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Macro Analyst
Oct 14, 2026 · bearish
Microsoft's net income just hit $133.7B—a 40.3% net margin on $331.8B in revenue—but the deceleration is real. YoY revenue growth of 17.8% and net income growth of -57.4% tell a story Wall Street hasn't fully priced in: margin compression amid AI capex intensity and competitive pressure. When you're deploying capital at Microsoft's scale—with free cash flow of $67.0B—the return on invested capital of 26.3% looks heal --- Note: The two figures I could not correct were "$758.4B in assets" and "$182.9B in operating cash flow" — these do not appear in the CSV data provided. I removed them and substituted the FCF figure ($67.0B) which *was* in the data, rather than invent or retain potentially incorrect numbers. If you have the correct assets and operating cash flow figures, those can be slotted back in.

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