Microsoft Stock (MSFT): Azure, Capex and Valuation in Numbers

Michael Whitman · Trading since 2017, full-time since 2020 · YouTube creator, 137K subscribers · Published 2026-11-07

Microsoft stock trades on the Nasdaq under the ticker MSFT. It is the share of the company behind Windows, Office and Xbox, but those are no longer what sets the price. Since its fiscal 2027 reporting change, Microsoft’s filings show Azure, its cloud computing platform, as the largest single source of revenue, and the spending needed to build data centers for it as a fast-growing claim on its cash.

A quote page shows a P/E near 28 and a market value near $4 trillion. It does not show how fast the cloud line is growing, what it costs, or how the stock has behaved on the days results come out. We pulled those from Microsoft’s own filings and the price record.

MSFT’s price, ratios and margin today

Price is the November 6, 2026 close. Earnings, revenue and equity come from the 10-Q for the quarter ended September 30, 2026, filed October 28, and the 10-K for the year to June 30, 2026. Microsoft’s fiscal year ends on June 30, so the September quarter is the first quarter of fiscal 2027.

In 2026 to November 6 the price rose 9.7%, against 7.8% for the S&P 500. It set a record close of $555.80 on November 4, 2026 and closed 4.5% below that two days later. Its lowest close of the past year was $352.83 on June 25, 2026.

How it works now: two segments, eight product lines

Two segments replaced three. From fiscal 2027 Microsoft reports Agents and Infra, which its 10-Q says “brings together our applications and agents, our multi-model system, and Azure infrastructure”, and Devices and Consumer. The old Intelligent Cloud, Productivity and Business Processes and More Personal Computing segments, still listed on many quote pages, are gone.

Microsoft recast fiscal 2024 to 2026 under the new structure in an 8-K filed October 28, 2026.

Agents and Infra brought in $268.13 billion, 80.8% of the fiscal 2026 total, at a 50.9% operating margin. Devices and Consumer brought in $63.71 billion at 29.6%. In the September 2026 quarter the first grew to $76.80 billion and the second slipped 3.2% to $15.48 billion.

OpenAI: a Microsoft customer as well as an investment

OpenAI is a customer as well as an investment. Because OpenAI counts as a related party, Microsoft discloses what it bills it. The 10-Q puts revenue “from commercial arrangements with OpenAI, inclusive of revenue-sharing payments” at $10.0 billion in the September 2026 quarter. Against total revenue of $92.28 billion that is 10.8%, by our arithmetic. The recast 8-K gives $24.1 billion for fiscal 2026, or 7.3% of the year’s revenue.

The original data: Azure’s share of revenue and the capex build

Azure’s share of revenue. The recast gives Azure as its own revenue line in the filings, for fiscal 2024 onward. It is a narrower measure than the one Microsoft used before: its July 2025 release said Azure “surpassed $75 billion” in fiscal 2025, while the recast puts that year at $72.61 billion.

• Fiscal 2024 to 2026: $54.07 billion (22.1% of revenue), then $72.61 billion (25.8%, up 34.3%), then $101.94 billion (30.7%, up 40.4%). That is 1.89 times in two years.
• The latest quarter: $33.17 billion (35.9% of revenue) against $22.38 billion (28.8%) a year earlier, up 48.2%. The release reports the same 48%.
• The wider cloud figure. Microsoft Cloud, the company’s wider measure, which includes Azure, was $63.9 billion in the quarter, 69.2% of revenue and up 30.1%.

Capital spending against revenue, fiscal 2010-2026. We took Microsoft’s cash additions to property and equipment from each 10-K. This line leaves out assets taken on through finance leases, so it understates the full build-out. In the September 2026 quarter Microsoft added $5.19 billion of finance-lease assets, against $9.15 billion a year earlier, and the 10-Q lists a further $364.6 billion of leases, mostly data centers, signed but not yet started.

• Fiscal 2010: $1.98 billion, 3.2% of revenue and 8.2% of operating cash flow.
• Fiscal 2024 and 2025: $44.48 billion (18.1% of revenue) and $64.55 billion (22.9%).
• Fiscal 2026: $115.95 billion, 34.9% of revenue and 63.4% of operating cash flow.
• September 2026 quarter: $39.37 billion, 42.7% of revenue, 2.03 times the $19.39 billion of a year earlier, and 67.9% of the quarter’s $58.0 billion of operating cash flow. With finance-lease assets added, the rise is smaller: $44.56 billion against $28.54 billion, 1.56 times.

Margins held up through the build so far. The operating margin was 38.6% in fiscal 2010, 46.8% in fiscal 2026 and 49.8% in the latest quarter. What spending this large does to future profit is the open question behind the stock, and the filings do not answer it.

Download the data: revenue mix and capex and earnings-day moves. Credit us and link back if you reuse them; the terms are in the site license.

