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Microsoft

MSFT Nasdaq Systems Software Financials FY2017–FY2026

Microsoft's revenue rose 17.8% to $331.8 billion in fiscal 2026. Its operating margin was 46.8%, up from 45.6% a year earlier. Free cash flow was $67.0 billion, down 6.5%. It paid out $48.7 billion in dividends and buybacks, 73% of free cash flow. The diluted share count fell 0.2%.

Last close · Oct 23, 2026

$524.51

0.7%
Value it Compare
Revenue Total sales reported in the income statement.
$331.8B
17.8% vs prior year
Operating margin Operating income as a share of revenue.
46.8%
1.2 pts
Net income Profit after all expenses, interest and tax.
$133.7B
31.3%
Free cash flow Cash from operations minus capital spending.
$67.0B
6.5%
Return on capital After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.
30.9%
3.8 pts
Market cap Last close times the latest diluted share count, so it is approximate.
$3.91T
Oct 23 close
P/E Last close divided by diluted earnings per share over the last four quarters.
29.2x

What Microsoft does

Microsoft makes software, cloud computing services and devices for people, businesses and governments around the world. Its products include the Windows operating system, the Microsoft 365 office apps and Teams, the Azure cloud platform, the LinkedIn professional network, Dynamics business software, the Bing search engine, Surface computers and Xbox consoles and games. It is adding artificial intelligence tools, such as its Copilot assistants, across these products.

It reports three segments. Productivity and Business Processes covers Microsoft 365, LinkedIn and Dynamics. Intelligent Cloud covers Azure, server software and consulting services. More Personal Computing covers Windows licenses sold with new PCs, devices, Xbox and search advertising. It earns money from cloud subscriptions, software licenses, online ads and device sales. In the year to June 2026, total revenue grew 18%, and revenue from what Microsoft calls the Microsoft Cloud reached $214.4 billion; Azure and related cloud revenue grew 41%. Microsoft says it competes with other cloud providers, makers of AI models, rival device makers and operating systems, free ad-supported apps, open-source software, gaming platforms and search engines.

Microsoft employs about 223,000 people full time, roughly 121,000 of them in the United States, and is based in Redmond, Washington. It calls itself a major investor in OpenAI, with which it has a long-term partnership, and it bought the game publisher Activision Blizzard in 2023.

Legal name
Microsoft Corporation
Fiscal year ends
June 30, 2026
Latest annual report
10-K · Jul 29, 2026
Accession · CIK
0001193125-26-323660
0000789019

Revenue and margins

Microsoft had $331.8B of revenue in fiscal 2026, up 17.8% on the year before.

Revenue
Revenue
Margins, % of revenue
Gross Operating Net FCF
Margins, % of revenue
Gross Operating Net FCF

Net income and earnings per share

From fiscal 2017 to 2026, diluted EPS grew 20.9% a year. Loss periods are shown in red.

Net income
Net income
Diluted EPS
Diluted EPS

Returns on capital

After-tax operating income as a share of the money invested in the business: debt plus equity, minus cash.

Return on capital, equity and assets (annual)
Return on capital Return on equity Return on assets

Cash flow

Free cash flow was $67.0B in fiscal 2026, 20.2% of revenue. Cash from operations minus capital spending.

Free cash flow
Free cash flow
Cash from operations vs capital spending
Cash from operations Capital spending
Cash from operations vs capital spending
Cash from operations Capital spending

Dividends, buybacks and share count

Microsoft returned $48.7B to shareholders in fiscal 2026, 73% of free cash flow. The diluted share count fell 0.2%.

Dividends and buybacks
Dividends Buybacks
Dividends and buybacks
Dividends Buybacks
Diluted shares outstanding (annual)

Value Microsoft yourself

Change the assumptions and see what they imply per share. These are models, not forecasts or price targets — the answer depends entirely on what you put in.

Discounted cash flow

Value per share

—

Adds net cash of −$30.0B and divides by 7,453.0M diluted shares. Ten years of cash flows plus a terminal value, discounted to today.

Earnings multiple

Value per share

—

Reference multiples: today 29.2x · peers 20.9x · sector 33.5x.

Balance sheet

Cash, debt and the ratios that show how comfortably Microsoft can carry it.

