MSFT Price & AI Analysis — Microsoft Corporation | HeyTheo
Market Cap
2.8345T
Large Cap
P/E Ratio
23.25
Fwd: 20.08
EPS (TTM)
$16.41
Div. Yield
0.91%
Theo Outlook
Microsoft Corporation presents a bullish thesis with a market capitalization of $2.9255 trillion, a trailing P/E ratio of 23.47, EPS of $16.78, and robust quarterly revenue growth of 18.3% year-over-year, positioning it favorably against peers in the software infrastructure sector. Forward P/E of 20.28 and strong profitability metrics including a 39.3% profit margin further support sustained earnings momentum into 2026.
Key catalysts include continued Azure cloud expansion, AI-driven product momentum via Copilot integrations, and consistent quarterly earnings beats, with analyst target price at $558.21 reflecting growth in enterprise software and hardware ecosystems. Recent quarterly earnings growth of 23.4% YoY underscores operating leverage and market share gains in high-margin segments.
Risks encompass regulatory scrutiny on antitrust matters, intense competition from cloud rivals, and potential macro headwinds from interest rate volatility; these are mitigated by Microsoft's diversified revenue streams, 76% institutional ownership, and proactive compliance investments. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.
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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
1.13
52-Wk High
$551.05
52-Wk Low
$349.2
Avg Volume
26.6174M
PEG Ratio
1.204
Frequently Asked Questions
What is Microsoft's primary business model?
Microsoft operates a diversified technology business model centered on software licensing, cloud services, and hardware sales, generating the majority of its $318.273 billion TTM revenue from recurring subscriptions like Office 365 and Azure. The company reported diluted EPS of $16.78 and a profit margin of 39.3% in the latest data.
What are Microsoft's main revenue sources?
Revenue primarily comes from Intelligent Cloud (Azure and server products), Productivity and Business Processes (Office and LinkedIn), and More Personal Computing (Windows, Surface, and Xbox), with TTM revenue at $318.273 billion and quarterly revenue growth of 18.3% YoY. Gross profit TTM stands at $217.41 billion.
What competitive advantages does Microsoft hold?
Microsoft benefits from its dominant ecosystem in enterprise software, massive scale in cloud infrastructure, and AI leadership through integrations like Copilot, reflected in a 34% return on equity and 7.428 billion shares outstanding. Its 23.47 trailing P/E and $2.9255T market cap highlight strong moats versus competitors.
What are the key risks for MSFT investors?
Key risks include regulatory actions, cloud competition, and macroeconomic pressures, though mitigated by a low 1.13 beta, 0.89% dividend yield, and upcoming ex-dividend date of August 20, 2026. The stock's 52-week range of $349.20-$551.05 shows resilience amid volatility.
What is the growth outlook for Microsoft?
Outlook remains positive with analyst target of $558.21, forward P/E of 20.28, and expected earnings momentum following the March 31, 2026 quarter. Dividend date of September 10, 2026 and 18.3% revenue growth support continued expansion in AI and cloud markets.
MSFTNASDAQ— Microsoft Corporation Price & Analysis
