Microsoft (MSFT) stock
Information Technology · Systems Software
Microsoft (MSFT) is a Systems Software company in the Information Technology sector, headquartered in Redmond, Washington. As of October 23, 2026, MSFT closed at $524.51, a market capitalization of $3.89 trillion, the 4th largest company in the S&P 500. Over the last twelve months it generated $331.84 billion in revenue (+18% year over year) and $66.99 billion in free cash flow. The stock trades at 29.2x trailing earnings and 22.1x forward earnings.
- 1-year total return: +1.6% (dividends reinvested)
- 5-year return: +12.1% a year
- 52-week range: $349.20 – $553.72
- Gross margin 67.9%, operating margin 45.1%
- Dividend yield: 0.75%, 20 straight years of increases
- FI Handbook report card: B- across 10 metrics
- 3rd largest of 75 Information Technology stocks in the S&P 500
MSFT price chart
1Y price change: +0.8% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| MSFT | +4.8% | +9.1% | +1.6% | +17.7% | +12.1% | +25.8% | +25.1% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1986.
MSFT key statistics
- Market cap
- $3.9T
- #4 in S&P 500
- P/E (TTM)
- 29.2x
- Forward P/E
- 22.1x
- EPS (TTM)
- $17.95
- Revenue (TTM)
- $331.8B
- +18%
- Free cash flow
- $67.0B
- Gross margin
- 67.9%
- Operating margin
- 45.1%
- Return on equity
- 34.0%
- Dividend yield
- 0.75%
- 52-week range
- $349.20 – $553.72
- Beta
- 1.10
- Price / sales
- 11.7x
- EV / EBITDA
- 20.3x
- Debt / equity
- 0.29x
- Employees
- 223,000
MSFT report card
B-Ten fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth17.7%B
- Gross margin67.9%A
- Operating margin45.1%A
- FCF margin20.2%B
- Return on equity34.0%A
- Net debt / EBITDA0.3xB
- Forward P/E22.1xC
- PEG ratio1.6xC
- Shareholder yield1.3%D
- Share count change / yr-0.4%C
Microsoft financials
Revenue went from $96.6B in fiscal 2017 to $331.8B in fiscal 2026, growing 14.7% a year.
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $96.6B | $110.4B | $125.8B | $143.0B | $168.1B | $198.3B | $211.9B | $245.1B | $281.7B | $331.8B |
| Gross profit | $62.3B | $72.0B | $82.9B | $96.9B | $115.9B | $135.6B | $146.1B | $171.0B | $193.9B | $225.5B |
| Operating income | $29.0B | $35.1B | $43.0B | $53.0B | $69.9B | $83.4B | $88.5B | $109.4B | $128.5B | $155.2B |
| Net income | $25.5B | $16.6B | $39.2B | $44.3B | $61.3B | $72.7B | $72.4B | $88.1B | $101.8B | $133.7B |
| EPS (diluted) | $3.25 | $2.13 | $5.06 | $5.76 | $8.05 | $9.65 | $9.68 | $11.80 | $13.64 | $17.95 |
| Free cash flow | $31.4B | $32.3B | $38.3B | $45.2B | $56.1B | $65.1B | $59.5B | $74.1B | $71.6B | $67.0B |
| Buybacks | $11.8B | $10.7B | $19.5B | $23.0B | $27.4B | $32.7B | $22.2B | $17.3B | $18.4B | $22.3B |
| Dividends paid | $11.8B | $12.7B | $13.8B | $15.1B | $16.5B | $18.1B | $19.8B | $21.8B | $24.1B | $26.4B |
| Diluted shares | 7.8B | 7.8B | 7.8B | 7.7B | 7.6B | 7.5B | 7.5B | 7.5B | 7.5B | 7.5B |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into MSFT?
A reverse DCF asks what growth the current price requires. With an enterprise value of $3.9T and $67.0B of trailing free cash flow, Microsoft needs to grow free cash flow about 39.1% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew 3.6% a year over the last five years.
P/E ratio history
Current 29.2x vs. median 27.3x (10th–90th percentile 12.0x–42.3x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
MSFT dividend
- Dividend yield
- 0.75%
- Annual dividend
- $3.92
- Years of increases
- 20
- 5-yr dividend growth
- 10.2%
- per year
- Payout ratio
- 20%
- Payments per year
- 4
Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.
MSFT analyst price targets
53 analysts' average 12-month target is $601.73 (+15% vs. $524.51). Targets range from $440.00 to $870.00. 95% rate it a buy.
MSFT earnings
Next report: October 28, 2026. Microsoft has beaten EPS estimates 8 quarters in a row. Last quarter's revenue was $90.0B (+18% year over year).
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Jul 29, 2026 | $4.24 | $4.74 | +11.8% |
| Apr 29, 2026 | $4.07 | $4.27 | +4.8% |
| Jan 28, 2026 | $3.92 | $4.14 | +5.7% |
| Oct 29, 2025 | $3.66 | $4.13 | +12.7% |
| Jul 30, 2025 | $3.38 | $3.65 | +8.1% |
| Apr 30, 2025 | $3.22 | $3.46 | +7.4% |
| Jan 29, 2025 | $3.12 | $3.23 | +3.5% |
| Oct 30, 2024 | $3.11 | $3.30 | +6.1% |
Stocks like MSFT
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|---|---|---|---|---|---|
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 NOW ServiceNow | +1.25% | -15% | $164.3B | 99.4x | Compare |
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 TWLO Twilio | +3.22% | +136% | $40.2B | 36.2x | Compare |
 GEN Gen Digital | -0.04% | -7% | $14.9B | 14.5x | Compare |
 NVDA NVIDIA | -0.59% | +16% | $5.1T | 26.7x | Compare |
 AAPL Apple | -0.14% | +34% | $5.1T | 39.9x | Compare |
MSFT news
- AI delivers ‘zero financial payoff’ to most companies, Apollo economist says · Oct 25, 2026
- What To Expect In Markets This Week: GOOGL, MSFT, AMZN, INTC, HOOD, LLY Earnings, Fed Meeting And More · Oct 25, 2026
- Dow Jones Futures Due For Doom-And-Bloom Market; Microsoft, Google, Amazon Ahead · Oct 25, 2026
- The Enterprise Agent Price Nobody Will Show You · Oct 25, 2026
- Here's the Price at Which I'd Buy Microsoft Stock · Oct 25, 2026
MSFT stock FAQ
What is MSFT's market cap?
Microsoft's market capitalization is $3.89 trillion as of October 23, 2026, ranking 4th in the S&P 500.
What is MSFT's P/E ratio?
MSFT trades at a trailing price-to-earnings ratio of 29.2x and a forward P/E of 22.1x. Its median P/E over the period we track is 27.3x.
Does MSFT pay a dividend?
Yes. Microsoft pays $3.92 per share a year, a 0.75% yield. It has raised its dividend 20 years in a row. Dividends grew 10.2% a year over the last five years.
How much has MSFT stock returned?
Including reinvested dividends, MSFT returned +1.6% over one year, +12.1% a year over five years, +25.8% a year over ten years through October 23, 2026.
Is MSFT stock overvalued?
At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies Microsoft must grow free cash flow about 39% a year for the next decade. Its free cash flow grew 4% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.
What is the MSFT price target?
53 analysts cover MSFT with an average 12-month price target of $601.73, +15% from the current price. 95% of them rate it a buy.
When does MSFT report earnings?
Microsoft is expected to report earnings on October 28, 2026. It has beaten EPS estimates 8 quarters in a row.
How many employees does Microsoft have?
Microsoft has about 223,000 full-time employees, or $1.5 million of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology