Microsoft Corporation

Microsoft Corporation

MSFT

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Market Cap$3.34T
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Microsoft CorporationMicrosoft Corporation26.70.79%30%10.20.3

Earnings Call Q3 2026

April 29, 2026 - AI Summary

Strong Revenue Growth: Microsoft reported Q3 revenue of $82.9 billion, up 18% year-over-year (15% in constant currency). This growth was driven primarily by an impressive 29% increase in Microsoft Cloud revenue, which reached $54.5 billion, and a staggering 123% growth in AI business annual revenue run-rate, exceeding $37 billion.
Investment in AI and Infrastructure: The company is significantly investing in AI infrastructure and product development, with capital expenditures in Q3 at $31.9 billion. There is a planned increase in CapEx to over $40 billion for the upcoming quarter, indicating strong confidence in future AI revenue potential despite near-term supply constraints.
Commercial Bookings Trends: Commercial bookings grew 7% (when excluding OpenAI) amidst a mixed environment. There is a shift from traditional per-seat models to "seats plus consumption" models. This transition may lead to variable reporting in future bookings, with an expectation of increased revenue generation through usage-based billing.

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$530.50

Target Price by Analysts

24.1% upsideMicrosoft Target Price DetailsTarget Price
$339.16

Current Fair Value

20.6% downside

Overvalued by 20.6% based on the discounted cash flow analysis.

Share Statistics

Market cap$3.34 Trillion
Enterprise Value$3.42 Trillion
Dividend Yield$3.56 (0.79%)
Earnings per Share$13.7
Beta1.09
Outstanding Shares7,426,000,000

Return

Return on Equity30.22%ROE
Return on Assets18.04%
Return on Invested Capital28.22%

Valuation & Multiples

P/E Ratio26.7P/E Ratio
PEG115.81PEG
Price to Sales10.17Price to Sales
Price to Book Ratio7.77Price to Book Ratio
Enterprise Value to Revenue10.76
Enterprise Value to EBIT21.76
Enterprise Value to Net Income27
Total Debt to Enterprise0.03
Debt to Equity0.27Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
April 29, 2026
EPS Estimate
$4.06
Average shareholder expectation
Revenue Estimate
$81.44 B
Average shareholder expectation

Next Earnings Call

Expected Date
July 29, 2026
EPS Estimate
$4.21
Average shareholder expectation
Revenue Estimate
$87.61 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.4160 43.85%
Total Calls232,175,839 188.74%
Total Puts96,582,453 40.57%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %71.59% 2.82%
Total Invested$1977.24B 26.60%
Investors Holding6,399 86.00%

ESG Score

No data

About Microsoft Corporation

166,475 employees
CEO: Satya Nadella

Microsoft enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.

Relevant Senate Committees

Joint Committee on Taxation

This committee provides the technical analysis and revenue estimates for all tax legislation. Its work directly influences corporate tax structures and capital investment incentives, which profoundly affect Microsoft's financial planning and profitability.

Finance

As the primary committee for taxation and trade, it directly impacts Microsoft's corporate tax burden, international trade policies, and overall profitability through tax legislation and trade agreements.

Appropriations

This committee directly allocates discretionary federal spending. Its subcommittees determine the specific funding for government agencies and programs that Microsoft contracts with, directly impacting its government revenue.

Judiciary

This committee oversees antitrust laws, intellectual property rights, and the DOJ. These areas are critically important for Microsoft's competitive practices, software patents, and potential M&A activities.

Armed Services

Microsoft is a significant defense contractor, providing cloud computing, AI, and software services to the Department of Defense. This committee directly authorizes the NDAA and determines funding for military technology.

Select Committee on Intelligence

Microsoft is a major provider of cybersecurity and cloud services to the US Intelligence Community and defense sector. Members could possess classified information impacting national security threats and related government contracts.

Commerce, Science, and Transportation

This committee has vast jurisdiction over interstate commerce, telecommunications, and tech regulation (privacy, net neutrality, FTC oversight), directly impacting Microsoft's cloud services, internet businesses, and data practices.

Homeland Security and Governmental Affairs

This committee directly regulates federal contracting and government procurement, which are significant revenue streams for Microsoft's cloud and software services to the US government. It also increasingly regulates AI, a core technology for MSFT.