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MSFT

MSFT- Microsoft Corporation

Technology · Software - Infrastructure

Price?
$495.63+0.65%
1Y Change?
-
P/E?
27.63
Last Dividend?
$0.91
Div Yield?
0.73%
The Story of Microsoft

Microsoft’s story is really two stories. Founded on April 4, 1975 by childhood friends Bill Gates and Paul Allen, it made one of the shrewdest deals in business history: licensing MS-DOS to IBM in 1980 while keeping the right to sell it to everyone else, which put its software at the heart of the entire PC industry. Windows and Office turned that into a near-monopoly, drawing a landmark antitrust case settled in 2001. Then came a lost decade under Steve Ballmer, missing both search and mobile. But in 2014 Satya Nadella engineered one of the greatest comebacks ever, betting on the cloud (Azure) and later becoming OpenAI’s biggest backer. From a dorm-room idea to a $3.7 trillion AI titan, this is the complete story of Microsoft.

Read the full story

Price & Performance

Performance

Analysis & Verdict

Analyst Ratings

Strong Buy

Wall Street consensus from 52 analysts

12-Month Price Target

$572.92

+15.6% upside
Low $400.00High $870.00
Current $495.63 Avg target $572.92

Based on analyst estimates; price targets are opinions, not guarantees.

Fair Value Estimates

Current price: $495.63

Graham Number

√(22.5 × EPS × Book Value)

$155.06

-68.7% downside

Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.

Bazin Ceiling Price

Avg. Annual DPS (5Y) ÷ 6%

$47.03

-90.5% downside

Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.

These are simplified estimates. Not financial advice.

Buy & Hold Checklist

Quality criteria for long-term holding

9/10

90% score

Pays dividends

15Y hist.

15+ years of dividend history

Dividend consistency (5Y+)

15 yrs

Uninterrupted dividend payments for at least 5 years

ROE above 10%

34.0%

Return on equity - measures how efficiently capital is used

Positive profit margin

40.3%

Net profit margin must be positive - company earns more than it spends

Revenue growth (annual)

+17.7%

Annual revenue must be growing compared to the prior year

Earnings growth (annual)

+31.7%

Annual earnings must be growing compared to the prior year

Debt/Equity below 2×

29.12×

Low financial leverage reduces risk of distress

Current ratio above 1

1.23×

Short-term assets must cover short-term liabilities

Daily liquidity above $5M

$17.6B/day

High trading volume ensures easy entry and exit

Dividend yield above 0%

0.73%

Stock must distribute income to shareholders

Financials

Revenue & Results

Key Statistics

Market Cap$3.68T
P/E Ratio27.63
Forward P/E21.03
P/B Ratio-
PEG Ratio1.60

Earnings

Next Earnings

Oct 28, 2026

45

days

EPS (TTM)

$17.94

P/E (TTM)

27.6

Fwd P/E

21.0

SEC Filings & Reported Financials

Earnings History

SEC EDGAR · official filings

SEC filings

SEC Filings

Official EDGAR documents

All filings

Insider Transactions

SEC Form 4 · officers, directors & 10% owners

Dividends & Income

Dividends

Current DY

0.73%

5Y Avg Annual

$2.9080

Last Payment

$0.9100

Ex-Date

08/20/2026

Annual dividends paid per share

2011
2019
2026
Ex-DatePaymentAmountEst. DY
Latest08/20/2026
09/10/2026$0.91000.73%
05/21/2026
06/11/2026$0.91000.73%
02/19/2026
03/12/2026$0.91000.73%
11/20/2025
12/11/2025$0.91000.73%
08/21/2025
09/11/2025$0.83000.67%
05/15/2025
06/05/2025$0.83000.67%
02/20/2025
03/13/2025$0.83000.67%
11/21/2024
12/12/2024$0.83000.67%

Magic Number

Shares needed to self-fund your next purchase

$495.63

Price

÷

$0.9100

Last div. (quarterly)

=

545

shares

Own 545 MSFT shares ($270,118.35) and each quarterly dividend pays for 1 new share - the snowball runs on its own.

Investment target

$270,118.35

New shares / year

+4 shares

Dividend Calculator

0.73% yield

Estimate MSFT dividend income at the current rate.

$

Per year

$73.44

Per month

$6.12

20.2 shares at $3.64/share a year. Estimate only - dividends can be cut or raised.

Tools & Simulators

MSFT vs Peers, Indexes & Commodities

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Click a card below to plot it on the chart

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If you had invested
$
you would have:

