“Microsoft sells software and cloud computing to businesses and consumers: Windows, Office/Microsoft 365, Azure cloud, LinkedIn, and Xbox.”
🐂 Bull
- Azure and Microsoft 365 Copilot give it two AI revenue paths
- 45% GAAP operating margin last quarter
- Free cash flow $67.0B = 20% of FY revenue
🐻 Bear
- Heavy AI data-center spending must earn back its cost
- Capex $115.9B ate 63% of FY operating cash flow
What changed
Quarter revenue $90.0B, +18% YoY; operating income $40.6B vs $34.3B a year ago (+18%).
MSFT · Microsoft Corp
Software & Internet · ◆ Epic · Power 86/100 · CIK 0000789019
What it does
Microsoft sells software and cloud computing to businesses and consumers: Windows, Office/Microsoft 365, Azure cloud, LinkedIn, and Xbox. Most of its profit now comes from recurring cloud subscriptions sold to companies.
What changed
10-K for the period ending 2026-06-30, filed 2026-07-29 0001193125-26-323660
Quarter revenue $90.0B, +18% YoY; operating income $40.6B vs $34.3B a year ago (+18%).
- Revenue (qtr to 2026-06-30): $90.0B (+18% YoY) 0001193125-26-323660
- Operating income (qtr to 2026-06-30): $40.6B (+18% YoY) 0001193125-26-323660
- Operating cash flow (FY to 2026-06-30): $182.9B (+34% YoY) 0001193125-26-323660
🐂 Bull case
- Azure and Microsoft 365 Copilot give it two AI revenue paths
- 45% GAAP operating margin last quarter 0001193125-26-323660
- Free cash flow $67.0B = 20% of FY revenue 0001193125-26-323660
🐻 Bear case
- Heavy AI data-center spending must earn back its cost
- Capex $115.9B ate 63% of FY operating cash flow 0001193125-26-323660
🚩 Red flags
- None triggered by our rules this period.
10-year history PRO
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How the power level is computed
Power (0–100) = Growth 25 × clip(quarter revenue YoY ÷ 30%) + Profit 25 × clip(quarter GAAP operating margin ÷ 30%) + Cash 20 × clip(FY free cash flow ÷ FY revenue ÷ 25%) + Fortress 15 (full if cash + short-term investments ≥ debt, else 15 × clip(1 − net debt ÷ FY revenue); half if debt isn't tagged) + Dilution 15 (full if diluted shares flat/down YoY, 0 at +5%). Missing inputs get half credit. Banks and insurers get a Financials frame: their score isn't comparable.
Not investment advice. Ticker Card summarizes public SEC EDGAR filings, which can be restated or late. No stock prices. Every number cites the filing's accession number. Source: SEC EDGAR.