MSFT (Microsoft Corporation) Stock Financials & Earnings

Company Info & Key Metrics

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates in three segments: Productivity and Business Processes, Intelligent Cl...

CEOSatya Nadella

Country🇺🇸 United States

ExchangeNASDAQ

IPOMar 13, 1986

www.microsoft.com

Revenue$81.3B

YoY Growth+16.7%

QoQ Growth+4.6%

Net Income$38.5B

EPS$5.16

Free Cash Flow$5.9B

Gross Margin68.0%

Op. Margin47.1%

Net Margin47.3%

FCF Margin7.2%

Rev Multiple (TTM)10.0x

P/E Ratio (TTM)25.5x

Revenue & Profitability

Quarter	Revenue	Gross Profit	Op. Income
Q3 23	$52.9B	$36.7B	$22.4B
Q4 23	$56.2B	$39.4B	$24.3B
Q1 24	$56.5B	$40.2B	$26.9B
Q2 24	$62.0B	$42.4B	$27.0B
Q3 24	$61.9B	$43.4B	$27.6B
Q4 24	$64.7B	$45.0B	$27.9B
Q1 25	$65.6B	$45.5B	$30.6B
Q2 25	$69.6B	$47.8B	$31.7B
Q3 25	$70.1B	$48.1B	$32.0B
Q4 25	$76.4B	$52.4B	$34.3B
Q1 26	$77.7B	$53.6B	$38.0B
Q2 26	$81.3B	$55.3B	$38.3B

Revenue Breakdown

Valuation

Quarter	P/S	P/E
Q3 23	14.6x	44.0x
Q4 23	14.3x	42.0x
Q1 24	13.9x	39.4x
Q2 24	13.4x	36.8x
Q3 24	12.9x	35.3x
Q4 24	12.4x	34.5x
Q1 25	12.0x	33.6x
Q2 25	11.6x	32.8x
Q3 25	11.3x	31.5x
Q4 25	10.8x	29.9x
Q1 26	10.3x	29.0x
Q2 26	10.0x	25.5x

Operating Cash Flow

Quarter	Operating CF	Free CF
Q3 23	$24.4B	$17.8B
Q4 23	$28.8B	$19.8B
Q1 24	$30.6B	$20.7B
Q2 24	$18.9B	$9.1B
Q3 24	$31.9B	$21.0B
Q4 24	$37.2B	$23.3B
Q1 25	$34.2B	$19.3B
Q2 25	$22.3B	$6.5B
Q3 25	$37.0B	$20.3B
Q4 25	$42.6B	$25.6B
Q1 26	$45.1B	$25.7B
Q2 26	$35.8B	$5.9B

Capital Expenditures

CapEx

Quarter	CapEx
Q3 23	$6.6B
Q4 23	$8.9B
Q1 24	$9.9B
Q2 24	$9.7B
Q3 24	$11.0B
Q4 24	$13.9B
Q1 25	$14.9B
Q2 25	$15.8B
Q3 25	$16.7B
Q4 25	$17.1B
Q1 26	$19.4B
Q2 26	$29.9B

OpEx vs Revenue Growth (YoY)

Quarter	Revenue Growth	OpEx Growth
Q3 23	+7.1%	+5.2%
Q4 23	+8.3%	+1.9%
Q1 24	+12.8%	+3.6%
Q2 24	+17.6%	+8.2%
Q3 24	+17.0%	+12.4%
Q4 24	+15.2%	+15.2%
Q1 25	+16.0%	+18.3%
Q2 25	+12.3%	+8.5%
Q3 25	+13.3%	+11.1%
Q4 25	+18.1%	+14.4%
Q1 26	+18.4%	+13.4%
Q2 26	+16.7%	+13.2%

Stock-Based Compensation

Quarter	SBC ($)	% of Revenue
Q3 23	$2.5B	4.7%
Q4 23	$2.4B	4.3%
Q1 24	$2.5B	4.4%
Q2 24	$2.8B	4.6%
Q3 24	$2.7B	4.4%
Q4 24	$2.7B	4.2%
Q1 25	$2.8B	4.3%
Q2 25	$3.1B	4.4%
Q3 25	$3.0B	4.3%
Q4 25	$3.1B	4.0%
Q1 26	$3.0B	3.8%
Q2 26	$3.2B	4.0%

OpEx Breakdown

Quarter	R&D	G&A	S&M
Q3 23	$7.0B	$1.6B	$5.8B
Q4 23	$6.7B	$2.2B	$6.2B
Q1 24	$6.7B	$1.5B	$5.2B
Q2 24	$7.1B	$2.0B	$6.2B
Q3 24	$7.7B	$1.9B	$6.2B
Q4 24	$8.1B	$2.2B	$6.8B
Q1 25	$7.5B	$1.7B	$5.7B
Q2 25	$7.9B	$1.8B	$6.4B
Q3 25	$8.2B	$1.7B	$6.2B
Q4 25	$8.8B	$2.0B	$7.3B
Q1 26	$8.1B	$1.8B	$5.7B
Q2 26	$8.5B	$1.9B	$6.6B

