What is the 13F Pro Quality Score for MSFT?

13F Pro ranks MICROSOFT CORP (MSFT) on the 13F Pro Quality Score, a 0–100 composite of 32 fundamental signals including return on invested capital, free cash flow consistency, balance-sheet strength, earnings quality, growth durability, and valuation discipline. The score refreshes after each 10-K and 10-Q filing on SEC EDGAR. View MSFT's current score at https://13fpro.ai/company/MSFT (free sign-up required for the full ranking).

Which hedge funds own the most MSFT stock?

Based on the most recent Form 13F-HR filings on SEC EDGAR, the largest reported institutional holders of MSFT include BlackRock,, VANGUARD CAPITAL MANAGEMENT, STATE STREET. Holdings are reported quarterly within 45 days of quarter-end and updated on https://13fpro.ai/company/MSFT as soon as new 13F filings post.

Where does 13F Pro source MSFT data?

All MICROSOFT CORP fundamentals and ownership data come directly from SEC EDGAR. MICROSOFT CORP files with the SEC under CIK 789019. 13F Pro ingests XBRL financial facts from 10-K and 10-Q filings, Form 13F-HR institutional holdings, and Form 4 insider transactions, with no third-party rewrites or estimates.

What sector is MSFT in?

MICROSOFT CORP (MSFT) is classified in the Technology sector. 13F Pro publishes sector-level fund flow analysis and quality leaders at https://13fpro.ai/research/sector/technology.

What drives MSFT's revenue?

Per MICROSOFT CORP's latest 10-K filed with the SEC on 2026-07-29, the biggest revenue drivers are: Productivity and Business Processes ($140.0B, +16% YoY); Intelligent Cloud ($137.8B, +30% YoY); More Personal Computing ($54.1B, -1% YoY). Figures are extracted from the filing text and machine-verified against the document. Full breakdown at https://13fpro.ai/company/MSFT.

What are MSFT's largest expenses?

MICROSOFT CORP's latest 10-K reports these as the largest expense items: Cost of revenue ($106.4B, +21% YoY); Research and development ($35.6B, +9% YoY); Sales and marketing ($26.7B, +4% YoY). Sourced directly from SEC EDGAR filing text for FY2026 (fiscal year ended June 30, 2026).

How often is MSFT research updated on 13F Pro?

MSFT's fundamentals refresh within hours of each new 10-K or 10-Q filing on SEC EDGAR. Institutional ownership updates after each quarterly 13F filing window. Insider transactions update after each Form 4 filing. The 13F Pro Quality Score recalculates after every fundamentals refresh.

MICROSOFT CORP(MSFT)Stock Analysis

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13F Pro Quality Score

79.8/100

Rank #31 of 2,961 stocksTOP 5%

View Technology peers →

Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Nov 14, 2026.

Revenue Growth

74.3/100

Profitability

96.8/100

Balance Sheet

96.6/100

Earnings Quality

53.5/100

Free Cash Flow

73.3/100

Institutional Flow

84.9/100

Revenue Scale

99.6/100

Dilution Risk

28.9/100

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Why MSFT Scores 80/100

exact factor attribution · 2026-09-11

MSFT's composite is driven by scale and profitability, held back by shareholder dilution. Bars show each factor's exact push vs. a median company, using the same weights the ranking engine applies.

Scale

+7.4 pts

100th pct

Profitability

+7.0 pts

97th pct

Revenue growth

+4.9 pts

74th pct

Capital efficiency

+4.7 pts

97th pct

Free cash flow

+3.5 pts

73th pct

Institutional flow

+1.8 pts

85th pct

Earnings growth

+1.3 pts

75th pct

Earnings quality

+0.3 pts

54th pct

Shareholder dilution

-1.1 pts

29th pct

Latest change (2026-07-29): 84 → 80 · ↓ Revenue growth 75→61; ↓ Earnings growth 69→60

Factor percentiles are cross-sectional ranks across the ~2,800-stock scored universe, computed from SEC EDGAR filings. Not investment advice.

