MICROSOFT CORPORATION (MSFT) Financial Analysis — Fisclear

Valuation

Software

Live · Yahoo Finance

Price

$390.74

52-Week Range

$356.28$390.74 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 Mar 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

3.64%

Accommodative

10-Year Treasury

4.25%

2026-03-01

Unemployment

4.3%

Near full employment

CPI Index

330.3

2026-03-01

M2 Money Supply

$22.7T

2026-03-01

The Federal Funds rate stands at 3.64% — a moderately elevated rate environment that raises borrowing costs across the economy; 10-year Treasury yields are at 4.25%, setting the benchmark for long-term corporate borrowing; Unemployment stands at 4.3%; Industrial production index is at 101.8; M2 money supply is $22.7T; CPI index stands at 330.3.

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.
Total Assets: $619.0B (+20.9% YoY) — Total assets grew 21% — the company's resource base expanded.
EPS (Diluted): $13.64 (+15.6% YoY) — Earnings per share rose 16% — each share earned more.
Net Income: $101.8B (+15.5% YoY) — Profit grew 16% — the company kept more of each dollar earned.
Operating Cash Flow: $136.2B (+14.9% YoY) — Operating cash flow grew 15% — the business generated more cash from day-to-day operations.

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Weaknesses

R&D spending is 52% 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 588.7pp — 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

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.

Total Assets

$619.0B

was $512.2B

+20.9%

Total assets grew 21% — the company's resource base expanded.

EPS (Diluted)

$13.64

was $11.80

+15.6%

Earnings per share rose 16% — each share earned more.

Net Income

$101.8B

was $88.1B

+15.5%

Profit grew 16% — the company kept more of each dollar earned.

Operating Cash Flow

$136.2B

was $118.5B

+14.9%

Operating cash flow grew 15% — the business generated more cash from day-to-day operations.

Risk Flags

0 high · 1 medium · 1 low

◈ Medium
Gross margin compressed by 588.7pp — input costs or pricing pressure is eroding profitability on each dollar of revenue.
○ Low
R&D spending is 52% of revenue — heavy investment in future growth, but also a drag on current profitability.