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Microsoft Corp. Quality Score

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Quality64

Valuation is the primary weakness (avg 50/100). Business quality is the relative bright spot.

Broad-market heuristics · Not a buy/sell signal

Valuation and growth

Earnings Multiple
60/100
29.0x

25–30x, paying a growth premium

Cash Flow Multiple
40/100
68.8x

Above 30x, cash flow yield is thin

Revenue Growth
100/100
13.1%

Above 10% CAGR, strong compounder

Cash Flow Growth
0/100
0.2%

Below 2%, essentially flat

Business Quality & Capital Allocation

Share Dilution
80/100
-0.3%

Roughly flat, no meaningful dilution

Margin Trend
100/100
+5.3pp

Expanded 3+pp, strong improvement

Capital Structure
40/100
$69.42B

Net debt/FCF of 1.2x, somewhat elevated

2023
$111B
$79.4B
2024
$75.5B
$97.8B
2025
$94.6B
$112B
2026
$76.8B
$129B
TTM
$64.5B
$134B
CashDebt
Return on Capital
100/100
23.0%

Above 20%, exceptional capital efficiency

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Microsoft (MSFT) quality: score, margins and returns

Microsoft (MSFT) scores 64/100 on Intrinsiqq's quality score (a solid business), a weighted blend of 8 metrics each scored 0 to 100, on 47.1% operating margins and 23.0% ROIC. Every metric is computed from SEC filings; this is analysis, not investment advice.

Frequently asked

Is Microsoft (MSFT) a high-quality business?+

Microsoft scores 64 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which rates it a solid business on these measures. Recent figures include a 47.1% operating margin and a 23.0% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.

What does Microsoft's quality score measure?+

Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from MSFT's SEC filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Microsoft scores well and where it falls behind.

What is Microsoft's return on invested capital (ROIC)?+

Microsoft earns about 23.0% on its invested capital, which is exceptional. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to MSFT's margins and growth on this scorecard to judge durability.

How profitable is Microsoft?+

Microsoft runs an operating margin of about 47.1% and a net margin of about 41.2%. Revenue has grown at roughly 14.6% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from SEC filings, not investment advice.

How the market compares: US profitability statistics

SourceQuality score computed from the 10-Q filed 22 Oct 2026, covering the period ending 30 Sept 2026, as reported to the SEC. Data last refreshed 29 Oct 2026. How this is calculated.

Fiscal year ends Jun. Sector medians are approximate S&P 500 benchmarks and update periodically. Checks use broad-market heuristics, so sector norms may differ, and the valuation checks are more cyclical than the quality checks.

Peers

Services-Prepackaged Software · Pick stocks to compare with MSFT

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$123.78-1.91%43
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$227.11+2.21%72
ADBEAdobe Inc.
$248.48+0.95%93
NOWServiceNow, Inc.
$108.81-0.32%70
IBMInternational Business Machines Corporation
$254.32+1.71%66

Held by ETFs

MSFT is in 714 US ETFs. The largest of them, with MSFT's weight in each:

Spot a number that looks wrong? Check it in MSFT's SEC filings or

Download this analysis as a PDF (Pro)

Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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