Microsoft Corporation (MSFT) fundamental analysis

From the Sep 28, 2026 report · Read the full report

Annual income statement

Fiscal year	Revenue	Growth	Gross margin	Operating margin	Net margin	Free cash flow	Diluted EPS
Jun 30, 2026	331.84B	17.8%	67.9%	46.8%	40.3%	66.99B	17.95
Jun 30, 2025	281.72B	14.9%	68.8%	45.6%	36.1%	71.61B	13.64
Jun 30, 2024	245.12B	15.7%	69.8%	44.6%	36.0%	74.07B	11.8
Jun 30, 2023	211.92B	—	68.9%	41.8%	34.1%	59.48B	9.68

Balance sheet

Jun 30, 2026

Cash and short-term investments: 76.65B
Total debt: 56.83B
Shareholders' equity: 442.39B

Against its sector

	MSFT	Sector median
Forward P/E	21.5	18.5
Net margin	40.3%	35.3%
Revenue growth	17.7%	67.8%
ROE	34.0%	42.7%
Debt / equity	29.1	38.3

From the Sep 28, 2026 report

Microsoft's fundamentals remain robust with a TTM revenue of $331.84 billion (+12.4% YoY) and net income of $133.75 billion. Q2 2026 revenue reached $90.01 billion (up 9.4% from Q1 2026), with a 40.3% net margin (up from 39.8% in Q1 2026). The company maintains a strong balance sheet with a debt-to-equity ratio of 29.12% and $20.94 billion in cash and equivalents. Microsoft's free cash flow in Q2 2026 was $19.64 billion, up 71.4% YoY, supporting consistent dividends (0.76% yield) and share repurchases ($4.58 billion in Q2). The forward P/E of 21.80 suggests improved growth expectations compared to the TTM P/E of 28.74.

Frequently asked questions

How fast is MSFT revenue growing?

Microsoft Corporation reported revenue of 331.84B in the fiscal year ended Jun 30, 2026, 17.8% more than the year before.

Data as of Sep 29, 2026. Sources: Yahoo Finance (prices, financial statements and analysts' estimates) and the U.S. Treasury (10-year yield). Indicators and valuation are computed without AI.

AI-generated informational content. Not financial advice or a personalised investment recommendation. Investing involves risk, including loss of capital.

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