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$513.53
Market Capi
$3.8T
Growth-adj P/E (3-yr hist)i
0.9x
Growth-adj P/E (3-yr proj)i
1.1x
P/S 27Ei
9.8x
P/S 29Ei
6.7x
EV/EBIT 27Ei
21x
EV/EBIT 29Ei
15x
P/E 27Ei
26x
P/E 29Ei
18x
P/S 27Ei
9.8x
EV/EBIT 27Ei
21x
P/E 27Ei
26x
P/S 29Ei
6.7x
EV/EBIT 29Ei
15x
P/E 29Ei
18x
Revenue
2027E
$391B
Gross Margini
68%
Hist. CAGRi
16%
Proj. CAGRi
20%
EBIT
2027E
$182B
Op. Margini
47%
Hist. CAGRi
20%
Proj. CAGRi
19%
Net profit
2027E
$147B
Net Margini
40%
Hist. CAGRi
23%
Proj. CAGRi
17%
Business Model
Recent Developments
Average Targeti
$569.56+15%
Consensusi
Buy
56 analysts covering
Net cashi
$46B
Div. Yieldi
0.8%
Buyback Yldi
0.1%
Market Capi
$3.8T
P/E 27Ei
26x
Adj. P/E (fwd.)i
1.1x
Revenue 27E
$391B
Proj. CAGRi
20%
Gross Margini
68%
EBIT 27E
$182B
Proj. CAGRi
19%
Op. Margini
47%
Net Profit 27E
$147B
Proj. CAGRi
17%
Net Margini
40%
Average Targeti
$569.56+15%
Consensusi
Buy
56 analysts covering
Profile
Microsoft designs, builds, and sells software, cloud infrastructure, devices, and business applications for enterprises, developers, and consumers worldwide, monetizing mainly through recurring subscriptions and cloud consumption rather than one-time software sales.
Industry
Microsoft sells mainly to enterprise and public-sector customers through direct sales and a global partner network, alongside consumer and SMB channels for Windows, Surface, and Xbox. Revenue splits roughly evenly between the United States and international markets. Enterprise software and cloud infrastructure carry high switching costs and multi-year contracts, producing durable recurring revenue, though the market stays intensely competitive against AWS, Google Cloud, and Salesforce, with heavy ongoing capital spending required to keep pace.
Key metrics
Economic moat
Microsoft's advantage rests on deep enterprise switching costs: Windows, Office, and Azure are embedded in corporate IT stacks that are costly and risky to replace. Scale advantages in hyperscale data center capacity support Azure's infrastructure economics, while LinkedIn and GitHub each benefit from network effects among professionals and developers. A large multi-year commercial contract backlog and deep AI integration across its product suite reinforce recurring, high-margin revenue and raise the bar for competitors.
Satya Nadella
Nadella joined Microsoft in 1992 and rose through leadership of the Cloud and Enterprise group before being named CEO in February 2014, adding the Chairman title in 2021. He has led Microsoft's transformation into a cloud- and AI-first company, driving the Azure buildout and the OpenAI partnership that now anchors Copilot across the product suite. He holds degrees in electrical engineering and computer science and an MBA from the University of Chicago.
Amy Hood
Hood joined Microsoft in 2002 from an investment banking career at Goldman Sachs and has served as CFO since 2013, becoming the company's first female CFO. She has overseen the financing and integration of Microsoft's largest acquisitions, including LinkedIn, GitHub, and Activision Blizzard, and has directed the company's shift in capital spending toward cloud and AI infrastructure.
Brad Smith
Smith joined Microsoft in 1993 and spent roughly a decade as general counsel navigating the company's antitrust disputes before being named President in 2015 and Vice Chair in 2021. He leads Microsoft's public-facing work on AI policy, cybersecurity, and privacy, representing the company before governments and regulators worldwide.
Judson Althoff
Althoff joined Microsoft in 2013 as president of Microsoft North America after more than a decade in senior sales leadership at Oracle and EMC. He was named CEO of Microsoft's commercial business in 2025 after previously serving as Chief Commercial Officer, now overseeing sales, marketing, and revenue growth across the company's global enterprise operations.
P/S Ratioi
EV/EBITi
P/E Ratioi
Revenue
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
EBIT
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Net profit
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Values in billions of USD.
Operating cashflow · Levered Free Cash Flow
Free Cash Flow
CAPEX
Values in billions of USD.
Margins
Rentability
Balance sheet
Values in billions of USD.
Liquidity ratios
Debt-to-Equity-Ratio
Last earnings
Fiscal Q4 2026 (quarter ended June 30, 2026) revenue reached $90.0 billion, up 18% year over year and ahead of consensus.
Non-GAAP diluted EPS was $4.74, up 23% YoY and above the roughly $4.24 estimate; a $3.2 billion gain on Microsoft's Anthropic stake added about $0.27 to EPS.
Azure revenue grew 43% in the quarter, pushing full fiscal-year Azure revenue past $100 billion for the first time; Intelligent Cloud revenue was $39.3 billion, up 32%.
Management guided fiscal Q1 2027 Azure growth to about 45% in constant currency and held calendar-2026 capex plans near $175 billion.
Recent developments
Microsoft 365 Copilot passed 30 million paid seats, with OpenAI's GPT-5.6 becoming the preferred model across Word, Excel, PowerPoint and Copilot Chat/Cowork in July 2026.
Business Standard and Business Premium with Copilot became permanent, generally available SKUs on July 1, 2026, replacing the earlier promotional pricing.
Microsoft confirmed plans to merge Copilot Chat, GitHub Copilot, Cowork and its Autopilot agents into one unified app, aiming to keep context across chat, collaboration and autonomous tasks.
The reworked Microsoft-OpenAI agreement (finalized April 2026) ended Microsoft's revenue-share payments to OpenAI and extended Microsoft's non-exclusive IP license through 2032, while OpenAI keeps paying Microsoft a revenue share through 2030 and can now ship on other clouds.
Debate & sentiment
Bulls cite the 43% Azure growth, rising Copilot seat counts, and broadening enterprise AI adoption as signs the infrastructure buildout is starting to pay off.
Bears remain focused on the pace of AI capital spending, arguing data-center and chip investment could outrun free cash flow if monetization slows.
The revised OpenAI terms cut Microsoft's direct revenue-share cost, which some see as easing margin pressure, while the now non-exclusive IP license raises competitive risk as OpenAI can distribute on rival clouds.
Commercial remaining performance obligations rose to $678 billion, with growth increasingly driven by customers beyond AI model developers — read by bulls as evidence of broadening AI demand.
Consensusi
Buy
Average targeti
$569.56+15%
Highest targeti
$870.00+75%
Lowest targeti
$400.00-19%
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