Recent News
July 23, 2026 — Microsoft expanded its strategic partnership with Databricks to deepen Azure integration and enterprise AI deployments. July 21, 2026 — Microsoft and Mistral broadened their collaboration to enable enterprises and regulated industries to run frontier AI on Microsoft Foundry, Azure, and Azure Local. June 24, 2026 — Microsoft and 3M announced a strategic partnership to advance AI data-center infrastructure and enterprise transformation. June–July 2026 — Microsoft updated partner certifications and cloud go‑to‑market resources, including retirement and replacement of several Azure AI certifications.
Technical Analysis
Directional indicators: ADX at 34.84 signals a strong trend environment; DI+ at 38.27 shows a weakening directional advantage as DI+ decreases, while DI− registered a dip & reversal (16.14), both directional signals align toward increased downside pressure in the near term.
MACD: MACD sits at 22.81 versus a 22.02 signal line (MACD currently above its signal line, a bullish signal), yet the MACD trend reads as a peak & reversal, signaling a shift toward bearish momentum despite the short-term crossover.
MRO (Momentum/Regression Oscillator): MRO equals 38.87 and remains positive with an increasing trend; price sits above WMDST’s target framework, implying compression risk and a higher probability of downward mean reversion from current levels.
RSI: RSI at 59.73 with a peak & reversal pattern indicates recent strength losing steam and raises the likelihood of a short-term pullback from recent highs.
Price vs averages and bands: Last close $484.31 sits above the 200‑day average ($432.28) — confirming longer-term bullish bias — but below the 20‑day average ($489.98), indicating short-term weakness. Price trades inside the 1× Bollinger band range ($474.59–$505.37) and sits above the supertrend lower support at $470.40. Short-term EMAs show a peak & reversal on the 12‑day EMA ($480.05), reinforcing near-term consolidation risk.
Volume & volatility: Daily volume (~19.8M) remains below 10/50/200‑day averages, pointing to lighter participation during the recent move. Forty‑two‑day beta of 2.0 signals elevated short‑term volatility compared with a 52‑week beta near 1.02.
Fundamental Analysis
Profitability: EBIT equals $44.886 billion and EBIT margin at 49.87% sits above the industry peer mean (28.42%) and median (34.42%), with a QoQ increase of 3.03% and a YoY increase of 14.71%, supporting stronger operating conversion than typical peers.
Revenue and earnings: Total revenue reached $90.007 billion. Reported EPS came in at $4.74 versus an estimate of $4.24, yielding an EPS surprise of +11.79% and an EPS beat of $0.50. Report timing: period ended 2026‑06‑30 with the report dated 2026‑07‑29.
Cash flow and balance sheet: Operating cash flow totaled $30.678 billion and free cash flow reached $19.639 billion, producing a free cash flow yield of ~0.67%; free cash flow yield shows a QoQ improvement (~+28.57%). Cash and short‑term investments stand at $76.651 billion with a net debt of $19.359 billion and an interest coverage ratio near 53.50, indicating ample liquidity and low leverage.
Valuation metrics: Trailing PE sits at 83.69x while forward PE equals ~68.71x; price‑to‑book stands at 6.66x, below the industry peer mean (9.09x) and median (8.94x). Enterprise multiple ~52.35 supports a premium multiple structure, yet WMDST currently values the stock as under‑valued relative to the firm’s projected cash flows and risk profile.
Growth and returns: Revenue growth reads 8.59% (overall) with YoY revenue change of −5.58% and a QoQ revenue change near +3.33%; earnings growth YoY registers materially positive. Return on equity equals 8.09% and return on assets equals 4.92%, both above the industry peer mean values provided.
