Microsoft Corporation (MSFT) stock analysis

In our weekly check, Microsoft Corporation is graded A (A to F). Of 25 checks on debt, profit, cash flow and trend: 22 pass, warnings: 2, red flags: 1.

About Microsoft Corporation

Microsoft Corporation is a Technology company (Software - Infrastructure) based in the United States, listed on NASDAQ as MSFT.

What our checks show for MSFT

Red flags

• Recovering from its deepest fall took about 4.6 years.

Warning signs

• Analysts expect the net margin to shrink by 2.4 points from today's 40.3%.
• The stock has fallen as much as 59% from a peak. Would you have held through that?

Strengths

• Net debt is only 0.5x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 50.9 times over.
• The net margin rose by 3.6 points over 5 years, to 40.3%.
• Operating cash flow is 1.37x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 17% a year over the next years.
• Analysts expect revenue to grow about 19.7% a year over the next years.

Next earnings report: 2026-10-28

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Questions

What grade does Microsoft Corporation (MSFT) have?

In our weekly check, Microsoft Corporation is graded A (A to F). Of 25 checks on debt, profit, cash flow and trend: 22 pass, warnings: 2, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of MSFT stock?

This week's biggest flags for Microsoft Corporation: Slow recovery after falls, Margins expected to shrink, Deep past fall. In total 3 of 25 checks show a warning or a red flag.

What does Microsoft Corporation do?

Microsoft Corporation is a Technology company (Software - Infrastructure) based in the United States, listed on NASDAQ as MSFT.

When does Microsoft Corporation report earnings next?

The next earnings report is expected on 2026-10-28. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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