The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 40 | 22.7x | 20.8x | Around median | |
Growth | 75 | 17.9% | 6.1% | Top tier | |
Quality | 85 | 31.5% | 6.6% | Top tier | |
Safety | 89 | — | 0.7x | Top tier | |
Capital Return | 27 | 0.93% | 2.02% | Bottom tier | |
Momentum | 19 | -27.8% | 4.1% | Bottom tier | |
Sentiment | 54 | 30 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, 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 is a leading global technology company, with revenue sources primarily diversified across providing cloud computing services via the Azure platform, developing productivity and business software such as Microsoft 365 and Office, in addition to the More Personal Computing segment which includes the Windows operating system, Xbox devices, the Bing search engine, and the LinkedIn network. The company adopts a hybrid business model that combines traditional software licensing, recurring subscriptions, and a consumption-based model for cloud services and generative AI applications.
During the third quarter of fiscal year 2026, the company achieved strong financial results that exceeded expectations, with total revenue reaching $82.9 billion, an 18% increase compared to the prior year (and 15% in constant currency). The company recorded a gross profit of $56.1 billion with a gross margin of 68%, which was slightly impacted by massive capital investments in artificial intelligence infrastructure. Net income reached $31.8 billion, with earnings per share of $4.27, while the company's operating margins stood at 46%.
In terms of segment performance, revenue for the Productivity and Business Processes segment reached approximately $35.0 billion, a growth of 17%, driven by a 19% growth in Microsoft 365 Commercial Cloud revenue. The Intelligent Cloud segment generated revenue of $34.7 billion, representing a 30% growth driven by the exceptional performance of Azure services. Conversely, the More Personal Computing segment recorded a slight decline of 1%, with its revenue reaching $13.2 billion.
Microsoft Corporation's stock is currently trading within a 52-week range of a low of $356.28 and a high of $555.45, placing it near its historical highs supported by the AI boom. The analyst consensus clearly points to a 'Buy' recommendation with an average price target of $551.96 (ranging from a low of $415 to a high of $680), meaning the stock is currently trading around or slightly below the analysts' average price target. This valuation reflects market confidence in the company's ability to translate its massive capital investments into sustainable cash flows and accelerated long-term earnings per share growth.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
Microsoft Corporation's capital expenditure reached approximately $31.9 billion during the third quarter of fiscal year 2026, with two-thirds of this spending directed toward short-term assets such as GPUs and CPUs. The company expects this spending to increase to over $40 billion in the fourth quarter to meet growing demand for cloud capacity. For the full calendar year 2026, the company plans to invest approximately $190 billion in capital expenditure, including about $25 billion as an impact of rising component prices.
The Annual Recurring Revenue (ARR) run-rate for Microsoft Corporation's AI businesses surpassed the $37 billion threshold in the third quarter of fiscal year 2026, recording a 123% year-over-year growth. Paid subscriptions for Microsoft 365 Copilot also jumped to exceed 20 million seats, growing 250% year-over-year, with major customers joining such as Accenture, which alone holds more than 740,000 seats. Additionally, AI-driven products in LinkedIn Talent Solutions surpassed an annual revenue run-rate estimated at $450 million.
Microsoft Corporation enjoys a strong partnership with OpenAI that secures royalty-free intellectual property rights for the frontier model until 2032, with OpenAI's share of its sales eliminated. The revenue-sharing agreement between the two parties has also been extended until 2030, providing clear and predictable financial visibility for the company. At the same time, OpenAI is a massive customer for Microsoft's cloud services and AI acceleration solutions, enhancing mutual returns for both parties.
Automated analysis for informational purposes only — not investment advice.
Microsoft Corporation's financial management expects Intelligent Cloud segment revenue to range between $37.95 billion and $38.25 billion in the fourth quarter of fiscal year 2026, representing a growth of 27% to 28%. For Azure and other cloud services, revenue growth is expected to range between 39% and 40% in constant currency in the fourth quarter. Despite ongoing capacity constraints and the difficulty of meeting full demand until the end of 2026, the company expects a slight acceleration in Azure growth during the second half of calendar year 2026.
Insider activity at Microsoft Corporation recorded a strong sell signal (strong_sell) over the past three months, with the net value of sales reaching approximately $10.5 million. These transactions were executed through 4 separate sell transactions conducted by company insiders, without registering a single purchase transaction during the same period. The last recorded sell transaction in the data dates back to June 10, 2026, which investors might interpret as a routine profit-taking action coinciding with the stock approaching its annual highs.