Microsoft's Competitiveness
A competitive positioning analysis and financial ratio benchmarking of Microsoft (MSFT) against its publicly traded competitors: sales growth, net income, profitability, valuation and market share, plus each peer's market capitalization, revenue, income and employees. Free below: the top 5 peers. Subscriber access adds the full competitor list and CSV downloads.
Key Findings: Microsoft vs Its Competitors
- TTM: Trailing 12-month revenue of 346,445M vs 2,413,191M combined for its competitors (12.6% combined share).
- Trending: Latest-quarter revenue run-rate is accelerating (+6.5% annualized vs trailing 12 months), vs accelerating (+2.6%) for its tracked peer group.
- Growth: Microsoft generated 18.8% revenue growth year over year in Q1 2026, vs 16.3% for its competitors combined.
- Profitability: Its 39.7% net margin compares with 17.1% for the peer group.
- Scale: Microsoft ranks #1 of 255 companies by market capitalization in the Software & Programming industry, holding 52.4% of industry market cap.
- Peer revenue share: Microsoft accounted for 13.0% of combined revenue among its tracked peer group, up from 12.7% a year earlier.
- Peer differentiation: Revenue per employee of $1.55M compares with $0.69M for the peer group (2.3x).
- Structure: Microsoft operates in the following segments: Agents and Infra, Devices and Consumer.
Every figure above is sourced and cited in detail further down this page (Market Structure, Profitability & Cost Structure, Productivity vs Peers).
MSFT Sales vs. its Competitors, Q1 2026
Microsoft reported revenue growth of 18.80 % year on year in Q1 2026, above its competitors' combined revenue growth of 16.28 %.
With a net margin of 39.69 %, Microsoft achieved higher profitability than its competitors (17.09 %).
Microsoft generated 12.98 % of the combined sales of its peer group, up from 12.74 % a year earlier.
API endpoints for this dataset
Microsoft vs. its Competitors, Q1 2026
Revenue growth, year on year
Net income growth, year on year
Net margin
Revenue run-rate vs trailing 12 months
TTM net margin
TTM = trailing twelve months. Run-rate annualizes the latest quarter (×4) and compares it to TTM. In millions of $. High-Confidence Competitors are named as a competitor directly in Microsoft reports; Similar-Size Competitors are the closest peers by market-cap rank within the same industry; Similar Growth & Profitability Competitors are the closest peers by combined revenue growth, operating margin and ROIC, all independent of the competitor list.
TTM revenue, latest-quarter run-rate and net income/margin benchmarked across Microsoft and its 4 competitor groupings. Available under Commercial License.
| Entity | TTM Revenue | Rev Run-rate vs TTM |
|---|---|---|
| Microsoft Corporation | $12,345M | +12.3% · Accelerating |
| Competitors combined | $12,345M | +12.3% · Accelerating |
| High-Confidence Competitors (43) | $12,345M | +12.3% · Accelerating |
| Similar-Size Competitors (3) | $12,345M | +12.3% · Accelerating |
| Similar Growth & Profitability (4) | $12,345M | +12.3% · Accelerating |
TTM revenue, run-rate and net margin benchmarking across Microsoft's competitor groups requires a Commercial License.
For context: the Software & Programming industry grew revenue 16.7% year over year, combined, vs 18.8% for Microsoft. Microsoft's share of combined industry revenue moved from 27.88% to 28.38%, a gain of 0.50 percentage points.
Microsoft's Competitor Quality Breadth
Group definitions: see Methodology: Performance Group Definitions.
| Entity | Profitable | Expanding | Above Industry Growth | Distressed |
|---|---|---|---|---|
| Microsoft Corporation | Yes | Yes | Yes | Yes |
| Competitors combined (164) | ||||
| High-Confidence Competitors (172) | ||||
| Similar-Size Competitors (5) | ||||
| Similar Growth & Profitability (8) | 100.00 % (8 of 8) | 100.00 % (8 of 8) | 75.00 % (6 of 8) | 0.00 % (0 of 8) |
Source: CSIMarket API, trailing 12 months. Altman Z-Score is not shown here: it is not populated in the underlying data for any company. Percentages are of companies in each group that report the relevant metric, not of the full group size.
