Microsoft Return On Asset vs. Revenue

MSFT Stock

USD 413.76 -0.20 -0.05%

Based on Microsoft's financial statements, Microsoft maintains a strong margin profile with a net profit margin of 22.0% and an operating margin of 29.0%, producing net income of 101.83 billion. Return on equity is 24.0%. Profitability trends show softening, with margins contracting relative to prior-year levels.

Current Value

Last Year

Change From Last Year

10 Year Trend

Gross Profit Margin

86.00%

79.00%

Significantly Up

Stable

Net Profit Margin

22.00%

33.00%

Way Down

Moderate Growth

Operating Profit Margin

29.00%

41.00%

Significantly Down

Moderate Growth

Pretax Profit Margin

42.00%

50.00%

Fairly Down

Moderate Growth

Return On Assets

20.00%

19.00%

Notably Up

High Variability

Return On Equity

24.00%

27.00%

Moderately Down

High Variability

Microsoft's profitability metrics indicate a business model that generates earnings well in excess of its cost base. Gross margin of 86.0% narrows sharply to a net margin of 22.0%, indicating that overhead, financing, or non-operating costs consume a large share of gross profit. Return on equity of 24.0% alongside return on assets of 20.0% reflects how efficiently Microsoft's capital and asset base are converting into earnings. Figures reflect Microsoft's last reported annual data.

Microsoft's Revenue by Operating Segment

Microsoft's reported product mix includes 10 disclosed revenue streams. Server Products And Cloud Services is the largest reported segment at 32.59 billion, followed by Microsoft Three Six Five Commercial Products And Cloud Services at 25.59 billion. The segment figures provide useful product-mix context, but they should be interpreted as reported line items rather than a precise share of consolidated revenue.

Microsoft has a market cap of 3.08 trillion, an operating margin of 46.33% on a trailing twelve-month basis, compared to 29.0% in the last reported annual period, current ratio of 1.84. Historical return correlation between positions is a key input for construction decisions. Broader economic conditions can influence Microsoft's company valuation - related indicators include signals in census.

For more detail on Microsoft Stock please use our How to Invest in Microsoft Stock guide.Microsoft earnings estimates reflect the collective view of covering analysts, with revisions signaling changing fundamentals. Consensus places Microsoft's next EPS at 4.20, with a 4.17 to 4.34 dispersion range. Consensus EPS estimates for Microsoft are commonly based on EPS before non-recurring items. The figures can incorporate expenses tied to employee stock options.

Macro event markers

Dot-com Bubble

Housing Crash

Credit Downgrade

Yuan Drop

Covid

Interest Hikes

The projected EPS for Microsoft is 4.204575, scheduled for 30th of June 2026. Narrowing estimate ranges for Microsoft typically indicate growing analyst agreement on forward earnings trajectory.

Revenue Breakdown by Earning Segment for Microsoft Snapshot

Microsoft's product-level revenue split is shown below, highlighting each segment's share of total revenue. On the smaller end of the reported mix, Other Products And Services contributes 3 million.

Whether Microsoft's actual earnings consistently beat or miss consensus provides a read on management credibility. Readings are calculated from publicly available market data across the selected period.

Quarterly Earnings Growth

23.4%

Dividend Share

3.56

Earnings Share

16.78

Revenue Per Share

42.84

Quarterly Revenue Growth

18.3%

Microsoft's market capitalization and book value each provide useful but distinct information about the business. Together, market value, book value, and intrinsic value form a multi-dimensional view.

Microsoft intrinsic value attempts to capture underlying worth, separate from current trading levels. Microsoft's market price is the outcome of continuous interaction between buyers and sellers.

Microsoft Revenue vs. Return On Asset Fundamental Analysis

Microsoft Revenue vs. Return On Asset

Microsoft

0.20

Microsoft

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Earnings History

Quarterly gross profit history for Microsoft is shown below using reported financial data.

Microsoft Quarterly Gross Profit

$56.06 billion

Mean reversion is the tendency of Microsoft's price to return to its historical average after periods of extreme deviation. Some analysts monitor this tendency by comparing Microsoft's price extremes to fundamental value.

Sentiment

Range

Low	Sentiment	High
412.65	414.38	416.11

Details

Intrinsic

Valuation

Low	Intrinsic	High
372.56	416.34	418.07

Details

Naive

Forecast

Low	Next	High
373.51	375.24	376.97

Details

Analyst

Consensus

Low	Target	High
509.46	559.85	621.43

Details

Microsoft is positioned within its peer group by benchmarking margins, returns, and multiples. This peer-relative view identifies where Microsoft leads, trails, or tracks its competitive set.

Estimated Months Earnings per Share

This chart shows the estimate series used for upcoming reporting periods.

Detailed Analysis of Earnings Estimates

Latest Earning Estimates and Surprises

The table below lists reported EPS, estimated EPS, and the reported surprise for each available quarter.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2026-04-29	2026-03-31	4.09	4.27	0.18	4
2026-01-28	2025-12-31	3.92	5.16	1.24	31
2025-10-29	2025-09-30	3.66	3.72	0.06	1
2025-07-30	2025-06-30	3.38	3.65	0.27	7
2025-04-30	2025-03-31	3.22	3.46	0.24	7
2025-01-29	2024-12-31	3.12	3.23	0.11	3
2024-10-30	2024-09-30	3.11	3.3	0.19	6