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Microsoft Corporation MSFT

NasdaqInfrastructure softwareFinancials to Jun 30, 2026 · Updated Oct 9, 2026

On Stock Analysis · affiliate link
MSFT financials
Moat score
95
ROIC
30.9%
P/E
29.0
EV/EBIT
24.8
FCF yield
1.7%
Dividend yield
0.7%
Market cap
$3.88T

Moat ranks

Score rankTied #27 of 396
Durabilitydurable
Market structureOligopoly
Pricing powerstrong

Balance sheet

6/30/26
$BJun '25Jun '26
Cash30.220.9
Securities64.352.1
Restricted cash–11.3
Debt43.240.3
Net cash51.432.7
Equity343.5442.4
Leverage
Debt / EBITDA
0.21×
Debt / equity
0.09×
Leases (6/30/26)
$88.5B
Capital
Diluted shares
7,453M
Book value / share
$59.36
Price / book
8.8×
Net cash / share
$4.39
Market cap
$3.88T
Enterprise value
$3.85T

Per-share record

Fiscal years and TTM
Scale
$0$20$40$60'17'18'19'20'21'22'23'24'2544.52'26
Revenue per shareCash flow per share

Key indicators

Latest: Q4 '26
IndicatorLatestVs year agoLast 8 quarters
Revenue growth17.7%-0.4 pts
Operating margin45.1%+0.2 pts
FCF margin21.8%-11.6 pts
Capex / revenue39.8%+17.4 pts
Azure revenue$29.4B+42%
Microsoft 365 cloud revenue$26.7B+17%
Azure revenue growth+42%–
Microsoft 365 commercial cloud revenue growth+16%–
Microsoft 365 commercial seats growth+7%–

Margins and growth from reported quarters; company KPIs as reported in results releases.

About MSFT

Microsoft sells cloud infrastructure, commercial and consumer productivity and AI applications, business systems, Windows, games, advertising and professional subscriptions. Under its September 2026 reporting update, Agents and Infra accounts for $268.127bn of FY2026 revenue and Devices and Consumer for $63.712bn.

Revenue mix
Agents and Infra 80.8%Devices and Consumer 19.2%
  • Suite Bundling

    Microsoft combines productivity, identity, security and AI in one suite.

  • Data Workflow Lockin

    Microsoft 365/Office 365 is designed and accounted for as an integrated cloud+desktop offering, reflecting deep workflow interdependency that raises switching costs.

  • Long Term Contracts

    Enterprise subscriptions and Azure commitments protect contracted revenue during their term.

  • Two Sided Network

    LinkedIn's large member graph creates a two-sided network between professionals and recruiters/advertisers; scale improves matching, content, and targeting.

Timeline
  1. Oct 8, 2026

    Xbox formed XP under Kayleen Walters to expand game franchises into film, licensing, partnerships and live experiences. The division creates more routes to earn from existing intellectual property, with no separate earnings outlook.

  2. Oct 8, 2026

    Xbox appointed Maria Angelidou-Smith as Mojang and Minecraft CEO, starting October 19. The handover affects product and monetization decisions for one of Microsoft’s largest game franchises.

  3. Oct 8, 2026

    The US administration suspended Microsoft from the PERM permanent labor certification program. The restriction can affect staff retention; Microsoft disputes claims about its hiring practices and the business cost is unreported.

  4. Oct 7, 2026

    Microsoft announced that local-model routing and sandboxed tools for GitHub Copilot on Windows PCs are rolling out now. Local inference can reduce cloud cost, but paid adoption remains unproven.

  5. Oct 7, 2026

    Microsoft opened Surface Laptop Ultra preorders from $2,599, with availability from October 16. NVIDIA-based local AI hardware adds a route to developer demand, while its premium price limits the initial audience.

Ownership

To 10/9/26
CEO
Satya Nadella
Since 2014 · 12 yrs
Professional CEOSingle share class
Insider trades106
Planned sales8