Summary valuation note: Strong margins, robust cash generation, and a dominant cloud and AI positioning underpin WMDST’s under‑valued determination despite elevated absolute multiples; forward‑looking multiples compress versus trailing levels, implying market expectations of slower absolute earnings conversion even as profitability stays above peer averages.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-06-30 |
| REPORT DATE: | 2026-07-29 |
| NEXT REPORT DATE: | 2026-10-28 |
| CASH FLOW | Begin Period Cash Flow | $ 32.1 B |
| Operating Cash Flow | $ 30.7 B | |
| Capital Expenditures | $ -35.80 B | |
| Change In Working Capital | $ 4.6 B | |
| Dividends Paid | $ -6.76 B | |
| Cash Flow Delta | $ -11.17 B | |
| End Period Cash Flow | $ 20.9 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 90.0 B | |
| Forward Revenue | $ 27.4 B | |
| COSTS | ||
| Cost Of Revenue | $ 29.5 B | |
| Depreciation | $ 11.0 B | |
| Depreciation and Amortization | $ 11.0 B | |
| Research and Development | $ 10.0 B | |
| Total Operating Expenses | $ 49.4 B | |
| PROFITABILITY | ||
| Gross Profit | $ 60.5 B | |
| EBITDA | $ 55.9 B | |
| EBIT | $ 44.9 B | |
| Operating Income | $ 40.6 B | |
| Interest Income | $ 755.0 M | |
| Interest Expense | $ 839.0 M | |
| Net Interest Income | $ -84.00 M | |
| Income Before Tax | $ 44.0 B | |
| Tax Provision | $ 8.3 B | |
| Tax Rate | 18.8 % | |
| Net Income | $ 35.8 B | |
| Net Income From Continuing Operations | $ 35.8 B | |
| EARNINGS | ||
| EPS Estimate | $ 4.24 | |
| EPS Actual | $ 4.74 | |
| EPS Difference | $ 0.50 | |
| EPS Surprise | 11.792 % | |
| Forward EPS | $ 5.87 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 758.4 B | |
| Intangible Assets | $ 138.3 B | |
| Net Tangible Assets | $ 304.1 B | |
| Total Current Assets | $ 207.7 B | |
| Cash and Short-Term Investments | $ 76.7 B | |
| Cash | $ 20.9 B | |
| Net Receivables | $ 80.9 B | |
| Inventory | $ 1.4 B | |
| Long-Term Investments | $ 38.8 B | |
| LIABILITIES | ||
| Accounts Payable | $ 42.4 B | |
| Short-Term Debt | $ 9.2 B | |
| Total Current Liabilities | $ 168.8 B | |
| Net Debt | $ 19.4 B | |
| Total Debt | $ 56.8 B | |
| Total Liabilities | $ 316.0 B | |
| EQUITY | ||
| Total Equity | $ 442.4 B | |
| Retained Earnings | $ 328.3 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 59.55 | |
| Shares Outstanding | 7.428 B | |
| Revenue Per-Share | $ 12.12 | |
| VALUATION | Market Capitalization | $ 2.9 T |
| Enterprise Value | $ 2.9 T | |
| Enterprise Multiple | 52.352 | |
| Enterprise Multiple QoQ | -13.033 % | |
| Enterprise Multiple YoY | -36.275 % | |
| Enterprise Multiple IPRWA | high: 477.541 mean: 112.61 median: 68.756 MSFT: 52.352 low: -246.135 |
|
| EV/R | 32.519 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.714 | |
| Asset To Liability | 2.4 | |
| Debt To Capital | 0.114 | |
| Debt To Assets | 0.075 | |
| Debt To Assets QoQ | -8.689 % | |
| Debt To Assets YoY | -23.447 % | |
| Debt To Assets IPRWA | high: 1.037 mean: 0.26 median: 0.228 MSFT: 0.075 low: 0.005 |
|
| Debt To Equity | 0.128 | |
| Debt To Equity QoQ | -6.561 % | |
| Debt To Equity YoY | -27.183 % | |
| Debt To Equity IPRWA | high: 3.078 mean: 0.409 median: 0.235 MSFT: 0.128 low: -2.107 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 6.661 | |
| Price To Book QoQ | -9.455 % | |
| Price To Book YoY | -37.902 % | |
| Price To Book IPRWA | high: 19.185 mean: 9.091 median: 8.935 MSFT: 6.661 low: -10.151 |
|
| Price To Earnings (P/E) | 83.689 | |
| Price To Earnings QoQ | -12.913 % | |
| Price To Earnings YoY | -35.717 % | |
| Price To Earnings IPRWA | high: 359.099 mean: 135.535 median: 90.588 MSFT: 83.689 low: -196.279 |
|
| PE/G Ratio | 7.603 | |
| Price To Sales (P/S) | 32.739 | |
| Price To Sales QoQ | -10.98 % | |
| Price To Sales YoY | -32.075 % | |
| Price To Sales IPRWA | high: 81.172 mean: 35.754 MSFT: 32.739 median: 28.124 low: 0.213 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 68.714 | |
| Forward PE/G | 6.243 | |
| Forward P/S | 107.466 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.383 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.124 | |
| Asset Turnover Ratio QoQ | 1.64 % | |
| Asset Turnover Ratio YoY | -4.212 % | |
| Asset Turnover Ratio IPRWA | high: 0.368 mean: 0.133 median: 0.131 MSFT: 0.124 low: 0.002 |
|
| Receivables Turnover | 1.277 | |
| Receivables Turnover Ratio QoQ | -10.166 % | |
| Receivables Turnover Ratio YoY | 1.611 % | |
