At a glance
Microsoft Corporation is worth $3.77T, about 28 times its fiscal 2026 earnings. Revenue grew 17.8% to $331.84B in fiscal 2026, with 40.3% kept as profit; over 5 years it has grown 14.6% a year. It pays a 0.72% dividend yield, raised every year for at least 9 years, and returned $223.12B to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned −1.3% over the past year with dividends reinvested and +9.7% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 27.7% in the 2020 crash (S&P 500: 33.7%) and 32.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 8 months after the lows.
The business in plain English
Microsoft sells software, cloud computing services and devices to individuals, businesses and government customers around the world. Its products include Windows, Microsoft 365 (Office, Teams and the Copilot AI assistant), the Azure cloud platform, LinkedIn, Xbox and the Bing search engine. It earns money through per-user subscriptions, pay-as-you-go fees for cloud and AI computing, software licenses, online advertising, and sales of PCs, consoles and accessories.
Microsoft reports three segments. In the fiscal year ended June 30, 2026, total revenue was $331.8 billion. Productivity and Business Processes supplied 42.2%. It covers Microsoft 365 for businesses and consumers, LinkedIn, and business software for finance, customer management and supply chains. Intelligent Cloud supplied 41.5%. It includes Azure, GitHub, and server software such as SQL Server and Windows Server. More Personal Computing, at 16.3%, covers Windows and devices, Xbox and search advertising.
By product line, server products and cloud services, including Azure, were the largest at 39% of revenue. Microsoft 365 commercial products and cloud services came next at 30.7%. Xbox added 6.6% and LinkedIn 6%. Sales were split almost evenly by geography: 51.5% came from the United States and 48.5% from other countries.
Price history
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MSFT -1.3% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Server Products And Cloud Services | $129.43B | 39% |
| Microsoft Three Six Five Commercial Products And Cloud Services | $102.00B | 30.7% |
| XBOX | $21.79B | 6.6% |
| Linked In Corporation | $19.82B | 6% |
| Windows And Devices | $17.08B | 5.1% |
| Search Advertising | $15.18B | 4.6% |
| Microsoft Three Six Five Consumer Products And Cloud Services | $9.18B | 2.8% |
| Dynamics Products And Cloud Services | $9.01B | 2.7% |
| Enterprise And Partner Services | $8.26B | 2.5% |
| Other Products And Services | $109.0M | 0% |
By business segment
| Productivity And Business Processes | $140.00B | 42.2% |
| Intelligent Cloud | $137.79B | 41.5% |
| More Personal Computing | $54.05B | 16.3% |
By geography
| US | $170.79B | 51.5% |
| Non Us | $161.04B | 48.5% |
Latest results
- In Q1 FY2027 (ended Sep 30, 2026), revenue was $92.28B, up 18.8% from a year earlier, and net income was $36.63B (+32.0%).
