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Microsoft
NASDAQ: MSFT Technology IT 🔎 Screen
Dow 30 S&P 500 Nasdaq 100
$2.90T
Market Cap
36.5
P/E
3.04
PEG
21.8%
ROCE
33.3%
ROE
0.17
D/E
45.6%
OPM
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🌏 Global Investor Returns
Currency-adjusted total returns for MSFT including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Microsoft Corporation develops and supports software, services, devices, and solutions worldwide.

Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
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⭐ Superinvestors Holding MSFT
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Manager Shares Value % of Fund Period
Bill Ackman Pershing Square Capital Management 5.65M $2.1B 15.26% Mar 2026
Tiger Global Management Tiger Global Management LLC 2.50M $925.4M 4.05% Mar 2026
Andreas Halvorsen Viking Global Investors 2.31M $854.9M 2.39% Mar 2026
Steve Cohen Point72 Asset Management 350.6K $129.8M 0.17% Mar 2026
David Tepper Appaloosa LP 90.0K $33.3M 0.56% Mar 2026
Jim Simons Renaissance Technologies LLC 9.5K $3.5M 0.01% Mar 2026
Cathie Wood ARK Investment Management 6.4K $2.4M 0.02% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q3 2026
Revenue
$82.9B
+18% YoY
Operating Income
$38.4B
+20% YoY
Operating Margin
46%
slightly up YoY
Net Income
$31.8B
+23% YoY
What Went Right
  • AI business ARR reached $37B, growing 123% YoY
  • Microsoft 365 Copilot paid seats exceeded 20M, up 250% YoY
  • Azure revenue grew 40% YoY, ahead of expectations
What to Watch
  • Capital expenditures expected to exceed $40B in Q4; FY2026 CapEx outlook $190B
  • Supply constraints to persist at least through 2026, limiting Azure growth
  • Consumer segment revenue declined 1% YoY, with gaming down 7% in constant currency
Management Guidance
  • Q4 revenue guidance: $86.7B - $87.8B (growth 13%-15%)
  • Microsoft Cloud gross margin expected ~64% in Q4
  • Full-year FY2026 operating margins up ~1 point YoY; FY2027 double-digit revenue and operating income growth
Investor Lens
The thesis is stronger after this call. AI monetization is accelerating, with the $37B ARR milestone and record Copilot seat adds validating the demand. The shift to usage-based pricing across M365, GitHub, and Dynamics expands the addressable market. However, the massive CapEx ramp ($190B for CY2026) and ongoing supply constraints introduce near-term execution risk. The management's confidence in accelerating Azure growth in H2 CY2026 and sustained double-digit top-line growth into FY2027 supports a positive long-term view.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong beat: record Q3 with AI ARR $37B, cloud revenue $54.5B
Revenue
Revenue was $82.9B, up 18% YoY (15% in constant currency). Productivity and Business Processes contributed $35.0B (+17%), Intelligent Cloud $34.7B (+30%), and More Personal Computing $13.2B (-1%). Azure revenue grew 40% (39% constant currency), ahead of guidance.
Profitability
GAAP net income was $31.8B, up 23% YoY. Diluted EPS was $4.27, up 23% GAAP and 21% non-GAAP. Non-GAAP adjustments excluded a $14M net loss from OpenAI investments.
Margins
Operating margin was 46%, up slightly YoY, despite higher AI infrastructure investments. Gross margin fell to 68% (down YoY) due to AI capacity costs, partially offset by Azure and M365 commercial cloud efficiency gains.
Balance Sheet
Free cash flow was $15.8B, down from higher CapEx. Operating cash flow was $46.7B (+26% YoY). Capital expenditures were $31.9B in Q3; Q4 CapEx guided to over $40B, with full CY2026 CapEx expected at $190B.
Key Risks
Management flagged persistent supply constraints through 2026, impacting Azure growth. Consumer business faced headwinds from PC market dynamics and gaming tough comps. FX is expected to add ~1 point to Q4 revenue growth in some segments.
Outlook
Q4 revenue is guided to $86.7B-$87.8B (13%-15% growth). Azure growth expected at 39%-40% constant currency, with modest acceleration in the second half of CY2026. Full-year FY2026 operating margins are expected up about one point YoY, and FY2027 is expected to deliver double-digit revenue and operating income growth.
Generated by AI · Q3 2026 results · Not investment advice
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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