MSFTNASDAQ— Microsoft Corporation Price & Analysis

Microsoft Corporation

TECHNOLOGY — SOFTWARE - INFRASTRUCTURE

$499.70

-$10.42-2.04%

Market Cap: $3.79T; Mega Cap
P/E Ratio: 28.43; Fwd: 25.32
EPS (TTM): $17.94
Div. Yield: 0.73%

Technical Summary

RSI (14)59.60Neutral

SMA (50)$443.56Bullish

SMA (200)$429.37Bullish

MACD15.4834Bearish

Bollinger$475.13 – $515.55Mid

Stochastic62.51Neutral

Theo Outlook

Microsoft Corporation (MSFT) presents a bullish investment thesis supported by its $3.71 trillion market capitalization, trailing P/E ratio of 27.85, diluted EPS of $17.94, and robust 17.7% year-over-year quarterly revenue growth to $331.8 billion TTM. The company's strong profitability metrics, including a 40.3% profit margin and 34% return on equity, underscore its ability to deliver consistent earnings growth amid expanding cloud and software ecosystems. With a forward P/E of 25.77 and analyst target price of $572.92, MSFT trades at a reasonable valuation relative to its growth trajectory and dominant market position. Key catalysts include sustained momentum in Azure cloud services, integration of AI capabilities across Office and Windows platforms, and continued expansion in enterprise software subscriptions. Recent quarterly earnings reflect 17.7% revenue growth and 31.7% EPS growth year-over-year, driven by high-margin recurring revenue streams and global market penetration. Dividend growth and a 0.71% yield further enhance shareholder returns while the company maintains a healthy balance sheet with significant cash generation. Risks encompass regulatory scrutiny in antitrust matters, intense competition from cloud rivals, and potential macroeconomic slowdowns affecting IT spending. These are mitigated by Microsoft's diversified revenue base, strong institutional ownership at 75.9%, and proactive investments in AI and security that bolster competitive moats. The beta of 1.11 indicates moderate market sensitivity, while the company's scale and ecosystem lock-in provide resilience against sector headwinds. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Analysis generated by HeyTheo AI on Sep 7, 2026.

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: $331.84B
EBITDA: $194.24B
Gross Profit: $225.47B
Operating Margin: 45.1%
Profit Margin: 40.3%
ROE: 34.0%
Book Value: $59.56
Beta: 1.1
52-Wk High: $549.20
52-Wk Low: $348.54
Avg Volume: 2.98M
PEG Ratio: 1.63

Frequently Asked Questions

What is Microsoft's core business model?

Microsoft generates revenue primarily through software licensing, cloud services like Azure, and productivity tools such as Office 365. With TTM revenue of $331.8 billion and a 40.3% profit margin, the model emphasizes high-margin recurring subscriptions and enterprise solutions.

What are Microsoft's main revenue sources?

Key sources include Intelligent Cloud (Azure), Productivity and Business Processes (Office), and More Personal Computing (Windows and devices). Quarterly revenue grew 17.7% YoY, with EPS at $17.94 and gross profit TTM of $225.5 billion highlighting diversified, high-margin streams.

What competitive advantages does Microsoft hold?

Microsoft benefits from its vast ecosystem, 75.9% institutional ownership, and leadership in cloud and AI. A P/E of 27.85, forward P/E of 25.77, and 34% ROE reflect strong moats in enterprise software and recurring revenue that competitors struggle to replicate.

What are the key risks for MSFT investors?

Primary risks include regulatory actions, cloud competition, and macro IT spending cuts. Mitigated by a beta of 1.11, diversified operations, and $3.71T market cap, with the next dividend payable September 10, 2026 at a 0.71% yield providing income stability.

What is the growth outlook for Microsoft?

Outlook remains positive with 17.7% quarterly revenue growth, analyst target of $572.92, and AI-driven expansion. TTM EPS of $17.94 and PEG ratio of 1.657 support continued double-digit growth, positioning MSFT for sustained market leadership through 2026.