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Stocks/Information Technology/Systems Software

MicrosoftMSFT

Systems Software · Redmond, Washington · In the S&P 500
Solid business
$521.91−1.55%After hours: $522.99 (+0.21%)At the close, 30 Oct · Prices from CNBC, may be delayed
▼ 3.6% over 1 year
Microsoft over 1 yearDaily close, $, to 30 Oct 2026
$400$500Nov2026MarMayJulSep$521.91$400$500NovMarJul$521.91
Source: Nasdaq daily closes
Market value$3.88T
Price to earnings27.2x
Forward P/E26.5x
Dividend yield0.75%
Year to date+7.9%
One year−3.6%
Next earningsNot scheduled
SectorInformation Technology
52-week range (closes)
$352.83$543.45

Quality and valuation

How Microsoft compares with other information technology stocks. A description, not a recommendation.

Microsoft and 7 systems software peers. Across: valuation (P/E) against the sector. Up: business quality against the sector. Hover or tap a logo for its numbers.

Business quality: about averageValuation: in line with its sector

An average business among information technology companies, priced about in line with them.

Microsoft trades at 26.5 times the next 12 months of expected earnings, against a median of 22.2x for the 99 information technology stocks we cover. The quality score blends where it ranks on revenue growth, gross margin, operating margin and free-cash-flow margin (net margin for banks and insurers) over the last 12 months, from SEC filings.

  • Revenue grew slower than the sector median: +17.9% vs +20.6%
  • Keeps more of each sale (gross margin): 67.7% vs 61.5%
  • More profitable (operating margin): 47.1% vs 17.0%
  • Turns less of its sales into cash: 17.3% vs 21.7%
MSFT trades at 26.5x forward earnings, above the sector medianForward p/e, Systems Software peers
NOW23.9xMSFT26.5xTWLO33.2xFTNT38.0xZS48.7xPANW87.5xCRWD177.1xRBRK253.4xSector median 22.2xNOW23.9xMSFT26.5xTWLO33.2xFTNT38.0xZS48.7xPANW87.5xCRWD177.1xRBRK253.4xSector median 22.2x
Source: CNBC quotes; Mostly Markets
At 27.2x earnings, MSFT is cheaper than its average since Oct 2024Price over the last 12 months of reported (GAAP) diluted EPS
P/EUsual range (±1 s.d.)
25x30x35x40xAverage 31.6x2025202627.2x30x40xAverage 31.6x2025202627.2x
Source: Nasdaq prices; SEC filings

Financials

From Microsoft's SEC filings, through the quarter ending 30 Sep 2026. Hover or tap a bar for its value.

Revenue grew 18.8% from a year earlierQuarterly revenue, $bn, latest Q1 ’27
$0bn$25bn$50bn$75bnQ2 ’25Q4 ’25Q2 ’26$92.3bnQ1 ’27$0bn$50bnQ2 ’25Q4 ’25Q2 ’26$92.3bnQ1 ’27
Source: SEC filings
Growth sped up to +18.8% last quarterRevenue growth, year on year, %
0%5%10%15%Q2 ’25Q4 ’25Q2 ’2618.8%Q1 ’270%10%Q2 ’25Q4 ’25Q2 ’2618.8%Q1 ’27
Source: SEC filings
Operating margin was 49.8% last quarterOperating income as a share of revenue, %
0%20%40%Q2 ’25Q4 ’25Q2 ’2649.8%Q1 ’270%20%40%Q2 ’25Q4 ’25Q2 ’2649.8%Q1 ’27
Source: SEC filings
Free cash flow was $60.0 billion over 12 monthsQuarterly free cash flow (operating cash flow minus capex), $bn
$0bn$10bn$20bnQ2 ’25Q4 ’25Q2 ’26$18.6bnQ1 ’27$0bn$10bn$20bnQ2 ’25Q4 ’25Q2 ’26$18.6bnQ1 ’27
Source: SEC filings
Last 12 monthsMSFTSector median
Revenue growth+17.9%+20.6%
Gross margin67.7%61.5%
Operating margin47.1%17.0%
Free cash flow margin17.3%21.7%
Price to earnings27.2x33.1x

Stories on Microsoft

Thursday, 29 October
Chart

Apple Leads the Magnificent Seven in 2026 as Alphabet Slides Into the Red

Apple is up 28.3% this year as of Thursday's close. Alphabet's 12.6% drop after its results left it down 9.3%, one of three of the seven now below where they started 2026.

AAPL▲ 1.5%
Screens of market charts
Why it moved

Microsoft (MSFT) Shares Give Back Their After-Hours Gain as Investors Weigh Spending

Microsoft closed down 0.2% at $530.14 on Thursday, erasing a 4% jump in Wednesday's after-hours trading, as investors looked past its earnings beat to capex $5.5 billion below estimates.

MSFT▼ 0.2%
An aisle of servers in a data center
Wednesday, 28 October
Earnings

Microsoft (MSFT) Beats Q1 Estimates as Azure Growth Speeds Up to 48%

Microsoft rose 4.0% after hours as revenue of $92.28 billion beat the $90.69 billion expected and Azure grew 48%, above the company's own forecast.

MSFT▲ 4.0%AH
An aisle of servers in a data center

Similar companies

Systems Software, by market value.

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NOWServiceNow$105.12−4.15%−31.4%$109B
FTNTFortinet$136.08−2.17%+71.4%$99.84B
ZSZscaler$237.83−4.03%+5.7%$38.78B
TWLOTwilio$205.03−15.24%+44.1%$31.49B
RBRKRubrik$124.15−7.09%+62.3%$25.74B
GENGen Digital$29.13+3.30%+7.1%$17.44B