Rule of 40

Quarter	Rev Growth %	EBITDA Margin %	Rule of 40
Q3 23	7.1%	50.5%	57.6
Q4 23	8.3%	51.8%	60.1
Q1 24	12.8%	56.1%	68.9
Q2 24	17.6%	53.8%	71.4
Q3 24	17.0%	54.2%	71.3
Q4 24	15.2%	53.0%	68.2
Q1 25	16.0%	58.3%	74.3
Q2 25	12.3%	52.8%	65.1
Q3 25	13.3%	58.1%	71.4
Q4 25	18.1%	58.1%	76.2
Q1 26	18.4%	61.9%	80.3
Q2 26	16.7%	71.6%	88.3

Revenue Segments

Quarter	Devices	Enterprise Services	Gaming	Linked In Corporation	Office Products And Cloud Services	Other Products And Services	Search Advertising	Server Products And Cloud Services	Windows	Dynamics	Dynamics Products And Cloud Services	Microsoft Three Six Five Commercial Products And Cloud Services	Microsoft Three Six Five Consumer Products and Cloud Services
Q3 23	$1.3B	$2.0B	$3.6B	$3.7B	$12.4B	$1.4B	$3.0B	$20.0B	$5.3B	—	—	—	—
Q1 24	$1.1B	$1.9B	$3.9B	$3.9B	$13.1B	$8M	$3.1B	$22.3B	$5.6B	$1.5B	—	—	—
Q2 24	$1.3B	$1.9B	$7.1B	$4.2B	$13.5B	$11M	$3.2B	$24.0B	$5.3B	—	$1.6B	—	—
Q3 24	$1.1B	$1.9B	$5.5B	$4.0B	$13.9B	$14M	$3.1B	$24.8B	$5.9B	—	$1.6B	—	—
Q4 24	$1.9B	$1.9B	$5.0B	$4.3B	$14.3B	$12M	$3.2B	$24.6B	$6.5B	—	$3.1B	—	—
Q1 25	—	$1.9B	$5.6B	$4.3B	—	$10M	$3.2B	$22.2B	$4.3B	—	$1.8B	$20.4B	$1.7B
Q2 25	—	$1.9B	$6.6B	$4.6B	—	$10M	$3.6B	$23.6B	$4.5B	—	$1.9B	$21.1B	$1.8B
Q3 25	—	$1.9B	$5.7B	$4.3B	—	$46M	$3.5B	$24.8B	$4.1B	—	$1.9B	$21.9B	$1.8B
Q4 25	—	$2.0B	$5.5B	$4.6B	—	$6M	$3.6B	$27.9B	$4.3B	—	$2.1B	$24.3B	$2.0B
Q1 26	—	$2.0B	$5.5B	$4.7B	—	$3M	$3.7B	$28.9B	$4.6B	—	$2.1B	$24.0B	$2.2B
Q2 26	—	$2.0B	$6.0B	$5.1B	—	$6M	$3.8B	$30.9B	$4.5B	—	$2.2B	$24.5B	$2.3B

Revenue by Geography

Quarter	Non Us	United States
Q3 23	$26.9B	$26.0B
Q4 23	$28.3B	$27.9B
Q1 24	$27.7B	$28.8B
Q2 24	$29.7B	$32.3B
Q3 24	$30.4B	$31.4B
Q4 24	$32.6B	$32.2B
Q1 25	$31.7B	$33.9B
Q2 25	$34.1B	$35.5B
Q3 25	$34.0B	$36.1B
Q4 25	$37.4B	$39.0B
Q1 26	$37.6B	$40.1B
Q2 26	$39.9B	$41.4B

War Chest

Quarter	Cash	Short-term Investments	Total
Q3 23	$26.6B	$77.9B	$104.4B
Q4 23	$34.7B	$76.6B	$111.3B
Q1 24	$80.5B	$63.5B	$143.9B
Q2 24	$17.3B	$63.7B	$81.0B
Q3 24	$19.6B	$60.4B	$80.0B
Q4 24	$18.3B	$57.2B	$75.5B
Q1 25	$20.8B	$57.6B	$78.4B
Q2 25	$17.5B	$54.1B	$71.6B
Q3 25	$28.8B	$50.8B	$79.6B
Q4 25	$30.2B	$64.3B	$94.6B
Q1 26	$28.8B	$73.2B	$102.0B
Q2 26	$24.3B	$65.2B	$89.5B

Shares Outstanding

Quarter	Shares (Diluted)	QoQ Change
Q3 23	7.46B	-0.1%
Q4 23	7.47B	+0.0%
Q1 24	7.46B	-0.1%
Q2 24	7.47B	+0.1%
Q3 24	7.47B	+0.1%
Q4 24	7.47B	+0.0%
Q1 25	7.47B	-0.0%
Q2 25	7.47B	-0.0%
Q3 25	7.46B	-0.1%
Q4 25	7.46B	+0.0%
Q1 26	7.47B	+0.1%
Q2 26	7.46B	-0.1%

Revenue Per Employee

Revenue / Employee

Year	Revenue/Employee	Employees
FY 14	$678K	128K
FY 15	$793K	118K
FY 16	$800K	114K
FY 17	$779K	124K
FY 18	$842K	131K
FY 19	$874K	144K
FY 20	$877K	163K
FY 21	$929K	181K
FY 22	$897K	221K
FY 23	$959K	221K
FY 24	$1M	228K
FY 25	$1M	228K