Last 48 quarters of trend data · Technology · Software - Infrastructure
Quarterly valuation ratios — annualised for comparability. YoY Δ shows same-quarter-prior-year change.
Microsoft Corporation's quarterly P/E stands at 23.4x, down 28.2% year-over-year — suggesting improving earnings relative to price. EV/EBITDA has compressed 7.6% YoY to 19.2x, reflecting multiple compression or accelerating EBITDA.
| Metric | TTM | Q2 '26 | Q1 '26 | Q4 '25 | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Q3 '24 | Q2 '24 | Q1 '24 | Q4 '23 | Q3 '23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| P/E Ratio → | 28.79 | 23.43 | 34.81 | 34.07 | 27.12 | 32.62 | 32.60 | 37.88 | 35.78 | 32.09 | 26.40 | 31.65 | 29.42 |
| — | -28.2% | +6.8% | -10.1% | -24.2% | +1.7% | +23.5% | +19.7% | +21.6% | +17.7% | +6.6% | +9.9% | -15.3% | |
| P/S Ratio | 10.36 | 11.10 | 12.45 | 12.14 | 9.99 | 11.30 | 12.25 | 12.90 | 12.70 | 11.32 | 10.42 | 11.31 | 10.18 |
| — | -1.8% | +1.6% | -5.9% | -21.3% | -0.2% | +17.6% | +14.0% | +24.8% | +33.3% | +19.9% | +21.8% | -13.5% | |
| P/B Ratio | 8.54 | 9.23 | 10.65 | 10.80 | 8.70 | 10.40 | 11.17 | 12.44 | 12.42 | 11.79 | 10.68 | 12.33 | 11.05 |
| — | -11.2% | -4.7% | -13.1% | -29.9% | -11.8% | +4.7% | +0.9% | +12.3% | +20.4% | +6.3% | +6.5% | -22.5% | |
| P/FCF | 40.74 | 153.34 | 37.67 | 36.29 | 34.49 | 121.31 | 41.73 | 35.80 | 37.49 | 77.00 | 28.50 | 32.06 | 30.17 |
| — | +26.4% | -9.7% | +1.4% | -8.0% | +57.6% | +46.4% | +11.7% | +24.3% | -15.8% | +10.6% | +18.1% | +4.1% | |
| EV / EBITDA | 18.12 | 19.17 | 19.10 | 20.55 | 17.38 | 20.74 | 21.45 | 24.69 | 23.83 | 21.82 | 19.15 | 22.82 | 21.10 |
| — | -7.6% | -10.9% | -16.8% | -27.1% | -4.9% | +12.0% | +8.2% | +13.0% | +14.3% | +4.6% | +13.3% | -14.1% | |
| EV / EBIT | 22.94 | 18.58 | 27.85 | 28.15 | 22.15 | 26.64 | 26.38 | 30.31 | 29.10 | 26.24 | 21.22 | 25.47 | 23.59 |
| — | -30.2% | +5.6% | -7.1% | -23.9% | +1.5% | +24.3% | +19.0% | +23.4% | +19.0% | +5.2% | +8.2% | -17.7% |
Quarterly margins and returns. Watch for margin compression across consecutive quarters.
Microsoft Corporation's operating margin was 47.1% in Q2 2026, down 1.8 pp QoQ and up 1.6 pp YoY.