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Financial record

Fiscal year2017201820192020202120222023202420252026TrendChange 2017–26
Per share ($)
Revenue12.3314.1616.2318.6122.0926.3028.3632.8237.7444.52+15.3%/yr
Cash flow5.045.636.737.9010.0911.8111.7215.8718.2424.55+19.2%/yr
Earnings3.252.135.065.768.059.659.6811.8013.6417.95+20.9%/yr
Free cash flow4.014.144.935.897.388.647.969.929.598.99+9.4%/yr
Capex1.041.491.802.012.713.173.765.958.6515.56+35.1%/yr
Dividends1.511.631.781.972.172.412.652.913.233.55+9.9%/yr
Book value11.2010.6113.2015.4018.6622.0927.6035.9546.0159.36+20.4%/yr
Diluted shares (M)7,8327,7947,7537,6837,6087,5407,4727,4697,4657,453-0.5%/yr
Totals ($B)
Revenue96.6110.4125.8143.0168.1198.3211.9245.1281.7331.8+14.7%/yr
Operating income29.035.143.053.069.983.488.5109.4128.5155.2+20.5%/yr
Net income25.516.639.244.361.372.772.488.1101.8133.7+20.2%/yr
Free cash flow31.432.338.345.256.165.159.574.171.667.0+8.8%/yr
Buybacks10.38.616.819.723.028.018.412.013.016.7+5.5%/yr
Dividends11.812.713.815.116.518.119.821.824.126.4+9.3%/yr
Net cash46.857.661.673.272.255.064.030.651.432.7−$14.1B
Margins & returns (%)
Gross margin64.565.265.967.868.968.468.969.868.867.9+3.4 pts
Operating margin30.131.834.137.041.642.141.844.645.646.8+16.7 pts
Net margin26.415.031.231.036.536.734.136.036.140.3+13.9 pts
FCF margin32.529.230.431.633.432.928.130.225.420.2-12.3 pts
ROIC57.8113.686.095.781.660.950.737.535.930.9-26.9 pts
Return on equity29.120.038.337.443.243.735.132.829.630.2+1.2 pts
R&D % of revenue13.513.313.413.512.312.412.812.011.510.7-2.8 pts
Stock pay % of revenue3.43.63.73.73.63.84.54.44.33.7+0.4 pts
Capex % of revenue8.410.511.110.812.312.013.318.122.934.9+26.5 pts

Change uses 2017 and 2026 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2017 base. Trend shows the fiscal years.

Per-share values use diluted weighted shares.ROIC = operating income × (1 − 18.5% tax rate, the company's own over three fiscal years excluding one-offs) ÷ (equity + debt − cash and current securities). Returns show a dash when their base is negative or under 10% of revenue. Free cash flow = operating cash flow − capex. Debt is all borrowings; net cash counts long-term securities and excludes leases. No trailing-twelve-month column: no complete four quarters end after the last fiscal year.

Moat

Moat scorecard

Moat score95
Strength
Confidence
Structure
Oligopoly
Durability
durable
Trajectory
widening
Pricing power
strong
Segments
  • Agents and Infra80.8%
    6 claims
  • Devices and Consumer19.2%
    3 claims

Moat claims

Applies to
Agents and Infra
Confidence
Durability
durable
Trajectory
wideningas of Oct 9, 2026
Why it holds

Microsoft combines productivity, identity, security and AI in one suite. The September Copilot redesign brings Office files, coding and delegated work together; subscriptions cover everyday use, while complex agents add usage charges. This can expand spend inside existing accounts, but previews and paid seats do not prove renewal or customer savings. The same segment also sells Microsoft 365 to households and individuals. Consumer renewal prices and choices face separate scrutiny.

Why widening

Paid Microsoft 365 Copilot seats exceeded 30 million in June 2026, broadening paid use of the suite; recast commercial cloud revenue grew 16%.

Indicators
  • Microsoft 365 cloud revenue$26.7B+17%
  • Microsoft 365 commercial cloud revenue growth+16%
  • Microsoft 365 commercial seats growth+7%
  • Industry solutions cloud revenue growth+11%
  • Microsoft Cloud gross margin65.0%
  • Microsoft 365 Copilot paid seats≥30,000,000
  • Microsoft 365 consumer subscriptions–+7%
  • Microsoft 365 consumer cloud revenue growth+24%
Risks
  • Best-of-breed unbundling
  • Regulatory scrutiny of bundling
  • Open-source/low-cost suite adoption
  • The open UK software-ecosystem investigation may require more customer choice, portability or licensing changes.
  • UK and Australian consumer cases challenge the presentation of Copilot plan options. Redress or clearer lower-price choices could limit household subscription pricing; no infringement is assumed.

Profile change log

  1. Oct 9, 2026 · analyst revision

    The linked market definitions now cover the full reported scope: commercial and consumer Microsoft 365 in Agents and Infra, and LinkedIn Premium professional subscriptions in Devices and Consumer. Consumer renewal risks and professional-subscription evidence extend the debate. Segment weights and claim strengths are unchanged. Gaming market facts now separate the 2025 result from the 2028 forecast.

  2. Oct 9, 2026 · business change

    The US administration suspended Microsoft from the PERM permanent labor certification program. The restriction can affect staff retention; Microsoft disputes claims about its hiring practices and the business cost is unreported.

  3. Oct 9, 2026 · business change

    LinkedIn introduced Premium All-in-One for small businesses, combining selling, marketing and hiring tools in one subscription and expanding paid use of the member network.

  4. Oct 9, 2026 · business change

    The ACCC sued Microsoft over alleged misleading subscription choices after Copilot was added to consumer plans. The case seeks penalties and consumer redress and remains an allegation, not a final finding.

