MSFT— Microsoft Corporation
NasdaqGSTechnology · Software - Infrastructure
Microsoft Corporation (MSFT) stock trades at $373.94, up 1.80% on the day. With a market capitalization of $2.78 trillion, MSFT is a mega-cap technology stock. It trades at a price-to-earnings (P/E) ratio of 22.3, a forward P/E of 19.3 and earnings per share (EPS) of $16.79. Over the most recent period the company reported 18% year-over-year revenue growth and a net profit margin of 39.3%. Below you'll find MSFT's full fundamentals, fair-value estimates, dividend history, earnings and our buy, hold or avoid verdict for 2026.
Price & Performance
Performance
Analysis & Verdict
Microsoft Corporation (MSFT) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
Microsoft Corporation (MSFT) operates in the Software - Infrastructure space within the Technology sector. With a market cap of $2.8T, it qualifies as a large-cap company. The company is growing revenue strongly while maintaining healthy profitability — a combination that investors typically reward with a premium valuation.
- Forward P/E (19.3×) is lower than trailing P/E (22.3×) — analysts expect earnings to improve
- Revenue growth of 18% YoY shows solid business momentum
- Earnings grew 23% YoY — bottom-line is expanding fast
- Exceptional profit margin of 39.3% — the business retains a large share of each dollar earned
- ROE of 34.0% shows management efficiently converts equity into profit
- Price is near its 52-week low — potential entry point with asymmetric upside
- High debt-to-equity of 30.27× increases financial risk, especially with elevated interest rates
Verdict
Strong Buy
Multiple fundamental strengths with few red flags. Long-term buyers may find this compelling.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Fair Value Estimates
Current price: $373.94
Graham Number
√(22.5 × EPS × Book Value)
$145.16
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
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 yrsUninterrupted dividend payments for at least 5 years
ROE above 10%
34.0%Return on equity — measures how efficiently capital is used
Positive profit margin
39.3%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+18.3%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
+23.4%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
30.27×Low financial leverage reduces risk of distress
Current ratio above 1
1.28×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$13.5B/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
0.97%Stock must distribute income to shareholders
Financials
Revenue & Results
Key Statistics
Earnings
Next Earnings
Jul 29, 2026
35
days
EPS (TTM)
$16.79
P/E (TTM)
22.3
Fwd P/E
19.3
SEC Filings & Reported Financials
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Insider Transactions
SEC Form 4 · officers, directors & 10% owners
Dividends & Income
Dividends
Current DY
0.97%
5Y Avg Annual
$2.7260
Last Payment
$0.9100
Ex-Date
05/21/2026
Annual dividends paid per share
| Ex-Date | Payment | Amount | Est. DY |
|---|---|---|---|
Latest05/21/2026 | 06/11/2026 | $0.9100 | 0.97% |
02/19/2026 | 03/12/2026 | $0.9100 | 0.97% |
11/20/2025 | 12/11/2025 | $0.9100 | 0.97% |
08/21/2025 | 09/11/2025 | $0.8300 | 0.89% |
05/15/2025 | 06/05/2025 | $0.8300 | 0.89% |
02/20/2025 | 03/13/2025 | $0.8300 | 0.89% |
11/21/2024 | 12/12/2024 | $0.8300 | 0.89% |
08/15/2024 | 09/05/2024 | $0.7500 | 0.80% |
Magic Number
Shares needed to self-fund your next purchase
$373.94
Price
$0.9100
Last div. (quarterly)
411
shares
Own 411 MSFT shares ($153,689.34) and each quarterly dividend pays for 1 new share — the snowball runs on its own.
Investment target
$153,689.34
New shares / year
+4 shares
Tools & Simulators
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
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About Microsoft Corporation
Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The Productivity and Business Processes segment offers Microsoft 365 commercial, enterprise mobility + security, windows commercial, power BI, exchange, sharepoint, Microsoft teams, security and compliance, and copilot; Microsoft 365 commercial products, such as Windows commercial on-premises and office licensed services; Microsoft 365 consumer products and cloud services, including Microsoft 365 consumer subscriptions, office licensed on-premises, and other consumer services; LinkedIn; dynamics products and cloud services, such as dynamics 365, cloud-based applications, and on-premises ERP and CRM applications. Its Intelligent Cloud segment provides Server products and cloud services comprising Azure and other cloud services, GitHub, Nuance Healthcare, virtual desktop offerings, and other cloud services; server products, including SQL and windows server, visual studio and system center related client access licenses, and other on-premises offerings; enterprise and partner services, such as enterprise support and nuance professional services, industry solutions, Microsoft partner network, and learning experience. The Personal Computing segment provides windows and devices, such as Windows OEM licensing and devices and surface and PC accessories; gaming services and solutions, such as Xbox hardware, content, and services, first- and third-party content Xbox game pass, subscriptions, and cloud gaming, advertising, and other cloud services; search and news advertising services. It sells its products through OEMs, distributors, and resellers; and online and retail stores. The company has a strategic collaboration with Mayo Clinic, Inc. for the development of a frontier AI model for healthcare; and Global Objects, Inc. to build a retrieval-grounded generative AI world model. The company was founded in 1975 and is headquartered in Redmond, Washington.
Sector
Technology
Industry
Software - Infrastructure
Location
Redmond, United States
Employees
228,000
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 39% net margin and a 34% return on equity, while risks include high leverage (debt/equity of 30.3). 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 $373.94, up 1.80% 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 0.97%. The most recent ex-dividend date was August 20, 2026. Its payout ratio is about 21% of earnings.
Is MSFT overvalued?
With a P/E ratio of 22.3×, MSFT trades at a roughly market-average valuation for the technology sector. Its PEG ratio is 1.13. 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 $2.78 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.