MSFT Stock Analysis & AI Quality Score

Data updated 2026-09-11

AI stock analysis and institutional research for MICROSOFT CORP (MSFT), a Technology sector company. 13F Pro's AI-powered ranking engine scores MSFT at 79.8/100 on a 32-signal composite quality model, placing it at rank #31 of 2,961 stocks — the top 5% of the AI-ranked universe. MSFT scores in the top quartile across revenue scale (99.6), profitability (96.8), balance sheet strength (96.6). Shareholder dilution risk is elevated at 28.9/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), MICROSOFT CORP reports quarterly revenue of $90.0B, net income of $35.8B, an operating margin of 45.1%. Top institutional holders of MSFT by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, STATE STREET, 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. MICROSOFT CORP's 13F Pro composite quality score has ranged between 74 and 86 since 2021, currently 79.8 — a declining long-term trajectory across 68 quarterly and live scoring snapshots.

✦

Fun facts about MICROSOFT CORP

Quirks, history, and lore behind MSFT — the kind of stuff that makes a stock memorable.

1
The Basics
U.S. technology company · mega-cap · listed on Nasdaq · headquartered in Washington State.
2
The Numbers
Annual revenue north of $200 billion, with its cloud computing segment now its single largest and fastest-growing business unit.
3
The History
Founded in 1975 by two college-dropout friends who bet everything on the idea that every desk in America would one day have a personal computer.
4
The Secret
Its enterprise software business means roughly a billion people go to work every day utterly dependent on its productivity suite — switching costs are basically career-ending.
5
The Lore
It once seemed destined for antitrust breakup, then spent a decade losing the mobile war badly — before cloud and gaming rewrote the story entirely.
6
The Giveaway
The Start Menu, Excel, and a $69 billion bet on a company that makes games about Master Chief — this Redmond giant basically runs the world's office.

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What's Driving MSFT's Business? Latest 10-K Breakdown

✓ 39/39 datapoints verified

AI-extracted from MICROSOFT CORP's 10-K filed 2026-07-29 — FY2026 (fiscal year ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.

Revenue rose 18% to $331.8B on 41% Azure growth, but capital expenditures reached $115.9B and Microsoft Cloud gross margin fell to 66%.

Biggest Revenue Drivers

Productivity and Business Processes$140.0B+16% YoY

Driven by Microsoft 365 Commercial cloud, with revenue per user growth from Microsoft 365 Copilot and Microsoft 365 E5

Intelligent Cloud$137.8B+30% YoY

Server products and cloud services revenue increased $31.0 billion or 31%, driven by Azure and other cloud services

Biggest Revenue Drivers

Total revenue: $331.8B+18% YoY

Productivity and Business Processes$140.0B+16% YoY

Driven by Microsoft 365 Commercial cloud, with revenue per user growth from Microsoft 365 Copilot and Microsoft 365 E5

Intelligent Cloud$137.8B+30% YoY

Server products and cloud services revenue increased $31.0 billion or 31%, driven by Azure and other cloud services

Within Intelligent Cloud

Azure and other cloud services+41% YoY

Demand for services across the platform with continued growth across all workloads

More Personal Computing$54.1B-1% YoY

Decreased driven by XBOX, offset in part by Search advertising revenue growth of 9%

Within More Personal Computing

XBOX-7% YoY

Declines in XBOX content and services (-5%) and XBOX hardware (-29%) on lower console volume

Largest Expense Items

Cost of revenue$106.4B+21% YoY

Driven by growth in Microsoft Cloud and investments in AI infrastructure to support growing customer demand

Research and development$35.6B+9% YoY

Continued investments in compute capacity, AI talent, and data, plus impairment and other related expenses in the XBOX business

Sales and marketing$26.7B+4% YoY

Investments in commercial sales and higher Copilot advertising expenses

General and administrative$7,956M+10% YoY

Higher legal expenses and gains on divestitures in the prior period

Margins: Gross margin percentage decreased slightly on continued AI infrastructure investment and growing AI product usage, offset partly by Microsoft Cloud efficiency gains; Microsoft Cloud gross margin percentage decreased to 66%.

