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 21.7x, down 20.1% year-over-year — suggesting improving earnings relative to price. EV/EBITDA has compressed 18.9% YoY to 14.3x, reflecting multiple compression or accelerating EBITDA.
| Metric | TTM | Q3 '26 | Q2 '26 | Q1 '26 | Q4 '25 | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Q3 '24 | Q2 '24 | Q1 '24 | Q4 '23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| P/E Ratio → | 30.34 | 21.67 | 23.43 | 34.81 | 34.07 | 27.12 | 32.62 | 32.60 | 37.88 | 35.78 | 32.09 | 26.40 | 31.65 |
| — | -20.1% | -28.2% | +6.8% | -10.1% | -24.2% | +1.7% | +23.5% | +19.7% | +21.6% | +17.7% | +6.6% | +9.9% | |
| P/S Ratio | 10.91 | 8.31 | 11.10 | 12.45 | 12.14 | 9.99 | 11.30 | 12.25 | 12.90 | 12.70 | 11.32 | 10.42 | 11.31 |
| — | -16.8% | -1.8% | +1.6% | -5.9% | -21.3% | -0.2% | +17.6% | +14.0% | +24.8% | +33.3% | +19.9% | +21.8% | |
| P/B Ratio | 8.99 | 6.65 | 9.23 | 10.65 | 10.80 | 8.70 | 10.40 | 11.17 | 12.44 | 12.42 | 11.79 | 10.68 | 12.33 |
| — | -23.6% | -11.2% | -4.7% | -13.1% | -29.9% | -11.8% | +4.7% | +0.9% | +12.3% | +20.4% | +6.3% | +6.5% | |
| P/FCF | 42.93 | 43.60 | 153.34 | 37.67 | 36.29 | 34.49 | 121.31 | 41.73 | 35.80 | 37.49 | 77.00 | 28.50 | 32.06 |
| — | +26.4% | +26.4% | -9.7% | +1.4% | -8.0% | +57.6% | +46.4% | +11.7% | +24.3% | -15.8% | +10.6% | +18.1% | |
| EV / EBITDA | 19.40 | 14.31 | 19.52 | 19.40 | 20.83 | 17.65 | 21.01 | 21.68 | 24.92 | 24.03 | 21.99 | 19.32 | 23.00 |
| — | -18.9% | -7.1% | -10.6% | -16.4% | -26.5% | -4.5% | +12.2% | +8.3% | +12.9% | +14.1% | +4.5% | +13.2% | |
| EV / EBIT | 24.56 | 17.33 | 18.92 | 28.28 | 28.54 | 22.50 | 26.98 | 26.66 | 30.58 | 29.34 | 26.45 | 21.41 | 25.66 |
| — | -23.0% | -29.9% | +6.0% | -6.7% | -23.3% | +2.0% | +24.5% | +19.2% | +23.3% | +18.8% | +5.2% | +8.1% |
Quarterly margins and returns. Watch for margin compression across consecutive quarters.
Microsoft Corporation's operating margin was 46.3% in Q3 2026, down 0.8 pp QoQ and up 0.7 pp YoY. This marks the 3rd consecutive quarter of margin compression, signaling a persistent pressure on profitability that investors should monitor.