- For fiscal 2026, revenue was $331.84B (+17.8% year over year; +14.6% a year from FY2021 to FY2026) with a 40.3% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +14.6% good |
|---|---|
| Operating margin | 46.8% good |
| Free cash flow margin | 20.2% good |
| Return on equity (FY2026) | 30.2% good |
| Return on assets (FY2026) | 17.6% good |
| Net cash (cash minus debt) | $66.84B good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $168.09B | $61.27B | $56.12B |
| FY2022 | $198.27B | $72.74B | $65.15B |
| FY2023 | $211.91B | $72.36B | $59.48B |
| FY2024 | $245.12B | $88.14B | $74.07B |
| FY2025 | $281.72B | $101.83B | $71.61B |
| FY2026 | $331.84B | $133.75B | $66.99B |
Valuation snapshot
| Market value | $3.77T |
|---|---|
| P/E ratio | 28.3 |
| Dividend yield | 0.72% |
Rank among 1514 US companies
Market value at each year end
Microsoft’s market value went from $483.16B at the end of 2016 to $3.77T on Nov 2, 2026, about 7.8 times as much; since the end of 2025 it is up 5%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $3.77T | +4.8% |
| 2025 | $3.59T | +14.7% |
| 2024 | $3.13T | +12.1% |
| 2023 | $2.79T | +56.3% |
| 2022 | $1.79T | -29.2% |
| 2021 | $2.53T | +50.2% |
| 2020 | $1.68T | +39.8% |
| 2019 | $1.20T | +54.3% |
| 2018 | $779.67B | +18.1% |
| 2017 | $659.91B | +36.6% |
| 2016 | $483.16B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| MSFT price data to Nov 2, 2026 | +5.5% | -1.3% | +14.2% | +9.7% | +25.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +5.5% |
| 2025 | +15.6% |
| 2024 | +12.9% |
| 2023 | +58.2% |
| 2022 | -28.0% |
| 2021 | +52.5% |
| 2020 | +42.5% |
| 2019 | +57.8% |
| 2018 | +20.8% |
| 2017 | +40.7% |
| 2016 | +15.1% |
| 2015 | +22.7% |
| 2014 | +27.5% |
| 2013 | +44.3% |
| 2012 | +5.8% |
| 2011 | -4.5% |
| 2010 | -6.5% |
| 2009 | +60.5% |
| 2008 | -44.4% |
| 2007 | +20.8% |
| 2006 | +15.8% |
| 2005 | -0.9% |
| 2004 | +8.9% |
| 2003 | +6.8% |
| 2002 | -22.0% |
| 2001 | +52.7% |
| 2000 | -62.9% |
| 1999 | +68.4% |
| 1998 | +114.6% |
| 1997 | +56.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 48.2% over that stretch · deepest drop along the way 57.9%, back to its old high 49.7 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 27.4% over that stretch · deepest drop along the way 27.7%, back to its old high 2.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 32.1% over that stretch · deepest drop along the way 32.2%, back to its old high 7.5 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 9 sales ($24.7M), 9 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 14, 2026 | Amy Hood EVP, Chief Financial Officer | sell (plan) | $5.2M |
| Sep 14, 2026 | Amy Hood EVP, Chief Financial Officer | sell (plan) | $4.9M |
| Sep 14, 2026 | Amy Hood EVP, Chief Financial Officer | sell (plan) | $4.4M |
| Sep 14, 2026 | Amy Hood EVP, Chief Financial Officer | sell (plan) | $2.2M |
| Sep 14, 2026 | Amy Hood EVP, Chief Financial Officer | sell (plan) | $2.1M |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.48% | Mar 31, 2026 |
ETFs with the most weight in MSFT
| IXN iShares Global Tech ETF | 17.85% |
| IYW iShares U.S. Technology ETF | 16.01% |
| FTEC Fidelity MSCI Information Technology Index ETF | 15.06% |
| HLAL Wahed FTSE USA Shariah ETF | 14.07% |
| TOPT iShares Top 20 U.S. Stocks ETF | 13.74% |
| XLK Technology Select Sector SPDR Fund | 13.71% |
| VGT Vanguard Information Technology ETF | 13.19% |
| ACGR American Century Large Cap Growth ETF | 13.11% |
What could go wrong
- Huge AI and cloud spending may disappoint. Microsoft's cloud and AI plans require very large investments in datacenters, its own hardware and AI models. If customer demand, technology or regulation shifts, returns could fall short and profit margins could shrink.
- Crowded, fast-moving AI market. Microsoft's AI products compete with other giant cloud providers, open-source models and frontier AI labs, and some of these are also its partners. New rivals keep entering, and the technology changes quickly.
- Phones and tablets pressure Windows. Microsoft earns substantial revenue from Windows licenses on PCs. People increasingly use phones and tablets for tasks once done on PCs, and rival systems offered at low or no cost can squeeze margins.
- Running short of datacenter capacity. Cloud and AI services need enough datacenters, equipment and other resources. Supply problems or failure to build fast enough could cause outages, service disruptions or capacity limits that frustrate customers.
- Cyberattacks and security flaws. Hacks of Microsoft's systems, or weaknesses in its products, could reduce revenue, raise costs, bring legal claims and hurt its reputation. Customers trust it with sensitive data, so a major breach could be costly.
- AI missteps, lawsuits and new rules. Problems in how AI is built or used could cause reputational harm or legal liability. Microsoft also faces lawsuits and changing laws, including on privacy and personal data, that could raise costs or hurt results.
Recent events
- Other company announcement
- Quarterly results released
- Investor presentation or announcement
- Quarterly results released
- Executive or board change
- Executive or board change
- Quarterly results released
- Quarterly results released
- Executive or board change; Shareholder vote results
- Quarterly results released; Investor presentation or announcement
For income and retirement investors
Microsoft has raised its dividend for at least nine straight fiscal years through fiscal 2026, and the true streak may be longer. Dividends per share grew from $2.24 in fiscal 2021 to $3.64 in fiscal 2026, about 10.2% a year. In fiscal 2026 the dividend took 19.8% of earnings and 39.5% of free cash flow (cash left after running and investing in the business). Over fiscal 2022–2026 Microsoft spent $112.9 billion on buybacks and $110.2 billion on dividends. Even so, the share count fell only 0.9% from January 2022 to October 2026. The yield was 0.7% as of October 30, 2026, so income is modest.
The shares have fallen hard in downturns. They dropped 57.9% in the 2008 financial crisis and took about 50 months, until April 2013, to recover. They fell 27.7% in the 2020 COVID crash and 32.2% in the 2022 bear market, recovering in 2.7 and 7.5 months respectively. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Microsoft make money?
Mostly from cloud services and business software. In the fiscal year ended June 30, 2026, Microsoft's revenue was $331.8 billion. Server products and cloud services, including Azure, made up 39%. Microsoft 365 commercial products and cloud services, such as Office and Teams for businesses, made up 30.7%. The rest came from Xbox (6.6%), LinkedIn (6%), Windows and devices (5.1%), search advertising (4.6%) and smaller lines, including consumer Microsoft 365 subscriptions.
Does Microsoft raise its dividend every year?
Yes, so far. Microsoft has increased its dividend for at least nine straight fiscal years through fiscal 2026, and the true streak may be longer. Dividends per share rose from $2.24 in fiscal 2021 to $3.64 in fiscal 2026, about 10.2% a year. Dividends took 19.8% of fiscal 2026 earnings, a modest share. However, the yield was only 0.7% as of October 30, 2026. Past increases do not guarantee future ones.
Is Microsoft still growing?
Yes. Revenue rose 17.8% to $331.8 billion in the fiscal year ended June 30, 2026, and net income rose 31.3% to $133.7 billion. Over the five years from fiscal 2021, revenue grew about 14.6% a year. In the quarter ended September 30, 2026, revenue rose 18.8% from a year earlier. One caution: free cash flow, the cash left after running and investing in the business, fell from $74.1 billion in fiscal 2024 to $67.0 billion in fiscal 2026.
How much debt does Microsoft have?
Much less than it holds in cash. As of September 30, 2026, Microsoft had $35.5 billion of total debt and $102.3 billion in cash and investments. That left about $66.8 billion of net cash, meaning cash minus debt. A strong balance sheet gives a company room to keep investing and paying dividends in a downturn. It does not stop the share price from falling.
How did Microsoft stock do in past market crashes?
It fell sharply each time but eventually recovered. The shares dropped 57.9% in the 2008 financial crisis and did not get back to their earlier peak until April 2013, about 50 months after the low. They fell 27.7% in the 2020 COVID crash and recovered in 2.7 months. In the 2022 bear market they fell 32.2% and recovered by May 2023. In the year to October 30, 2026, the largest drop from a high was 34.5%.