MICROSOFT CORPORATION (MSFT) Financial Analysis — Fisclear

Valuation

Software

Live · Yahoo Finance

Price

$449.82

52-Week Range

$349.20$449.82 now$555.45

Decision Context

Beneish M-Score flags possible earnings quality concerns. The financial metrics above warrant additional scrutiny of reported figures.

Based on filing period ending Jun 2026

FisclearScore is a quantitative model using public financial data and sector median benchmarks (refreshed monthly). Not financial advice. Always conduct independent due diligence.

MSFT vs

Macro Context

Fed Funds Rate

3.63%

Accommodative

10-Year Treasury

4.47%

2026-06-01

Unemployment

4.2%

Near full employment

CPI Index

332.6

2026-06-01

M2 Money Supply

$23.2T

2026-06-01

The Federal Funds rate stands at 3.63% — a moderately elevated rate environment that raises borrowing costs across the economy; 10-year Treasury yields are at 4.47%, setting the benchmark for long-term corporate borrowing; Unemployment stands at 4.2%; Industrial production index is at 102.6; M2 money supply is $23.2T; CPI index stands at 332.6.

SWOT Analysis — MSFT

Inflationary Boom

Macro lens (Inflationary Boom): Rising costs and tighter margins amplify financial risks in this regime.

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Strengths

Revenue: $62.5B (+228.5% YoY) — Revenue grew 228% — the company sold more goods or services than the prior year.
Operating Cash Flow: $182.9B (+34.4% YoY) — Operating cash flow grew 34% — the business generated more cash from day-to-day operations.
EPS (Diluted): $17.95 (+31.6% YoY) — Earnings per share rose 32% — each share earned more.
Net Income: $133.7B (+31.3% YoY) — Profit grew 31% — the company kept more of each dollar earned.
Total Assets: $758.4B (+22.5% YoY) — Total assets grew 23% — the company's resource base expanded.

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Weaknesses

R&D spending is 57% of revenue — heavy investment in future growth, but also a drag on current profitability.

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Opportunities

No clear opportunities identified at this time.

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Threats

Gross margin compressed by 658.5pp — input costs or pricing pressure is eroding profitability on each dollar of revenue.

Financial Charts

Revenue vs Net Income

Gross Profit vs Operating Income

Margin Trend

Operating Cash Flow

Quarter-over-Quarter Comparison

2026-03-31 → 2026-06-30

Metric	2026-03-31	2026-06-30	Change
Revenue	$62.5B	$62.5B	–0.0%
Gross Profit	$193.9B	$225.5B	▲16.3%
Operating Income	$128.5B	$155.2B	▲20.8%
Net Income	$101.8B	$133.7B	▲31.3%
EPS (diluted)	$13.64	$17.95	▲31.6%
Operating CF	$136.2B	$182.9B	▲34.4%

Risk factor changes vs prior filing

NEW

Gross margin compressed by 658.5pp — input costs or pricing pressure is eroding profitability on each dollar of revenue.

NEW

R&D spending is 57% of revenue — heavy investment in future growth, but also a drag on current profitability.

REMOVED

Gross margin compressed by 588.7pp — input costs or pricing pressure is eroding profitability on each dollar of revenue.

REMOVED

R&D spending is 52% of revenue — heavy investment in future growth, but also a drag on current profitability.

Year-over-Year Changes

Revenue

$62.5B

was $19.0B

+228.5%

Revenue grew 228% — the company sold more goods or services than the prior year.

Operating Cash Flow

$182.9B

was $136.2B

+34.4%

Operating cash flow grew 34% — the business generated more cash from day-to-day operations.

EPS (Diluted)

$17.95

was $13.64

+31.6%

Earnings per share rose 32% — each share earned more.

Net Income

$133.7B

was $101.8B

+31.3%

Profit grew 31% — the company kept more of each dollar earned.

Total Assets

$758.4B

was $619.0B

+22.5%

Total assets grew 23% — the company's resource base expanded.

Risk Flags

0 high · 1 medium · 1 low

◈ Medium
Gross margin compressed by 658.5pp — input costs or pricing pressure is eroding profitability on each dollar of revenue.
○ Low
R&D spending is 57% of revenue — heavy investment in future growth, but also a drag on current profitability.