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Microsoft

MSFT on Nasdaq. Microsoft sells software, online services, devices, and games to people and organizations. Market value $3.9tn.

Watch this stockFree. We tell you when something changes.

Price checks use the past 12 months to June 2026. Quality checks use five annual reports, the latest for the year to June 2026.

Should I look at this?

Good business, but not cheap right now

Why it could be worth it

What to watch out for

See cheaper Technology stocks on the list

This is not advice. Check the numbers below.

Compare with another stock

Cash yield
past 12 months to June 2026
1.7%low

For every $100 of what the whole company costs, it produced $1.72 of spare cash in the past 12 months. A savings account pays about $4.

Price to profit
past 12 months to June 2026
25.7×full

You pay 25.7 years of operating profit for the business. The average large US company costs around 18.

Return on capital
five annual reports to June 2026
26.3%five-year median

Each dollar kept in the business earns 26 cents a year. Above 10 is good.

Quality score: 100 of 100. Price score: 36 of 100. Our list needs 70 on quality and 60 on price.

$525.18 a share, 50% above its 1-year low

Over the past year the price has ranged from $349.20 to $553.72.

Dividend: 0.7% a year

Paid every year for at least 5 years

Prices from Monday’s close (5 October).

Five years of cash, in billions

65.1
59.5
74.1
71.6
67.0
20222023202420252026
Revenue
$198.3bn$211.9bn$245.1bn$281.7bn$331.8bn
Operating margin
42.1%41.8%44.6%45.6%46.8%
Debt to equity
0.390.310.290.260.24
Shares outstanding
7.43bn7.43bn7.43bn7.43bn7.43bn

Health checks

  • Free cash flow positive5 of 5 years
  • Accounting looks honest (Beneish)Nothing unusual
  • Financial strength (Piotroski)5 of 9
  • Profit backed by cash (accruals)Yes
  • Debt0.24× equity
  • Revenue growth, five yearsStrong, 14.6% a year
  • Buying back its own sharesRoughly flat

The quarter to June 2026

How the business did, compared with the same quarter a year earlier.

  • Sales: $90 billion last quarter, up 18% on a year ago.
  • Profit: $35.8 billion, up 31% on a year ago.
  • It keeps 47 cents of each $1 of sales as operating profit, up from 46 cents a year earlier.
  • Spare cash over the past 12 months: $67 billion, down from $71.6 billion.
  • Debt is $86 billion more than cash, up from $59.1 billion a year ago.
  • Sales grew on a year ago in each of the last 4 quarters.
Sales by quarter
Sales by quarter
Quarter toAmount
September 2024$65.6bn
December 2024$69.6bn
March 2025$70.1bn
June 2025$76.4bn
September 2025$77.7bn
December 2025$81.3bn
March 2026$82.9bn
June 2026$90.0bn
Profit by quarter
Profit by quarter
Quarter toAmount
September 2024$24.7bn
December 2024$24.1bn
March 2025$25.8bn
June 2025$27.2bn
September 2025$27.7bn
December 2025$38.5bn
March 2026$31.8bn
June 2026$35.8bn

From the company's quarterly reports to the SEC.

Dates

Next results (estimated)
28 October 2026
Last annual report (10-K)
29 July 2026
Next quarterly (estimated, 10-Q)
29 July 2026

Who owns it

68 long-term investors we follow own it, down from 71 last quarter. 6,213 funds in all.

Jun '25
Dec '25
Jun '26

Sold out this quarter

Largest holders overall

From 13F filings for the quarter ended 30 June 2026.

Big holders and activists

1 investor owns more than 5%.

From Schedule 13D and 13G filings: anyone owning more than 5% must file one.

What insiders did

In the last 12 months, 1 insider bought $2m of shares on the open market. 7 sold $115m, $64m of it under preset trading plans.

  • Hood Amy
    EVP, Chief Financial Officer
    Sold
    under a preset trading plan
    Date
    14 September 2026
    Shares
    41,674
    Price
    $498.27
    Value
    $21m
  • Nadella Satya
    Chief Executive Officer, Director
    Sold
    under a preset trading plan
    Date
    1 September 2026
    Shares
    86,525
    Price
    $501.46
    Value
    $43m
  • Althoff Judson
    CEO Microsoft Commercial
    Sold
    Date
    5 August 2026
    Shares
    10,000
    Price
    $487.89
    Value
    $5m
  • Numoto Takeshi
    EVP, Chief Marketing Officer
    Sold
    Date
    4 August 2026
    Shares
    4,810
    Price
    $496.48
    Value
    $2m
  • Numoto Takeshi
    EVP, Chief Marketing Officer
    Sold
    Date
    10 June 2026
    Shares
    4,500
    Price
    $402.84
    Value
    $2m
  • Numoto Takeshi
    EVP, Chief Marketing Officer
    Sold
    Date
    8 June 2026
    Shares
    2,500
    Price
    $412.45
    Value
    $1m
  • Althoff Judson
    CEO Microsoft Commercial
    Sold
    Date
    1 June 2026
    Shares
    15,500
    Price
    $460.99
    Value
    $7m
  • Coleman Amy
    EVP, Chief Human Resources Off
    Sold
    Date
    14 May 2026
    Shares
    1,262
    Price
    $411.34
    Value
    $519,239
  • Hogan Kathleen T
    EVP, Strategy
    Sold
    Date
    6 March 2026
    Shares
    12,321
    Price
    $409.52
    Value
    $5m
  • STANTON JOHN W
    Director
    Bought
    Date
    18 February 2026
    Shares
    5,000
    Price
    $397.35
    Value
    $2m

From Form 4 filings: insiders must report trades in their own company's shares within two days.

Warning signs in its filings

Problems the company itself reported to the SEC, in its own words.

None of the warning signs we check for were found.

We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.

We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 29 Jul 2026, plus 1 later 8-K.

A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.

What could go wrong

  • It isn't cheap on profits: 25.7× operating profit.

Whether the price already reflects the risks is what the deep dive is for.

The deep dive

Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.

  • What the business is worth, as a range, and the margin of safety at today’s price
  • Prices to start buying, buy, and buy hard
  • The three things that would make this a mistake
  • Every number footnoted to the filing it came from
Create a free account to run it

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What a finished deep dive looks like

Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.