| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 23 | 29.2x | 17.3x | Bottom tier | |
Growth | 76 | 17.8% | 7.1% | Top tier | |
Quality | 85 | 27.2% | 4.5% | Top tier | |
Safety | 89 | — | 2.6x | Top tier | |
Capital Return | 82 | 0.69% | 0.06% | Top tier | |
Momentum | 82 | -4.3% | -1.5% | Top tier | |
Sentiment | 41 | 30 | 3 | Around median |
The floor: what the company is worth if growth stopped today
67% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 5.13% as of 2026-10-21. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Microsoft Corporation operates through an interconnected ecosystem of cloud and productivity software, infrastructure, artificial intelligence, and personal computing. The company generates revenue from Azure and server services, Microsoft 365, Copilot, Dynamics 365, LinkedIn, and GitHub, in addition to Windows, advertising through Bing and Edge, and Xbox. Its monetization model is expanding from seat licenses and subscriptions to a combination of seats and consumption, as in Cowork, GitHub Copilot, and some Dynamics 365 applications, allowing revenue to increase as actual usage expands.
In the fourth quarter of fiscal year 2026 ended 2026-06-30, revenue reached $90.0 billion, up 17.7% year over year from $76.4 billion, while net income reached $35.8 billion and diluted earnings per share were 4.81. Gross margin reached 67.2% versus 68.6% a year earlier, while operating margin improved to 45.1% from 44.9%. Operating cash flow reached $55.4 billion, showing that cloud- and AI-related growth continued to be accompanied by strong cash generation despite pressure from infrastructure investment.
Quarterly revenue was distributed across $39.3 billion for Intelligent Cloud, $37.8 billion for Productivity and Business Processes, and $12.9 billion for More Personal Computing; the first two segments grew 32% and 14%, respectively, while the third declined 4%. In fiscal year 2026 ended 2026-06-30, the company recorded revenue of $331.8 billion and net income of $133.7 billion, compared with $281.7 billion and $101.8 billion in fiscal year 2025. Cash and investments totaled $76.8 billion versus total debt of $49.5 billion in the fourth quarter of fiscal year 2026.
Q4 FY2026
Last 12 months to 2026-06-30
When: 2026-10-28
Company revenue compared with the guidance range of $89.85 billion to $90.95 billion
Azure growth in constant currency compared with the 45% threshold
Intelligent Cloud revenue compared with the range of $40.95 billion to $41.25 billion
The median analyst target is $550 within a range of $440 to $690 from 18 analysts, pricing in expected growth and inherently tending toward optimism; the consensus average is also $556.42. The industry-multiple value is $358 within a range of $209 to $852, pricing Microsoft like its peers based on next year's earnings and a median multiple of 18.5 for 86 companies. The discounted cash flow model gives $263 within a range of $215 to $334, with a discount rate of 10.2% and based on analyst earnings estimates; it measures the cash the company is expected to generate and inherently tends toward conservatism. The no-growth value is $169 at a discount rate of 10.2%, representing what remains if current after-tax operating profit stays constant forever; therefore, the methods agree that the existing business has substantial value, but they differ primarily in the amount of future growth they incorporate. During the ninety days through 2026-09-27, the target was raised 11 times and lowered three times, with notable increases including Tigress Financial Partners' $690 target on 2026-08-05 and Goldman Sachs' $640 target on 2026-07-30.
Figures in the text are as of 2026-09-27; the live price is shown at the top of the page.
Azure remains the clearest driver after growing 43% in the fourth quarter of fiscal year 2026 ended 2026-06-30, with demand continuing to exceed available capacity. Management expects growth of approximately 45% in constant currency in the first quarter of fiscal year 2027, along with Intelligent Cloud segment revenue between $40.95 billion and $41.25 billion. This is supported by the addition of 31 data centers during the quarter and an approximately 50% improvement in GPU provisioning speed in the largest regions.
The number of paid seats exceeded 30 million in the fourth quarter of fiscal year 2026 ended 2026-06-30, with net seat additions more than doubling compared with the previous quarter. The number of customers with more than 50 thousand seats increased more than sevenfold year over year, while the number of organizations deploying Copilot to the majority of their knowledge workers increased approximately 75% sequentially. Announced deployments include 505 thousand employees at NHS England, 400 thousand E7 seats at EY, and 200 thousand seats at HSBC.
Automated analysis for informational purposes only — not investment advice.
Productivity and Business Processes revenue compared with the range of $36.7 billion to $37.0 billion
Gross margin reached 67.2% in the fourth quarter of fiscal year 2026 ended 2026-06-30, down 1.4 percentage points year over year, while operating margin increased 0.2 points to 45.1%. Operating cash flow reached $55.4 billion during the quarter, but capital expenditures reached $41 billion and free cash flow reached $19.6 billion. Management expects capital expenditures to exceed $50 billion in the first quarter of fiscal year 2027, making the efficiency of Maia 200 and improved operation of CPU and GPU fleets important factors in protecting return on investment.
Remaining commercial commitments reached $678 billion in the fourth quarter of fiscal year 2026 ended 2026-06-30, representing growth of 84% including OpenAI. Excluding OpenAI, growth remained strong at 25%, and all sequential growth came from customers outside leading model companies. The company expects to recognize approximately 30% of the balance over the following twelve months, and this portion grew 37% year over year.
During the ninety days through 2026-09-27, 16 sales by four insiders were recorded with a total value of $71.4 million, and no purchases were recorded. Sales executed under prearranged 10b5-1 plans totaled $64.2 million, compared with $7.3 million outside those plans. The largest seller was an executive whose sales totaled $43.4 million, and these figures describe the transactions only, without drawing a conclusion about the stock's direction.
On 2026-09-17, court documents revealed that employees at Microsoft and OpenAI were aware that AI tools could pose a threat to publishers. The documents emerged as part of a dispute in which The New York Times accuses the two companies of using copyrighted journalistic content to train large language models without permission. The outcome of the dispute could affect content costs or restrictions on model training, but the context does not provide a specific financial estimate for this exposure.