Microsoft Corporation(MSFT) - Stock detail

Microsoft Corporation

US
MSFT
Microsoft Corporation(Listing date: 03/13/1986)

Microsoft Corporation was founded on April 4, 1975. The company develops and supports software, services, devices, and solutions to deliver new value to customers and help people and businesses realize their full potential. It offers a range of services, including cloud-based solutions that provide customers with software, services, platforms, and content, as well as solution support and consulting services. The company also delivers relevant online advertising to a global audience. Its products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; and video games. The company also designs, manufactures, and sells devices, including personal computers, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories.

AI Value AnalystHold
Overall Rating7/10
Generated at:2026-06-03 17:40:20
Analysis based on real data. A total of 5 financial reports were used for financial analysis, covering periods from 2025-03-31 to 2026-03-31. The current market price is as of 2026-06-03 close.
Overview

Microsoft Corporation (MSFT) is a global leader in software, services, devices, and solutions with a dominant market position. The company demonstrates robust financial health, outstanding and improving profitability, and is considered a high-quality, blue-chip growth company. The primary constraint for investment is its current valuation, which is elevated and reflects much of its near-term growth and quality.

Valuation
4/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • For new investors, waiting for a more attractive entry point during broader market pullbacks is prudent.
  • For existing shareholders, the company's fundamental strength justifies maintaining a position for long-term growth, but the current price does not present a compelling margin of safety for aggressive new buying.
  • The recommendation is to Hold.

Valuation

P/E TTM
24.19
P/E LYR
31.61
P/B MRQ
7.31
P/S TTM
--
AI Analysis
  • The stock's valuation multiples are elevated but reasonable given the company's stellar growth, premium margins, and rock-solid balance sheet. The current price does not appear significantly overvalued or undervalued and is trading in line with its high-quality profile.
  • Current Market Price is $427.34.
  • Forward P/E is 31.61 and Trailing P/E (TTM) is 24.19.
  • Given the company's high growth rate, these multiples are elevated but justified by the quality and consistency of earnings growth.
  • A PEG ratio approximation suggests the stock is fairly valued relative to its growth profile.
  • Price-to-Book (P/B) is 7.31, which is high but typical for a software company with massive intangible assets.
  • Price-to-Sales (P/S) is 9.98 (TTM), a premium multiple reflecting high margins and recurring revenue.
  • The stock has traded between $356.51 and $466.32 over the last 60 days, with the current price near the middle of this range.
  • The stock does not appear significantly overvalued or undervalued at this level; it is trading in line with its high-quality profile.
Valuation trend

Profitability

ROE TTM
33.87%
Net margin
40.52%
Gross margin
68.22%
Total revenue
241.83B
AI Analysis
  • Microsoft demonstrates outstanding and improving profitability with strong double-digit revenue growth, exceptionally high margins, and world-class returns on capital.
  • Latest quarterly revenue (Q3 2026) of $241.83B grew 17.80% year-over-year.
  • This follows a consistent pattern of double-digit growth across recent quarters.
  • The company maintains exceptionally high Gross Margins (~68%) and Net Margins (~40%).
  • The Q3 2026 Net Margin of 40.52% showcases superior pricing power and cost management.
  • Return on Equity (ROE) of 33.87% (TTM) and Return on Assets (ROA) of 19.05% (TTM) are world-class metrics.
  • Latest quarterly Net Income of $97.98B grew 31.35% year-over-year, significantly outpacing revenue growth.
  • The earnings growth points to operating leverage and margin expansion.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--33.28%7.85%18.03%33.87%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue205.28B281.72B77.67B158.95B241.83B

Financial health

Debt/Asset
40.31%
Current ratio
1.28
Quick ratio
1.27
Cash ratio
1.27
AI Analysis
  • The company's financial health is robust with adequate liquidity, a conservative capital structure, and an exceptionally strong financial foundation.
  • Current Ratio of 1.28 and Quick Ratio of 1.27 indicate adequate short-term liquidity.
  • The liquidity ratios are not excessively high, typical for a mature tech company with efficient cash management.
  • Debt-to-Asset Ratio of 40.31% reflects a conservative capital structure.
  • The company is not overly leveraged, providing financial flexibility and resilience.
  • The combination of moderate liquidity, low leverage, and immense profitability points to an exceptionally strong financial foundation.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset42.79%44.51%42.94%41.25%40.31%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.371.351.401.391.28