Microsoft's revenue growth accelerated to 17.7% in 2026Q4, driven by cloud and AI monetization, while operating margin expanded to 45.1% from 43.1% a year earlier. However, the aggressive AI infrastructure buildout has driven capex to 39.8% of revenue, compres...
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Revenue growth accelerated to 17.7% in 2026Q4 with operating margin expanding to 45.1%, though gross margin declined to 67.2% from 70.1% in 2024Q3 due to AI mix dilution.
Azure is expected to grow over 35% through fiscal year 2026 as supply constraints ease.
Increased adoption of Microsoft 365 Copilot among enterprise clients is anticipated to significantly boost revenue.
Significant capital expenditures on AI infrastructure are necessary to maintain competitiveness, with new capacity expected in late 2026.
Planned AI infrastructure spending could reach up to $190 billion in 2026, risking free cash flow margins.
There are concerns about softening AI demand and execution risks with Microsoft 365 Copilot adoption.
Increased depreciation from AI infrastructure investments may lead to margin compression.
Trailing total returns as of 9/23/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 29, 2026 | $4.74+11.8% vs $4.24 | $90.0B+2.7% vs $87.6B |
Q2 2026 Apr 29, 2026 | $4.27+5.2% vs $4.06 | $82.9B+1.8% vs $81.4B |
Q1 2026 Jan 28, 2026 | $4.14+6.2% vs $3.90 | $81.3B+1.2% vs $80.3B |
Q4 2025 Oct 29, 2025 | $4.13+12.5% vs $3.67 | $77.7B+2.9% vs $75.5B |
Microsoft on Tuesday said it will give the US Defense Advanced Research Projects Agency direct, on-site access to its latest quantum computing hardware as part of a new research center the company opened in Maryland alongside the University of Maryland and other industry partners.
Microsoft will consider shareholder proposals at its annual meetings through next year, at the request of an activist looking to preserve investor rights as they come under pressure from a contentious U.S. Securities and Exchange Commission rule change proposed last week.
President Donald Trump disclosed 1,156 securities transactions made on his behalf in July, totaling between roughly $79 million and $270 million, CNBC calculated. The largest were sales of between $5 million and $25 million each of Microsoft and Amazon on July 20.
Steve Eisman, the money manager who shorted subprime and was portrayed by Steve Carell in The Big Short, warned on his September 21 podcast that the AI trade rests on dangerous concentration.
Benchmark MSFT against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Microsoft Corporation (MSFT)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $498.00 | $3.7T | 27.74 | 17.79% | 40.31% | 34.04% | 0.71% | |
| $339.75 | $4.99T | 45.54 | 6.43% | 27.62% | 137.18% | — | |
| $351.16 | $4.25T | 32.48 | 15.13% | 54.77% | 50.84% | — | |
| $254.98 | $2.74T | 35.56 | 12.38% | 17.44% | 30.5% | — | |
| $736.60 | $1.87T | 31.36 | 22.17% | 29.84% | 29.73% | — | |
| $149.12 | $428.88B | 25.58 | 17.35% | 26.36% | 42.1% | — |
Microsoft Corporation (MSFT) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Microsoft Corporation (MSFT) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jul 29, 2026·SEC
Jun 5, 2026·SEC
May 14, 2026·SEC
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Microsoft Corporation (MSFT) stock FAQ — growth, dividends, profitability & financials explained
Microsoft Corporation (MSFT) reported $331.84B in revenue for fiscal year 2026. This represents a 2680% increase from $11.94B in 1997.
Microsoft Corporation (MSFT) grew revenue by 17.8% over the past year. This is strong growth.
Yes, Microsoft Corporation (MSFT) is profitable, generating $133.75B in net income for fiscal year 2026 (40.3% net margin).
Yes, Microsoft Corporation (MSFT) pays a dividend with a yield of 0.71%. This makes it attractive for income-focused investors.
Microsoft Corporation (MSFT) has a return on equity (ROE) of 34.0%. This is excellent, indicating efficient use of shareholder capital.
Microsoft Corporation (MSFT) generated $66.99B in free cash flow for fiscal year 2026. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