| Receivables Turnover Ratio IPRWA | high: 5.131 mean: 1.575 median: 1.339 MSFT: 1.277 low: 0.46 |
|
| Inventory Turnover | 22.573 | |
| Inventory Turnover Ratio QoQ | -4.166 % | |
| Inventory Turnover Ratio YoY | -16.06 % | |
| Inventory Turnover Ratio IPRWA | MSFT: 22.573 high: 2.344 mean: 1.111 median: 1.017 low: 0.429 |
|
| Days Sales Outstanding (DSO) | 71.432 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -60.051 | |
| Cash Conversion Cycle Days QoQ | -5.091 % | |
| Cash Conversion Cycle Days YoY | 66.581 % | |
| Cash Conversion Cycle Days IPRWA | high: 180.031 median: 52.835 mean: 39.665 MSFT: -60.051 low: -179.144 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 2.315 | |
| CapEx To Revenue | -0.398 | |
| CapEx To Depreciation | -3.248 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 473.5 B | |
| Net Invested Capital | $ 482.7 B | |
| Invested Capital | $ 482.7 B | |
| Net Tangible Assets | $ 304.1 B | |
| Net Working Capital | $ 38.9 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.454 | |
| Current Ratio | 1.23 | |
| Current Ratio QoQ | -4.101 % | |
| Current Ratio YoY | -9.097 % | |
| Current Ratio IPRWA | high: 7.228 mean: 2.286 MSFT: 1.23 median: 1.148 low: 0.314 |
|
| Quick Ratio | 1.222 | |
| Quick Ratio QoQ | -4.08 % | |
| Quick Ratio YoY | -9.263 % | |
| Quick Ratio IPRWA | high: 4.376 mean: 1.374 median: 1.318 MSFT: 1.222 low: 1.027 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 1.016 | |
| Cost Of Debt | 1.197 % | |
| Interest Coverage Ratio | 53.499 | |
| Interest Coverage Ratio QoQ | 3.75 % | |
| Interest Coverage Ratio YoY | -0.99 % | |
| Interest Coverage Ratio IPRWA | high: 86.943 MSFT: 53.499 mean: 12.679 median: 7.537 low: -64.202 |
|
| Operating Cash Flow Ratio | 0.182 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 135.931 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 5.292 | |
| Dividend Payout Ratio | 0.189 | |
| Dividend Rate | $ 0.91 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 9.24 % | |
| Revenue Growth | 8.591 % | |
| Revenue Growth QoQ | 332.796 % | |
| Revenue Growth YoY | -5.583 % | |
| Revenue Growth IPRWA | high: 18.552 % MSFT: 8.591 % mean: 7.646 % median: 7.477 % low: -13.038 % |
|
| Earnings Growth | 11.007 % | |
| Earnings Growth QoQ | 250.541 % | |
| Earnings Growth YoY | 100.455 % | |
| Earnings Growth IPRWA | high: 66.142 % mean: 12.331 % MSFT: 11.007 % median: 4.912 % low: -73.529 % |
|
| MARGINS | ||
| Gross Margin | 67.197 % | |
| Gross Margin QoQ | -0.645 % | |
| Gross Margin YoY | -2.024 % | |
| Gross Margin IPRWA | high: 90.951 % mean: 75.636 % median: 75.298 % MSFT: 67.197 % low: 35.718 % |
|
| EBIT Margin | 49.869 % | |
| EBIT Margin QoQ | 3.033 % | |
| EBIT Margin YoY | 14.713 % | |
| EBIT Margin IPRWA | high: 80.922 % MSFT: 49.869 % median: 34.42 % mean: 28.417 % low: -32.768 % |
|
| Return On Sales (ROS) | 45.111 % | |
| Return On Sales QoQ | -2.623 % | |
| Return On Sales YoY | 0.468 % | |
| Return On Sales IPRWA | high: 77.678 % MSFT: 45.111 % median: 28.399 % mean: 26.035 % low: -32.768 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 19.6 B | |
| Free Cash Flow Yield | 0.666 % | |
| Free Cash Flow Yield QoQ | 28.571 % | |
| Free Cash Flow Yield YoY | -4.035 % | |
| Free Cash Flow Yield IPRWA | high: 5.981 % mean: 0.841 % MSFT: 0.666 % median: 0.478 % low: -3.884 % |
|
| Free Cash Growth | 24.274 % | |
| Free Cash Growth QoQ | -85.608 % | |
| Free Cash Growth YoY | -6.484 % | |
| Free Cash Growth IPRWA | high: 215.912 % MSFT: 24.274 % mean: -6.165 % median: -7.208 % low: -222.15 % |
|
| Free Cash To Net Income | 0.549 | |
| Cash Flow Margin | 34.084 % | |
| Cash Flow To Earnings | 0.858 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 4.924 % | |
| Return On Assets QoQ | 5.326 % | |
| Return On Assets YoY | 6.834 % | |
| Return On Assets IPRWA | high: 9.707 % MSFT: 4.924 % mean: 2.772 % median: 1.698 % low: -9.216 % |
|
| Return On Capital Employed (ROCE) | 7.614 % | |
| Return On Equity (ROE) | 0.081 | |
| Return On Equity QoQ | 5.424 % | |
| Return On Equity YoY | 1.967 % | |
| Return On Equity IPRWA | high: 0.188 MSFT: 0.081 median: 0.062 mean: 0.053 low: -0.266 |
|
| DuPont ROE | 8.35 % | |
| Return On Invested Capital (ROIC) | 7.551 % | |
| Return On Invested Capital QoQ | 5.934 % | |
| Return On Invested Capital YoY | 5.226 % | |
| Return On Invested Capital IPRWA | high: 19.61 % MSFT: 7.551 % mean: 4.509 % median: 3.266 % low: -13.889 % |
|