MICROSOFT CORP

MSFT

Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. Its products include operating systems, server applications, business solution applications, software development tools, desktop and server management tools, and video games; and devices, such as PCs, tablets, gaming and entertainment consoles, other...

Country: United StatesPrice: $495.40Market Cap: $3.68T

Company Profile

Industry: Business Services
Size: Mega Cap($3.68T)
Revenue: $331.8B+17.8% YoY
Net Income: $133.7B+31.3% YoY

Financial Snapshot

Operating Margin46.8%
Return on Equity30.2%
Debt / Equity0.11
Current Ratio1.23
EPS (Diluted)$17.95+31.6%
Buybacks (1y)$22.3B
Buybacks (2y)$40.7B
Shares Retired0.1% / 0.1% 2y

Similar Companies

UBERUber Technologies, Inc
$155.1B
INTUINTUIT INC.
$94.6B
MCOMOODYS CORP /DE/
$84.0B
NBISNebius Group N.V.
$70.5B

Shareholder Return

Fiscal 2025

Retired 0.1% of shares last year, 0.1% over two.

Buybacks
$22.3B
Dividends
$26.4B

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22
0.3% = −0.5% + 0.8%
FY23
21.9% = 21.8% + 0.1%
FY24
15.6% = 15.5% + 0.0%
FY25
31.6% = 31.3% + 0.2%
Earnings Fewer shares More shares

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

MetricFY 2025FY 2024FY 2023FY 2022FY 2021
Market Cap$3.7T$3.1Test.$2.9Test.$1.8Test.$2.2Test.
Revenue$331.8B↑18%$281.7B↑15%$245.1B↑16%$211.9B↑7%$198.3B
Operating Income$155.2B↑21%$128.5B↑17%$109.4B↑24%$88.5B↑6%$83.4B
Net Income$133.7B↑31%$101.8B↑16%$88.1B↑22%$72.4B↓1%$72.7B
EPS (Diluted)$17.95↑32%$13.64↑16%$11.80↑22%$9.68$9.65
Gross Margin67.9%↓1%68.8%↓1%69.8%↑1%68.9%↑1%68.4%
Operating Margin46.8%↑3%45.6%↑2%44.6%↑7%41.8%↓1%42.1%
ROE30.2%↑2%29.6%↓10%32.8%↓6%35.1%↓20%43.7%
Total Debt$49.5B↑7%$46.1B↓2%$47.2B↓10%$52.5B$52.5B
Shareholders' Equity$442.4B↑29%$343.5B↑28%$268.5B↑30%$206.2B↑24%$166.5B
Current Ratio1.23↓9%1.35↑6%1.27↓28%1.77↓1%1.78
Debt / Equity0.11↓17%0.13↓24%0.18↓31%0.25↓19%0.32
Operating Cash Flow$182.9B↑34%$136.2B↑15%$118.5B↑35%$87.6B↓2%$89.0B
Free Cash Flow$67.0B↓6%$71.6B↓3%$74.1B↑25%$59.5B↓9%$65.1B
Scored from 10-K1d ago
MetricMarks

Risk-Aware Value

Akre

Three-Legged Stool

Druckenmiller

Macro-Enhanced Growth

Spier

Value Checklist

Pabrai

Dhandho Framework

Munger

Quality Focus

Ackman

Activist Value

Piotroski

F-Score

Greenblatt

Magic Formula

Lynch

GARP

Buffett

Quality Compounder

Graham

Defensive Value

VerdictHOLDBUYBUYBUYHOLDBUYHOLDHOLDNot rankedPASSPASSPASS
Score
Analysis
Intrinsic Value
Margin of Safety-279.8%+22.8%+10.5%-350.1%-60.4%-61.7%-53.3%-731.8%-255.4%-58.6%-213.3%-219.4%
Data As Of10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)

Where They Agree

    Where They Disagree

    • Profitability

      4 of 11 pass — Marks, Spier, Pabrai +4 more object

      Discount to Intrinsic Value-70.9% (IV=$216.95 vs Price=$370.87)
      ✗Marks>= 20% below intrinsic value
      Positive Net Income Frequency28/28 years positive
      ✓MarksPositive net income in >= 7 of last 10 years
      Return on Equity30.9% (3-yr avg)
      ✓AkreROE > 20% (3-year avg)
      EPS Growth AccelerationLatest: 31.6%, Prior: 15.6%
      ✓DruckenmillerAccelerating EPS growth
      Show 19 more metrics ▾
      Margin of SafetyP/E=20.7x, P/B=6.2x
      ✗SpierP/E < 15 AND P/B < 2.0✗PabraiP/B < 1.5 or P/E < 15
      Operating Income / Revenue46.8%
      ✓Ackman>= 15%
      Net Income / Shareholders Equity30.2%
      ✓Ackman>= 15%
      Net Income / Total Assets17.64%
      ✓PiotroskiROA > 0
      ROA Change YoY16.45% -> 17.64% (delta: +1.19%)
      ✓PiotroskiCurrent ROA > Prior ROA
      (CFO / Total Assets) vs ROACFO/Assets=24.12%, ROA=17.64%
      ✓PiotroskiCFO/Assets > ROA
      Gross Margin Change YoY68.8% -> 67.9%
      ✗PiotroskiImproved YoY
      EBIT / Enterprise Value5.6%
      ✗Greenblatt> 10%
      Earnings Yield + ROC AssessmentEY=5.6%, ROC=44.4%
      ✗GreenblattBoth EY > 10% and ROC > 25%
      3-5 Year EPS CAGR17.4%
      ✓Lynch15-30% (Fast Grower); > 0% to pass
      ROE30.2%
      ✓Lynch> 15%
      Net Income Positive (10+ years)28/28 years positive
      ✓BuffettPositive every year for 10+ years
      ROE (5-yr avg)34.3%
      ✓Buffett> 15% (5-yr avg)
      Operating Margin (10-yr trend)46.8% (latest)
      ✗BuffettStable or rising over 10 years
      Free Cash Flow Proxy$99.4B
      ✓BuffettPositive and growing
      Earnings Variance (10-yr CoV)
      ✗BuffettCoV < 0.3
      Retained Earnings Effectiveness0.64x
      ✗Buffett$1 retained -> > $1 market value created
      Positive EPS (10 years)28/28 years positive
      ✓GrahamPositive EPS every year for 10 years
      EPS Growth (3-yr avg, 10-yr window)
      ✗Graham>= 33% growth
    • Debt & Leverage

      6 of 8 pass — Lynch and Buffett object

      Interest Coverage & Debt/EBITDAIC=N/A (no interest expense), D/EBITDA=0.3x
      ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x
      Debt Levels0.11
      ✓AkreDebt/Equity < 0.3✓MungerDebt/Equity < 0.5
      Total Debt / Shareholders Equity0.11
      ✓Ackman<= 1.0
      LT Debt / Total Assets Change6.49% -> 4.10%
      ✓PiotroskiDecreased YoY
      Show 4 more metrics ▾
      Total Debt / Equity0.11
      ✓Lynch< 0.33
      Cash - Long-term Debt$-10.1B
      ✗LynchPositive preferred
      Debt/Equity & Interest CoverageD/E: 0.11, IC: N/A
      ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
      LT Debt vs Net Current AssetsLT Debt $31.1B vs NCA $38.9B
      ✓GrahamLT Debt <= Net Current Assets
    • Valuation

