HelloStocks

Microsoft Corporation

MSFT

Stock Summary

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Large-cap Cloud & AI stalwart
Market leader in cloud and AI-powered software; Q4 revenue was $90.0 billion showing ~18% growth; Fairly valued stalwart with mid-teens EPS growth expectations.
Sector: TechnologyIndustry: Software - Infrastructure
Sector
Technology
Industry
Software - Infrastructure
Exchange
NASDAQ
IPO Date
Mar 13, 1986
Location
Washington, USA
Shares Outstanding
7,428,434,704
Quarterly Report
Jul 31, 2026
Last Close
Aug 25, 2026
Price (USD)
487.31
EPS (TTM)
17.96
Market Cap (last close)
3.7T
M Cap Rank
#4
1 Week
+2.29%
1 Month
+29.06%
1 Year
-1.68%
HelloStocks Score
Overall Rating
7.7
Growth
7.1
Financial Strength
9.7
Value
6.4

Company Metrics

Growth

Metricvs Sector
Medium (top 52%)
Low (bottom 29%)
High (top 62%)
Medium (top 56%)
Medium (top 58%)
Medium (top 55%)
Medium (bottom 45%)
Growth Score: 7.1Very High (top 85%)

Financial Strength

Metricvs Sector
Gross Margin: 67.2%High (top 68%)
Operating Margin: 46.8%Very High (top 98%)
Net Margin: 40.3%Very High (top 96%)
ROE: 33.2%High (top 74%)
ROA: 19.4%Very High (top 87%)
ROIC: 28.5%High (top 73%)
Free Cash Flow (TTM): 67 billionVery High (top 100%)
Debt to Equity: 0.13Low (bottom 36%)
Book Value / Share: 59.55Very High (top 93%)
Financial Strength Score: 9.7Very High (top 99%)

Value

Metricvs Sector
PE Ratio: 27.13Medium (bottom 45%)
PB Ratio: 8.18Very High (top 80%)
PS Ratio: 11.01Very High (top 82%)
PEG (1Y trailing): 0.86High (top 63%)
Medium (bottom 43%)
Price to FCF: 54.53Very High (top 82%)
FCF Yield: 1.8%Very Low (bottom 18%)
Dividend Yield: 0.92%Low (bottom 37%)
Value Score: 6.4Very High (top 82%)

Earnings Audit

DAISY uses saved SEC-backed normalized EPS data. You can remove, add back, or edit adjustment items to see how EPS, P/E, and PEG change.
DAISY
Your AI Earnings Auditor
Suggested Normalized EPS
17.28
Adjusted for one-time items
GAAP EPS
17.96
DAISY Summary
Over the latest four quarters, normalized EPS is 17.28 versus GAAP EPS of 17.96. The main adjustments identified from SEC filing reconciliations were openai investment impact.
DAISY Explanation
Adjustments Made (TTM total)
  • -OpenAI investment impact-1.09
  • +OpenAI investment impact+0.41
Quarterly EPS Breakdown
QuarterPeriod EndGAAPAdj DilutedAdj BasicDAISY
Q2 2026Jun 30, 20264.815.165.184.74
Q1 2026Mar 31, 20264.273.723.734.27
Q4 2025Dec 31, 20255.163.653.674.14
Q3 2025Sep 30, 20253.723.463.474.13
TTM17.9617.9616.0517.28
Valuation Station
Adjust values to effect the valuation metrics
editable
Market: 487.31
editable
Reported: 17.96
editable
Base: 15.86%
%
calculated
28.20
Base: 27.13
PEG Ratio1.78
Fair
01234+
LowFairPriceyHigh
What is the PEG Ratio?

The PEG ratio combines price-to-earnings with expected earnings growth to assess value.

Formula: P/E Ratio divided by expected annual earnings growth %

Metric Trends

PE RatioPrice / Earnings (TTM).
Metric:
Current PE Ratio
Peer comparison
PE Ratio - Absolute value
PE Ratio - Percentile vs Sector
No percentile data

Financial Statements

Income Statement
Choose one or more metrics.
Cashflow Statement
Choose one or more metrics.
Balance Sheet
Choose one or more metrics.

Warning Signs

4 warnings
  • Decreasing cash YoY

    Cash declined from 30.24 billion to 20.93 billion over the last year. Review cash and cash equivalents on the balance sheet for the decline.

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    HelloStocks Score 6.2

Sentiment Analysis

Market Mood

Daily fear-to-greed scores and live mood charts are restricted to paid users.
Latest Market Mood
Market Mood
Overall market
Mood Restricted
Sector Mood
Technology
Mood Restricted
Industry Mood
Software - Infrastructure
Mood Restricted
Stock signals for MSFT
Current price
$487.31
52W high
52W low
RSI (14)
20D momentum
60D momentum
30D volatility
HelloStocks Market Mood Index
Market sentiment measured on a 0-100 scale.
Restricted
Jun 25
Sept 25
Dec 25
Mar 26
Jun 26
Market Mood chart restricted

Daily fear-to-greed scores update after each market close and are available to paid users.

Industry Outlook

DAISY OutlookAI cloud demand still rising
Powered by DAISY

Fresh late-summer 2026 forecasts still point to strong demand for cloud platforms, software delivery tools, cybersecurity, and systems that help companies run AI safely at scale.

Long Term Annual Industry Growth
Low 11%High 25%
DAISY expects: 18%

Macro Environment

Mixed

The macro setup is mixed. AI spending and cloud migration are still pulling budgets toward infrastructure software, especially tools that move data, secure workloads, and automate operations. The pressure point is cost control: when cloud bills rise faster than budgets, customers look for unused capacity, delay migrations, or push vendors harder on price. Higher-for-longer rates would also hurt the group because investors pay more for future growth when money is cheap.

Competitive Dynamics

Expanding

Competition is expanding as AI features appear across nearly every infrastructure software category. Large platforms are bundling more tools into existing contracts, which can protect their customer base but makes life harder for companies selling one narrow tool. Margins should keep improving for scaled providers, while smaller entrants may have to spend heavily on sales, engineering, and cloud costs to stay relevant.

Growth Outlook

Expanding

Growth is still expanding because more companies are turning AI tests into production systems, and those systems need cloud capacity, data tools, monitoring, identity, and security. The next phase should be less about hype and more about whether vendors can prove that AI features save time, reduce risk, or create new revenue. The strongest players should keep growing, while weaker tools that do not show clear value are likely to be cut from software budgets.

Key Near-Term Risks

Elevated

The first risk is that AI projects do not deliver clear savings or revenue fast enough, causing customers to slow deployments. The second is cloud cost control, because customers can cut unused capacity, delay migrations, or renegotiate contracts when bills rise faster than budgets. The third is a major cyberattack, a new rule on where data must be stored, or stricter AI oversight that slows rollouts in regulated industries.

AI-generated content may be wrong; please perform your own research

Updated Aug 23, 2026

Strategy Match

See how this stock aligns with your saved strategies.

1 strategy matches
My Growth at a Reasonable Price Strategy
Durable growth and reasonable valuation.
8 / 8100%
Financial Powerhouses
Margins, cash flow, and balance sheet strength.
7 / 888%
Low Valued Fast Growers
Growth with valuation discipline.
5 / 771%