Microsoft Corporation
Technology · Redmond, Washington · NASDAQ
Company Description
Financial Performance — 5 Years
Financial Statements
| Item | FY-4 | FY-3 | FY-2 | FY-1 | FY (Latest) | Source |
|---|---|---|---|---|---|---|
| Revenue | $168.1B | $198.3B | $211.9B | $245.1B | $281.7B | [MSFT 10-K filed 2025-07-30 · accession 0000950170-25-100235] |
| Gross Profit | $115.9B | $135.6B | $146.1B | $171.0B | $194.4B | [MSFT 10-K filed 2025-07-30 · accession 0000950170-25-100235] |
| Operating Income | $69.9B | $83.4B | $88.5B | $109.4B | $128.5B | [MSFT 10-K filed 2025-07-30 · accession 0000950170-25-100235] |
| Operating Margin % | 41.6% | 42.1% | 41.8% | 44.6% | 45.6% | [MSFT 10-K filed 2025-07-30 · accession 0000950170-25-100235] |
| EBITDA | $81.0B | $95.7B | $101.0B | $131.7B | $162.6B | [MSFT 10-K filed 2025-07-30 · accession 0000950170-25-100235] |
| Net Income | $61.3B | $72.7B | $72.4B | $88.1B | $101.8B | [MSFT 10-K filed 2025-07-30 · accession 0000950170-25-100235] |
| EPS ($) | $8.05 | $9.65 | $9.68 | $11.80 | $13.64 | [MSFT 10-K filed 2025-07-30 · accession 0000950170-25-100235] |
| FCF | $56.1B | $65.1B | $59.5B | $74.1B | $71.6B | [MSFT 10-K filed 2025-07-30 · accession 0000950170-25-100235] |
Economic Moat
Valuation Multiples
| Multiple | Company | 5Y Self Average | Delta vs 5Y Avg |
|---|---|---|---|
| P/E (TTM) [yfinance snapshot · 5Y computed 2026-04-18] | 26.8x | 34.0x (4Y) | -21.1% |
| P/E (Fwd) [yfinance forward consensus] | 22.7x | N/A | N/A |
| EV/EBITDA [yfinance snapshot · 5Y computed 2026-04-18] | 18.0x | 22.5x (4Y) | -20.0% |
| P/S [yfinance snapshot · 5Y computed 2026-04-18] | 10.4x | 12.1x (4Y) | -13.6% |
| P/B [yfinance snapshot · 5Y computed 2026-04-18] | 8.2x | 11.7x (4Y) | -30.5% |
| Div Yield [yfinance snapshot · 5Y computed 2026-04-18] | 0.87% | 0.76% (4Y) | +0.11pp |
| FCF Yield (snapshot) [computed · 2026-04-18] | 2.25% | 2.48% (4Y) | -9.3% |
5Y statistical averages computed from yfinance annual data (annual income_stmt × balance_sheet × cash_flow + price snapshots at FY-end). Source: lib/compute_5y_multiples.py · Refresh: 2026-04-18 | |||
How to Think About This Company
A full How to Think About This Company analysis for MSFT — including examination of the essence, key variables, potential analytical pitfalls, and what distinguishes professional thinking from noise — is available within the Family Office content.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
Risks & Items Under Watch
Scenario Framework
The framework below describes what conditions need to hold in each scenario — not a price forecast.
Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes. These scenarios contain no probability assessment, no preferred direction, and no expectation as to which will materialize.
Analytical Lens — The Questions We Ask
In professional company analysis, the question is not "is this good," but rather "from which angles must the company be examined so as not to miss what matters." Every analysis at Bakshi Finance passes through six lenses. The text below is not an assessment — it is the mapping of the questions this analysis is meant to answer.
The analysis is based on an internal multi-factor analytical framework used in professional portfolio management. The framework maps the questions; the answers appear woven through the analysis above.
What the lens is not: there is no rating, no score, no comparison between this company and another, and no preference. The same six questions are asked of every company on this site — the variation is in the answers, not in the tool.
This framework is intended to structure analysis, not to produce an investment conclusion.
Key Observations
This summary is not a recommendation. It is a factual list of what the analysis identified. The decision — belongs to the client.
Disclosure — Family Office Format
Bakshi Finance operates in a Family Office format for qualified clients only. Mr. Yaron Bakshi held a licensed investment advisor license from 2008 to 2023. As of the publication date of this document, the company does not hold an investment advisory, investment marketing, or portfolio management license. This document is intended for research and professional learning purposes only.
Nothing herein constitutes a recommendation to buy, sell, hold, or take any action with respect to securities. Nothing herein is a substitute for advice that takes into account the data and needs of any specific person. Every decision — is the sole responsibility of the investor.
Past performance is not indicative of future performance.