Watch Items from the Filing

Additions to property and equipment rose $51.4 billion to $115.9 billion; construction commitments $34.6 billion and purchase commitments $194.1 billion, mostly datacenters.
IRS Notices of Proposed Adjustment for tax years 2004-2013 seek an additional tax payment of $28.9 billion plus penalties and interest; audits for 2014-2017 continue.
OpenAI, an approximate 25% equity method interest, generated $24.1 billion of revenue and $6.0 billion of accounts receivable; $6.5 billion of net gains boosted other income.
Commercial remaining performance obligation increased 84% to $678 billion; Microsoft Cloud revenue increased 27% to $214.4 billion.
Operating and finance leases, including imputed interest, total $443.5 billion, with $411.1 billion due after fiscal 2027; total contractual obligations $743.8 billion.

AI-extracted and verified against SEC EDGAR filing text. Not investment advice.

Read the full 10-K on SEC EDGAR →Share on X

Revenue

Q2 2026

$90.0B

Net Income

Q2 2026

$35.8B

Free Cash Flow

Q2 2026

$19.6B

Operating Margin

Q2 2026

45.1%

ROIC

Q2 2026

33.0%

D/E Ratio

Q2 2026

0.11

Period

Revenue & Net Income

Earnings Per Share

Key Financials Over Time

Export Financial Table · Pro

Revenue

+17.8% YoY

$331.84BFY 2026

FY23 $211.91BFY24 $245.12BFY25 $281.72BFY26 $331.84B

Net Income

+31.3% YoY

$133.75BFY 2026

FY23 $72.36BFY24 $88.14BFY25 $101.83BFY26 $133.75B

Operating Income

+20.8% YoY

$155.24BFY 2026

FY23 $88.52BFY24 $109.43BFY25 $128.53BFY26 $155.24B

EPS (Diluted)

+31.6% YoY

$17.95FY 2026

FY23 $9.68FY24 $11.80FY25 $13.64FY26 $17.95

Total Assets

+22.5% YoY

$758.38BFY 2026

FY23 $411.98BFY24 $512.16BFY25 $619.00BFY26 $758.38B

Total Debt

+7.3% YoY

$49.52BFY 2026

FY23 $52.48BFY24 $47.19BFY25 $46.15BFY26 $49.52B

Op. Cash Flow

+34.4% YoY

$182.94BFY 2026

FY23 $87.58BFY24 $118.55BFY25 $136.16BFY26 $182.94B

Free Cash Flow

-6.5% YoY

$66.99BFY 2026

FY23 $59.48BFY24 $74.07BFY25 $71.61BFY26 $66.99B

Metric	FY 2026	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021
Revenue	$331.84B +17.8%	$281.72B +14.9%	$245.12B +15.7%	$211.91B +6.9%	$198.27B +18.0%	$168.09B
Net Income	$133.75B +31.3%	$101.83B +15.5%	$88.14B +21.8%	$72.36B -0.5%	$72.74B +18.7%	$61.27B
Operating Income	$155.24B +20.8%	$128.53B +17.4%	$109.43B +23.6%	$88.52B +6.2%	$83.38B +19.3%	$69.92B
EPS (Diluted)	$17.95 +31.6%	$13.64 +15.6%	$11.80 +21.9%	$9.68 +0.3%	$9.65 +19.9%	$8.05
Total Assets	$758.38B +22.5%	$619.00B +20.9%	$512.16B +24.3%	$411.98B +12.9%	$364.84B +9.3%	$333.78B
Total Debt	$49.52B +7.3%	$46.15B -2.2%	$47.19B -10.1%	$52.48B -0.1%	$52.53B -20.7%	$66.22B
Operating Cash Flow	$182.94B +34.4%	$136.16B +14.9%	$118.55B +35.4%	$87.58B -1.6%	$89.03B +16.0%	$76.74B
Free Cash Flow	$66.99B -6.5%	$71.61B -3.3%	$74.07B +24.5%	$59.48B -8.7%	$65.15B +16.1%	$56.12B

AI Insight: MSFT Financial Trends

Microsoft posts strongest revenue growth in two years with operating margins hitting 45.1%, driven by AI-driven cloud acceleration.

