Microsoft Corporation

MSFT

Software - Infrastructure · Technology

Price

$499.99

+0.13 (+0.03%)

Market Cap

$3.71T

Exchange

NASDAQ

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 9, 2026 · filings through Jun 30, 2026

Share count falling — buybacks

−1.2% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 7.54B (2022) → 7.45B (2026)

Microsoft makes software, cloud services, and devices used by billions of people and businesses around the world. Its most well-known products include Windows, the Office suite (Word, Excel, PowerPoint), and the Xbox gaming platform. It also owns LinkedIn, the professional networking site, and GitHub, a platform used by software developers.

Microsoft earns money through software subscriptions, cloud computing services, advertising, and hardware sales. Its Azure cloud platform competes directly with Amazon Web Services and is one of the largest cloud businesses in the world, giving Microsoft a strong foothold in enterprise technology. The company operates globally, with revenue spread across consumers, large corporations, and governments. With a gross margin near 68%, Microsoft's software and cloud businesses generate highly profitable recurring revenue. The key growth driver is continued expansion of Azure and AI-powered tools like Copilot, though rising competition in cloud and potential regulatory scrutiny over its AI partnerships remain notable risks.

Winston Score History

Politician Trades

127 trades / 12mo

65 Congressional buys and 62 sells on MSFT in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+17.7% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+31.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$35.6B/ year

↑ Rising (+9% vs prior year)

10.7% of revenue

Below sector average (15%)

Investing heavily in future products and technology

Insider Activity

0.1%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$113.2B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Microsoft Corporation is a rare growth stock that's already generating positive cash flow while growing at 18%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin

67.2%

Premium pricing power — 67.2% gross margin

Operating Margin

45.1%

Excellent — 45.1% operating margin

ROCE

8.4%

Below par — 8.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+17.8%

Fast-growing sales (+17.8% YoY)

EPS YoY

+31.5%

Earnings growing fast (+31.5% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion

137%

Turns 137% of profit into real cash

FCF Margin

20.2%

Converts sales into free cash efficiently (20.2%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

0.09

Conservative — low debt load (0.09)

Interest Cover

50.88x

Comfortably covers interest (50.9x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

27.8x

Growth-priced — P/E 27.8

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+10.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (27.8 → 17.1)

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Dividends

Dividend Yield

0.91%

Small dividend — 0.91% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

+9.6%

Dividend growing modestly (9.6% YoY)

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