Market Cap: 2.621T; Large Cap
P/E Ratio: 21.04; Fwd: 18.18
EPS (TTM): $16.77
Div. Yield: 0.97%

MS

MSFTNASDAQ— Microsoft Corporation Price & Analysis

Microsoft Corporation

TECHNOLOGY — SOFTWARE - INFRASTRUCTURE

$372.97

+$20.14+5.71%

Market Cap: 2.621T; Large Cap
P/E Ratio: 21.04; Fwd: 18.18
EPS (TTM): $16.77
Div. Yield: 0.97%

Technical Summary

RSI (14)40.48Neutral

SMA (50)$410.52Bearish

SMA (200)$446.27Bearish

MACD-13.7542Bearish

Bollinger$342.07 – $458.15Mid

Stochastic13.48Oversold

Theo Outlook

Microsoft trades at a trailing P/E of 22.23 with a $2.77 trillion market cap, supported by 18.3% year-over-year revenue growth to $318.3 billion TTM and diluted EPS of $16.78. The forward P/E of 19.19 and 34% return on equity signal continued premium valuation justified by scale in cloud and productivity software. Strong profitability margins of 39.3% and consistent earnings expansion position the stock as a core holding for growth-oriented portfolios.

Key catalysts include Azure cloud expansion, Copilot AI integrations across Office and Windows, and sustained quarterly revenue momentum of 18.3% YoY. Recent fiscal-year-end results through March 2026 highlight accelerating enterprise adoption and hardware-software synergies in Surface and Xbox ecosystems. Analyst consensus targets $561.11, reflecting expected earnings momentum into fiscal 2027.

Regulatory scrutiny on cloud bundling and AI data practices, plus competition from AWS and Google Cloud, represent primary risks alongside macro sensitivity to interest rates and IT spending cycles. Microsoft mitigates these through diversified revenue streams, aggressive share buybacks, and a 1.01% dividend yield with payments scheduled for September 2026. A beta of 1.10 provides moderate market correlation while maintaining defensive cash-flow characteristics. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Theo Outlook

Microsoft trades at a trailing P/E of 22.23 with a $2.77 trillion market cap, supported by 18.3% year-over-year revenue growth to $318.3 billion TTM and diluted EPS of $16.78. The forward P/E of 19.19 and 34% return on equity signal continued premium valuation justified by scale in cloud and productivity software. Strong profitability margins of 39.3% and consistent earnings expansion position the stock as a core holding for growth-oriented portfolios.

Key catalysts include Azure cloud expansion, Copilot AI integrations across Office and Windows, and sustained quarterly revenue momentum of 18.3% YoY. Recent fiscal-year-end results through March 2026 highlight accelerating enterprise adoption and hardware-software synergies in Surface and Xbox ecosystems. Analyst consensus targets $561.11, reflecting expected earnings momentum into fiscal 2027.

Regulatory scrutiny on cloud bundling and AI data practices, plus competition from AWS and Google Cloud, represent primary risks alongside macro sensitivity to interest rates and IT spending cycles. Microsoft mitigates these through diversified revenue streams, aggressive share buybacks, and a 1.01% dividend yield with payments scheduled for September 2026. A beta of 1.10 provides moderate market correlation while maintaining defensive cash-flow characteristics. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Company Overview

Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.

Fundamental Snapshot

Revenue: 318.273B
EBITDA: 184.457B
Gross Profit: 217.41B
Operating Margin: 46.3%
Profit Margin: 39.3%
ROE: 34.0%
Book Value: $55.78
Beta: 1.103
52-Wk High: $551.05
52-Wk Low: $349.2
Avg Volume: 165.3556M
PEG Ratio: 1.089

Frequently Asked Questions

What is Microsoft’s core business model?

Microsoft generates revenue primarily through software licensing, cloud services via Azure and Microsoft 365, and hardware sales. The company reported $318.3 billion in TTM revenue with a 39.3% profit margin, driven by recurring subscription revenue and enterprise contracts.

Where does Microsoft earn most of its revenue?

Productivity and business processes (Office, LinkedIn, Dynamics) plus intelligent cloud (Azure) account for the majority of revenue. TTM revenue reached $318.3 billion with 18.3% YoY growth, supplemented by more personal computing segments including Windows and Xbox.

What are Microsoft’s main competitive advantages?

Trading Data

Open: $357.26
Previous Close: $352.83
Day Range: $355.43 – $376.61
Volume: 185.3883M
Shares Outstanding: 7.4284B
Analyst Target: $561.11

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Company Overview

Microsoft Corporation is an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft ranked No. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue; it was the world's largest software maker by revenue as of 2016. It is considered one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Amazon, and Facebook.

Fundamental Snapshot

Revenue: 318.273B
EBITDA: 184.457B
Gross Profit: 217.41B
Operating Margin: 46.3%
Profit Margin: 39.3%
ROE: 34.0%
Book Value: $55.78
Beta: 1.103
52-Wk High: $551.05
52-Wk Low: $349.2
Avg Volume: 165.3556M
PEG Ratio: 1.089

Frequently Asked Questions

What is Microsoft’s core business model?

Microsoft generates revenue primarily through software licensing, cloud services via Azure and Microsoft 365, and hardware sales. The company reported $318.3 billion in TTM revenue with a 39.3% profit margin, driven by recurring subscription revenue and enterprise contracts.

Where does Microsoft earn most of its revenue?

Productivity and business processes (Office, LinkedIn, Dynamics) plus intelligent cloud (Azure) account for the majority of revenue. TTM revenue reached $318.3 billion with 18.3% YoY growth, supplemented by more personal computing segments including Windows and Xbox.

What are Microsoft’s main competitive advantages?

Scale in enterprise software, deep integration across Windows, Office, and Azure, plus leadership in AI via Copilot give Microsoft durable moats. A 34% return on equity, $2.77 trillion market cap, and 75.8% institutional ownership underscore its market position.

What are the key risks for MSFT investors?

Antitrust scrutiny on cloud and AI practices, competition from AWS and Google, and macro-driven IT budget cuts pose risks. The stock’s 1.10 beta and 22.23 trailing P/E reflect sensitivity to interest rates and regulatory outcomes.

What is the growth outlook for Microsoft stock?

Analysts target $561.11 with a forward P/E of 19.19, supported by continued Azure and AI adoption. The next earnings date follows the March 2026 quarter, with a 1.01% dividend yield and September 2026 payment providing income alongside capital appreciation potential.