# Microsoft Corporation (MSFT)

> Source: Nexqual · https://nexqual.com/MSFT · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Microsoft Corporation (MSFT), nexqual.com/MSFT" · informational, not investment advice.

**Price:** USD 521.08 (-2.23% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 521.08 · day 520.3–533.6 · 52w 349.2–553.72 · market cap null · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $332B, net income $134B (40.3% margin), free cash flow $67.0B (SEC filings).
- Valuation: P/E 28.9x (avg 31.7x at the last 3 fiscal year-ends), EV/EBITDA 20.2x, net cash $36.5B.
- 36 of 80 tracked superinvestors hold MSFT (13F, Q2 2026 (1 investor on Q3 2026, filed early)): 3 new, 14 added, 15 reduced, 4 unchanged.
- Analysts: Buy (mean 1.82 on a 1–5 scale) (57 analysts), mean target USD 601.73 (range 440–870).
- Total return with dividends: 1Y +0.9% vs S&P 500 +14.9%; 5Y +75.6% vs S&P 500 +80.3%.
- Next earnings: 2026-10-28, EPS estimate USD 4.72, revenue estimate $90.7B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $198B | $212B | $245B | $282B | $332B | $332B |
| Gross profit | $136B | $146B | $171B | $194B | $225B | — |
| Operating income | $83.4B | $88.5B | $109B | $129B | $155B | $155B |
| Net income | $72.7B | $72.4B | $88.1B | $102B | $134B | $134B |
| EPS (diluted) | $9.65 | $9.68 | $11.80 | $13.64 | $17.95 | — |
| Free cash flow | $65.1B | $59.5B | $74.1B | $71.6B | $67.0B | $67.0B |
| Gross margin | 68.4% | 68.9% | 69.8% | 68.8% | 67.9% | — |
| Operating margin | 42.1% | 41.8% | 44.6% | 45.6% | 46.8% | 46.8% |
| Net margin | 36.7% | 34.1% | 36.0% | 36.1% | 40.3% | 40.3% |
| Revenue growth | +18.0% | +6.9% | +15.7% | +14.9% | +17.8% | — |
| Cash + short-term investments | $105B | $111B | $75.5B | $94.6B | $76.8B | — |
| Total debt | $49.8B | $47.2B | $44.9B | $43.2B | $40.3B | — |
Fiscal years end Jun. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 28.9x · P/S 11.7x · EV/EBITDA 20.2x · EV/Sales 11.6x · P/FCF 57.8x · P/B 8.8x · FCF yield 1.73% · Earnings yield 3.46% · Dividend yield (paid, TTM) 0.68% · Buyback yield (TTM) 0.58% · Net cash $36.5B · EV $3.83T
P/E at fiscal year-ends: Jun 2026 20.8x, Jun 2025 36.5x, Jun 2024 37.9x.