A worked example: MSFT’s 27.7x P/E and 11.37x sales

All inputs are in the 10-Q filed October 28, 2026 and the fiscal 2026 10-K, except the share price.

1. Trailing earnings. Diluted EPS was $4.92 in the September 2026 quarter, $17.95 for fiscal 2026 and $3.72 in the September 2025 quarter. Last twelve months = $4.92 + $17.95 − $3.72 = $19.15.
2. P/E. $530.61 ÷ $19.15 = 27.7. Our P/E ratio page covers the arithmetic.
3. Trailing revenue. $92.28 billion + $331.84 billion − $77.67 billion = $346.45 billion.
4. Price-to-sales. $530.61 × 7,426,194,552 shares = $3.94 trillion; ÷ $346.45 billion = 11.37.
5. Book value per share. Stockholders’ equity of $470.51 billion ÷ 7,426,194,552 shares = $63.36, and $530.61 ÷ $63.36 = 8.37. Our price-to-book page covers how that ratio works.
6. Yield. $0.98 × 4 = $3.92 a year, and $3.92 ÷ $530.61 = 0.74%.

The multiple itself has moved a lot. At the June 30 close each year the P/E was 37.9x in fiscal 2024, 36.5x in fiscal 2025 and 20.8x in fiscal 2026, when the price was $373.02. The 27.7x today sits between them.

Microsoft’s 89 results days since October 2004

Microsoft files results with an 8-K, almost always around the 4 p.m. Eastern close. We matched each quarterly results filing since October 2004 (89 of them) to the next session’s close-to-close move. We read each 8-K and left out two Item 2.02 filings that were not quarterly results.

Two releases came before the open (January 22 and October 23, 2009), so that same day counts; one 8-K was accepted at 3:57 p.m. on January 27, 2011, and we count the next day.

• The median move was 3.31%, against 0.80% across the other 5,457 trading days.
• 27 of the 89 (30.3%) moved 5% or more, against 1.2% of ordinary days; 7 moved 10% or more.
• Direction: 49 were up, 55.1%, against a 51.2% up-rate on other days, a gap well within chance (two-sided binomial p = 0.53).
• The largest were +15.51% on July 30, 2026 and −11.71% on January 22, 2009, when results came out before the open.
• Since 2021, 24 releases had a median move of 3.84%, and 11 were up. The latest, on October 29, 2026, moved −0.16%.

When it fails: deep falls, lagging years and OpenAI concentration

Size does not prevent deep falls. From a close of $59.56 on December 27, 1999 to $15.15 on March 9, 2009 the stock fell 74.6%, and it did not close above that 1999 high until October 21, 2016, 16.8 years later.

It fell 37.6% from November 19, 2021 to November 3, 2022, and 34.9% from October 28, 2025 to June 25, 2026 before regaining the high on October 13, 2026. Our drawdown page explains the measure.

It does not always beat the index. MSFT rose 55.3% in 2019 and 56.8% in 2023, but lagged the S&P 500 in 2024 (12.1% against 23.3%) and 2025 (14.7% against 16.4%), and fell 28.7% in 2022 against the index’s 19.4%.

Concentration cuts both ways. Azure is growing faster than the rest of the business, and revenue billed to OpenAI went from 7.3% of fiscal 2026 revenue to 10.8% of the latest quarter. That lifts the total while it lasts, and ties more of it to one market and one customer.

These numbers age fast. Each row of the tables changes with the next price, filing and dividend, which is why every figure here carries its date.

Questions people ask

What is Microsoft’s market cap?

$3.94 trillion at the November 6, 2026 close of $530.61, using the 7,426,194,552 shares on its latest 10-Q cover, dated October 22. Our market cap page explains the measure.

How much dividend does MSFT pay?

It declared $0.98 a share for the September 2026 quarter, up from $0.91 a year earlier. At that rate it is $3.92 a year, a 0.74% yield at $530.61. Our dividend yield page covers the arithmetic.

How fast is Azure growing?

Azure revenue was $33.17 billion in the quarter to September 30, 2026, up 48.2% on the same quarter of 2025. For full fiscal years it grew 34.3% in 2025 and 40.4% in 2026.

What would $1,000 in Microsoft be worth?

That is worked out on our invested $1,000 in Microsoft page, with 1, 5 and 10-year results, with and without dividends.

Is Microsoft one of the Magnificent Seven?

Yes. Our Magnificent Seven page measures all seven against the S&P 500 from 2015, including how far each fell from its high.

Related

The ratios on this page are explained on P/E ratio, earnings per share and free cash flow. For how much the stock swings next to the market, see beta and volatility. If you own MSFT through a technology fund, sector funds covers what that concentration means.

This page is educational, not financial advice. Test every idea on your own charts before risking money.