Microsoft Corp. (MSFT) stock — is it a good business?

Microsoft Corp. (MSFT) stock — is it a good business? — InspectStocks

Just reported

Q1 FY2027 results

From Microsoft's results release of October 28, 2026; its quarterly report has since been filed.

Revenue
Actual
$92.28B
+19% y/y
+2.5% q/q
Guided
—
No guide given
EPS, GAAP
Actual
$4.92
+32% y/y
+2.3% q/q
Guided
—
No guide given
Operating income, GAAP
Actual
$45.92B
+21% y/y
+13% q/q
Guided
—
No guide given

Set against the company's own guidance and the same quarter a year earlier, not analysts' estimates, which we do not hold. Adjusted figures are the company's own non-GAAP measures, as stated in the release.

The full earnings report →

How it makes money

Productivity and Business Processes: Microsoft 365, Dynamics, and LinkedIn43%
Intelligent Cloud: Azure and server products38%
More Personal Computing: Windows, Xbox, devices, and search advertising19%

Shares of revenue are estimates for fiscal year ended June 30, 2025, not figures from a filing.

Competes with

What it sells6

Microsoft 365 and Microsoft 365 Copilot
Subscriptions for work and personal use that include apps such as Word, Excel, PowerPoint, Outlook, and Teams. Copilot adds an assistant that can answer questions and help with tasks using a customer's work information.
Azure
A service that lets organizations rent computing power, storage, databases, and artificial-intelligence tools from Microsoft's data centers instead of running all of that equipment themselves.
Dynamics 365
Business software for tasks such as sales, customer service, finance, supply chains, and human resources. Customer relationship management (CRM) tools track sales and customer interactions; enterprise resource planning (ERP) tools manage business operations such as finance and inventory.

Show 3 more

LinkedIn
A professional networking service that also sells job-recruiting tools, subscriptions, and advertising.
Windows
Operating-system software used to run personal computers and their applications. Microsoft sells licenses to computer makers and businesses.
Xbox
A gaming business that includes Xbox consoles and online services, subscriptions, and games made by Microsoft and other publishers.

Who buys it4

Businesses and government organizations buy Microsoft 365, Dynamics 365, security products, and other software through subscriptions, licenses, or usage-based charges.
Organizations and developers rent Azure computing, storage, databases, and artificial-intelligence services and pay according to their agreements and use.
Computer makers license Windows for personal computers they sell; individual consumers and businesses also buy Microsoft software, devices, and Xbox products.
Advertisers pay to reach people through Bing search and other Microsoft advertising services; employers and job seekers also use LinkedIn's paid tools.

What it stands on, and what could break it

What the business leans on

1Azure and Microsoft's artificial-intelligence services depend on data-center capacity and components such as central processing units and graphics processing units; management said customer demand exceeded available capacity in the fiscal fourth quarter of 2026.
2Windows distribution depends in part on computer makers that preinstall Windows on their devices; many of those manufacturers are also Microsoft customers and partners.
3Microsoft's search advertising business uses partnerships with other companies to provide and monetize some search services; management said third-party partnerships affected search advertising growth in the fiscal fourth quarter of 2026.

What could go wrong

1Microsoft said demand for Azure continued to exceed available capacity in the fiscal fourth quarter of 2026. Delays in bringing data-center and computing capacity online can limit the cloud services it can provide, while investing in that capacity adds costs.
2Xbox revenue declined 10% in the fiscal fourth quarter of 2026, and Xbox content and services revenue also declined 10%. Management cited impairment charges and said it was making changes to the content portfolio, platform, and operations.
3The Windows and devices business faces lower personal-computer demand and higher component costs. Microsoft said these factors, along with a difficult comparison against the prior year, affected Windows original equipment manufacturer and device revenue.

Full financial statements →

About Microsoft Corp.

Microsoft sells software such as Microsoft 365, Windows, and Dynamics 365, and runs Azure, a service that lets customers rent computing power, storage, and other tools over the internet. It also earns money from LinkedIn, search advertising, Xbox games and subscriptions, and devices. Its products serve individuals, businesses, governments, developers, and computer makers.

Head office: Redmond, Washington
Founded: 1975
Employees: 223,000 (June 30, 2026, high)
Listed on: Nasdaq
Financial year ends: June 30

Built from Microsoft Corp.’s own filings with the U.S. Securities and Exchange Commission (SEC). Figures are as reported, with per-share history restated onto today’s share basis. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.

Just reported

Q1 FY2027 results

From Microsoft's results release of October 28, 2026; its quarterly report has since been filed.

Revenue
Actual
$92.28B
+19% y/y
+2.5% q/q
Guided
—
No guide given
EPS, GAAP
Actual
$4.92
+32% y/y
+2.3% q/q
Guided
—
No guide given
Operating income, GAAP
Actual
$45.92B
+21% y/y
+13% q/q
Guided
—
No guide given

The full earnings report →

Keep exploring

The themes Microsoft is part of, the highest-graded companies in its industry, and the companies in its sector whose grade rose recently.

The themes it is part of

Highest-graded in Software Infrastructure

Graded A or B and worth $2B or more: A first, then the largest.

All 158 graded companies in its industry

Grade rose recently in Technology

Rose to A or B on a filing in the last 90 days, worth $2B or more: largest first.

All grade rises