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Earnings transcript
Read the complete earnings call transcript.
MSFT
Microsoft Corporation
$379.4
0.49
(0.13%)
| Exchange: | NASDAQ |
| Market Cap: | 2.818T |
| Shares Outstanding: | 7.342B |
Delayed data
About The Company
| Sector: | Technology | |||||
| Industry: | Software – Infrastructure | |||||
| CEO: | Satya Nadella | |||||
| Full Time Employees: | 228000 | |||||
| Address: |
| |||||
| Website: | https://www.microsoft.com |
Microsoft Corporation is a prominent global technology firm that invents, markets, and provides ongoing assistance for a diverse range of software, digital services, computing devices, and comprehensive solutions. Its operations are organized into three primary divisions: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment delivers crucial tools for both enterprises and individual users. This includes the extensive Office suite (comprising Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business), along with popular consumer offerings like Skype, Outlook.com, OneDrive, and LinkedIn. It also features Dynamics 365, a suite of integrated cloud and on-premises business applications tailored for organizations. The Intelligent Cloud division focuses on sophisticated infrastructure and platform services. Here, Microsoft licenses key products such as SQL Server, Windows Servers, Visual Studio, System Center, and associated Client Access Licenses. It also includes GitHub, a leading platform for developer collaboration and code hosting; Nuance, offering advanced AI solutions for healthcare and businesses; and Azure, its expansive cloud computing platform. This segment further encompasses enterprise support, Microsoft consulting services, and Nuance professional services, assisting clients with the development, deployment, and management of Microsoft’s server and desktop technologies, alongside offering product training and certification. Finally, the More Personal Computing segment covers a broad spectrum of consumer and commercial computing experiences. It generates revenue through Windows operating system licensing, including agreements with original equipment manufacturers (OEMs), non-volume licensing, and various Windows Commercial offerings (such as volume licensing and cloud services), as well as patent licensing and Windows Internet of Things (IoT). This division also supplies its own hardware, including Surface devices, PC accessories, and gaming/entertainment consoles. Its Gaming portfolio features Xbox hardware, content, and subscription services, in addition to video games and royalties from third-party titles. Furthermore, it manages search services like Bing and Microsoft’s advertising platforms. Microsoft distributes its extensive product line via numerous channels, including original equipment manufacturers, wholesale distributors, and various resellers, complementing direct sales through digital marketplaces, its own online storefronts, and physical retail outlets. The company, established in 1975, maintains its headquarters in Redmond, Washington.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 211,915,000 | 245,122,000 | 281,724,000 |
| Gross Profit | 146,052,000 | 171,008,000 | 193,893,000 |
| EBITDA | 105,140,000 | 133,009,000 | 160,165,000 |
| Operating Income | 88,523,000 | 109,433,000 | 128,528,000 |
| Net Income | 72,361,000 | 88,136,000 | 101,832,000 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 411,976,000 | 512,163,000 | 619,003,000 |
| Total Liabilities | 205,753,000 | 243,686,000 | 275,524,000 |
| Total Stockholders Equity | 206,223,000 | 268,477,000 | 343,479,000 |
| Total Debt | 59,965,000 | 67,127,000 | 60,588,000 |
| Cash and Cash Equivalents | 34,704,000 | 18,315,000 | 30,242,000 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 87,582,000 | 118,548,000 | 136,162,000 |
| Capital Expenditure | -28,107,000 | -44,477,000 | -64,551,000 |
| Free Cash Flow | 59,475,000 | 74,071,000 | 71,611,000 |
| Net Income | 72,361,000 | 88,136,000 | 101,832,000 |
| Net Change in Cash | 20,773,000 | -16,389,000 | 11,927,000 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2030 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 629,897,838.777 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 671,292,479.706 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 651,062,333.333 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 329,982,851.307 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 351,668,148.195 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 341,070,236.960 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 238,401,045.631 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 258,975,406.784 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 248,920,425.033 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 85,735,754.283 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 91,370,002.481 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 88,616,465.714 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 33.350 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 34.690 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 31.940 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 25 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 13 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeForward P/E Ratios
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Login — it's freeSWOT Analysis
Strengths (preview)
- Robust Financial Performance: Microsoft reported a strong revenue of $81.3 billion in Q2 FY2026, as highlighted in the earnings call transcript, reflecting sustained growth. Key metrics such as net income, operating income, and free cash flow (as per cash flow statements) demonstrate consistent profitability, supported by high gross and net profit margins (from key metrics TTM).
- Leadership in Cloud and AI: The earnings call emphasized Microsoft’s strategic investments in AI and cloud infrastructure, driving growth in its Azure platform and positioning the company as a market leader in high-growth sectors, aligning with industry trends in technology and software (industry and sector data).
- Strong Balance Sheet: Balance sheet data indicates significant cash and cash equivalents alongside substantial total assets, providing financial flexibility. A manageable debt-to-equity ratio (from key metrics TTM) further underscores a solid capital structure.
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Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates MSFT intrinsic value between $145.92 – $357.21 per share. This depends on revenue growth, margins, and discount rate.
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Common questions about MSFT valuation
Is Microsoft Corporation (MSFT) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for Microsoft Corporation (MSFT) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
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What is MSFT’s P/E ratio?
You can see MSFT’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
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MSFT
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Daily snapshot
0.13
Trading Metrics:
| Open: | 377.92 | Previous Close: | 378.91 | |
| Day Low: | 373.28 | Day High: | 381.37 | |
| Year Low: | 356.28 | Year High: | 555.45 | |
| Price Avg 50: | 412.87 | Price Avg 200: | 451.98 | |
| Volume: | 58.466M | Average Volume: | 35.129M |
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Login — it's freeMSFT full analysis
Hey everyone, welcome back to the channel. Today we’re doing a deep dive into one of the most dominant companies in the world—Microsoft. It’s a name that’s been around for decades, but it’s also been at the absolute center of the AI revolution. And right now, there’s a lot of buzz. The stock just popped over five percent in a single day on news of a massive AI run rate, a huge Pentagon contract, and the market is starting to…
