Recent News
July 2026 coverage highlighted a major Xbox restructuring and the divestiture of five gaming studios announced in early July. Microsoft rolled out partner and Copilot program changes in June–July that shift go-to-market incentives and introduce a 30‑day Copilot trial for small and medium businesses; product updates to Microsoft 365 Copilot and Copilot Studio appeared through July and August. Corporate posts in July described organizational changes and new public‑sector and scientific partnership initiatives. Discussions appeared around Copilot pricing and a potential Microsoft‑hosted model option.
Technical Analysis
Directional indicators show ADX at 35.45, indicating a strong underlying trend; DI+ shows a dip & reversal while DI‑ shows a peak & reversal, both signals align bullishly for directional strength toward price appreciation.
MACD sits at 18.25 with the signal line at 19.82; the MACD trend shows a dip & reversal, which denotes returning bullish momentum even though MACD has not crossed above the signal line yet, leaving momentum confirmation incomplete.
MRO reads 40.28 with a peak & reversal trend; the MRO positive value indicates price trading above WMDST’s target and suggests elevated potential for a corrective move toward fair value.
RSI at 61.85 with a dip & reversal signals regained upward momentum but not overbought conditions; the level supports continued upside while leaving room for consolidation.
Price structure favors bulls: close at $505.06 sits above the 12‑day EMA ($488.74, increasing), 20‑day average ($491.84), 50‑day average ($427.96) and 200‑day average ($430.12). Price exceeded the 1× upper Bollinger band ($502.05), indicating near‑term extension from the short‑term volatility band and the potential for a pullback toward the 20‑day average or the super trend lower at $472.75 if momentum cools.
Volume on the session at ~27.4M exceeded the 10‑day average (~20.9M) but remained below 50/200‑day averages, suggesting selective participation rather than broad capitulation or distribution.
Fundamental Analysis
Quarter ended June 30, 2026 (report dated July 29, 2026) shows total revenue of $90,007,000,000 and net income of $35,766,000,000; EPS reported $4.74 versus an estimate of $4.24, an EPS surprise of +11.79%.
Profitability remains high: EBIT $44,886,000,000 and EBIT margin 49.87%, above the industry peer mean EBIT margin of 28.42% and the industry peer median of 34.42%. Operating margin stands at 45.11%.
Revenue dynamics show YoY revenue change at -5.58% while sequential revenue growth (QoQ) registers +332.80%; earnings growth YoY registers +100.46% with QoQ earnings growth of +250.54%—the YoY and QoQ figures reflect large period‑to‑period shifts in reported comparables and cash flows for the quarter.
Cash generation appears solid: operating cash flow $30,678,000,000, free cash flow $19,639,000,000 and a free cash flow yield of 0.67%. Free cash flow to net income equals 54.91%, supporting continued capital returns; dividend payout ratio sits at 18.90% and dividend yield at 0.23%.
Leverage remains light: total debt $56,826,000,000, net debt $19,359,000,000, debt/EBITDA ≈ 1.02 and interest coverage ~53.50x. Liquidity ratios show current ratio 1.23 and quick ratio 1.22.
Valuation multiples trade rich on headline trailing metrics—P/E ≈ 83.69, P/S ≈ 32.74, price/book ≈ 6.66—while forward P/E ≈ 68.71 and forward PEG ≈ 6.24. The P/B ratio sits below the industry peer mean P/B of 9.09 and the industry peer median of 8.94. WMDST values the stock as under‑valued, and enterprise value measures (EV ≈ $2.927T; enterprise multiple ≈ 52.35) reflect premium growth expectations priced into multiples.
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 % |
|