MSFT Stock Performance relative to its Competitors
MSFT Stock Performance relative to High-Confidence Competitors
MSFT Stock Performance relative to Similar-Size Competitors
MSFT Stock Performance relative to Similar Growth & Profitability Competitors
5 Best-Performing Tracked Competitors, Trailing 12 Months
| # | Competitor | TTM Share Price Return | vs U.S.A. 500 |
|---|---|---|---|
| 1 | Playstudios Inc | 282.9% | Outperformed |
| 2 | Ringcentral Inc | 282.9% | Outperformed |
| 3 | Gigacloud Technology Inc | 282.9% | Outperformed |
| 4 | Dhi Group Inc | 282.9% | Outperformed |
| 5 | Jfrog Ltd | 282.9% | Outperformed |
TTM share price return and U.S.A. 500 outperformance for Microsoft's best-performing competitors requires a Commercial License.
Source: CSIMarket API, trailing 12 months.
Microsoft's Comment on Competition and Industry Peers
Publicly Traded Peers of Microsoft Corporation
Revenue and income for trailing 12 months, in millions of $, except employees| Company | Market Cap | Revenues |
|---|---|---|
 Microsoft Corporation |
3,950,922.06 | 346,445.00 |
 Apple Inc |
5,039,791.17 | 478,834.00 |
 Alphabet Inc |
3,511,646.24 | 471,097.00 |
 Amazon com Inc |
2,833,889.70 | 798,097.00 |
 Meta Platforms Inc |
1,569,915.95 | 241,607.00 |
 Broadcom Inc |
1,435,263.03 | 89,104.00 |
| SUBTOTAL | 23,361,674.75 | 3,478,539.62 |
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Sources: see Methodology: Peer & Competitor Identification, Sourcing.
Updated on:
Focus of this report: publicly traded companies. Ten additional tables on Microsoft Corporation versus competitors, including market share analysis, are in the navigation menu under Competition. To download the tables, please subscribe.
Microsoft's Competitors Named by the Company
Competitive relationships identified from Microsoft reports and corroborating sources, each with a basis and confidence.| Competitor | Basis | Confidence |
|---|---|---|
| Snail Inc | Company report | 85% |
| Playstudios Inc | Company report | 85% |
| Playtika Holding Corp | Company report | 85% |
| Gitlab Inc | Company report | 85% |
| Take two Interactive Software Inc | Company report | 85% |
| Gamestop Corp | Company report | 85% |
| Criteo S a | Company report | 85% |
| Professional Diversity Network Inc | Company report | 85% |
| Atlassian Corporation | Company report | 85% |
| Paltalk Inc | Company report | 85% |
| Zoom | Company report | 85% |
| Cisco Systems Inc | Company report | 85% |
| Workday Inc | Company report | 85% |
| Gen Digital Inc | Company report | 85% |
| Veeva Systems Inc | Company report | 85% |
| Mongodb Inc | Company report | 85% |
| Domo Inc | Company report | 85% |
| Egain Corporation | Company report | 85% |
| Digitalocean Holdings Inc | Company report | 85% |
| On24 Inc | Company report | 85% |
| Fastly Inc | Company report | 85% |
| Chegg Inc | Company report | 85% |
| Dropbox Inc | Company report | 85% |
| Couchbase Inc | Company report | 85% |
| System1 Inc | Company report | 85% |
| Urban One Inc | Company report | 85% |
| Motorsport Games Inc | Company report | 85% |
| Freshworks Inc | Company report | 85% |
| Quantum X Labs Inc | Company report | 85% |
| Health Catalyst Inc | Company report | 85% |
| Nft Gaming Co Inc | Company report | 85% |
| Hashicorp Inc | Company report | 85% |
| Versus Systems Inc | Company report | 85% |
| Smartsheet Inc | Company report | 85% |
| Backblaze Inc | Company report | 85% |
| Jamf Holding Corp | Company report | 85% |
| Data Storage Corporation | Company report | 85% |
| Taoweave Inc | Company report | 85% |
| Datadog Inc | Company report | 85% |
| Alteryx Inc | Company report | 85% |
| Okta | Company report | 85% |
| Jfrog Ltd | Company report | 85% |
| Zoominfo Technologies Inc | Company report | 85% |
| Doximity Inc | Company report | 85% |
| Sony Group Corporation | Company report | 85% |
| Udemy Inc | Company report | 85% |
| Cornerstone Ondemand Inc | Company report | 85% |
| Elastic N v | Company report | 85% |
| Kaltura Inc | Company report | 85% |
