Fundamental analysis · SEC EDGAR · as of 30/06/2026
MSFT · Nasdaq · Technology
Fundamental quality
92
out of 100
Microsoft Corp fits the profile of a quality compounder: it pairs high return on capital (ROE 30.2%) with wide margins (net margin 40.3%) and a business that keeps growing (14.6% a year). On fundamental quality it scores 92 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +14.6%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
Microsoft is one of the world's largest tech companies. It makes money from enterprise software (Windows, Office/Microsoft 365), but its growth engine is the cloud (Azure), and it has positioned itself as a leader in embedding AI into business products.
EPS growth: 17.4% · Revenue growth: 14.6%
Net margin: 40.3% · ROE: 30.2% · ROIC: 27.1%
Net debt/EBITDA: 0.1x · FCF: 20.2%
Source: SEC EDGAR · as of 30/06/2026
The score includes +4 for dividend strength: 16 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.
The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.
Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2021 | 168,088 | 61,271 | 56,118 | 43,922 |
| 2022 | 198,270 | 72,738 | 65,149 | 35,850 |
| 2023 | 211,915 | 72,361 | 59,475 | 12,533 |
| 2024 | 245,122 | 88,136 | 74,071 | 26,622 |
| 2025 | 281,724 | 101,832 | 71,611 | 12,909 |
| 2026 | 331,839 | 133,749 | 66,987 | 19,359 |
Between 2021 and 2026, revenue went from $168,088M to $331,839M (+97%) and net income went from $61,271M to $133,749M (+118%). Meanwhile, its margins have widened (from 36% to 40%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Compared with the previous close (March 31, 2026), this is what moved in its accounts:
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
$3.64
per share, yearly
19.8% of earnings
Payout
16 straight years raising it
Growth
The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →
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Is Microsoft Corp cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is Microsoft Corp a good company to invest in?
In terms of business quality, Microsoft Corp scores 92 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is Microsoft Corp a profitable company?
Very. Microsoft Corp shows a net margin of 40.3% and an ROE of 30.2%, typical of a highly profitable business.
Does Microsoft Corp have a lot of debt?
Not particularly. Its net debt is 0.1 times its EBITDA, a low level.
Is Microsoft Corp growing?
Its revenue has grown 14.6% annualized in recent years and its earnings per share 17.4%, and without interruption since 2021.
Does Microsoft Corp generate cash?
Yes. It converts about 20.2% of its revenue into free cash flow, and has done so positively year after year.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
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Compare Microsoft Corp with 500+ companies in the screener →
Who's behind the methodology and model · how the score is computed
Data: see Microsoft Corp's filings on EDGAR
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