Microsoft Corporation (MSFT) Stock

Microsoft Corporation (MSFT) is a Technology stock trading at $394.15 (as of 2026-07-17), with a market capitalization of $2.93T and a trailing P/E of 23.4. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Microsoft licenses and supports software, services, devices, and solutions worldwide across Productivity and Business Processes (including Office, Exchange, SharePoint, Teams, Dynamics 365, and related offerings), Intelligent Cloud (including Azure and SQL Server, plus GitHub and Nuance offerings), and More Personal Computing (including Windows).

Understand Microsoft Corporation: how it makes money

Microsoft develops, licenses, and supports software, services, devices, and solutions, and earns revenue through its Productivity and Business Processes offerings (Office, Exchange, SharePoint, Microsoft Teams, Skype for Business, and Dynamics 365), its Intelligent Cloud (cloud and enterprise solutions), and its More Personal Computing products and platforms.

The profit model is driven by large-scale cloud and services revenue, led by Microsoft Cloud revenue (54.5B) and service and other revenue (67.8B), which makes results more dependent on the ongoing performance of its cloud and business services mix than on product revenue (15.09B).

Revenue by segment (latest quarter)
Productivity & Business$35.0B
Intelligent Cloud$34.7B
More Personal Computing$13.2B

Business quality (Strong): Segment reporting is clear and operationally oriented, with strong visibility into cloud momentum (Microsoft Cloud revenue) and potential future monetization signals (commercial remaining performance obligation). The main investor focus is whether cloud and commercial services continue to grow, because the company has less revenue coming from products.

Valuation: Trades at 22× trailing earnings · $2.77T market cap.

Bull case

  • Cloud-led scale: Microsoft Cloud revenue is a major share of total revenue (54.5B out of 82.9B for the quarter), supported by the company also reporting substantial service and other revenue (67.8B).
  • Commercial visibility signal: Commercial remaining performance obligation is reported at 627.0B, which can indicate future revenue potential tied to existing commercial commitments.

Bear case

  • Concentration in cloud and services: Because service and other revenue (67.8B) and Microsoft Cloud revenue (54.5B) represent a large portion of the mix, any slowdown in cloud or commercial demand could weigh on the overall revenue trend.
  • Lower contribution from products and personal computing: More Personal Computing revenue is smaller than the other two segments (13.2B), and product revenue is also relatively limited (15.09B), so diversification away from cloud-driven performance is less pronounced.
Valuation — source: SEC EDGAR (first-party)
Price$394.15
Market Cap$2.93T
P/E Ratio23.4
EV / EBITDA16.4
Price / Book7.07
Price / Sales9.20
FCF Yield2.5%
DCF Value (model)$343.10
DCF Upside vs Price-13.0%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$281.72B
Net Margin36.1%
Revenue Growth (YoY)18.3%
EPS Growth (YoY)23.3%
FCF Growth (YoY)-22.1%
Financial Health — source: SEC EDGAR
Altman Z-Score8.15 (safe)
Piotroski F-Score5/9 (moderate)
Valuation vs Sector & Industry
Stock P/E23.4
Sector P/E (Technology)34.7
Industry P/E (Business Services)30.7
vs Sector-32.6%
vs Industry-23.9%
Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Insider Buys (12mo)1
Insider Sells (12mo)13
Top Institutional HolderVANGUARD GROUP INC ($347.21B)
Institutional Holders Tracked10
Congressional Trades (recent)10
Company
SectorTechnology
IndustryBusiness Services
CEOSatya Nadella
Employees228,000
CountryUS
IPO Date1986-03-13

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MSFT earnings history · MSFT institutional & insider holders · MSFT KPIs & operating metrics · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-07-17.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.