Amazon vs Microsoft
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The short version
- Amazon is the larger business, with $716.9B of revenue in fiscal 2025 against $331.8B for Microsoft, about 2.2 times as much.
- Microsoft grew revenue faster (17.8%, against 12.4%).
- Microsoft kept more of each dollar of sales as operating profit (46.8% operating margin, against 11.2%).
- Microsoft turned more of its sales into free cash flow (20.2% FCF margin, against 1.1%).
- Microsoft earned a higher return on the capital invested in it (30.9%, against 20.6%).
| Latest fiscal year | AMZN · FY25 | MSFT · FY26 |
|---|---|---|
| Size | ||
| Market cap | $2.70T | $3.91T |
| Revenue | $716.9B | $331.8B |
| Free cash flow | $7.7B | $67.0B |
| Net income | $77.7B | $133.7B |
| Growth | ||
| Revenue growth | 12.4% | 17.8% |
| 5-year growth | 13.2% | 14.6% |
| Share count change | 1.0% | −0.2% |
| Profitability | ||
| Gross margin | 50.3% | 67.9% |
| Operating margin | 11.2% | 46.8% |
| Net margin | 10.8% | 40.3% |
| FCF margin | 1.1% | 20.2% |
| Return on capital | 20.6% | 30.9% |
| Return on equity | 22.3% | 34.0% |
| Balance sheet | ||
| Net debt | −$41.5B | $30.0B |
| Net debt / EBITDA | −0.3x | 0.2x |
| Dividends and buybacks | $0.0M | $48.7B |
| Valuation & quality | ||
| P/E | 20.0x | — |
| Piotroski F-score | 6 | 6 |
Revenue
FY17
AMZN $177.9B
MSFT $96.6B
FY18
AMZN $232.9B
MSFT $110.4B
FY19
AMZN $280.5B
MSFT $125.8B
FY20
AMZN $386.1B
MSFT $143.0B
FY21
AMZN $469.8B
MSFT $168.1B
FY22
AMZN $514.0B
MSFT $198.3B
FY23
AMZN $574.8B
MSFT $211.9B
FY24
AMZN $638.0B
MSFT $245.1B
FY25
AMZN $716.9B
MSFT $281.7B
FY26
AMZN —
MSFT $331.8B
AMZN
MSFT
Operating margin
FY17
AMZN 2.3%
MSFT 30.1%
FY18
AMZN 5.3%
MSFT 31.8%
FY19
AMZN 5.2%
MSFT 34.1%
FY20
AMZN 5.9%
MSFT 37.0%
FY21
AMZN 5.3%
MSFT 41.6%
FY22
AMZN 2.4%
MSFT 42.1%
FY23
AMZN 6.4%
MSFT 41.8%
FY24
AMZN 10.8%
MSFT 44.6%
FY25
AMZN 11.2%
MSFT 45.6%
FY26
AMZN —
MSFT 46.8%
AMZN
MSFT
Free cash flow
FY17
AMZN $6.4B
MSFT $31.4B
FY18
AMZN $17.3B
MSFT $32.3B
FY19
AMZN $21.7B
MSFT $38.3B
FY20
AMZN $25.9B
MSFT $45.2B
FY21
AMZN −$14.7B
MSFT $56.1B
FY22
AMZN −$16.9B
MSFT $65.1B
FY23
AMZN $32.2B
MSFT $59.5B
FY24
AMZN $32.9B
MSFT $74.1B
FY25
AMZN $7.7B
MSFT $71.6B
FY26
AMZN —
MSFT $67.0B
AMZN
MSFT
Return on capital
FY17
AMZN 27.5%
MSFT 74.1%
FY18
AMZN 45.4%
MSFT 48.1%
FY19
AMZN 28.0%
MSFT 100.6%
FY20
AMZN 31.2%
MSFT 86.8%
FY21
AMZN 23.3%
MSFT 88.0%
FY22
AMZN 6.9%
MSFT 69.4%
FY23
AMZN 16.7%
MSFT 50.2%
FY24
AMZN 26.5%
MSFT 41.5%
FY25
AMZN 20.6%
MSFT 34.7%
FY26
AMZN —
MSFT 30.9%
AMZN
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.