MICROSOFT CORP(MSFT)Stock Analysis
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Revenue Growth
Profitability
Balance Sheet
MSFT Stock Analysis & AI Quality Score
AI stock analysis and institutional research for MICROSOFT CORP (MSFT), a Technology sector company. 13F Pro's AI-powered ranking engine scores MSFT at 83.9/100 on a 32-signal composite quality model, placing it at rank #15 of 2,849 stocks — the top 1% of the AI-ranked universe. MSFT scores in the top quartile across revenue scale (99.7), balance sheet strength (96.7), profitability (94.0). Shareholder dilution risk is elevated at 28.5/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings, MICROSOFT CORP reports trailing revenue of $82.9B, net income of $-34.4B, an operating margin of 46.3%. Top institutional holders of MSFT by reported 13-F value include VANGUARD GROUP, VANGUARD GROUP, VANGUARD GROUP, based on the most recent SEC filings. MSFT trades on the Nasdaq exchange and files with the SEC under CIK 789019. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate MSFT daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for MICROSOFT CORP directly from SEC EDGAR.
What's Driving MSFT's Business? Latest 10-Q Breakdown
AI-extracted from MICROSOFT CORP's 10-Q filed 2026-04-29 — Q3 FY2026 (quarter ended March 31, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Microsoft Cloud revenue surged 29% to $54.5B; total revenue jumped 18% to $82.9B on strong Azure and Microsoft 365 growth.
Biggest Revenue Drivers
Total revenue: $82.9B+18% YoY
Azure and other cloud services revenue grew 40% driven by demand for services across the platform with continued growth across all workloads.
Microsoft 365 Commercial cloud revenue grew 19% with growth in revenue per user driven by Microsoft 365 E5 and Microsoft 365 Copilot.
Gaming revenue decreased 7% driven by declines in Xbox content and services and Xbox hardware, offset in part by Search advertising growth of 9%.
Largest Expense Items
Driven by growth in Microsoft Cloud, including investments in AI infrastructure to support growing customer demand.
Continued investments in compute capacity, AI talent, and data to support product development across the portfolio.
Higher Copilot advertising expenses, with headcount declining year-over-year.
Higher legal expenses, with headcount declining year-over-year.
Margins: Gross margin increased 16% to $56.1B but gross margin percentage decreased driven by continued investments in AI infrastructure and growing AI product usage, offset in part by efficiency gains across Microsoft Cloud. Microsoft Cloud gross margin percentage declined to 66% from prior year.
Watch Items from the Filing
- IRS dispute: Microsoft received $28.9B in Notices of Proposed Adjustment for tax years 2004–2013 relating to intercompany transfer pricing; company disagrees and will contest vigorously with no resolution expected in next 12 months.
- OpenAI dilution gain: nine-month net gains from OpenAI investments of $5.9B (including $5.5B dilution gain from recapitalization) significantly boosted other income; excluding this, adjusted operating performance would be weaker.
- Commercial RPO growth strong: remaining performance obligation increased 99% to $627B with 2.5-year weighted average duration, indicating strong forward revenue visibility.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q3 2026
$82.9B
Net Income
Q3 2026
$-34.4B
Free Cash Flow
Q3 2026
$-20.0B
Operating Margin
Q3 2026
46.3%
D/E Ratio
Q3 2026
0.12
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+14.9% YoYNet Income
+15.5% YoYOperating Income
+17.4% YoYEPS (Diluted)
+15.6% YoYTotal Assets
+20.9% YoYTotal Debt
-2.2% YoYOp. Cash Flow
+14.9% YoY| Metric | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|
| Revenue | $281.72B +14.9% | $245.12B +15.7% | $211.91B +6.9% | $198.27B +18.0% | $168.09B +17.5% | $143.01B |
| Net Income | $101.83B +15.5% | $88.14B +21.8% | $72.36B -0.5% | $72.74B +18.7% | $61.27B +38.4% | $44.28B |
| Operating Income | $128.53B +17.4% | $109.43B +23.6% | $88.52B +6.2% | $83.38B +19.3% | $69.92B +32.0% | $52.96B |
| EPS (Diluted) | $13.64 +15.6% | $11.80 +21.9% | $9.68 +0.3% | $9.65 +19.9% | $8.05 +39.8% | $5.76 |
| Total Assets | $619.00B +20.9% | $512.16B +24.3% | $411.98B +12.9% | $364.84B +9.3% | $333.78B +10.8% | $301.31B |
| Total Debt | $46.15B -2.2% | $47.19B -10.1% | $52.48B -0.1% | $52.53B -20.7% | $66.22B -1.3% | $67.08B |
| Operating Cash Flow | $136.16B +14.9% | $118.55B +35.4% | $87.58B -1.6% | $89.03B +16.0% | $76.74B +26.5% | $60.67B |
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Top Institutional Holders of MSFT
VANGUARD GROUP INC
$363.6B701,986,682 shVANGUARD GROUP INC
$350.7B705,077,786 shVANGUARD GROUP INC
$347.2B717,942,580 shBlackRock, Inc.
$306.6B591,860,058 shVANGUARD GROUP INC
$302.1B675,906,459 shBlackRock, Inc.
$291.1B601,897,495 shVANGUARD GROUP INC
$289.9B673,639,717 shBlackRock, Inc.
$289.3B581,577,056 shVANGUARD GROUP INC
$288.3B684,071,705 shVANGUARD GROUP INC
$281.0B667,987,038 sh
| Fund | Value | Shares |
|---|---|---|
| VANGUARD GROUP INC | $363.6B | 701,986,682 |
| VANGUARD GROUP INC | $350.7B | 705,077,786 |
| VANGUARD GROUP INC | $347.2B | 717,942,580 |
| BlackRock, Inc. | $306.6B | 591,860,058 |
| VANGUARD GROUP INC | $302.1B | 675,906,459 |
| BlackRock, Inc. | $291.1B | 601,897,495 |
| VANGUARD GROUP INC | $289.9B | 673,639,717 |
| BlackRock, Inc. | $289.3B | 581,577,056 |
| VANGUARD GROUP INC | $288.3B | 684,071,705 |
| VANGUARD GROUP INC | $281.0B | 667,987,038 |
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