MICROSOFT CORP (MSFT) Factsheet
Earnings-call transcript: none · IR deck: cataloged — watch a real agent read these end-to-end →
MICROSOFT CORP (MSFT) Stock Analysis
Analysis from 10-K filed 2026-07-29. Data as of Q2 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 26.6%. FCF margin 20.2%. D/E 0.1x. Source: 10-K filed 2026-07-29.
| Metric | Value | Context |
|---|---|---|
| ROIC | 26.6% | Above industry average |
| FCF Margin | 20.2% | Strong cash generation |
| Debt/Equity | 0.1x | Conservative leverage |
ROIC 26.6% — Top 10% of sector peers. FCF margin 20.2% — Top 50%.
Explore MICROSOFT CORP: Earnings History | Filings
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for MSFT: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: MICROSOFT CORP earns 26.6% ROIC, Top 10% in Technology
ROIC TTM 26.6%, sector median 3.7%, Top 10%. DuPont: NOPAT margin 37.7% × asset turnover 0.5x. Gross margin 67.9%. Operating margin 46.8%. Source: 10-K filed 2026-07-29.
| Metric | MSFT | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 26.6% | Excellent | Above sector median of 3.7% |
| Return on Equity (ROE) | 34.3% | Excellent | Efficient use of shareholder equity |
| Gross Margin | 67.9% | Excellent | Strong pricing power |
| Operating Margin | 46.8% | Excellent | Efficient operations |
Cash Flow: MICROSOFT CORP generates $67.0B FCF at 20.2% margin, positive NaN/8 quarters
FCF TTM $67.0B. FCF margin 20.2%, Top 50%. OCF/Net income 1.4x. Positive FCF in NaN/8 trailing quarters. Source: 10-K filed 2026-07-29.
| Metric | MSFT | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 20.2% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $67.0B | Good | Positive cash generation |
| OCF/Net Income | 1.4x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: MICROSOFT CORP at 0.1x leverage, 50.9x interest coverage
Debt/Equity 0.1x. Net cash $36.5B. Interest coverage 50.9x. Source: 10-K filed 2026-07-29.
| Metric | MSFT | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.1x | Excellent | Conservative capital structure |
| Net Cash Position | $36.5B | Excellent | Net cash positive |
| Interest Coverage | 50.9x | Excellent | Comfortable debt service |
Valuation: MICROSOFT CORP trades at 28.3x earnings
P/E 28.3x. EV/Sales 11.3x. FCF yield 1.8%. Dividend yield 0.7%. Source: 10-K filed 2026-07-29.
| Metric | MSFT | Rating | Context |
|---|---|---|---|
| P/E Ratio | 28.3x | Adequate | Premium valuation |
| EV/Sales | 11.3x | Warning | Growth premium priced in |
| FCF Yield | 1.8% | Warning | Lower cash yield |
| Dividend Yield | 0.7% | Adequate | Growth focus over income |
Capital Allocation: MICROSOFT CORP returns 1.3% shareholder yield, reducing shares 0.1% YoY
Total shareholder yield 1.3% (div 0.7% + buyback 0.6%). Share count -0.1% YoY. Capital returned $49.3B TTM. Source: 10-K filed 2026-07-29.
| Metric | MSFT | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 1.3% | Adequate | Dividend + buyback yield combined |
| Buyback Yield | 0.6% | Adequate | Minimal buyback activity |
| Share Count Change (YoY) | -0.1% | Adequate | Net share reduction (accretive) |
| Total Capital Returned (TTM) | $49.3B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 26.6% | Top 10% | 7.2x above |
| Free Cash Flow Margin | 20.2% | Top 50% | 2.0x above |
| Gross Margin | 67.9% | Top 50% | 1.3x above |
| Operating Margin | 46.8% | Top 5% | 10.8x above |
| Return on Equity (ROE) | 34.3% | Top 25% | 6.4x above |
| P/E Ratio | 28.3x | N/A | - |
Financial Scorecard
| Metric | MSFT | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 26.6% | Excellent | Top 10% of sector (median: 3.7%) |
| Free Cash Flow Margin | 20.2% | Excellent | Top 50% of sector (median: 10.3%) |
| Gross Margin | 67.9% | Excellent | Top 50% of sector (median: 50.5%) |
| Debt to Equity Ratio | 9.1% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 28.3x | Adequate | Growth premium |
| Free Cash Flow Yield | 1.8% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is MICROSOFT CORP's Return on Invested Capital (ROIC)?
MICROSOFT CORP (MSFT) has a trailing twelve-month Return on Invested Capital (ROIC) of 26.6%. The 8-quarter median ROIC is 27.8% with a declining trend. Sector median 3.7%. Source: 10-K filed 2026-07-29.
Q: What is MICROSOFT CORP's Free Cash Flow Margin?
MICROSOFT CORP (MSFT) has a free cash flow margin of 20.2%, generating $67.0 billion in free cash flow over the trailing twelve months. Source: 10-K filed 2026-07-29.
Q: What is MICROSOFT CORP's P/E ratio and how does it compare to peers?
MICROSOFT CORP (MSFT) trades at a P/E ratio of 28.3x, which is above the sector median of N/A. EV/Sales 11.3x. FCF yield 1.8%. Source: 10-K filed 2026-07-29.
Q: Does MICROSOFT CORP pay a dividend?
MICROSOFT CORP (MSFT) currently pays a dividend yield of 0.7%. Total shareholder yield (dividend + buybacks) 1.3%. Source: 10-K filed 2026-07-29.
Q: What is MICROSOFT CORP's revenue and earnings growth?
MICROSOFT CORP (MSFT) grew revenue by 17.8% year-over-year. EPS +31.6% YoY. Source: 10-K filed 2026-07-29.
Q: Is MICROSOFT CORP buying back stock?
MICROSOFT CORP (MSFT) repurchased $22.3 billion of stock over the trailing twelve months. This represents a buyback yield of 0.6%. Share count -0.1% YoY. Source: 10-K filed 2026-07-29.
Q: How does MICROSOFT CORP compare to competitors in Technology?
Compared to other companies in Technology, MICROSOFT CORP (MSFT) shows: ROIC 26.6%, sector median 3.7% (Top 10%). FCF margin 20.2%, sector median 10.3% (Top 50%). Gross margin 67.9%, 17.5pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with MICROSOFT CORP?
Quantitative warning flags for MICROSOFT CORP (MSFT): 1) ROIC declining -2.9% over 8 quarters. Source: 10-K filed 2026-07-29.
Data Source: Data sourced from 10-K filed 2026-07-29. TTM metrics as of Q2 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.