Microsoft Corporation (MSFT) stock analysis
Company overview and business model
Source fact: 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 intelligent devices, and related accessories. The company's 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. Its 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 company's 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.
Classification: NASDAQ · Technology · Software - Infrastructure
Revenue and growth
Source fact: Revenue was USD 331.84 billion for the period ending 2026-06-30.
Caverian calculation: Revenue changed +17.8% (FY2026 vs FY2025).
Profitability
Source fact: Net income was USD 133.75 billion in the latest reported period.
Source metric: Reported net margin was 40.3%.
Balance sheet and liquidity
Source fact: Cash and equivalents were USD 20.93 billion.
Source fact: Total debt was USD 56.83 billion.
Source metric: Current ratio was 1.23x.
Cash-flow analysis
Source fact: Operating cash flow was USD 182.94 billion.
Source fact: Free cash flow was USD 66.99 billion.
Valuation
Source metrics: Trailing P/E 26.82x; Forward P/E 20.50x; Price to book 8.11x; Price to sales 10.81x; EV/EBITDA 18.74x.
Caverian model output: Value score was 32/100.
Competitive position
Classification: Peer context: Software - Infrastructure within Technology.
Caverian model output: Quality score was 81/100.
Caverian model output: Growth score was 83/100.
Material risks
Caverian calculation: Altman Z-score was 8.65 (safe zone).
Caverian calculation: Piotroski F-score was 6/9.
Data sources and freshness
Freshness: This report uses a stored upstream snapshot; statement periods are shown alongside the figures.
Methodology and limitations
Facts reproduce stored upstream fields. Calculations derive only from the displayed stored statements. Model outputs are Caverian interpretations, not investment advice or a buy/sell recommendation.
How Caverian approaches valuation · Sources and product principles