      2 of 9 pass — Marks, Spier, Pabrai +4 more object

      P/B or P/E vs. Historical AverageP/E=20.7x, P/B=6.2x
      ✗MarksP/E < 15 or P/B < 2.0
      Discount to Intrinsic Value-70.9% (IV=$216.95 vs Price=$370.87)
      ✗Marks>= 20% below intrinsic value
      Price vs. 200-day MAQualitative
      ✓DruckenmillerPrice above 200-day moving average
      Margin of SafetyP/E=20.7x, P/B=6.2x
      ✗SpierP/E < 15 AND P/B < 2.0
      Show 9 more metrics ▾
      P/E or FCF YieldP/E=20.7x, FCF Yield=2.4%
      ✗PabraiP/E < 15 or FCF Yield > 10%
      Valuation ReasonablenessP/E=20.7x, OE Yield=1.9%
      ✓MungerP/E < 25 or Owner Earnings Yield > 5%
      Price / FCF per Share41.1x
      ✗Ackman<= 25
      EBIT / Enterprise Value5.6%
      ✗Greenblatt> 10%
      Earnings Yield + ROC AssessmentEY=5.6%, ROC=44.4%
      ✗GreenblattBoth EY > 10% and ROC > 25%
      P/E / EPS Growth Rate1.19
      ✗Lynch< 1.0 (ideally < 0.5)
      Price / 3-yr avg EPS25.6x
      ✗Graham<= 15x
      Price-to-Book Ratio6.2x
      ✗Graham<= 1.5x
      P/E x P/B159.70
      ✗Graham<= 22.5
    • Cash Flow

      3 of 6 pass — Pabrai, Ackman and Lynch object

      FCF Positive17/17 years FCF positive
      ✓MarksPositive FCF in majority of recent years
      P/E or FCF YieldP/E=20.7x, FCF Yield=2.4%
      ✗PabraiP/E < 15 or FCF Yield > 10%
      (OCF - CapEx) / Market Cap2.4%
      ✗Ackman>= 4%
      Price / FCF per Share41.1x
      ✗Ackman<= 25
      Show 4 more metrics ▾
      Operating Cash Flow$182.9B
      ✓PiotroskiCFO > 0
      (CFO / Total Assets) vs ROACFO/Assets=24.12%, ROA=17.64%
      ✓PiotroskiCFO/Assets > ROA
      FCF Positive and Growing$67.0B
      ✗LynchPositive and growing
      Free Cash Flow Proxy$99.4B
      ✓BuffettPositive and growing
    • Growth

      3 of 5 pass — Lynch and Graham object

      Positive Net Income Frequency28/28 years positive
      ✓MarksPositive net income in >= 7 of last 10 years
      EPS Growth AccelerationLatest: 31.6%, Prior: 15.6%
      ✓DruckenmillerAccelerating EPS growth
      Revenue Growth RateLatest: 17.8%, Prior: 14.9%
      ✓DruckenmillerRevenue growth accelerating
      3yr Median Revenue Growth15.7%
      ✓Ackman>= 5%
      Show 5 more metrics ▾
      Positive EPS Growth Frequency5/5 years with positive EPS growth
      ✓AckmanPositive EPS growth in >= 3 of last 5 years
      P/E / EPS Growth Rate1.19
      ✗Lynch< 1.0 (ideally < 0.5)
      3-5 Year EPS CAGR17.4%
      ✓Lynch15-30% (Fast Grower); > 0% to pass
      Inventory Growth vs Revenue GrowthInv: 48.9% vs Rev: 17.8%
      ✗LynchInventory growth < Revenue growth
      EPS Growth (3-yr avg, 10-yr window)
      ✗Graham>= 33% growth
    • Efficiency

