MSFT Stock Analysis & Forecast (2026)

Microsoft Corporation Technology Software - Infrastructure
$400.60
Current Price
92%
Strong Buy
Data refreshed: February 26, 2026

Key Financial Metrics

Market Cap
$2.98T
P/E Ratio (TTM)
25.1x
P/E Forward
21.3x
Revenue Growth
16.7%
Gross Margin
68.6%
Net Margin
39.0%
Return on Equity
34.4%
Debt/Equity
0.32

AI Analysis Summary

Microsoft Corporation (MSFT) is a Technology company in the Software - Infrastructure industry with a 92% Strong Buy Score. Key strengths include Revenue Growth (16.7%), Gross Margin (68.6%), Net Margin (39.0%). Our AI evaluates 8 fundamental categories including revenue growth, margin quality, balance sheet strength, cash flow generation, return on capital, and valuation metrics.

Revenue Growth: Good Gross Margin: Excellent Net Margin: Excellent Return on Equity: Excellent Debt/Equity: Moderate
MSFT Fundamental Analysis Report
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92%
Strong Buy Score
  • 8 Fundamental Categories Analyzed
  • Revenue & Growth Trends
  • Margin & Profitability Analysis
  • Balance Sheet Strength
  • Cash Flow Quality
  • Valuation Assessment
  • AI-Powered Investment Insights
Get Your Free MSFT Report

How It Works: AI Stock Analysis in 60 Seconds

See how our AI analyzes MSFT fundamentals to generate buy/sell signals and Strong Buy Scores.

Is MSFT a Buy Right Now?

Based on our AI-powered fundamental analysis, MSFT has a Strong Buy Score of 92%, earning a "Strong Buy" rating. This score synthesizes 8 key financial metrics to provide an objective investment signal.

Strong Buy Signal

Microsoft Corporation demonstrates robust fundamentals across multiple categories. Key strengths include Revenue Growth (16.7%) and Gross Margin (68.6%). The stock shows characteristics typically associated with outperformers.

MSFT AI Buy & Sell Signals Explained

Our AI analyzes Microsoft Corporation's financial statements to generate buy/sell signals based on quantitative metrics, not market sentiment or news headlines. Here's what drives the 92% score:

  • Revenue Growth: 16.7% year-over-year (above average)
  • Gross Margin: 68.6% (strong pricing power)
  • Net Margin: 39.0% (highly profitable)
  • Return on Equity: 34.4% (excellent capital efficiency)

Generate the full PDF report for complete category-by-category scoring and AI-powered investment recommendations.

Key Support / Demand Zones

Technical traders can view real-time demand and supply zones for MSFT on our Demand Zones page. These zones identify key price levels where institutional buying or selling has historically occurred.

With MSFT currently trading at $400.60, our system monitors proximity to these critical levels and can alert you when the stock approaches support or resistance zones.

Subscribe to demand zone alerts to receive real-time notifications when MSFT reaches key technical levels.

Earnings & Revenue Outlook

Microsoft Corporation operates in the Technology sector, specifically in Software - Infrastructure. Understanding earnings trends is crucial for forecasting MSFT's trajectory.

Current revenue growth of 16.7% exceeds the average company. This strong growth trajectory supports a higher valuation multiple.

Visit our Earnings Calendar to track upcoming MSFT earnings dates and historical beat/miss patterns. Sign up for earnings alerts to get notified before announcements.

MSFT Stock Forecast (Next 3–12 Months)

Our AI projects MSFT's trajectory based on current fundamentals and historical patterns. With a 92% Strong Buy Score, here's what the data suggests:

Bullish Outlook: Microsoft Corporation shows strong fundamental momentum. Revenue growth of 16.7% suggests continued expansion. Net margins of 39.0% indicate pricing power and operational efficiency. Stocks with similar profiles have historically outperformed over 12-month periods.

For a complete 12-month price forecast with specific bull/bear scenarios, generate the full PDF report.

Valuation Metrics (P/E, Growth, Margins)

Understanding valuation is critical for determining if MSFT is fairly priced. Here's the current snapshot:

  • Market Capitalization: $2.98T
  • P/E Ratio (TTM): 25.1x (growth premium)
  • Forward P/E: 21.3x (based on analyst estimates)
  • Debt/Equity: 0.32 (conservative balance sheet)

Our AI weighs these metrics against growth rates and margin quality to determine if MSFT offers compelling risk-adjusted returns at current prices.

Bull Case for MSFT

Here's why investors are bullish on Microsoft Corporation:

  • Revenue Growth (16.7%)
  • Gross Margin (68.6%)
  • Net Margin (39.0%)
  • Return on Equity (34.4%)

With a 92% Strong Buy Score, the bull case is well-supported by current fundamentals. The stock exhibits characteristics of quality compounders that tend to outperform long-term.

Bear Case & Risks for MSFT

Every investment carries risk. Here are potential concerns for MSFT investors:

  • Competitive pressures in Technology
  • Macroeconomic sensitivity and interest rate exposure
  • Execution risk on growth initiatives
  • Valuation compression if growth slows

The full PDF report includes a detailed bear case analysis with specific risk ratings for each category.

Summary / 12-Month Outlook

MSFT Summary: Microsoft Corporation earns a 92% Strong Buy Score based on AI analysis of fundamental data. Trading at $400.60 with a $2.98T market cap, the stock shows strong fundamentals supporting a bullish 12-month outlook.

Bull Case: Revenue Growth (16.7%), Gross Margin (68.6%)

For the complete analysis with specific price considerations, growth projections, and AI-powered buy/hold/sell recommendations, generate your free MSFT PDF report.

Frequently Asked Questions about MSFT

Is MSFT a good buy right now?
MSFT currently has a Strong Buy Score of 92% (Strong Buy). Based on AI analysis of fundamentals, MSFT shows strong buy signals with solid revenue growth, margins, and return metrics. Generate a free PDF report for specific buy/hold/sell recommendations.
What is the MSFT stock forecast for 2026?
Our AI forecasts MSFT based on current fundamentals: revenue growth of 16.7%, net margin of 39.0%, and P/E of 25.1x. The 92% Strong Buy Score reflects our outlook combining growth trajectory, margin quality, and valuation. See the full 12-month projection in your PDF report.
What are key support and resistance levels for MSFT?
View real-time MSFT demand zones (support) and supply zones (resistance) on our Demand Zones page. With MSFT currently at $400.60, you can see how close the stock is to key technical levels. Subscribe to get alerts when MSFT approaches these zones.
How do MSFT fundamentals compare to peers?
Microsoft Corporation operates in the Technology sector. Key metrics for peer comparison: Gross margin 68.6%, ROE 34.4%, Debt/Equity 0.32. The 92% Strong Buy Score factors in how these metrics stack up against industry averages. Data is refreshed daily.
Is the MSFT analysis PDF report free?
Yes! Your first MSFT fundamental analysis report is completely free with no credit card required. The PDF includes the full Strong Buy Score breakdown, all 8 fundamental categories analyzed, AI-powered insights, and specific investment recommendations. Additional reports are available through our subscription plans starting at $24/month.
What is Microsoft Corporation's market cap and P/E ratio?
Microsoft Corporation (MSFT) has a market cap of $2.98T and a trailing P/E ratio of 25.1x (forward P/E: 21.3x). These valuation metrics are key factors in our Strong Buy Score calculation. See all metrics in the PDF report for comprehensive valuation analysis.