  5. Oct 9, 2026 · business change

    The UK CMA opened a consumer-law investigation into Microsoft 365 Personal and Family renewal communications. Possible redress or clearer plan choices could constrain household subscription pricing; no breach has been found.

  6. Oct 9, 2026 · analyst revision

    Developer adoption evidence now supports the ecosystem trajectory alongside Fabric customer growth. The cloud-licensing collective case adds a specific switching-cost risk. Corrected the October 7 local-model announcement from a month-end launch expectation to a rollout already under way.

  7. Oct 9, 2026 · business change

    Microsoft opened Surface Laptop Ultra preorders from $2,599, with availability from October 16. NVIDIA-based local AI hardware adds a route to developer demand, while its premium price limits the initial audience.

  8. Oct 9, 2026 · business change

    The UK Competition Appeal Tribunal certified an opt-out Windows Server cloud-licensing claim against Microsoft. The case challenges licensing costs on rival clouds; liability and damages remain undecided.

  9. Oct 9, 2026 · analyst revision

    Primary-source verification adds the Copilot rollout, non-exclusive OpenAI terms and the new Xbox franchise division to the moat evidence and debate. Removed category-only leader lists from both combined market profiles because their sources do not cover the full markets. Claim strengths, segment weights, industry, sector and company timestamps are unchanged.

  10. Oct 9, 2026 · business change

    Xbox appointed Maria Angelidou-Smith as Mojang and Minecraft CEO, starting October 19. The handover affects product and monetization decisions for one of Microsoft’s largest game franchises.

  11. Oct 9, 2026 · business change

    Xbox formed XP under Kayleen Walters to expand game franchises into film, licensing, partnerships and live experiences. The division creates more routes to earn from existing intellectual property, with no separate earnings outlook.

  12. Oct 9, 2026 · business change

    Microsoft introduced Copilot Home, Code and Autopilot, linking Office work, coding and autonomous tasks. Preview rollouts and usage billing can expand revenue inside installed accounts, but adoption and returns remain unreported.

  13. Oct 9, 2026 · business change

    Microsoft and OpenAI made their model license non-exclusive and allowed OpenAI to sell across rival clouds. Microsoft retains model rights through 2032 and capped revenue-share receipts through 2030, reducing exclusivity while preserving participation in OpenAI growth.

  14. Oct 9, 2026 · analyst revision

    New studio, leadership and court evidence expands the business timeline and risk debate. The infrastructure trajectory is now stable: investment and revenue growth coexist with a lower cloud margin and 20% category share. September desktop usage replaces an unverified June usage citation. Both linked market profiles now show sourced category leaders and component market sizes. Claim strengths and segment weights are unchanged.

  15. Oct 9, 2026 · business change

    Xbox announced consultation on a proposed Ninja Theory closure after two sale agreements failed. The decision puts the studio's future output at risk.

  16. Oct 9, 2026 · business change

    Xbox confirmed Undead Labs had moved to new ownership with its intellectual property and funding; State of Decay 3 remains planned for Game Pass at launch.

  17. Oct 9, 2026 · business change

    Double Fine returned to its management with its intellectual property, back catalog and funding, reducing Microsoft's owned studio portfolio.

  18. Oct 9, 2026 · business change

    Compulsion Games returned to its management with its intellectual property, back catalog and funding, reducing Microsoft's owned studio portfolio.

  19. Oct 9, 2026 · business change

    Xbox announced 268 more job cuts and grouped studios into fewer business units. Lower overhead may improve costs, while reorganization can slow game development.

  20. Oct 9, 2026 · business change

    Ryan Roslansky left his Microsoft 365 and LinkedIn executive role and will advise Satya Nadella through year-end. Product teams move to other leaders, creating a handover risk for the Copilot and LinkedIn roadmap.

  21. Oct 9, 2026 · business change

    The EU General Court upheld the decision not to designate Edge as a DMA gatekeeper. Browser distribution retains this legal exemption, but the court found its actual gateway role limited.

  22. Oct 9, 2026 · business change

    The European Commission issued its preliminary view that Azure should be a DMA gatekeeper, which could impose cloud access and interoperability obligations; this is not a final designation.

  23. Oct 9, 2026 · analyst revision

    Updated the profile to the September reported segments and recast operating metrics. Removed cloud-only and desktop-only share estimates from whole segments and removed the cloud HHI built from an assumed tail. Added trajectories, management, debate, and linked market profiles. Existing claim strengths and company timestamps are retained.

  24. Oct 9, 2026 · business change

    Microsoft completed its $75.4bn Activision Blizzard purchase, expanding owned gaming content and adding acquired-intangible amortization to reported results.

