MSFT · Nasdaq · United States · Services-Prepackaged Software

MICROSOFT CORP

Redmond, WA · Fiscal year ends in June · Figures in USD

In shortMICROSOFT CORP is profitable, generates cash and holds more cash than debt, with revenue growing (+17.8% last year).

Financial health

Strong

Built from five areas over the last five annual reports. Tap an area to see the figures behind it.

How is this score calculated? →

Profitability100

Operating marginShare of each sale left after running the business, before interest and tax.	46.8%	100/100
Net marginShare of each sale left as profit after every cost, interest and tax.	40.3%	100/100
Return on equityProfit earned on the money shareholders put in. Above 15% is strong.	34.0%	100/100
Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge.	25.9%	100/100

Weight in the score: 25%

Balance sheet85

Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash.	1.23×	36/100
Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted.	0.09×	100/100
Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable.	Net cash	100/100
Interest coverageHow many times operating profit covers interest. Below 2 is risky.	50.88×	100/100
Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress.	4.59	90/100

Weight in the score: 25%

Cash generation75

Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt.	20.2%	100/100
Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy.	0.50×	25/100
Years with positive free cash flow (last 5)	5 of 5	100/100

Weight in the score: 20%

Stability96
Profitable years (last 5) 5 of 5 100/100
Years of revenue decline (last 5) 0 of 5 100/100
Revenue growth volatility 4.5% 94/100
Operating margin volatility 2.2% 89/100
Weight in the score: 20%
Growth100
Revenue growth, 3-year average 16.1% 100/100
EPS growth, 3-year average 22.9% 100/100
Weight in the score: 10%

Profitable years (last 5)	5 of 5	100/100
Years of revenue decline (last 5)	0 of 5	100/100
Revenue growth volatility	4.5%	94/100
Operating margin volatility	2.2%	89/100

Revenue growth, 3-year average	16.1%	100/100
EPS growth, 3-year average	22.9%	100/100

Fiscal year 2026 · change vs prior year

Revenue: $331.8B; ▲ 17.8%
Net income: $133.7B; ▲ 31.3%
Free cash flow: $67.0B; ▼ 6.5%
Operating margin: 46.8%; +1.2 pts
Cash & investments: $76.8B; –
Total debt: $40.3B; ▼ 6.6%
Diluted EPS: $17.95; ▲ 31.6%
Return on equity: 34.0%; –

Trends

Annual figures as reported. Hover a bar or point for the exact value.

5 older years available with the 10-year history. Essential plan, from €8.25/month →

Revenue and net income

RevenueNet income

Margins

GrossOperatingNet

Free cash flow

Cash versus debt

Cash & investmentsTotal debt

Statements

The last 5 fiscal years from the company's annual reports.

USD millions; negative values in parentheses.

Fiscal year	FY22	FY23	FY24	FY25	FY26
Revenue	198,270	211,915	245,122	281,724	331,839
Cost of revenue	62,650	65,863	74,114	87,831	106,374
Gross profit	135,620	146,052	171,008	193,893	225,465
Research & development	24,512	27,195	29,510	32,488	35,562
Operating income	83,383	88,523	109,433	128,528	155,237
Interest expense	2,063	1,968	2,935	2,385	3,051
Pre-tax income	83,716	89,311	107,787	123,627	165,934
Income tax	10,978	16,950	19,651	21,795	32,185
Net income	72,738	72,361	88,136	101,832	133,749
Diluted EPS	$9.65	$9.68	$11.80	$13.64	$17.95
Diluted shares (millions)	7,540	7,472	7,469	7,465	7,453

5 older years available with the 10-year history. Essential plan, from €8.25/month →

🔒 Export to Excel · Investor plan

Risk checks

Altman Z'' score

4.59 Safe zone

Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.

Piotroski F-score

6/9

Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.

