MSFTNasdaqServices-Prepackaged SoftwareFiscal year ends June 30
MICROSOFT CORP
Financials through Q4 FY2026, quarter ended Jun 30, 2026Last filing: 10-K on Jul 29, 2026
$533.52+4.47 (+0.84%)
Close on Oct 19, 2026
- Market cap
- $3.97T
- P/E (TTM)
- 29.7
- Dividend yield
- 0.68%
Margins
Share of revenue, fiscal years 2012 to 2026
Gross margin
67.9%−1.0 pts over 5 years
Operating margin
46.8%+5.2 pts over 5 years
Net margin
40.3%+3.9 pts over 5 years
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +17.8% | +16.1% | +14.6% | +13.8% | |
| Gross profit | +16.3% | +15.6% | +14.2% | +14.5% | |
| Operating income | +20.8% | +20.6% | +17.3% | +19.5% | |
| Net income | +31.3% | +22.7% | +16.9% | +20.6% | |
| EPS, diluted | +31.6% | +22.9% | +17.4% | +21.5% | |
| Free cash flow | -6.5% | +4.0% | +3.6% | +10.4% | |
| Dividend per share | +9.6% | +10.2% | +10.2% | +9.7% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2021 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | 29.8% | 47.1% | 34.0% | |
| Return on assets | 11.5% | 19.3% | 19.4% | |
| Current ratio | 2.92 | 2.08 | 1.23 | |
| Debt to equity | 0.98 | 0.41 | 0.09 | |
| Interest coverage | 13.1× | 29.8× | 50.9× | |
| Inventory turnover | 15.5× | 23.1× | 91.1× | |
| Capex to revenue | 8.4% | 12.3% | 34.9% | |
| Diluted shares | 7.83B | 7.61B | 7.45B |
Where the cash went
Fiscal 2022 to 2026, five years combined
Microsoft generated $614.26B from operations and spent $500.09B on capital expenditure, dividends and share buybacks. 55% of that went back into the business.
Generated
$614.26B
Used
$500.09B
Capital expenditure$276.97B55%Dividends$110.23B22%Share buybacks$112.89B23%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin40.3%
×Asset turnover0.48×
×Equity multiplier1.75×
=Return on equity, FY202634.0%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 40.3% | 0.48× | 1.75× | 34.0% |
| FY2025 | 36.1% | 0.50× | 1.85× | 33.3% |
| FY2024 | 36.0% | 0.53× | 1.95× | 37.1% |
| FY2023 | 34.1% | 0.55× | 2.08× | 38.8% |
| FY2022 | 36.7% | 0.57× | 2.26× | 47.2% |
| FY2021 | 36.5% | 0.53× | 2.44× | 47.1% |
| FY2020 | 31.0% | 0.49× | 2.66× | 40.1% |
| FY2019 | 31.2% | 0.46× | 2.95× | 42.4% |
| FY2018 | 15.0% | 0.43× | 2.99× | 19.4% |
| FY2017 | 26.4% | 0.44× | 2.60× | 29.8% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
6of 9 tests passed in fiscal 2026. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero$133.75B
- Cash generatingOperating cash flow above zero$182.94B
- Return on assets improvedROA up on the prior year19.9% → 21.6%
- Earnings backed by cashOperating cash flow above net income$182.94B vs $133.75B
- Less leverageLong-term debt to assets fell6.5% → 4.1%
- Better liquidityCurrent ratio rose1.35 → 1.23
- No dilutionShare count did not rise7.46B → 7.45B
- Gross margin improvedGross margin up on the prior year68.82% → 67.94%
- More efficientAsset turnover rose0.55 → 0.54