Microsoft Corporation (MSFT) Stock Analysis
Technology · Software - Infrastructure · NasdaqGS
Microsoft Corporation (MSFT) posted $331.84B in revenue for fiscal 2026 (up 17.8% year over year), at a 40.3% net margin, and has compounded revenue about 14.6%/yr over five years, per its SEC filings.
Data last refreshed August 2, 2026 from SEC filings · how we compute this
The analyst's take on Microsoft Corporation
Microsoft Corporation has grown revenue from $96.57B to $331.84B over the last 10 fiscal years, compounding about 14.6% a year. The most recent year was up 17.8%, so growth is actually accelerating.
Net margin sits at 40.3%, up 4.2 points year over year on a 67.9% gross margin. It carries about $40.29B of total debt.
At today's valuation the market is pricing in roughly 20.6% annual free-cash-flow growth — versus the 3.6% it actually delivered over the last five years, so the price already assumes a step-up from the recent record. The one thing worth a second look in the filings is inventory building faster than sales.
Synthesised from Microsoft Corporation's SEC filings — descriptive, not advice. Ask the analyst your own question →
Microsoft Corporation revenue & earnings — last 10 fiscal years
| Metric | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $96.57B | $110.36B | $125.84B | $143.01B | $168.09B | $198.27B | $211.91B | $245.12B | $281.72B | $331.84B |
| Gross profit | $62.31B | $72.01B | $82.93B | $96.94B | $115.86B | $135.62B | $146.05B | $171.01B | $193.89B | $225.47B |
| Net income | $25.49B | $16.57B | $39.24B | $44.28B | $61.27B | $72.74B | $72.36B | $88.14B | $101.83B | $133.75B |
| Net margin | 26.4% | 15.0% | 31.2% | 31.0% | 36.5% | 36.7% | 34.1% | 36.0% | 36.1% | 40.3% |
Source: Microsoft Corporation SEC filings (10-K). 19 years of history available in the interactive view.
Microsoft Corporation: 1 potential red flag in the filings
Patterns in the filed statements worth a second look — computed and cited, not AI guesswork, and not a signal to sell. The kind of thing that hides in a 10-K.
- Inventory building faster than salesInventory rose 48.9% versus revenue 17.8% — possible overproduction or softening demand.
What growth is priced into MSFT stock?
At today's market cap of $3.45T, Microsoft Corporation is priced for free-cash-flow growth of about 20.6% per year for 10 years (assuming a 10% discount rate and 2.5% terminal growth, base FCF $66.99B from the FY ending 2026-06-30). For comparison, free cash flow actually grew 3.6%/yr over the last five fiscal years and revenue 14.6%/yr, computed from its SEC filings. This is a reverse DCF — a translation of the price into a growth assumption you can judge, not a fair value and not advice. Change the assumptions yourself in the interactive view →
Explore 19 years of Microsoft Corporation financials — interactive
Full income statement, balance sheet and cash flow with CAGR and trend on every row, 48 quarters, valuation ratios, plain-English health checks, and Ask — our SEC-grounded research assistant.
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Microsoft Corporation financial history by metric
Compare Microsoft Corporation with peers
About Microsoft Corporation
Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. It operates through three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, Microsoft 365 Copilot, and Windows Commercial on-premises and Office licensed on-premises. This segment also provides Microsoft 365 Consumer products and cloud services; LinkedIn, including talent solutions, marketing solutions, subscriptions, and sales solutions; Dynamics 365, a set of cloud-based applications; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services; cloud and AI consumption-based services, GitHub cloud services, health and life sciences cloud services, as well as virtual desktop offerings, and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related client access licenses; and enterprise support services, industry solutions, Microsoft partner network, and learning experience. The More Personal Computing segment provides Windows OEM licensing and devices comprising Surface and PC accessories; XBOX hardware, and XBOX first- and third-party content and services; XBOX Game Pass and other subscriptions; XBOX Cloud Gaming, advertising, and other cloud services; and search advertising consisting of Bing, Copilot, Microsoft News, Microsoft Edge, and third-party affiliates. It sells its products through partners and retail networks. The company was founded in 1975 and is headquartered in Redmond, Washington.
Microsoft Corporation — frequently asked questions
What is Microsoft Corporation's revenue?
Microsoft Corporation (MSFT) reported revenue of $331.84B for fiscal year 2026, up 17.8% from the prior year, according to its SEC filings.
Is Microsoft Corporation profitable?
Yes. MSFT earned net income of $133.75B in fiscal 2026, a net margin of 40.3%.
What is MSFT's P/E ratio?
Microsoft Corporation trades at a price-to-earnings ratio of about 25.9 based on the latest data in our nightly-refreshed cache.
How fast is Microsoft Corporation growing?
MSFT's revenue grew at roughly 14.6% per year over the last five fiscal years (compound annual growth rate), computed from SEC-filed statements.
How much debt does Microsoft Corporation have?
As of fiscal year 2026, MSFT carried roughly $40.29B in total debt (short- plus long-term borrowings), per its filed balance sheet.
What is Microsoft Corporation's gross margin?
MSFT's gross margin was 67.9% in fiscal 2026 — gross profit of $225.47B on revenue of $331.84B.
What is Microsoft Corporation's market cap?
Microsoft Corporation (MSFT) has a market capitalization of about $3.45T, based on the latest data in our nightly-refreshed cache.
When does Microsoft Corporation's fiscal year end?
MSFT's fiscal year ends in June. Its most recent annual filing covers the fiscal year ending 2026-06-30.
What growth is priced into MSFT stock?
At today's market cap of $3.45T, Microsoft Corporation is priced for free-cash-flow growth of about 20.6% per year for 10 years (assuming a 10% discount rate and 2.5% terminal growth, base FCF $66.99B from the FY ending 2026-06-30). For comparison, free cash flow actually grew 3.6%/yr over the last five fiscal years and revenue 14.6%/yr, computed from its SEC filings.
Where does this data come from?
All figures are computed from Microsoft Corporation's official SEC filings (10-K and 10-Q), covering 19 years of history, refreshed nightly. stockportfolio.pro does not provide investment advice.