Microsoft Financial Ratios
NASDAQ: MSFTTechnologyComputer Software: Prepackaged SoftwareUSD
At close: Oct 9, 4:00 PM ET · Delayed 15 min
Microsoft ratio analysis
Microsoft earned a net margin of 40.3% in FY 2026, up from 36.1% a year earlier. Gross margin was 67.9% compared with a median of 68.4% over the prior 9 years. Return on equity reached 30.2%, meaning Microsoft generated 0.30 dollars of profit for every dollar of shareholders' equity.
Debt-to-equity stood at 0.09 versus 0.13 the year before, and the current ratio was 1.23. At the end of FY 2026, MSFT traded at 21.8 times earnings; across the 10 fiscal years shown, its year-end P/E ranged from 21.2 to 46.3, with a median of 34.8. Valuation ratios use the closing share price on each fiscal year-end date and diluted shares from the income statement; profitability and leverage ratios use reported annual figures. Current valuation multiples are on the statistics page.
Summary generated from market data by MetaCap's automated system. Methodology
Microsoft financial ratios (annual)
| Ratio | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E ratio (at fiscal year end) | 21.75 | 36.57 | 37.88 | 35.18 | 26.90 | 34.49 | 35.81 | 26.47 | 46.30 | 21.21 |
| Price / sales | 8.74 | 13.16 | 13.55 | 11.97 | 9.81 | 12.47 | 10.98 | 8.17 | 6.88 | 5.53 |
| Price / book | 6.56 | 10.80 | 12.37 | 12.30 | 11.68 | 14.76 | 13.27 | 10.04 | 9.18 | 6.09 |
| Gross margin | 67.9% | 68.8% | 69.8% | 68.9% | 68.4% | 68.9% | 67.8% | 65.9% | 65.2% | 64.5% |
| Operating margin | 46.8% | 45.6% | 44.6% | 41.8% | 42.1% | 41.6% | 37.0% | 34.1% | 31.8% | 30.1% |
| Net margin | 40.3% | 36.1% | 36.0% | 34.1% | 36.7% | 36.5% | 31.0% | 31.2% | 15.0% | 26.4% |
| Free cash flow margin | 20.2% | 25.4% | 30.2% | 28.1% | 32.9% | 33.4% | 31.6% | 30.4% | 29.2% | 32.5% |
| Return on equity (ROE) | 30.2% | 29.6% | 32.8% | 35.1% | 43.7% | 43.2% | 37.4% | 38.3% | 20.0% | 29.1% |
| Return on assets (ROA) | 17.6% | 16.5% | 17.2% | 17.6% | 19.9% | 18.4% | 14.7% | 13.7% | 6.4% | 10.2% |
| Debt / equity | 0.09 | 0.13 | 0.19 | 0.23 | 0.30 | 0.41 | 0.54 | 0.71 | 0.92 | 0.98 |
| Current ratio | 1.23 | 1.35 | 1.27 | 1.77 | 1.78 | 2.08 | 2.52 | 2.53 | 2.90 | 2.92 |
| Revenue growth | 17.8% | 14.9% | 15.7% | 6.9% | 18.0% | 17.5% | 13.6% | 14.0% | 14.3% | 5.9% |
| EPS growth | 31.6% | 15.6% | 21.9% | 0.3% | 19.9% | 39.8% | 13.8% | 137.6% | -34.5% | 27.0% |