## Superinvestors (SEC 13F-HR, Q2 2026)
36 of 80 tracked investors hold MSFT (1 investor on Q3 2026, filed early). Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change | Quarter |
|---|---|---|---|---|---|
| AltaRock Partners |  | 20.54% | $871M | Added +25.0% | Q2 2026 |
| Bill Ackman | Pershing Square | 11.89% | $2.32B | New position | Q2 2026 |
| Triple Frond Partners |  | 11.74% | $131M | Unchanged | Q2 2026 |
| Vulcan Value Partners |  | 11.21% | $368M | Reduced -11.0% | Q2 2026 |
| David Katz | Matrix Asset Advisors | 7.31% | $88.7M | Added +0.1% | Q3 2026 |
| Dennis Hong | ShawSpring Partners | 7.31% | $17.0M | New position | Q2 2026 |
| David Rolfe | Wedgewood Partners | 6.89% | $33.4M | Added +21.1% | Q2 2026 |
| Polen Capital | Polen Capital Management | 6.74% | $783M | Reduced -26.3% | Q2 2026 |
| Mairs & Power | Mairs & Power Funds | 6.68% | $728M | Added +0.4% | Q2 2026 |
| Jensen Investment Management |  | 6.67% | $275M | Reduced -37.0% | Q2 2026 |
| AKO Capital |  | 5.46% | $234M | Reduced -14.6% | Q2 2026 |
| Yacktman Asset Management |  | 4.65% | $376M | Added +1.6% | Q2 2026 |
| Terry Smith | Fundsmith | 4.36% | $596M | Reduced -23.2% | Q2 2026 |
| Wallace Weitz | Weitz Investment Management | 3.96% | $57.1M | Reduced -9.6% | Q2 2026 |
| William Von Mueffling | Cantillon Capital Management | 3.86% | $25.7M | Reduced -93.8% | Q2 2026 |
| Chase Coleman | Tiger Global Management | 3.53% | $846M | Reduced -9.3% | Q2 2026 |
| Robert Vinall | RV Capital GmbH | 3.22% | $12.3M | Added +31.3% | Q2 2026 |
| Lee Ainslie | Maverick Capital | 2.80% | $310M | Added +14.7% | Q2 2026 |
| Hillman Capital | Hillman Capital Management | 2.78% | $3.8M | Reduced -4.9% | Q2 2026 |
| Dodge & Cox Funds | Dodge & Cox | 2.51% | $4.79B | Added +7.3% | Q2 2026 |
| Van Den Berg Management I |  | 2.19% | $10.4M | Added +0.9% | Q2 2026 |
| Torray Funds |  | 1.82% | $13.5M | Reduced -53.5% | Q2 2026 |
| Viking Global | Viking Global Investors | 1.55% | $544M | Reduced -36.8% | Q2 2026 |
| Thomas Gayner | Markel Group | 1.53% | $201M | Unchanged | Q2 2026 |
| Duan Yongping | H&H International Investment | 1.47% | $281M | Reduced -25.8% | Q2 2026 |
| First Eagle Investment | First Eagle Investment Management | 1.21% | $724M | Added +46.4% | Q2 2026 |
| Christopher Davis | Davis Advisors | 0.15% | $34.7M | Added +18.4% | Q2 2026 |
| Kahn Brothers | Kahn Brothers Group | 0.14% | $774K | Unchanged | Q2 2026 |
| Glenn Greenberg | Brave Warrior Advisors | 0.03% | $1.6M | Added +111.1% | Q2 2026 |
| Christopher Bloomstran | Semper Augustus | 0.03% | $239K | New position | Q2 2026 |
| Bill Nygren | Oakmark Funds | 0.03% | $25.6M | Added +915.4% | Q2 2026 |
| Francois Rochon | Giverny Capital | 0.02% | $667K | Reduced -6.4% | Q2 2026 |
| Thomas Russo | Gardner Russo & Quinn | 0.01% | $1.3M | Added +1.1% | Q2 2026 |
| Richard Pzena | Pzena Investment Management | <0.01% | $282K | Reduced -0.9% | Q2 2026 |
| Sarah Ketterer | Causeway Capital Management | <0.01% | $224K | Reduced -22.3% | Q2 2026 |
| Ruane Cunniff | Ruane Cunniff LP | <0.01% | $275K | Unchanged | Q2 2026 |

## Analysts
Consensus Buy (mean 1.82 on a 1–5 scale), 57 analysts; mean target USD 601.73 (low 440, high 870).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-21 | Guggenheim | Reiterated | Buy | $586 |
| 2026-10-20 | BMO Capital | Target raised | Outperform | $515 → $600 |
| 2026-10-19 | Bernstein | Target raised | Outperform | $660 → $662 |
| 2026-10-16 | StoneX | Target raised | Buy | $525 → $600 |
| 2026-10-15 | UBS | Target raised | Buy | $525 → $675 |
| 2026-10-15 | Citigroup | Target raised | Buy | $600 → $636 |
| 2026-10-15 | Mizuho | Target raised | Outperform | $510 → $600 |
| 2026-10-15 | Jefferies | Target raised | Buy | $575 → $650 |
| 2026-10-15 | TD Cowen | Target raised | Buy | $540 → $625 |
| 2026-10-13 | Barclays | Target raised | Overweight | $512 → $600 |
| 2026-10-07 | Evercore ISI Group | Target raised | Outperform | $528 → $635 |
| 2026-10-05 | Scotiabank | Target raised | Sector Outperform | $510 → $615 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +0.9% | +75.6% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +0.9% | +11.9% |
| Volatility (annualized) | 32.7% | 27.3% |
| Max drawdown | -34.5% (Oct 2025→Jun 2026) | -35.0% (Nov 2021→Oct 2022) |