      4 of 6 pass — Piotroski and Graham object

      ROIC (high and growing)15/17 years ROIC > 15% (latest: 24.9%)
      ✓AkreROIC > 15% for 3+ years
      Reinvestment Rate x ROIC20.0% (RR=80% x ROIC=24.9%)
      ✓AkreReinvestment Rate * ROIC > 10%
      Return on Invested Capital24.9%
      ✓Munger> 15%
      Current Ratio Change YoY1.35 -> 1.23
      ✗PiotroskiIncreased YoY
      Show 5 more metrics ▾
      Revenue / Total Assets Change YoY0.46x -> 0.44x
      ✗PiotroskiImproved YoY
      EBIT / (NWC + Net Fixed Assets)44.4%
      ✓Greenblatt> 25%
      ROIC (3-5 yr avg)29.3%
      ✓Buffett> 10%
      ROIC - WACC+19.3%
      ✓BuffettPositive (WACC = 10%)
      Current Ratio1.23
      ✗Graham>= 2.0
    • Verdicts

      Split decision: 4 HOLD · 4 BUY · 3 PASS

      Overall verdict
      •MarksHOLD (6/8)✓AkreBUY (6/7)✓DruckenmillerBUY (7/7)✓SpierBUY (7/8)•PabraiHOLD (6/8)✓MungerBUY (7/7)•AckmanHOLD (7/9)•PiotroskiHOLD (F-Score 6)•GreenblattNot ranked✓LynchPASS (PEG 1.19)✓BuffettPASS (5/9)✓GrahamPASS (4/9)
    • Valuation models

      Models split on MSFT at $495.40 — fair values range $59.56–$641.63

      Marks fair value$130.45
      ✗Marks-279.8% margin vs $495.40
      Akre fair value$641.63
      ✓Akre+22.8% margin vs $495.40
      Druckenmiller fair value$553.47
      ✓Druckenmiller+10.5% margin vs $495.40
      Spier fair value$110.07
      ✗Spier-350.1% margin vs $495.40
      Show 8 more metrics ▾
      Pabrai fair value$308.78
      ✗Pabrai-60.4% margin vs $495.40
      Munger fair value$306.35
      ✗Munger-61.7% margin vs $495.40
      Ackman fair value$323.11
      ✗Ackman-53.3% margin vs $495.40
      Piotroski fair value$59.56
      ✗Piotroski-731.8% margin vs $495.40
      Greenblatt fair value$139.41
      ✗Greenblatt-255.4% margin vs $495.40
      Lynch fair value$312.26
      ✗Lynch-58.6% margin vs $495.40
      Buffett fair value$158.13
      ✗Buffett-213.3% margin vs $495.40
      Graham fair value$155.10
      ✗Graham-219.4% margin vs $495.40

    Historical Score Timeline

    Industry Peers

    Similar companies in Business Services

    MSFT vs Peers — Financial Grading

    Revenue$331.8BTop 25%
    Net Income$133.7BTop 25%
    ROE30.2%Top 25%
    D/E0.11Top 25%
    Op. Margin46.8%Top 25%
    Curr. Ratio1.23Bottom 25%
    CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroski
    Uber Technologies, IncUBER$155.1B$75.95$52.0B$10.1B37.2%0.3910.7%1.141/94/93/70/3F-Score 6
    INTUIT INC.INTU$94.6B$345.66$18.8B$3.9B19.6%0.3026.1%1.362/97/95/71/3F-Score 8
    MOODYS CORP /DE/MCO$84.0B$484.96$7.7B$2.5B60.7%1.7343.4%1.742/96/94/71/3F-Score 8
    Nebius Group N.V.NBIS$70.5B$277.68$529.8M$82.5M1.8%0.90-115.5%3.082/92/91/70/3F-Score 6
    ACI WORLDWIDE, INC.ACIW$5.4B$53.44$1.8B$226.7M14.9%0.5718.7%1.541/91/93/71/3F-Score 7
    Flywire CorpFLYW$2.3B$18.81$623.0M$13.5M1.6%—1.8%1.501/92/92/70/3F-Score 7
    INNODATA INCINOD$2.1B$63.85$251.7M$32.2M30.0%—15.8%2.683/93/95/71/3F-Score 6
    INSPERITY, INC.NSP$2.0B$52.20$6.8B$7.0M-15.2%8.02-0.1%1.063/94/92/70/3F-Score 1