  25. Oct 9, 2026 · business change

    The UK CMA opened a strategic-market-status investigation into Microsoft’s business software ecosystem, creating a possible licensing and switching-cost constraint.

  26. Oct 9, 2026 · business change

    Microsoft announced that local-model routing and sandboxed tools for GitHub Copilot on Windows PCs are rolling out now. Local inference can reduce cloud cost, but paid adoption remains unproven.

  27. Oct 9, 2026 · business change

    Microsoft raised its declared quarterly dividend to $0.98 per share, payable December 10, increasing cash returned to shareholders.

  28. Oct 9, 2026 · business change

    Xbox announced monthly cloud-play limits from November: Ultimate 15 hours, Premium 10 and Essential 5. Extra hours become paid purchases, addressing delivery costs while risking subscriber dissatisfaction.

  29. Oct 9, 2026 · business change

    Microsoft replaced its three reportable segments with Agents and Infra and Devices and Consumer and recast FY2026 and FY2025. Azure and Microsoft 365 metrics now separate infrastructure consumption from developer and security applications.

Industry & peers

Peer map

0%10%20%30%40%50%60708090100Moat scoreIndustry medianMSFTGOOGLORCLSAPCRMNOWAAPL

Hover a point for its values; click a peer to compare. Dashed lines: industry medians.

Global cloud, productivity and AI platforms

As of Oct 9, 2026
OligopolyMedium cyclicality

Worldwide cloud infrastructure; commercial and consumer productivity, developer and security applications and licenses; vertical business systems; and related consulting and support. Includes household productivity subscriptions and enterprise hiring and sales tools; excludes PC OEM devices, games, search and professional advertising, and professional-network Premium subscriptions.

StocksMoatGross m.Op. m.
MSFT9567.9%46.8%
Industry median78467.9%32.1%
Sector median777564.9%23.6%
All stocks median3987652.9%19.6%

Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.

Drivers & risks

Demand drivers
  • Cloud migration and increasing AI use raise demand for computing and integrated business data; installed enterprise workflows create a base for paid application upgrades.
  • Security, compliance and data sovereignty favor established suppliers, while open model choice and local deployment can expand customer use.
  • Employment and business investment have a medium effect on enterprise seats and migrations. Household income and affordability affect consumer subscriptions more directly; multi-year commercial commitments buffer the cycle.
  • Power, accelerators and memory have a strong effect on capacity timing and delivery costs. High utilization and efficient inference decide whether infrastructure scale earns returns.
  • Currency has a medium effect on global translated revenue and local budgets. Rates have a stronger effect on financing infrastructure and discounting returns from long commitments than on already contracted software.
Risks
  • AWS, Google, Microsoft, Oracle and specialist suppliers can compete for workloads; interoperability and open software make parts of the platform easier to replace. Non-exclusive model supply lets competing clouds serve similar AI products.
  • Large model-provider contracts concentrate backlog and power commitments; headline contracted revenue does not prove a diversified or profitable future business.
  • AI compute spending can grow faster than monetization, and faster chip obsolescence can reduce returns despite strong reported revenue.
  • Licensing and bundling remedies can reduce default distribution and contractual switching barriers; the open UK Microsoft investigation is a specific near-term risk. The EU cloud gatekeeper investigation also creates possible access and switching obligations; neither investigation has a final decision. A certified UK Windows Server cloud-licensing damages case also challenges the cost of running licensed software on rival clouds; liability remains undecided. Separate consumer-protection cases challenge how Copilot renewal choices were presented, putting household pricing and possible redress at risk without a finding of infringement.
  • Cybersecurity failures, cloud outages, export controls and government data-access concerns can disrupt mission-critical demand and raise compliance cost. Skilled-staff availability also matters: the US PERM suspension creates an unquantified retention risk for Microsoft.

Bulls & bears

Key question · as of Oct 9, 2026

Can Microsoft turn growing AI and cloud adoption into durable cash earnings after capacity costs, while customers retain the freedom to choose competing tools?

Arguments

5 forFaded: weakening or settled6 against

What to watch

  1. 1Recast Azure revenue and Microsoft Cloud gross margin
  2. 2Paid Microsoft 365 Copilot seats and recast commercial seat growth
  3. 3Cash capex, finance-lease additions and RPO growth excluding OpenAI
  4. 4Microsoft 365 consumer subscriptions and LinkedIn Premium revenue

Next check: FY2027 Q1 results on October 28, 2026, followed by the CMA proposed SMS decision expected in October and Xbox cloud-hour limits expected in November. Also review the consumer subscription case update due by the end of 2026 and any change in the US PERM suspension.

Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 8, 2026. Not investment advice.

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Moat Score 95/100 by <a href="https://www.findmymoat.com/stocks/XNGS:MSFT">Find My Moat</a> (as of September 2026)

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Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.