| Dhi Group Inc | Company report | 85% |
| Match Group Inc | Company report | 85% |
| Webtoon Entertainment Inc | Company report | 85% |
| ZI | Company report | 85% |
| BIOREGENX, INC. | Company report | 85% |
| Synchronoss Technologies Inc | Company report | 85% |
| Teads Holding Co | Company report | 85% |
| Audiocodes ltd | Company report | 85% |
| OB | Company report | 85% |
| TRANSUITE.ORG INC. | Company report | 85% |
| Electronic Arts Inc | Company report | 85% |
| Apple | Company report | 85% |
| Proofpoint | Company report | 85% |
| VMware | Company report | 85% |
| Twitter Inc. | Company report | 85% |
| Logiq Inc | Company report | 85% |
| Iren Limited | Company report | 85% |
| Box Inc | Company report | 85% |
| Ooma Inc | Company report | 85% |
| Sentinelone Inc | Company report | 85% |
| Snowflake Inc | Company report | 85% |
| Sailpoint Inc | Company report | 85% |
| Insight Enterprises Inc | Company report | 85% |
| Tucows Inc | Company report | 85% |
| Pegasystems Inc | Company report | 85% |
| Femto Technologies Inc | Company report | 85% |
| VBIX | Company report | 85% |
| Cuentas Inc | Company report | 85% |
| Cid Holdco Inc | Company report | 85% |
| Vuzix Corp | Company report | 85% |
| Blackbaud Inc | Company report | 85% |
| YNDX | Company report | 85% |
| Talkspace Inc | Company report | 85% |
| Tegna Inc | Company report | 85% |
| Oculus Inc | Company report | 85% |
| Marriott International Inc | Company report | 85% |
| Pc Connection Inc | Company report | 85% |
| Movano Inc | Company report | 85% |
| Veritone Inc | Company report | 85% |
| Crexendo Inc | Company report | 85% |
| American Well Corporation | Company report | 85% |
| Nebius Group n v | Company report | 85% |
| BCAN | Company report | 85% |
| Perion Network Ltd | Company report | 85% |
| Servicenow Inc | Company report | 85% |
| I3 Verticals Inc | Company report | 85% |
| OneMeta Inc. | Company report | 85% |
| Brag House Holdings, Inc. | Company report | 85% |
| Cerence Inc | Company report | 85% |
| Fortinet Inc | Company report | 85% |
| All In Futuretech Alliance Inc | Company report | 85% |
| Sharonai Holdings Inc | Company report | 85% |
| Hp inc | Company report | 85% |
| Vsee Health Inc | Company report | 85% |
| Baidu Inc | Company report | 85% |
| Zspace Inc | Company report | 85% |
| Unity Software Inc | Company report | 85% |
| Getty Images Holdings Inc | Company report | 85% |
| Cxapp Inc | Company report | 85% |
| Ambow Education Holding Ltd | Company report | 85% |
| Docebo Inc | Company report | 85% |
| BMP AI Technologies, Inc. | Company report | 85% |
| Magic Software Enterprises Ltd | Company report | 85% |
| Godaddy Inc | Company report | 85% |
| Skillsoft Corp | Company report | 85% |
| OBLG | Company report | 85% |
| Ribbon Communications inc | Company report | 85% |
| Magnite Inc | Company report | 85% |
| Vimeo Inc | Company report | 85% |
| Cyberark Software Ltd | Company report | 85% |
| Wearable Devices Ltd | Company report | 85% |
| LataMed AI Corp. | Company report | 85% |
| Baozun Inc | Company report | 85% |
| Doubledown Interactive Co Ltd | Company report | 85% |
| Powerschool Holdings Inc | Company report | 85% |
| Xiao I Corporation | Company report | 85% |
| Rigetti Computing Inc | Company report | 85% |
| Inuvo Inc | Company report | 85% |
| Opera Ltd | Company report | 85% |
| Beasley Broadcast Group Inc | Company report | 85% |
| IBM | Company report | 85% |
| Slack | Company report | 85% |
| Hopto Inc | Company report | 85% |
| Direct Digital Holdings Inc | Company report | 85% |
| F5 Inc | Company report | 85% |
| Oracle | Company report | 85% |
| The Glimpse Group Inc | Company report | 85% |
| Semrush Holdings Inc | Company report | 85% |
| Nutanix Inc | Company report | 85% |
| Intuit Inc | Company report | 85% |
| Walkme Ltd | Company report | 85% |
| Eventbrite Inc | Company report | 85% |
| Crowdstrike Holdings Inc | Company report | 85% |
| Meta | Company report | 85% |
| Symantec | Company report | 85% |
| Company report | 85% | |
