000,000.00	279,861,000,000.00	315,989,000,000.00
Total equity	321.89B	343.48B	363.08B	390.88B	414.37B	442.39B
Retained earnings	219.76B	237.73B	254.87B	280.79B	302.53B	328.27B

Cash flow

Line item	2019	2020	2021	2022	2023	2024	2025	2026
Operating cash flow	52.19B	60.68B	76.74B	89.04B	87.58B	118.55B	136.16B	182.94B
Depreciation & amortization	11.68B	12.80B	11.69B	14.46B	13.86B	20.96B	29.43B	38.53B
Free cash flow	38.26B	45.23B	56.12B	65.15B	59.48B	74.07B	71.61B	66.99B
Dividends paid	-13.81B	-15.14B	-16.52B	-18.14B	-19.80B	-21.77B	-24.08B	-26.45B
Stock buybacks / issuance	-18.40B	-21.63B	-25.69B	-30.86B	-20.38B	-15.25B	-16.36B	-20.26B
Ending cash balance	11.36B	13.58B	14.22B	13.93B	34.70B	18.32B	30.24B	20.94B

Line item	2025-03	2025-06	2025-09	2025-12	2026-03	2026-06
Operating cash flow	37.04B	42.65B	45.06B	35.76B	46.68B	55.44B
Depreciation & amortization	7.73B	9.32B	13.06B	9.20B	10.17B	11.02B
Free cash flow	20.30B	25.57B	25.66B	5.88B	15.80B	19.64B
Dividends paid	-6.17B	-6.17B	-6.17B	-6.76B	-6.76B	-6.76B
Stock buybacks / issuance	-4.24B	-4.00B	-4.96B	-7.16B	-4.09B	-4.06B
Ending cash balance	28.83B	30.24B	28.85B	24.30B	32.11B	20.94B

Returns & efficiency

Line item	2019	2020	2021	2022	2023	2024	2025	2026
ROE %	42.41	40.14	47.08	47.15	38.82	37.13	33.28	34.04
ROA %	14.39	15.07	19.30	20.82	18.63	19.07	18.00	19.42
ROIC %	22.69	23.90	30.80	33.23	28.96	29.23	27.48	29.57
5-year avg ROE %	27.03	32.19	36.20	39.25	43.12	42.07	40.69	38.09
EBIT margin %	36.85	38.90	43.70	43.26	43.07	45.17	44.73	50.92
FCF / sales %	30.40	31.63	33.39	32.86	28.07	30.22	25.42	20.19
Current ratio	2.53	2.52	2.08	1.78	1.77	1.27	1.35	1.23
Quick ratio	2.35	2.33	1.90	1.57	1.54	1.06	1.16	0.93
Debt / assets	76.58	60.01	47.73	36.79	29.08	25.00	17.64	12.85
LT debt / equity	71.19	56.84	42.05	35.14	26.53	21.67	16.77	10.76
Interest coverage	17.27	21.47	31.31	41.58	46.38	37.72	52.84	55.39
Revenue CAGR (3Y) %	11.35	13.98	15.06	16.36	14.01	13.40	12.42	16.12
Net income CAGR (3Y) %	24.08	20.21	54.63	22.84	17.79	12.88	11.87	22.72
FCF CAGR (3Y) %	15.27	12.97	20.28	19.41	9.55	9.69	3.20	4.04

Line item	2025-03	2025-06	2025-09	2025-12	2026-03	2026-06
ROE %	33.61	33.28	32.24	34.39	34.01	34.04
ROA %	18.46	18.00	18.10	19.89	19.93	19.42
ROIC %	27.00	27.48	27.06	29.22	29.24	29.57
5-year avg ROE %	--	--	--	--	--	--
EBIT margin %	44.71	44.73	44.30	48.84	49.43	50.92
FCF / sales %	25.69	25.42	26.55	25.34	22.91	20.19
Current ratio	1.37	1.35	1.40	1.39	1.28	1.23
Quick ratio	1.15	1.16	1.15	1.12	1.01	0.93
Debt / assets	18.82	17.64	16.68	14.74	13.75	12.85
LT debt / equity	17.88	16.77	14.52	13.50	11.61	10.76
Interest coverage	48.86	52.84	52.04	56.44	55.65	55.39
Revenue CAGR (3Y) %	--	--	--	--	--	--
Net income CAGR (3Y) %	--	--	--	--	--	--
FCF CAGR (3Y) %	--	--	--	--	--	--

Revenue breakdown most recent period

Business

Productivity and Business Processes42.19%

Intelligent Cloud41.52%

More Personal Computing16.29%

Region

United States51.47%

Other countries48.53%