Alphabet vs Microsoft
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The short version
- Alphabet is the larger business, with $402.8B of revenue in fiscal 2025 against $331.8B for Microsoft.
- Microsoft grew revenue faster (17.8%, against 15.1%).
- Microsoft kept more of each dollar of sales as operating profit (46.8% operating margin, against 32.0%).
- Microsoft turned more of its sales into free cash flow (20.2% FCF margin, against 18.2%).
- Alphabet earned a higher return on the capital invested in it (36.7%, against 30.9%).
| Latest fiscal year | GOOGL · FY25 | MSFT · FY26 |
|---|---|---|
| Size | ||
| Market cap | $3.94T | $3.91T |
| Revenue | $402.8B | $331.8B |
| Free cash flow | $73.3B | $67.0B |
| Net income | $132.2B | $133.7B |
| Growth | ||
| Revenue growth | 15.1% | 17.8% |
| 5-year growth | 17.2% | 14.6% |
| Share count change | −1.7% | −0.2% |
| Profitability | ||
| Gross margin | 59.7% | 67.9% |
| Operating margin | 32.0% | 46.8% |
| Net margin | 32.8% | 40.3% |
| FCF margin | 18.2% | 20.2% |
| Return on capital | 36.7% | 30.9% |
| Return on equity | 35.7% | 34.0% |
| Balance sheet | ||
| Net debt | −$75.3B | $30.0B |
| Net debt / EBITDA | −0.5x | 0.2x |
| Dividends and buybacks | $55.8B | $48.7B |
| Valuation & quality | ||
| P/E | 16.1x | — |
| Piotroski F-score | 8 | 6 |
FY17
GOOGL $110.9B
MSFT $96.6B
FY18
GOOGL $136.8B
MSFT $110.4B
FY19
GOOGL $161.9B
MSFT $125.8B
FY20
GOOGL $182.5B
MSFT $143.0B
FY21
GOOGL $257.6B
MSFT $168.1B
FY22
GOOGL $282.8B
MSFT $198.3B
FY23
GOOGL $307.4B
MSFT $211.9B
FY24
GOOGL $350.0B
MSFT $245.1B
FY25
GOOGL $402.8B
MSFT $281.7B
FY26
GOOGL —
MSFT $331.8B
GOOGL
MSFT
FY17
GOOGL 23.6%
MSFT 30.1%
FY18
GOOGL 20.1%
MSFT 31.8%
FY19
GOOGL 21.2%
MSFT 34.1%
FY20
GOOGL 22.6%
MSFT 37.0%
FY21
GOOGL 30.6%
MSFT 41.6%
FY22
GOOGL 26.5%
MSFT 42.1%
FY23
GOOGL 27.4%
MSFT 41.8%
FY24
GOOGL 32.1%
MSFT 44.6%
FY25
GOOGL 32.0%
MSFT 45.6%
FY26
GOOGL —
MSFT 46.8%
GOOGL
MSFT
FY17
GOOGL $23.9B
MSFT $31.4B
FY18
GOOGL $22.8B
MSFT $32.3B
FY19
GOOGL $31.0B
MSFT $38.3B
FY20
GOOGL $42.8B
MSFT $45.2B
FY21
GOOGL $67.0B
MSFT $56.1B
FY22
GOOGL $60.0B
MSFT $65.1B
FY23
GOOGL $69.5B
MSFT $59.5B
FY24
GOOGL $72.8B
MSFT $74.1B
FY25
GOOGL $73.3B
MSFT $71.6B
FY26
GOOGL —
MSFT $67.0B
GOOGL
MSFT
FY17
GOOGL 23.5%
MSFT 74.1%
FY18
GOOGL 38.1%
MSFT 48.1%
FY19
GOOGL 37.2%
MSFT 100.6%
FY20
GOOGL 36.4%
MSFT 86.8%
FY21
GOOGL 56.9%
MSFT 88.0%
FY22
GOOGL 43.5%
MSFT 69.4%
FY23
GOOGL 41.8%
MSFT 50.2%
FY24
GOOGL 43.4%
MSFT 41.5%
FY25
GOOGL 36.7%
MSFT 34.7%
FY26
GOOGL —
MSFT 30.9%
GOOGL
MSFT
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.