Positive net income: passed
Positive operating cash flow: passed
Return on assets improved: passed
Cash flow exceeds net income: passed
Long-term debt ratio fell: passed
Current ratio improved: failed
No share dilution: passed
Gross margin improved: failed
Asset turnover improved: failed

Sources

10-KPeriod ending Jun 30, 2026Filed Jul 29, 2026Open the report ↗
10-QPeriod ending Mar 31, 2026Filed Apr 29, 2026Open the report ↗
10-QPeriod ending Dec 31, 2025Filed Jan 28, 2026Open the report ↗
10-QPeriod ending Sep 30, 2025Filed Oct 29, 2025Open the report ↗
10-KPeriod ending Jun 30, 2025Filed Jul 30, 2025Open the report ↗
10-QPeriod ending Mar 31, 2025Filed Apr 30, 2025Open the report ↗
10-QPeriod ending Dec 31, 2024Filed Jan 29, 2025Open the report ↗
10-QPeriod ending Sep 30, 2024Filed Oct 30, 2024Open the report ↗

All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works

Latest annual report: Jun 30, 2026 · Data updated Jul 29, 2026

Reading the annual reports…

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Operating marginShare of each sale left after running the business, before interest and tax.

46.8%

100/100

Net marginShare of each sale left as profit after every cost, interest and tax.

40.3%

100/100

Return on equityProfit earned on the money shareholders put in. Above 15% is strong.

34.0%

100/100

Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge.

25.9%

100/100

Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash.

1.23×

36/100

Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted.

0.09×

100/100

Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable.

Net cash

100/100

Interest coverageHow many times operating profit covers interest. Below 2 is risky.

50.88×

100/100

Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress.

4.59

90/100

Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt.

20.2%

100/100

Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy.

0.50×

25/100

Years with positive free cash flow (last 5)

5 of 5

100/100

Profitable years (last 5)	5 of 5	100/100
Years of revenue decline (last 5)	0 of 5	100/100
Revenue growth volatility	4.5%	94/100
Operating margin volatility	2.2%	89/100

Profitable years (last 5)

5 of 5

100/100

Years of revenue decline (last 5)

0 of 5

100/100

Revenue growth volatility

4.5%

94/100

Operating margin volatility

2.2%

89/100

Revenue growth, 3-year average	16.1%	100/100
EPS growth, 3-year average	22.9%	100/100

Revenue growth, 3-year average

16.1%

100/100

EPS growth, 3-year average

22.9%

100/100

Trends

Annual figures as reported. Hover a bar or point for the exact value.

Revenue and net income

RevenueNet income

Margins

GrossOperatingNet

Free cash flow

Cash versus debt

Cash & investmentsTotal debt

Statements

The last 5 fiscal years from the company's annual reports.

USD millions; negative values in parentheses.

Fiscal year	FY22	FY23	FY24	FY25	FY26
Revenue	198,270	211,915	245,122	281,724	331,839
Cost of revenue	62,650	65,863	74,114	87,831	106,374
Gross profit	135,620	146,052	171,008	193,893	225,465
Research & development	24,512	27,195	29,510	32,488	35,562
Operating income	83,383	88,523	109,433	128,528	155,237
Interest expense	2,063	1,968	2,935	2,385	3,051
Pre-tax income	83,716	89,311	107,787	123,627	165,934
Income tax	10,978	16,950	19,651	21,795	32,185
Net income	72,738	72,361	88,136	101,832	133,749
Diluted EPS	$9.65	$9.68	$11.80	$13.64	$17.95
Diluted shares (millions)	7,540	7,472	7,469	7,465	7,453

Risk checks

Altman Z'' score

4.59 Safe zone

Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.

Piotroski F-score

6/9

Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.

Positive net income: passed
Positive operating cash flow: passed
Return on assets improved: passed
Cash flow exceeds net income: passed
Long-term debt ratio fell: passed
Current ratio improved: failed
No share dilution: passed
Gross margin improved: failed
Asset turnover improved: failed

Sources

10-KPeriod ending Jun 30, 2026Filed Jul 29, 2026Open the report ↗
10-QPeriod ending Mar 31, 2026Filed Apr 29, 2026Open the report ↗
10-QPeriod ending Dec 31, 2025Filed Jan 28, 2026Open the report ↗
10-QPeriod ending Sep 30, 2025Filed Oct 29, 2025Open the report ↗
10-KPeriod ending Jun 30, 2025Filed Jul 30, 2025Open the report ↗
10-QPeriod ending Mar 31, 2025Filed Apr 30, 2025Open the report ↗
10-QPeriod ending Dec 31, 2024Filed Jan 29, 2025Open the report ↗
10-QPeriod ending Sep 30, 2024Filed Oct 30, 2024Open the report ↗

All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works

Latest annual report: Jun 30, 2026 · Data updated Jul 29, 2026