MSFT Stock Analysis: Microsoft | NASDAQ
Software - Infrastructure | NASDAQ, USA | Market Cap: 3.711.733m USD | 12M Return: -3.8% | US5949181045 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 15.8B
EPS Trend: 97.8%
Qual. Beats: 1
Rev. Trend: 99.9%
Qual. Beats: 2
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Microsoft Corporation develops and sells software, services, devices, and solutions globally through three reporting segments: Productivity and Business Processes (Microsoft 365, LinkedIn, Dynamics), Intelligent Cloud (Azure, GitHub, server products), and Personal Computing (Windows OEM, Surface, Xbox). The company distributes through OEMs, resellers, distributors, and online/retail channels, and is pursuing strategic AI partnerships with Mayo Clinic for healthcare and Global Objects for generative AI world models. Founded in 1975 and headquartered in Redmond, Washington, Microsoft trades on the NASDAQ under the ticker MSFT.
Classified in the GICS Systems Software sub-industry of the Information Technology sector, Microsoft reflects the broader enterprise software industrys transition from perpetual licensing to subscription and cloud-based delivery models, with its Azure platform positioning it among the leading infrastructure-as-a-service providers competing in the public cloud market.
- Azure revenue growth accelerates on AI workload demand
- Surging AI capex spending pressures near-term operating margins
- Activision Blizzard acquisition expands gaming segment revenue
| Net Income: 134b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -2.74 > 1.0 |
| NWC/Revenue: 11.72% < 20% (prev 17.72%; Δ -6.00% < -1%) |
| CFO/TA 0.24 > 3% & CFO 183b > Net Income 134b |
| Net Debt (68.5b) to EBITDA (208b): 0.33 < 3 |
| Current Ratio: 1.23 > 1.5 & < 3 |
| Outstanding Shares: last quarter (7.45b) vs 12m ago -0.11% < -2% |
| Gross Margin: 67.94% > 18% (prev 68.82%; Δ -0.88% > 0.5%) |
| Asset Turnover: 48.18% > 50% (prev 45.51%; Δ 2.67% > 0%) |
| Interest Coverage Ratio: 55.39 > 6 (EBIT TTM 169b / Interest Expense TTM 3.05b) |
| A: 0.05 (Total Current Assets 208b - Total Current Liabilities 169b) / Total Assets 758b |
| B: 0.43 (Retained Earnings 328b / Total Assets 758b) |
| C: 0.25 (EBIT TTM 169b / Avg Total Assets 689b) |
| D: 1.40 (Book Value of Equity 442b / Total Liabilities 316b) |
| Altman-Z'' = 4.87 = AA |
| DSRI: 0.98 (Receivables 80.9b/69.9b, Revenue 332b/282b) |
| GMI: 1.01 (GM 68.82% / 67.94%) |
| AQI: 0.88 (AQ_t 0.28 / AQ_t-1 0.32) |
| SGI: 1.18 (Revenue 332b / 282b) |
| TATA: -0.06 (NI 134b - CFO 183b) / TA 758b) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of August 14, 2026, the stock is trading at USD 496.88 with a total of 22,600,346 shares traded. Over the past week, the price has changed by -0.60%, over one month by +27.08%, over three months by +22.89% and over the past year by -3.79%.
Current recommended Stop Loss: 477.50 (which is 3.9% or 1.3 ATR below the current price).
Microsoft has received a consensus analysts rating of 4.59. Therefore, it is recommended to buy MSFT.
- StrongBuy: 41
- Buy: 15
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 562.7 | 13.3% |
P/E Trailing = 27.1811
P/E Forward = 25.0
P/S = 11.1853
P/B = 8.2719
P/EG = 1.6106
Revenue TTM = 332b USD
EBIT TTM = 169b USD
EBITDA TTM = 208b USD
Long Term Debt = 31.1b USD (from longTermDebt, last quarter)
Short Term Debt = 18.9b USD (from shortTermDebt, last quarter)
Debt = 145b USD (from shortLongTermDebtTotal, last quarter) + Leases 16.5b
Net Debt = 68.5b USD (calculated: Debt 145b - CCE 76.8b)
Enterprise Value = 3780b USD (3712b + Debt 145b - CCE 76.8b)
Interest Coverage Ratio = 55.39 (Ebit TTM 169b / Interest Expense TTM 3.05b)
EV/FCF = 56.43x (Enterprise Value 3780b / FCF TTM 67.0b)
FCF Yield = 1.77% (FCF TTM 67.0b / Enterprise Value 3780b)
FCF Margin = 20.19% (FCF TTM 67.0b / Revenue TTM 332b)
Net Margin = 40.31% (Net Income TTM 134b / Revenue TTM 332b)
Gross Margin = 67.94% ((Revenue TTM 332b - Cost of Revenue TTM 106b) / Revenue TTM)
Gross Margin QoQ = 67.20% (prev 67.63%)
Tobins Q-Ratio = 4.98 (Enterprise Value 3780b / Total Assets 758b)
Interest Expense / Debt = 2.10% (Interest Expense 3.05b / Debt 145b)
Taxrate = 19.40% (32.2b / 166b)
NOPAT = 136b (EBIT 169b * (1 - 19.40%))
Current Ratio = 1.23 (Total Current Assets 208b / Total Current Liabilities 169b)
Debt / Equity = 0.33 (Debt 145b / totalStockholderEquity, last quarter 442b)
Debt / EBITDA = 0.33 (Net Debt 68.5b / EBITDA 208b)
Debt / FCF = 1.02 (Net Debt 68.5b / FCF TTM 67.0b)
Total Stockholder Equity = 403b (last 4 quarters mean from totalStockholderEquity)
RoA = 19.42% (Net Income 134b / Total Assets 758b)
RoE = 33.22% (Net Income TTM 134b / Total Stockholder Equity 403b)
RoCE = 38.96% (EBIT 169b / Capital Employed (Equity 403b + L.T.Debt 31.1b))
RoIC = 23.01% (NOPAT 136b / Invested Capital 592b)
WACC = 10.36% (E(3712b)/V(3857b) * Re(10.70%) + D(145b)/V(3857b) * Rd(2.10%) * (1-Tc(0.19)))
Discount Rate = 10.70% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -87.46 | Cagr: -0.11%
[DCF] Terminal Value 67.64% ; FCFF base≈68.8b ; Y1≈65.4b ; Y5≈62.0b
[DCF] Fair Price = 89.05 (EV 730b - Net Debt 68.5b = Equity 661b / Shares 7.43b; r=10.36% [WACC]; 5y FCF grow -6.46% → 2.50% )
EPS Correlation: 97.84 | EPS CAGR: 20.52% | SUE: 1.34 | # QB: 1
Revenue Correlation: 99.91 | Revenue CAGR: 16.08% | SUE: 2.86 | # QB: 2
EPS current Quarter (2026-09-30): EPS=4.71 | Chg30d=+1.96% | Revisions=-22% | Analysts=27
EPS next Quarter (2026-12-31): EPS=4.82 | Chg30d=+0.64% | Revisions=+0% | Analysts=27
EPS current Year (2027-06-30): EPS=19.67 | Chg30d=+1.42% | Revisions=-15% | GrowthEPS=+13.9% | GrowthRev=+17.8%
EPS next Year (2028-06-30): EPS=23.47 | Chg30d=+3.72% | Revisions=-15% | GrowthEPS=+19.3% | GrowthRev=+19.3%
[Analyst] Revisions Ratio: -18% (up=12, down=18)