Microsoft Corporation

MSFTUS

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.

Founded1975IPO year1986As of2026-08-04
Market Cap
$3692.95B
Enterprise Value
$3744.91B
EV / LTM Revenue
11.3x
EV / NTM Revenue
9.4x
Trading multiples

Enterprise value over trailing (LTM) vs. forward (NTM) fundamentals. Click an LTM cell to chart it.

LTM
trailing
NTM
forward
Revenue
9.4x
Gross Profit
13.9x
EBITDA
17.2x
Classification
Sector
Infrastructure & Data Software
Sub-sector
Cloud Platforms & Compute
Listing
MSFT
Country
US
Historical valuation & fundamentals

EV / LTM Revenue

Annual financials & analyst forecasts

$MCY2021CY2022CY2023CY2024CY2025CY2026ECY2027E
Revenue YoY10%12%15%17%18%19%
Revenue$184.90B$204.09B$227.58B$261.80B$305.45B$359.68B$427.94B
Gross Profit$127.26B$139.11B$158.74B$181.72B$209.50B
Gross Profit Margin68.8%68.2%69.7%69.4%68.6%
EBITDA$94.92B$98.77B$120.92B$142.91B$191.38B$196.98B$234.36B
EBITDA Margin51.3%48.4%53.1%54.6%62.7%54.8%54.8%
EBIT$78.63B$82.81B$100.53B$117.71B$142.56B$163.41B$194.42B
Net Income$71.19B$67.45B$82.54B$92.75B$119.26B$136.33B$159.37B
Free Cash Flow$60.69B$59.62B$67.44B$70.03B$77.41B
FCF Margin32.8%29.2%29.6%26.7%25.3%
Short-Term Debt$5.00B$4.00B$29.29B$5.25B$4.84B
Long-Term Debt$48.26B$44.12B$44.93B$39.72B$35.42B
Cash & Cash Equivalents$20.60B$15.65B$17.30B$17.48B$24.30B
Net Debt$32.65B$32.47B$56.91B$27.49B$15.97B
Net Debt / EBITDA0.3x0.3x0.5x0.2x0.1x
Rule of 4039.6%41.1%41.8%42.0%
Figures in $M. True calendar years (Jan–Dec) built from quarterly data — income & cash-flow lines summed across the four quarters, balance sheet as of year-end. E columns are calendarized analyst consensus — gross profit, cash flow and balance-sheet lines are not estimated. Net debt = short-term debt + long-term debt − cash & cash equivalents; Rule of 40 = YoY revenue growth + FCF margin.