• Revenue accelerated to $90.0B in Q2 2026, up 9.9% YoY and highest growth since Q2 2024. Cloud demand sustaining momentum.

• Operating margin expanded to 45.1% in Q2 2026 from 43.8% in Q1 2026, reflecting operating leverage from scale.

• Operating cash flow reached $55.4B in Q2 2026, highest in 8-quarter period, signaling robust monetization of cloud investments.

• Net income surged to $35.8B in Q2 2026 from $27.7B in Q3 2025, up 29% in 9 months, showing margin expansion.

⚠ Total debt rose to $49.5B in Q2 2026 from $45.1B in Q4 2025, suggesting increased leverage financing AI infrastructure buildout.

⚠ Debt-to-equity ratio rose to 11.2% from 10.3% in Q4 2025. Monitor if capex intensity continues elevating leverage.

AI Insight: MSFT Ratio Trends

Microsoft's profitability metrics remain robust despite margin compression and ROIC contraction over the past year.

• Operating margin declined from 46.6% (Q3 2024) to 45.1% (Q2 2026), a 150bp compression over two years.

• ROIC fell from 36.5% (Q3 2024) to 33.0% (Q2 2026), representing a 350bp decline—first sustained drop since tracking began.

• Net profit margin recovered to 39.7% (Q2 2026) from 34.6% (Q4 2024) low, driven by operational discipline.

• Leverage remains minimal: D/E ratio of 0.11 at Q2 2026, down from 0.17 at Q4 2024, strengthening balance sheet.

⚠ ROIC contraction accelerating: fell 210bp from Q3 2025 (36.7%) to Q2 2026 (33.0%)—requires capital deployment scrutiny.

⚠ ROA peaked at 23.1% in Q4 2025 (likely one-off), now normalized to 18.9%—monitor earnings quality and asset turnover.

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Available Research

13F Pro tracks comprehensive data for MICROSOFT CORP including:

SEC EDGAR filings (10-K, 10-Q, 8-K)

XBRL financial facts (revenue, EPS, margins)

Insider transactions (Form 4)

Institutional 13F holdings

Quality rankings (32 signals)

AI analyst debates & daily meetings

Historical financial trends

Peer comparison & sector analysis

Top Institutional Holders of MSFT

BlackRock, Inc.
$226.6B607,367,113 sh
VANGUARD CAPITAL MANAGEMENT LLC
$181.0B485,192,007 sh
STATE STREET CORP
$117.7B315,653,206 sh
GEODE CAPITAL MANAGEMENT, LLC
$70.6B189,632,090 sh
FMR LLC
$69.4B185,960,066 sh
VANGUARD PORTFOLIO MANAGEMENT LLC
$62.8B168,407,641 sh
JPMORGAN CHASE & CO
$49.8B135,173,516 sh
MORGAN STANLEY
$47.6B127,674,661 sh
NORGES BANK
$38.3B102,732,956 sh
Invesco Ltd.
$37.4B100,247,890 sh

Fund	Value	Shares
BlackRock, Inc.	$226.6B	607,367,113
VANGUARD CAPITAL MANAGEMENT LLC	$181.0B	485,192,007
STATE STREET CORP	$117.7B	315,653,206
GEODE CAPITAL MANAGEMENT, LLC	$70.6B	189,632,090
FMR LLC	$69.4B	185,960,066
VANGUARD PORTFOLIO MANAGEMENT LLC	$62.8B	168,407,641
JPMORGAN CHASE & CO	$49.8B	135,173,516
MORGAN STANLEY	$47.6B	127,674,661
NORGES BANK	$38.3B	102,732,956
Invesco Ltd.	$37.4B	100,247,890

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Is MSFT a good stock to buy?

13F Pro's AI-powered analysis of MICROSOFT CORP (MSFT) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for MSFT are available on the MSFT stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing. MSFT is classified as a mega company.

Which hedge funds own MSFT?

Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling MSFT. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of MICROSOFT CORP's investment landscape.