Microsoft CorporationMSFT
NasdaqGS•Technology•Software - Infrastructure
Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The Productivity and Business Processes segment offers Microsoft 365 commercial, enterprise mobility + security, windows commercial, power BI, exchange, sharepoint, Microsoft teams, security and compliance, and copilot; Microsoft 365 commercial products, such as Windows commercial on-premises and office licensed services; Microsoft 365 consumer products and cloud services, including Microsoft 365 consumer subscriptions, office licensed on-premises, and other consumer services; LinkedIn; dynamics products and cloud services, such as dynamics 365, cloud-based applications, and on-premises ERP and CRM applications. Its Intelligent Cloud segment provides Server products and cloud services comprising Azure and other cloud services, GitHub, Nuance Healthcare, virtual desktop offerings, and other cloud services; server products, including SQL and windows server, visual studio and system center related client access licenses, and other on-premises offerings; enterprise and partner services, such as enterprise support and nuance professional services, industry solutions, Microsoft partner network, and learning experience. The Personal Computing segment provides windows and devices, such as Windows OEM licensing and devices and surface and PC accessories; gaming services and solutions, such as Xbox hardware, content, and services, first- and third-party content Xbox game pass, subscriptions, and cloud gaming, advertising, and other cloud services; search and news advertising services that includes Bing and Copilot, Microsoft News and Edge, and third-party affiliates. It sells its products through OEMs, distributors, and resellers; and online and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.
Microsoft Corporation (MSFT) reported trailing twelve months revenue of $318.27B as of March 2026, a 17.9% increase year-over-year. Quarterly revenue reached $82.89B, reflecting continued top-line momentum.
Microsoft Corporation generated $125.22B in TTM net income, with quarterly EBITDA of $47.40B. The operating margin expanded from 45.7% to 46.3%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (46.3%) and net margin (38.3%) indicates moderate non-operating costs. Net margin has improved from 36.9% a year ago, signaling stronger bottom-line efficiency.
MSFT trades at a P/E of 21.3x (in line with broad market averages) and a P/S of 8.4x. The price-to-book ratio of 6.4x indicates a significant premium over book value.
The company generated $15.80B in free cash flow over the trailing twelve months, a 22.1% decrease year-over-year, indicating cash generation ability. The balance sheet shows $694.23B in total assets with $31.42B in long-term debt against $414.37B in stockholders equity for a debt-to-equity ratio of 0.1, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are expanding at ~46.0%, suggesting durable pricing power and cost discipline.
Consistently high ROE averaging 30.5% suggests a durable competitive advantage and efficient capital allocation.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~29.8% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Margins are stable or improving at ~46.8% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
D/E ratio is 0.1 — conservative capital structure with low financial risk.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation