A Business at a Glance
0 of 5 daily views used (5 remaining). Sign up free for 10 daily views, or try AAPL for a full preview.
Microsoft is a technology company committed to making digital technology and artificial intelligence (“AI”) available broadly and doing so responsibly. Our mission is to empower every person and every organization on the planet to achieve more. We develop and support a broad portfolio of technology solutions for individuals and businesses, focusing on secure, trusted, and innovative platforms and tools that meet evolving customer needs across cloud computing, productivity and collaboration, and personal computing. We strive to create opportunity, growth, and impact in every country around the world. AI is fundamentally transforming productivity for every individual, organization, and industry. Microsoft's AI offerings span every layer of the technology stack, enabling transformative outcomes across sectors and unlocking opportunity for every country, community, and individual.
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Service and Other | $97.01B | $125.54B | $147.22B | $180.35B | $217.78B | 39% |
Server Products and Cloud Services | $52.59B | $67.35B | $79.97B | $97.73B | $98.44B | 17% |
Microsoft 365 Commercial Products and Cloud Services | — | — | $66.95B | $76.97B | $87.77B | 16% |
Product | $71.07B | $72.73B | $64.70B | $64.77B | $63.95B | 11% |
Gaming | $15.37B | $16.23B | $15.47B | $21.50B | $23.45B | 4% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 305.5B | 281.7B | 245.1B | 211.9B | 198.3B | 168.1B |
| Net Income | 119.3B | 101.8B | 88.1B | 72.4B | 72.7B | 61.3B |
| EPS | $15.98 | $13.64 | $11.80 | $9.68 | $9.65 | $8.05 |
| Free Cash Flow | 77.4B | 71.6B | 74.1B | 59.5B | 65.1B | 56.1B |
| ROIC | 33.5% | 38.2% | 34.4% | 46.3% | 57.6% | 68.9% |
| Gross Margin | 68.6% | 68.8% | 69.8% | 68.9% | 68.4% | 68.9% |
| Debt/Equity | 0.12 | 0.18 | 0.25 | 0.29 | 0.38 | 0.53 |
| Dividends/Share | $3.40 | $3.32 | $3.00 | $2.72 | $2.48 | $2.24 |
| Operating Income | 142.6B | 128.5B | 109.4B | 88.5B | 83.4B | 69.9B |
| Operating Margin | 46.7% | 45.6% | 44.6% | 41.8% | 42.1% | 41.6% |
| ROE | 30.5% | 33.3% | 32.8% | 35.1% | 43.7% | 43.2% |
| Shares Outstanding | 7,426M | 7,466M | 7,469M | 7,475M | 7,538M | 7,611M |
MICROSOFT CORP passes 7 of 9 quality checks, indicating strong fundamentals.
MICROSOFT CORP trades at 24.1x trailing earnings, compared to its 15-year median P/E of 32.3x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 36.9x vs a median of 30.3x. The company's 5-year average ROIC is 49.1% with a gross margin of 69.0%. Total shareholder yield (dividends + buybacks) is 1.7%. At current prices, the estimated annualized return to fair value is +12.2%.
MICROSOFT CORP (MSFT) has a current P/E ratio of 24.1, compared to its historical median P/E of 32.3. The stock is currently considered Cheap based on its historical valuation range.
MICROSOFT CORP (MSFT) has a 5-year average return on invested capital (ROIC) of 49.1%. This indicates strong capital allocation and a potential competitive advantage.
MICROSOFT CORP (MSFT) has a market capitalization of $2.9T. It is classified as a mega-cap stock.
Yes, MICROSOFT CORP (MSFT) pays a dividend with a trailing twelve-month yield of 0.89%. The company also returns capital through share buybacks, with a buyback yield of 0.78%.
Based on historical P/E analysis, MICROSOFT CORP (MSFT) appears cheap. The current P/E of 24.1 is 26% below its historical median of 32.3. The estimated fair value CAGR (P/E method) is 20.9%.
MICROSOFT CORP (MSFT) operates in the Services-Prepackaged Software industry, within the Technology sector.
MICROSOFT CORP (MSFT) reported annual revenue of $281.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
MICROSOFT CORP (MSFT) has a net profit margin of 36.1%. This is a strong margin indicating high profitability.
MICROSOFT CORP (MSFT) generated $71.6 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
MICROSOFT CORP (MSFT) has a debt-to-equity ratio of 0.18. This indicates a conservatively financed balance sheet.
MICROSOFT CORP (MSFT) reported earnings per share (EPS) of $13.64 in its most recent fiscal year.
MICROSOFT CORP (MSFT) has a return on equity (ROE) of 33.3%. This indicates the company generates strong returns for shareholders.
MICROSOFT CORP (MSFT) has a 5-year average gross margin of 69.0%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for MICROSOFT CORP (MSFT), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
MICROSOFT CORP (MSFT) has a book value per share of $46.01, based on its most recent annual SEC filing.