Cash vs debt (incl. leases)
Cash Debt
Fiscal year endFY22FY23FY24FY25FY26
Cash and short-term investments $104.8B$111.3B$75.5B$94.6B$76.8B
Debt incl. finance leases $64.7B$64.3B$78.8B$89.3B$106.9B
Net debt / EBITDA −0.4x−0.5x0.0x−0.0x0.2x
Debt / equity 0.4x0.3x0.3x0.3x0.2x
Interest coverage 40.4x45.0x37.3x53.9x50.9x
Current ratio 1.8x1.8x1.3x1.4x1.2x
Quick ratio 1.8x1.8x1.3x1.4x1.2x
Total assets $364.8B$412.0B$512.2B$619.0B$758.4B
Total liabilities $198.3B$205.8B$243.7B$275.5B$316.0B
Shareholders' equity $166.5B$206.2B$268.5B$343.5B$442.4B
Net debt (− = net cash) −$40.1B−$47.0B$3.2B−$5.2B$30.0B

Insider trades

Open-market purchases and sales by officers, directors and 10% owners, from Form 4 filings. 'Plan' marks trades under a pre-arranged Rule 10b5-1 plan.

Bought, 12 months

$2.0M

1 insider

Sold, 12 months

$92.3M

6 insiders

Of sales under plans

74%

$68.1M

DateInsiderTradeSharesPriceValueFiling
Oct 13, 2026 Amy HoodEVP, Chief Financial Officer Sold plan 7,305 $545.42 $4.0M Form 4
Sep 14, 2026 Amy HoodEVP, Chief Financial Officer Sold plan 41,674 $498.27 $20.8M Form 4
Sep 1, 2026 Satya NadellaChief Executive Officer, Director Sold plan 86,525 $501.46 $43.4M Form 4
Aug 5, 2026 Judson AlthoffCEO Microsoft Commercial Sold 10,000 $487.89 $4.9M Form 4
Aug 4, 2026 Takeshi NumotoEVP, Chief Marketing Officer Sold 4,810 $496.48 $2.4M Form 4
Jun 10, 2026 Takeshi NumotoEVP, Chief Marketing Officer Sold 4,500 $402.84 $1.8M Form 4
Jun 8, 2026 Takeshi NumotoEVP, Chief Marketing Officer Sold 2,500 $412.45 $1.0M Form 4
Jun 1, 2026 Judson AlthoffCEO Microsoft Commercial Sold 15,500 $460.99 $7.1M Form 4
May 14, 2026 Amy ColemanEVP, Chief Human Resources Off Sold 1,262 $411.34 $0.5M Form 4
Mar 6, 2026 Kathleen T HoganEVP, Strategy Sold 12,321 $409.52 $5.0M Form 4
Feb 18, 2026 John W StantonDirector Bought 5,000 $397.35 $2.0M Form 4
Dec 4, 2025 Takeshi NumotoEVP, Chief Marketing Officer Sold 2,850 $478.72 $1.4M Form 4

Piotroski F-score

Nine pass/fail tests of profitability, funding and efficiency. 8–9 is strong, 0–2 weak.

TestFY24FY25FY26
Net income is positive ✓ ✓ ✓
Cash from operations is positive ✓ ✓ ✓
Return on assets rose ✓ ✕ ✓
Cash from operations exceeds net income ✓ ✓ ✓
Debt fell relative to assets ✓ ✓ ✓
Current ratio rose ✕ ✓ ✕
Share count didn't rise ✓ ✓ ✓
Gross margin rose ✓ ✕ ✕
Revenue rose relative to assets ✓ ✕ ✕
F-score 8 / 96 / 96 / 9
Accruals ratio −6.6%−6.1%−7.1%
Altman Z'' 4.144.494.59

Similar companies

Each company's latest fiscal year. Fiscal years end in different months, so periods don't line up exactly.

