Recent News
July 21, 2026 — Microsoft expanded its strategic partnership with Mistral to deliver frontier AI solutions for regulated industries. July 23, 2026 — Microsoft and Databricks extended a decade-long collaboration to deepen enterprise AI integration. July 15–29, 2026 — Microsoft announced a separate strategic partnership with 3M on AI data center infrastructure and released partner-program updates across July and August, including modernization of partner verification and a new unified Marketplace offering slated for September 2026.
Technical Analysis
Directional indicators show a bearish alignment: the positive directional index peaked and reversed, while the negative directional index dipped then reversed—both imply the directional system favors sellers. ADX at 35.08 confirms a strong trend environment supporting that directional bias.
MACD sits below its signal line (MACD 12.30 vs signal 15.91) and the MACD value declines, indicating bearish momentum rather than a fresh bullish crossover.
The momentum/regression oscillator reads 34.63 (positive), which signals the price currently exceeds the model target and carries potential for a corrective move downward from current levels.
Relative strength shows a peak-and-reverse at 59.79, marking faded upside momentum and a rollover in short-term strength.
Price sits below near-term cloud and conversion averages: the 12-day EMA and 20-day average both peaked then reversed and the current close ($492.44) trades under the 12-day/tenkan and 20-day values, pointing to short-term pressure. The 200-day average ($429.53) remains well below price, indicating longer-term appreciation persists even as short-term momentum softens.
Bollinger bands contain price between the $488 lower band and $508 upper band, with volume below 10/50/200-day averages, suggesting the recent directional signals developed with relatively muted participation and allowing for a higher-probability short-term correction.
Fundamental Analysis
Profitability and cash flow: EBIT equals $44,886,000,000, giving an EBIT margin of 49.87%, above the industry peer mean of 27.99% and the industry peer median of 34.42%. EBIT margin rose by 3.03% quarter-over-quarter and by 14.71% year-over-year, reinforcing operational leverage and margin expansion.
Net income reached $35,766,000,000 and operating cash flow totaled $30,678,000,000. Free cash flow measured $19,639,000,000, producing a free cash flow yield of 0.666% and free cash flow growth of 24.27% year-over-year. Cash conversion remains strong with a cash conversion cycle of -60.05 days.
Earnings detail: reported EPS $4.74 versus estimate $4.24, an EPS surprise of 11.79%, and the EPS beat occurred alongside headline revenue results. Forward EPS of $5.867 implies a forward P/E of 68.71; trailing P/E stands at 83.69 while forward P/E reduces relative to trailing, reflecting earnings carryforward in the next fiscal periods.
Growth metrics: reported revenue totaled $90,007,000,000. Revenue growth YoY shows -5.58% while the provided trailing revenue growth figure sits at 8.59%; quarter-over-quarter revenue change shows a positive movement of 332.80% per the supplied QoQ figure. Gross margin at 67.20% changed minimally year-over-year. Earnings growth registers 110.01% YoY with earnings growth QoQ of 250.54% per supplied values, indicating large year-over-year comparables in earnings.
Leverage and liquidity: total debt $56,826,000,000 produces a debt-to-EBITDA near 1.02 and interest coverage about 53.50x, reflecting a low-cost, well-covered debt profile (cost of debt ~1.20%). Current ratio measures 1.23 and quick ratio 1.22, below the industry peer mean current ratio of 2.94 but inside the industry peer range.
Valuation context: price-to-sales 32.74, price-to-book 6.66, and enterprise multiple 52.35. WMDST values the stock as under-valued. Relative to the industry peer mean P/B of 9.22 and median of 8.94, the company trades below the peer mean on a P/B basis; forward P/E trending down from the trailing P/E suggests some earnings progression priced into forward estimates.
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: 112.081 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: 0.228 median: 0.169 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: 0.367 median: 0.235 MSFT: 0.128 low: -1.908 |
|
| 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: 25.349 mean: 9.22 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: 132.93 median: 91.794 MSFT: 83.689 low: -225.715 |
|
| 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: 96.135 mean: 38.797 MSFT: 32.739 median: 28.124 low: 0.103 |
|
| 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: 0.41 mean: 0.132 median: 0.13 MSFT: 0.124 low: 0.001 |
|
| Receivables Turnover | 1.277 | |
| Receivables Turnover Ratio QoQ | -10.166 % | |
| Receivables Turnover Ratio YoY | 1.611 % | |
| Receivables Turnover Ratio IPRWA | high: 5.131 mean: 1.57 median: 1.339 MSFT: 1.277 low: 0.071 |
|
| Inventory Turnover | 22.573 | |
| Inventory Turnover Ratio QoQ | -4.166 % | |
| Inventory Turnover Ratio YoY | -16.06 % | |
| Inventory Turnover Ratio IPRWA | MSFT: 22.573 high: 2.578 mean: 1.113 median: 1.017 low: 0.052 |
|
| 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: 196.645 median: 43.73 mean: 14.844 MSFT: -60.051 low: -232.881 |
|
| 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: 9.033 mean: 2.936 median: 1.29 MSFT: 1.23 low: 0.04 |
|
| Quick Ratio | 1.222 | |
| Quick Ratio QoQ | -4.08 % | |
| Quick Ratio YoY | -9.263 % | |
| Quick Ratio IPRWA | high: 15.727 median: 7.533 mean: 4.487 MSFT: 1.222 low: 0.446 |
|
| 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: 155.643 MSFT: 53.499 mean: 7.921 median: 7.387 low: -187.314 |
|
| 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: 28.237 % MSFT: 8.591 % mean: 7.401 % median: 7.286 % low: -22.505 % |
|
| Earnings Growth | 11.007 % | |
| Earnings Growth QoQ | 250.541 % | |
| Earnings Growth YoY | 100.455 % | |
| Earnings Growth IPRWA | high: 100.0 % mean: 12.347 % MSFT: 11.007 % median: 4.912 % low: -83.333 % |
|
| MARGINS | ||
| Gross Margin | 67.197 % | |
| Gross Margin QoQ | -0.645 % | |
| Gross Margin YoY | -2.024 % | |
| Gross Margin IPRWA | high: 93.582 % median: 75.298 % mean: 75.216 % MSFT: 67.197 % low: 13.199 % |
|
| 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: 27.989 % low: -171.094 % |
|
| 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: 25.669 % low: -75.925 % |
|
| 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: 7.622 % mean: 0.825 % MSFT: 0.666 % median: 0.478 % low: -13.559 % |
|
| 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 % median: -7.208 % mean: -7.461 % 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: 15.855 % MSFT: 4.924 % mean: 3.207 % median: 1.727 % low: -25.441 % |
|
| 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: 0.341 MSFT: 0.081 median: 0.062 mean: 0.057 low: -0.268 |
|
| 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: 17.018 % MSFT: 7.551 % mean: 3.338 % median: 3.266 % low: -14.563 % |
|