MICROSOFT CORP (MSFT) Stock Analysis

TechnologyServices-Prepackaged Software

Summary Fair Value Intrinsic Value Metrics Investors Income Statements Balance Sheets Cash Flow Quarter Comparator Company Info

Q4 2026 · +17.7% revenue · +8.6% revenue

Beat the trendvs trailing 3-quarter avg

Revenue▼−0.1 ppvs trend

Net income▼−0.4 ppvs trend

Diluted EPS▼−0.5 ppvs trend

Free cash flow▼−23.8 ppvs trend

Outperformed in 0 of 4 metrics

How the cash was deployedQ4 2026

Operating cash flow$55.44B

$35.80B (64.6 %)

Share buybacks$4.58B (8.3 %)

Dividends paid$6.76B (12.2 %)

Returned to shareholders this quarter$11.34B▲ +5.8%

Last 8 quarters of revenueLatest quarter highlighted. Q4 reconstructed from the annual filing.

+17.7% +8.6%

65.58B

Q1 25

69.63B

Q2 25

70.07B

Q3 25

76.44B

Q4 25^*

77.67B

Q1 26

81.27B

Q2 26

82.89B

Q3 26

90.01B

Q4 26^*

* Q4 is reconstructed from the annual filing (FY − Q1 − Q2 − Q3), since the SEC does not require a Q4 10-Q.

RevenueAccelerating

$90.01B

▲+17.7% ▲+8.6%

61.86B

64.73B

65.58B

69.63B

70.07B

76.44B

77.67B

81.27B

82.89B

90.01B

Moving faster than the prior quarter — the trend is picking up speed.

Net incomeReversal

$35.77B

▲+31.3% ▲+12.5%

21.94B

22.04B

24.67B

24.11B

25.82B

27.23B

27.75B

38.46B

31.78B

35.77B

Direction flipped this quarter — watch for a one-off or a new trend.

Free cash flowSlowing

$19.64B

▼−23.2% ▲+24.3%

20.96B

23.32B

19.26B

6.49B

20.30B

25.57B

25.66B

5.88B

15.80B

19.64B

Still moving the same direction, but at a smaller pace than the prior quarter.

Diluted Reversal

$4.80

▲+31.5% ▲+12.4%

2.94

3.30

3.23

3.46

3.65

3.72

5.16

4.27

4.80

Direction flipped this quarter — watch for a one-off or a new trend.

Margins

Gross marginSteady

67.2 %

▼−1.4 pp ▼−0.4 pp

70.08

69.59

69.35

68.69

68.72

68.58

69.05

68.04

67.63

67.20

Holding the same pace as the prior quarter.

Operating marginAccelerating

45.1 %

▲+0.2 pp ▼−1.2 pp

44.59

43.14

46.58

45.46

45.67

44.90

48.87

47.09

46.33

45.11

Moving faster than the prior quarter — the trend is picking up speed.

Net marginReversal

39.7 %

▲+4.1 pp ▲+1.4 pp

35.47

34.04

37.61

34.62

36.86

35.63

35.72

47.32

38.34

39.74

Direction flipped this quarter — watch for a one-off or a new trend.

Metric	Q4 2025Same quarter, prior year	Q3 2026Previous quarter	Q4 2026Latest quarter	YoY	QoQ
Revenue	$76.44B	$82.89B	$90.01B	+17.7%	+8.6%
Cost of revenue	$24.01B	$26.83B	$29.52B	+22.9%	+10.1%
Gross profit	$52.43B	$56.06B	$60.48B	+15.4%	+7.9%
Operating expenses	$65.36B	$17.66B	$19.88B	−69.6%	+12.6%
Operating income	$34.32B	$38.40B	$40.60B	+18.3%	+5.7%
Net income	$27.23B	$31.78B	$35.77B	+31.3%	+12.5%
Diluted	$3.65	$4.27	$4.80	+31.5%	+12.4%
Operating cash flow	$42.65B	$46.68B	$55.44B	+30.0%	+18.8%
	$17.08B	$30.88B	$35.80B	+110%	+16.0%
Free cash flow	$25.57B	$15.80B	$19.64B	−23.2%	+24.3%
Gross margin	68.6 %	67.6 %	67.2 %	−1.4 pp	−0.4 pp
Operating margin	44.9 %	46.3 %	45.1 %	+0.2 pp	−1.2 pp
Net margin	35.6 %	38.3 %	39.7 %	+4.1 pp	+1.4 pp