## Peers (Software - Infrastructure)
PLTR (Palantir Technologies Inc.) USD 196.19 -2.74% · ORCL (Oracle Corporation) USD 125.54 -2.78% · PANW (Palo Alto Networks, Inc.) USD 354.92 +2.21% · CRWD (CrowdStrike Holdings, Inc.) USD 237.94 -0.58% · FTNT (Fortinet, Inc.) USD 172.98 -0.61% · NET (Cloudflare, Inc.) USD 303.61 -1.18%

## More
Full page: https://nexqual.com/MSFT · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in MSFT's own 10-K filed 2026-07-29 (https://www.sec.gov/Archives/edgar/data/789019/000119312526323660/msft-20260630.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Partner | OpenAI | "For example, in October 2023 we completed our acquisition of Activision Blizzard, Inc. Additionally, we have a long-term strategic partnership with OpenAI." |

Other companies that name MSFT in their own reports (relationship from MSFT's side):

| Relationship | Company | Their filing | Sentence |
|---|---|---|---|
| competitor | IDT CORP (IDT) | 10-K 2026-09-29 | "These competitors' offerings typically also support integration of their services with other well-known, third-party CRM vendors as well as with various Google and Microsoft applications." |
| partner | Agroz Inc. (AGRZ) | 20-F 2026-09-28 | "Vendor (ISV) and a Microsoft AI Cloud partner." |
| competitor | Nutanix, Inc. (NTNX) | 10-K 2026-09-18 | "software providers that offer virtualization, containerization, agentic AI, virtual networking and security, software defined storage, infrastructure and management and control plane products to build…" |
| supplier | Palo Alto Networks Inc (PANW) | 10-K 2026-09-10 | "We also offer Cloud NGFW, a managed NGFW offering, to secure customers' applications on Amazon Web Services ("AWS") and Microsoft Azure ("Azure")." |
| competitor | EGAIN Corp (EGAN) | 10-K 2026-09-10 | "In addition, we occasionally compete with some of our platform partners where some of our product capabilities overlap, including Five9, Genesys, Microsoft, Salesforce, and ServiceNow." |
| partner | IREN Ltd (IREN) | 10-K 2026-08-27 | "For example, we announced a five-year agreement with Microsoft in November 2025, which includes GPU acquisitions and the development of the "Horizon 1," "Horizon 2," "Horizon 3" and "Horizon 4" data c…" |
| competitor | QUINSTREET, INC (QNST) | 10-K 2026-08-26 | "Some of our competition also comes from agencies or clients spending directly with larger websites or portals, including Google, Yahoo!, Microsoft and Meta." |
| customer | SCANSOURCE, INC. (SCSC) | 10-K 2026-08-20 | "We provide products and services from approximately 500 suppliers, including key suppliers AT&T, Avaya, Axis, Cisco, Comcast Business, Dell, Elo, Extreme, Five9, Fortinet, Hanwha, Honeywell, HP Poly, …" |
| partner | ChronoScale Holdings Corp (CHRN) | 10-K 2026-08-19 | "On August 6, 2026, we entered into a two-year strategic partnership with Microsoft to support the planned deployment of approximately 50 megawatts of AI compute capacity." |
| competitor | EXTREME NETWORKS INC (EXTR) | 10-K 2026-08-17 | "In that regard, we expect to face increased competition from certain cloud computing companies such as Amazon, Microsoft, and Google providing a cloud-based platform of data center compute and network…" |
| supplier | Atlassian Corp (TEAM) | 10-K 2026-08-14 | "•Open and Extensible with a Vast Ecosystem - We are dedicated to making our apps open and interoperable with a wide range of other platforms and applications that customers use, such as Microsoft, Zoo…" |
| partner | Intapp, Inc. (INTA) | 10-K 2026-08-14 | "•Intapp's collaboration products deliver intelligent, client-centric teamwork by integrating seamlessly with Microsoft 365, Teams, and SharePoint." |
| supplier | OPEN TEXT CORP (OTEX) | 10-K 2026-08-06 | "•Microsoft Corporation (Microsoft): For the enterprise market, we work together with Microsoft to innovate on integrated content solutions (now with AI), holistic cybersecurity solutions (particularly…" |
| supplier | Stride, Inc. (LRN) | 10-K 2026-08-05 | "If AWS or Azure encounter financial difficulty, such as bankruptcy or other events beyond our control, that causes them to fail to secure adequately and maintain their hosting facilities or provide th…" |
| competitor | Solowin Holdings, Ltd. (AXG) | 20-F 2026-08-03 | "Relevant competitors include Amazon Bedrock, Microsoft Azure AI Foundry and Google Vertex AI, as well as specialized" |

