investingg.ininvestingg.inAI-powered equity research assistant
← All curated stocks

Microsoft Corporation (MSFT)

Technology · Software—Infrastructure · NASDAQ

$512.80

-0.02%

Investru Score

73.6 / 100

Strong

Why is MSFT moving?

MSFT is little changed today (-0.02%).

Recent coverage: MSFT’s LinkedIn Chief Ryan Roslansky To Exit As AI Leadership Shake-Up Continues

Business overview

  • The company operates in the Software—Infrastructure sector within the Technology industry.
  • Market capitalization stands at 3,808,565,599,999.9995.

These structural positioning figures show a massive industry footprint and strong market standing, though size can limit future percentage gains.

Bull case

Microsoft leverages its dominant technology infrastructure footprint and high operating margins of 46.8% to sustain double-digit revenue growth while delivering superior returns on invested capital of 28.2%.

Bear case

A premium valuation, reflected in a price-to-earnings ratio of 30.76 and a modest free cash flow yield of 1.8%, leaves little room for error if macroeconomic conditions deteriorate or growth slows.

MSFT’s Investru Score changed -0.2 points recently. Want to know exactly what changed and why? That’s a Pro feature →

Score breakdown

Financial Quality
82
Growth
55
Profitability
91
Balance Sheet
74
Valuation
58
Momentum
86

Score history

-0.2 over the last 32 days, driven mainly by momentum (-2).

Financial quality

  • Return on invested capital is 28.2%.
  • Return on equity is 30.2%.
  • Free cash flow margin is 20.2%.
  • Earnings quality ratio is 1.37.

Together, these metrics indicate exceptional capital allocation efficiency and high-quality earnings backed by strong cash generation.

ROIC
28.2%
ROE
30.2%
FCF Margin
20.2%
Free Cash Flow (TTM)
$67.0B
Earnings Quality (OCF ÷ Net Income)
1.4x

Valuation

  • Price-to-earnings ratio is 30.76.
  • Forward price-to-earnings ratio is 24.19.
  • Trailing PEG ratio is 0.97.
  • Forward PEG ratio is 0.77.
  • Median PEG ratio is 0.87.
  • Enterprise value to EBITDA is 21.64.
  • Price-to-sales ratio is 12.21.
  • Free cash flow yield is 1.8%.

Together, these valuation metrics suggest the stock trades at a premium multiple, though forward growth-adjusted measures temper that concern.

P/E (TTM)
30.8x
Forward P/E
24.2x
PEG (P/E ÷ EPS Growth)
1.0x
Company Median PEG
0.9x
Price / Sales
12.2x
EV / EBITDA
21.6x
FCF Yield
1.8%

Key risks

  • With a high price-to-sales ratio of 12.21 and trailing P/E of 30.76, any deceleration in growth could lead to multiple compression.(Probability: Medium · Impact: High)
  • A low free cash flow yield of 1.8% limits the cushion for shareholders if market conditions tighten.(Probability: Low · Impact: Medium)
  • Current ratio of 1.23 provides modest short-term liquidity buffer relative to massive enterprise scale.(Probability: Low · Impact: Low)

Latest earnings

Q3 FY26 EPS
$4.27
Estimate
$4.14
Surprise
+3.1%
  • Earnings per share growth is 31.6% year-over-year.
  • Earnings quality is 1.37.

These figures show robust bottom-line expansion supported by high-quality earnings conversion.

SEC filings

Event filings (8-K) aren't covered by this page's data source yet — only 10-K/10-Q are shown above.

Market cap $3.81T · 52-week range $349.20–$553.72 · market data as of Oct 1, 2026, 4:00 PM ET · latest SEC filing: 2011-01-27

Related stocks

ORCL

Oracle Corporation

44/100 · Weak

PLTR

Palantir Technologies Inc.

68/100 · Good

AAPL

Apple Inc.

62/100 · Good

ADBE

Adobe Inc.

72/100 · Strong

AMD

Advanced Micro Devices, Inc.

61/100 · Good

AVGO

Broadcom Inc.

56/100 · Good

Get the full interactive report

Technicals, earnings history, news, bull/base/bear scenarios, Ask the Stock, and more — free to start.

Analyze MSFT with Investru AI

Not investment advice. Investru AI summarizes public data and AI-generated analysis for informational purposes only.