| Metric | TTM | Q2 '26 | Q1 '26 | Q4 '25 | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Q3 '24 | Q2 '24 | Q1 '24 | Q4 '23 | Q3 '23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.8% | 68.0% | 69.0% | 68.6% | 68.7% | 68.7% | 69.4% | 69.6% | 70.1% | 68.4% | 71.2% | 70.1% | 69.5% |
| — | -1.0% | -0.4% | -1.4% | -2.0% | +0.5% | -2.5% | -0.7% | +0.9% | +2.3% | +2.9% | +2.6% | +1.6% | |
| Operating Margin | 45.6% | 47.1% | 48.9% | 44.9% | 45.7% | 45.5% | 46.6% | 43.1% | 44.6% | 43.6% | 47.6% | 43.2% | 42.3% |
| — | +3.6% | +4.9% | +4.1% | +2.4% | +4.3% | -2.1% | -0.1% | +5.4% | +12.7% | +10.8% | +9.0% | +2.5% | |
| Net Margin | 36.1% | 47.3% | 35.7% | 35.6% | 36.9% | 34.6% | 37.6% | 34.0% | 35.5% | 35.3% | 39.4% | 35.7% | 34.6% |
| — | +36.7% | -5.0% | +4.6% | +3.9% | -1.8% | -4.6% | -4.7% | +2.4% | +13.2% | +12.6% | +10.7% | +2.2% |
| Metric | TTM | Q2 '26 | Q1 '26 | Q4 '25 | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Q3 '24 | Q2 '24 | Q1 '24 | Q4 '23 | Q3 '23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 33.3% | 10.2% | 7.9% | 8.2% | 8.3% | 8.2% | 8.9% | 8.4% | 8.9% | 9.5% | 10.4% | 10.0% | 9.7% |
| — | +24.9% | -11.5% | -3.1% | -7.4% | -14.3% | -15.1% | -15.7% | -7.8% | +3.5% | +1.1% | -1.4% | -6.5% | |
| ROA | 18.0% | 5.9% | 4.4% | 4.6% | 4.7% | 4.6% | 4.8% | 4.4% | 4.6% | 4.8% | 5.2% | 5.1% | 4.9% |
| — | +29.5% | -7.2% | +4.2% | +2.5% | -4.4% | -8.3% | -12.8% | -6.5% | +5.3% | +7.3% | +7.4% | +0.6% | |
| ROIC | 27.9% | 7.0% | 7.4% | 7.1% | 6.8% | 7.0% | 7.1% | 6.6% | 6.6% | 7.6% | 8.8% | 7.9% | 7.3% |
| — | -0.2% | +4.4% | +6.6% | +3.1% | -7.4% | -19.6% | -16.0% | -9.6% | +8.7% | +16.3% | +9.3% | -0.1% |
Quarterly solvency trend — watch for debt spikes or covenant pressure.
Microsoft Corporation's Debt/EBITDA ratio is 1.2x — comfortably within a safe range. Debt/Equity has declined for 10 consecutive quarters, reflecting a deleveraging trend.
| Metric | TTM | Q2 '26 | Q1 '26 | Q4 '25 | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Q3 '24 | Q2 '24 | Q1 '24 | Q4 '23 | Q3 '23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.18 | 0.15 | 0.17 | 0.18 | 0.19 | 0.21 | 0.21 | 0.25 | 0.32 | 0.37 | 0.39 | 0.29 | 0.31 |
| — | -28.3% | -21.9% | -29.5% | -40.4% | -44.6% | -44.5% | -14.0% | +1.5% | +13.0% | +10.9% | -21.0% | -17.4% | |
| Debt / EBITDA | 0.37 | 1.21 | 1.19 | 1.33 | 1.49 | 1.62 | 1.62 | 1.96 | 2.38 | 2.68 | 2.76 | 2.13 | 2.34 |
| — | -25.0% | -26.8% | -32.0% | -37.5% | -39.6% | -41.2% | -8.2% | +1.8% | +7.2% | +11.2% | -14.7% | -8.0% | |
| Current Ratio | 1.35 | 1.39 | 1.40 | 1.35 | 1.37 | 1.35 | 1.30 | 1.27 | 1.24 | 1.22 | 1.66 | 1.77 | 1.91 |
| — | +2.6% | +7.6% | +6.2% | +10.5% | +10.9% | -21.8% | -27.9% | -35.1% | -36.9% | -9.6% | -0.9% | -3.8% | |
| Quick Ratio | 1.35 | 1.38 | 1.39 | 1.35 | 1.36 | 1.34 | 1.29 | 1.27 | 1.23 | 1.20 | 1.64 | 1.75 | 1.88 |
| — | +2.6% | +8.1% | +6.5% | +10.8% | +11.4% | -21.5% | -27.5% | -34.5% | -36.4% | -8.5% | -0.0% | -3.4% | |
| Interest Coverage | 53.89 | 52.00 | 54.39 | 55.81 | 53.87 | 53.29 | 52.49 | 39.84 | 34.48 | 29.74 | 51.23 | 50.32 | 45.06 |
| — | — | — | — | — | — | — | — | — | — | — | — | — |
Includes 30+ ratios · 48 years · Updated daily
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Start ComparisonMicrosoft Corporation's current P/E is 28.8x. The average P/E over the last 4 quarters is 29.9x. Quarterly P/E ratios can vary due to seasonal revenue patterns and one-time charges.
Microsoft Corporation's current operating margin is 45.6%. Margins have been expanding over recent quarters. Quarterly margins are particularly useful for identifying trend inflections that annual data smooths over.
Quarterly financial ratios reveal short-term trend shifts — margin compression, debt spikes, or valuation re-ratings — that annual figures smooth over. They're essential for active investors tracking Microsoft Corporation's business trajectory between earnings reports.