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY | Operating income | Op. margin |
|---|---|---|---|---|---|
| Intelligent Cloud | $39.31B | 43.7% | +31.6% | $15.96B | 40.6% |
| Productivity & Business Processes | $37.85B | 42.0% | +14.3% | $21.90B | 57.9% |
| More Personal Computing | $12.85B | 14.3% | -4.4% | $2.75B | 21.4% |
| Total revenue | $90.01B | 100% | — | $40.60B | 45.1% |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Service Other | $72.77B | 80.9% | +22.7% |
| — Server Products & Cloud Services (part of Service Other) | $37.10B | 41.2% | +33.1% |
| — Microsoft Three Six Five Commercial Products & Cloud Services (part of Service Other) | $27.91B | 31.0% | +14.8% |
| — Windows & Devices (part of Service Other) | $4.01B | 4.5% | -7.3% |
| — Search Advertising (part of Service Other) | $3.86B | 4.3% | +7.5% |
| Product | $17.23B | 19.1% | +0.6% |
| Linked In Corporation | $5.19B | 5.8% | +12.3% |
| XBOX | $4.98B | 5.5% | -9.9% |
| Dynamics Products & Cloud Services | $2.37B | 2.6% | +11.1% |
| Microsoft Three Six Five Consumer Products & Cloud Services | $2.37B | 2.6% | +16.4% |
| Enterprise & Partner Services | $2.11B | 2.3% | +6.0% |
| Other Products & Services | $97.0M | 0.1% | +1516.7% |
| Total revenue | $90.01B | 100% | — |
The lines above cover 119% of total revenue.

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| United States | $46.97B | 52.2% | +20.4% |
| Non Us | $43.04B | 47.8% | +15.0% |
| Total revenue | $90.01B | 100% | — |

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $4.72 | $4.62 | +2.2% | $90.72B | 26 |
| Next quarter (ends 2026-12-31) | $4.81 | $4.79 | +0.6% | $95.64B | 26 |
| Current fiscal year (ends 2027-06-30) | $19.76 | $19.40 | +1.8% | $391.38B | 34 |
| Next fiscal year (ends 2028-06-30) | $23.70 | $22.61 | +4.8% | $468.55B | 33 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-10-30 (includes earnings 2026-10-28): ±5.5%; earnings reaction alone ±3.9%; last 8 reports averaged ±7.2%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-10-26 | 3 | 22.8% | ±1.9% |
| 2026-10-30 | 7 | 46.1% | ±5.5% |
| 2026-11-02 | 10 | 40.5% | ±5.6% |
| 2026-11-04 | 12 | 39.1% | ±5.9% |
| 2026-11-06 | 14 | 38.6% | ±6.3% |
| 2026-11-13 | 21 | 34.3% | ±6.7% |
| 2026-11-20 | 28 | 33.4% | ±7.6% |
| 2026-11-27 | 35 | 31.2% | ±7.8% |