Parameters

$
$
%

Final value

$426,404.61

Total invested

$130,000.00

Total interest

$296,404.61

Balance over time

Final balanceInvested
Invested - 30.5%Interest earned - 69.5%

Period breakdown

PeriodBalanceInvestedInterest
Start$10,000.00$10,000.00$0.00
Year 1$17,270.27$16,000.00$1,270.27
Year 2$25,267.56$22,000.00$3,267.56
Year 3$34,064.59$28,000.00$6,064.59
Year 4$43,741.32$34,000.00$9,741.32
Year 5$54,385.72$40,000.00$14,385.72
Year 6$66,094.55$46,000.00$20,094.55
Year 7$78,974.28$52,000.00$26,974.28
Year 8$93,141.97$58,000.00$35,141.97
Year 9$108,726.44$64,000.00$44,726.44
Year 10$125,869.35$70,000.00$55,869.35
Year 11$144,726.56$76,000.00$68,726.56
Year 12$165,469.48$82,000.00$83,469.48
Year 13$188,286.70$88,000.00$100,286.70
Year 14$213,385.63$94,000.00$119,385.63
Year 15$240,994.47$100,000.00$140,994.47
Year 16$271,364.18$106,000.00$165,364.18
Year 17$304,770.87$112,000.00$192,770.87
Year 18$341,518.22$118,000.00$223,518.22
Year 19$381,940.31$124,000.00$257,940.31
Year 20$426,404.61$130,000.00$296,404.61

What is compound interest?

Compound interest means that the interest you earn in one period is added to your principal, so in the next period you earn interest on a larger base. This creates exponential growth: the longer your time horizon, the more dramatic the effect.

Which rate should I use?

The S&P 500 has historically returned ~10%/year before inflation over long periods - use this for an all-equity US index fund scenario. A balanced growth portfolio (stocks + bonds) is closer to 7%. High-yield savings accounts (HYSA) are currently paying around 4-5% with FDIC insurance and zero market risk. Bonds historically return ~4% annualized.

Formula used

FV = PV × (1+r)^n + PMT × ((1+r)^n − 1) / rwhere r is the monthly rate, n is the number of months, PV is the initial investment, and PMT is the monthly contribution. Annual rates are converted to monthly viar = (1 + annual%)^(1/12) − 1.

For educational purposes only. Not financial advice. Past returns do not guarantee future results.

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About Microsoft Corporation

Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. Its products include operating systems, server applications, business solution applications, software development tools, desktop and server management tools, and video games; and devices, such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. The company's Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, Microsoft 365 Copilot, and Windows Commercial on-premises and Office licensed on-premises. This segment also provides Microsoft 365 Consumer products and cloud services; LinkedIn, including talent solutions, marketing solutions, subscriptions, and sales solutions; Dynamics 365, a set of cloud-based applications; and on-premises ERP and CRM applications. Its Intelligent Cloud segment offers server products and cloud services; cloud and AI consumption-based services, GitHub cloud services, health and life sciences cloud services, as well as virtual desktop offerings, and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related client access licenses; and enterprise support services, industry solutions, Microsoft partner network, and learning experience. The company's More Personal Computing segment provides Windows OEM licensing and devices comprising Surface and PC accessories; XBOX hardware, and XBOX first- and third-party content and services; XBOX Game Pass and other subscriptions; XBOX Cloud Gaming, advertising, and other cloud services; and search advertising consisting of Bing, Copilot, Microsoft News, Microsoft Edge, and third-party affiliates. It sells its products through partners and retail networks. The company was founded in 1975 and is headquartered in Redmond, Washington.

Sector

Technology

Industry

Software - Infrastructure

Location

Redmond, United States

Employees

223,000

Listed on NasdaqGS

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Microsoft Corporation (MSFT) stock trades at $495.63, up 0.65% on the day. With a market capitalization of $3.68 trillion, MSFT is a mega-cap technology stock. It trades at a price-to-earnings (P/E) ratio of 27.6, a forward P/E of 21.0 and earnings per share (EPS) of $17.94. Over the most recent period the company reported 18% year-over-year revenue growth and a net profit margin of 40.3%. Below you'll find MSFT's full fundamentals, fair-value estimates, dividend history, earnings and our buy, hold or avoid verdict for 2026.

MSFT - Frequently Asked Questions

Is Microsoft Corporation (MSFT) a good stock to buy in 2026?

Microsoft Corporation (MSFT) shows strengths such as revenue growth of 18%, a strong 40% net margin and a 34% return on equity, while risks include high leverage (debt/equity of 29.1). Whether MSFT is a good buy in 2026 depends on your time horizon and risk tolerance - review the full bull case, bear case and fair-value estimates above. This is informational analysis, not financial advice.

What is MSFT's stock price today?

Microsoft Corporation (MSFT) trades at $495.63, up 0.65% on the session. Prices on this page update throughout the trading day.

Does MSFT pay a dividend?

Yes. Microsoft Corporation pays an annual dividend of $3.64 per share, a dividend yield of 0.73%. The most recent ex-dividend date was August 20, 2026. Its payout ratio is about 20% of earnings.

Is MSFT overvalued?

With a P/E ratio of 27.6×, MSFT is valued above the broad-market average for the technology sector. Its PEG ratio is 1.60. See the Fair Value Estimates section above for Graham Number and dividend-based price targets.

What is MSFT's market cap?

Microsoft Corporation (MSFT) has a market capitalization of $3.68 trillion, classifying it as a mega-cap stock in the Technology sector.

Disclaimer: This page - including any buy/hold/avoid view, fair value or price estimate - is generated from market data for informational and educational purposes only and does not constitute financial, investment or trading advice. Data may be delayed or inaccurate. Always do your own research and consult a licensed financial advisor before making any investment decision.