CompanyMarket capGrowthOp. marginFCF marginROICP/EF-score
Microsoft MSFT $3.91T 17.8% 46.8% 20.2% 30.9% 29.2x 6
Apple AAPL $5.12T 6.4% 32.0% 23.7% 102.9% 39.9x 8 Compare →
Alphabet GOOGL $3.94T 15.1% 32.0% 18.2% 36.7% 16.1x 8 Compare →
Amazon AMZN $2.70T 12.4% 11.2% 1.1% 20.6% 20.0x 6 Compare →
Meta Platforms META $1.65T 22.2% 41.4% 22.9% 35.5% 21.9x 6 Compare →

Stories about Microsoft

10 years of figures

US$ millions unless stated. Hover a ratio's name for its definition.

Download CSV
Fiscal yearFY17FY18FY19FY20FY21FY22FY23FY24FY25FY26
Income statement
Revenue $96.6B $110.4B $125.8B $143.0B $168.1B $198.3B $211.9B $245.1B $281.7B $331.8B
Gross profit $62.3B $72.0B $82.9B $96.9B $115.9B $135.6B $146.1B $171.0B $193.9B $225.5B
Research and development $13.0B $14.7B $16.9B $19.3B $20.7B $24.5B $27.2B $29.5B $32.5B $35.6B
Operating income $29.0B $35.1B $43.0B $53.0B $69.9B $83.4B $88.5B $109.4B $128.5B $155.2B
Interest expense $2.2B $2.7B $2.7B $2.6B $2.3B $2.1B $2.0B $2.9B $2.4B $3.1B
Pretax income $29.9B $36.5B $43.7B $53.0B $71.1B $83.7B $89.3B $107.8B $123.6B $165.9B
Income tax $4.4B $19.9B $4.4B $8.8B $9.8B $11.0B $17.0B $19.7B $21.8B $32.2B
Net income $25.5B $16.6B $39.2B $44.3B $61.3B $72.7B $72.4B $88.1B $101.8B $133.7B
Diluted EPS $3.25 $2.13 $5.06 $5.76 $8.05 $9.65 $9.68 $11.80 $13.64 $17.95
Diluted shares 7.83B 7.79B 7.75B 7.68B 7.61B 7.54B 7.47B 7.47B 7.47B 7.45B
Cash flow
Cash from operations $39.5B $43.9B $52.2B $60.7B $76.7B $89.0B $87.6B $118.5B $136.2B $182.9B
Capital expenditure $8.1B $11.6B $13.9B $15.4B $20.6B $23.9B $28.1B $44.5B $64.6B $115.9B
Free cash flow $31.4B $32.3B $38.3B $45.2B $56.1B $65.1B $59.5B $74.1B $71.6B $67.0B
Depreciation and amortization $7.8B $9.9B $11.6B $12.3B $10.9B $14.6B $13.5B $20.0B $28.0B $39.0B
Stock-based compensation $3.3B $3.9B $4.7B $5.3B $6.1B $7.5B $9.6B $10.7B $12.0B $12.4B
Acquisitions $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M $0.0M
Share buybacks $11.8B $10.7B $19.5B $23.0B $27.4B $32.7B $22.2B $17.3B $18.4B $22.3B
Dividends paid $11.8B $12.7B $13.8B $15.1B $16.5B $18.1B $19.8B $21.8B $24.1B $26.4B
Dividends and buybacks $23.6B $23.4B $33.4B $38.1B $43.9B $50.8B $42.0B $39.0B $42.5B $48.7B
Balance sheet
Cash and short-term investments $133.0B $133.8B $133.8B $136.5B $130.3B $104.8B $111.3B $75.5B $94.6B $76.8B
Total debt $86.2B $76.2B $72.2B $63.3B $58.1B $49.8B $47.2B $51.6B $43.2B $40.3B
Finance lease liabilities $2.5B $4.3B $6.6B $9.5B $12.5B $14.9B $17.1B $27.1B $46.2B $66.6B
Current assets $162.7B $169.7B $175.6B $181.9B $184.4B $169.7B $184.3B $159.7B $191.1B $207.7B
Current liabilities $55.7B $58.5B $69.4B $72.3B $88.7B $95.1B $104.1B $125.3B $141.2B $168.8B