| Metric | TTM | Q3 '26 | Q2 '26 | Q1 '26 | Q4 '25 | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Q3 '24 | Q2 '24 | Q1 '24 | Q4 '23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.8% | 67.6% | 68.0% | 69.0% | 68.6% | 68.7% | 68.7% | 69.4% | 69.6% | 70.1% | 68.4% | 71.2% | 70.1% |
| — | -1.6% | -1.0% | -0.4% | -1.4% | -2.0% | +0.5% | -2.5% | -0.7% | +0.9% | +2.3% | +2.9% | +2.6% | |
| Operating Margin | 45.6% | 46.3% | 47.1% | 48.9% | 44.9% | 45.7% | 45.5% | 46.6% | 43.1% | 44.6% | 43.6% | 47.6% | 43.2% |
| — | +1.4% | +3.6% | +4.9% | +4.1% | +2.4% | +4.3% | -2.1% | -0.1% | +5.4% | +12.7% | +10.8% | +9.0% | |
| Net Margin | 36.1% | 38.3% | 47.3% | 35.7% | 35.6% | 36.9% | 34.6% | 37.6% | 34.0% | 35.5% | 35.3% | 39.4% | 35.7% |
| — | +4.0% | +36.7% | -5.0% | +4.6% | +3.9% | -1.8% | -4.6% | -4.7% | +2.4% | +13.2% | +12.6% | +10.7% |
| Metric | TTM | Q3 '26 | Q2 '26 | Q1 '26 | Q4 '25 | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Q3 '24 | Q2 '24 | Q1 '24 | Q4 '23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 33.3% | 7.9% | 10.2% | 7.9% | 8.2% | 8.3% | 8.2% | 8.9% | 8.4% | 8.9% | 9.5% | 10.4% | 10.0% |
| — | -4.6% | +24.9% | -11.5% | -3.1% | -7.4% | -14.3% | -15.1% | -15.7% | -7.8% | +3.5% | +1.1% | -1.4% | |
| ROA | 18.0% | 4.7% | 5.9% | 4.4% | 4.6% | 4.7% | 4.6% | 4.8% | 4.4% | 4.6% | 4.8% | 5.2% | 5.1% |
| — | -0.7% | +29.5% | -7.2% | +4.2% | +2.5% | -4.4% | -8.3% | -12.8% | -6.5% | +5.3% | +7.3% | +7.4% | |
| ROIC | 24.9% | 6.2% | 6.1% | 6.5% | 6.3% | 6.1% | 6.3% | 6.4% | 6.1% | 6.2% | 7.0% | 8.1% | 7.3% |
| — | +1.5% | -3.7% | +0.5% | +2.7% | -0.8% | -9.9% | -20.7% | -16.6% | -9.5% | +8.5% | +15.4% | +8.9% |
Quarterly solvency trend — watch for debt spikes or covenant pressure.
Microsoft Corporation's Debt/EBITDA ratio is 1.2x, down from 2.6x last quarter — comfortably within a safe range. The current ratio has weakened 6.5% YoY to 1.28x, tightening the short-term liquidity position. Debt/Equity has declined for 3 consecutive quarters, reflecting a deleveraging trend.
| Metric | TTM | Q3 '26 | Q2 '26 | Q1 '26 | Q4 '25 | Q3 '25 | Q2 '25 | Q1 '25 | Q4 '24 | Q3 '24 | Q2 '24 | Q1 '24 | Q4 '23 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.33 | 0.14 | 0.32 | 0.33 | 0.33 | 0.33 | 0.34 | 0.34 | 0.36 | 0.42 | 0.47 | 0.48 | 0.39 |
| — | -57.9% | -7.2% | -1.5% | -10.4% | -22.3% | -27.3% | -29.7% | -5.4% | +3.0% | +9.8% | +7.7% | -18.2% | |
| Debt / EBITDA | 0.69 | 1.17 | 2.60 | 2.36 | 2.46 | 2.58 | 2.67 | 2.55 | 2.85 | 3.16 | 3.38 | 3.43 | 2.82 |
| — | -54.5% | -2.9% | -7.6% | -13.6% | -18.4% | -20.8% | -25.6% | +1.0% | +3.2% | +4.1% | +8.1% | -11.7% | |
| Current Ratio | 1.35 | 1.28 | 1.39 | 1.40 | 1.35 | 1.37 | 1.35 | 1.30 | 1.27 | 1.24 | 1.22 | 1.66 | 1.77 |
| — | -6.5% | +2.6% | +7.6% | +6.2% | +10.5% | +10.9% | -21.8% | -27.9% | -35.1% | -36.9% | -9.6% | -0.9% | |
| Quick Ratio | 1.35 | 1.27 | 1.38 | 1.39 | 1.35 | 1.36 | 1.34 | 1.29 | 1.27 | 1.23 | 1.20 | 1.64 | 1.75 |
| — | -6.6% | +2.6% | +8.1% | +6.5% | +10.8% | +11.4% | -21.5% | -27.5% | -34.5% | -36.4% | -8.5% | -0.0% | |
| Interest Coverage | 52.84 | 51.57 | 66.55 | 50.14 | 54.03 | 53.82 | 50.44 | 53.01 | 39.87 | 34.41 | 30.18 | 52.97 | 52.30 |
| — | — | — | — | — | — | — | — | — | — | — | — | — |
Includes 30+ ratios · 48 years · Updated daily
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Microsoft Corporation's current P/E is 30.3x. The average P/E over the last 4 quarters is 28.5x. 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.