Inventory $2.2B $2.7B $2.1B $1.9B $2.6B $3.7B $2.5B $1.2B $938M $1.4B
Property and equipment, net $23.7B $29.5B $36.5B $44.2B $59.7B $74.4B $95.6B $135.6B $205.0B $313.1B
Total assets $250.3B $258.8B $286.6B $301.3B $333.8B $364.8B $412.0B $512.2B $619.0B $758.4B
Total liabilities $162.6B $176.1B $184.2B $183.0B $191.8B $198.3B $205.8B $243.7B $275.5B $316.0B
Shareholders' equity $87.7B $82.7B $102.3B $118.3B $142.0B $166.5B $206.2B $268.5B $343.5B $442.4B
Margins
Gross margin 64.5% 65.3% 65.9% 67.8% 68.9% 68.4% 68.9% 69.8% 68.8% 67.9%
Operating margin 30.1% 31.8% 34.1% 37.0% 41.6% 42.1% 41.8% 44.6% 45.6% 46.8%
EBITDA margin 38.1% 40.7% 43.4% 45.6% 48.1% 49.4% 48.1% 52.8% 55.6% 58.5%
Net margin 26.4% 15.0% 31.2% 31.0% 36.5% 36.7% 34.2% 36.0% 36.2% 40.3%
FCF margin 32.5% 29.2% 30.4% 31.6% 33.4% 32.9% 28.1% 30.2% 25.4% 20.2%
Returns
Return on capital 74.1% 48.1% 100.6% 86.8% 88.0% 69.4% 50.2% 41.5% 34.7% 30.9%
Return on capital employed 17.7% 17.8% 20.6% 23.7% 29.5% 32.4% 30.7% 31.5% 29.7% 29.1%
Return on equity 29.9% 19.5% 42.4% 40.1% 47.1% 47.2% 38.8% 37.1% 33.3% 34.0%
Return on assets 11.5% 6.5% 14.4% 15.1% 19.3% 20.8% 18.6% 19.1% 18.0% 19.4%
Growth
Revenue growth 5.9% 14.3% 14.0% 13.7% 17.5% 18.0% 6.9% 15.7% 14.9% 17.8%
Net income growth 24.1% −35.0% 136.8% 12.9% 38.4% 18.7% −0.5% 21.8% 15.5% 31.3%
EPS growth 27.0% −34.5% 137.6% 13.8% 39.8% 19.9% 0.3% 21.9% 15.6% 31.6%
FCF growth 25.6% 2.8% 18.6% 18.2% 24.1% 16.1% −8.7% 24.5% −3.3% −6.5%
Share count change −2.3% −0.5% −0.5% −0.9% −1.0% −0.9% −0.9% −0.0% −0.1% −0.2%
Financial health
Net debt / EBITDA −1.2x −1.2x −1.0x −1.0x −0.7x −0.4x −0.5x 0.0x −0.0x 0.2x
Debt / equity 1.0x 1.0x 0.8x 0.6x 0.5x 0.4x 0.3x 0.3x 0.3x 0.2x
Interest coverage 13.1x 12.8x 16.0x 20.4x 29.8x 40.4x 45.0x 37.3x 53.9x 50.9x
Current ratio 2.9x 2.9x 2.5x 2.5x 2.1x 1.8x 1.8x 1.3x 1.4x 1.2x
Quick ratio 2.9x 2.9x 2.5x 2.5x 2.1x 1.8x 1.8x 1.3x 1.4x 1.2x
Capital allocation
Capex / revenue 8.4% 10.5% 11.1% 10.8% 12.3% 12.1% 13.3% 18.1% 22.9% 34.9%
Stock comp / revenue 3.4% 3.6% 3.7% 3.7% 3.6% 3.8% 4.5% 4.4% 4.3% 3.7%
Payouts / FCF 75.3% 72.6% 87.2% 84.2% 78.2% 78.0% 70.7% 52.7% 59.4% 72.7%
Quality scores
Piotroski F-score 7.0 6.0 8.0 8.0 8.0 7.0 6.0 8.0 6.0 6.0
Altman Z'' 4.4 4.4 4.3 4.6 4.6 4.5 4.7 4.1 4.5 4.6
Accruals ratio −6.3% −10.7% −4.8% −5.6% −4.9% −4.7% −3.9% −6.6% −6.1% −7.1%

Source: SEC EDGAR XBRL filings (CIK 0000789019). Data updated October 23, 2026. Quarterly fourth quarters are the full year minus the first nine months. For information only — not investment advice. Check the original filings before relying on any figure.

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