| VRAR | Company report | 85% |
| Cars com Inc | Company report | 85% |
| Farmhouse Inc | Company report | 85% |
| Amazon | Company report | 85% |
| Appian Corporation | Company report | 85% |
| New Relic Inc | Company report | 85% |
| Nintendo | Company report | 85% |
| Verisign Inc | Company report | 85% |
| Informatica Inc | Company report | 85% |
| Strategy Inc | Company report | 85% |
| Telos Corporation | Company report | 85% |
| Firefly Neuroscience Inc | Company report | 85% |
| MSTR | Company report | 85% |
| Progress Software Corp | Company report | 85% |
| Vertical Aerospace ltd | Company report | 85% |
| Ton Strategy Company | Company report | 85% |
| Commvault Systems Inc | Company report | 85% |
| Dun and Bradstreet Holdings Inc | Company report | 85% |
| Ptc Inc | Company report | 85% |
| Citrix Systems Inc. | Company report | 85% |
| VERB | Company report | 85% |
| Zim Corp | Company report | 85% |
| Purebase Corporation | Company report | 85% |
| Vnet Group inc | Company report | 85% |
| Splunk Inc | Company report | 85% |
| Adobe Inc | Company report | 85% |
| Skyworks Solutions Inc | Company report | 85% |
| Zix Corp | Company report | 85% |
| Travelzoo | Company report | 85% |
| Nic Inc | Company report | 85% |
| Talend S a | Company report | 85% |
| Synacor Inc | Company report | 85% |
| Franklin Covey Co | Company report | 85% |
| Aiadvertising Inc | Company report | 85% |
| Ringcentral Inc | Company report | 85% |
| 8x8 Inc | Company report | 85% |
| Confluent Inc | Company report | 85% |
| Mimecast Limited | Company report | 85% |
| Roblox Corporation | Company report | 85% |
| Viant Technology Inc | Company report | 85% |
| Logitech International s a | Company report | 85% |
| Paycor Hcm Inc | Company report | 85% |
| Rackspace Technology Inc | Company report | 85% |
| Broadcom Inc | Company report | 85% |
| Tap Real Estate Technologies Inc | Company report | 85% |
| Palo Alto Networks Inc | Company report | 85% |
| Unusual Machines Inc | Company report | 85% |
| Five9 Inc | Company report | 85% |
| Liveone Inc | Company report | 85% |
| Quantum Computing Inc | Company report | 85% |
| Skkynet Cloud Systems Inc | Company report | 85% |
| Docgo Inc | Company report | 85% |
| Hub Cyber Security Ltd | Company report | 85% |
| Podcastone Inc | Company report | 85% |
| Rimini Street Inc | Company report | 85% |
| Verint Systems Inc | Company report | 85% |
| Flyexclusive Inc | Company report | 85% |
| Open Text Corp | Company report | 85% |
| Qxo Inc | Company report | 85% |
| Tenable Holdings Inc | Company report | 85% |
| Walt Disney Co | Company report | 85% |
| Mandiant Inc. | Company report | 85% |
| Uipath Inc | Company report | 85% |
| Wix com Ltd | Company report | 85% |
| Sumo Logic Inc | Company report | 85% |
| Qualys Inc | Company report | 85% |
| Netease Inc | Company report | 85% |
| Ebay Inc | Company report | 85% |
| Palantir Technologies Inc | Company report | 85% |
| Secureworks Corp | Company report | 85% |
| Salesforce Inc | Company report | 85% |
| Sap Se | Company report | 85% |
| Alphabet Inc | Company report | 85% |
| Cloudflare Inc | Company report | 85% |
| Rapid7 Inc | Company report | 85% |
| Asana Inc | Company report | 85% |
| Sprinklr Inc | Company report | 85% |
| Intel Corporation | Company report | 85% |
| Check Point Software Technologies Ltd | Company report | 85% |
| Hubspot Inc | Company report | 85% |
| Zscaler Inc | Company report | 85% |
| Gamer Pakistan Inc | Company report | 85% |
| Monday com Ltd | Company report | 85% |
| Varonis Systems Inc | Company report | 85% |
| Accenture Plc | Company report | 85% |
| Liveperson Inc | Company report | 85% |
| Pagerduty Inc | Company report | 85% |
| Akamai Technologies Inc | Company report | 85% |
| Solarwinds Corporation | Company report | 85% |
| D wave Quantum Inc | Company report | 85% |
Company report basis, confidence, active dates and source counts for Microsoft's named competitors require a Commercial License.
Methodology: see Methodology: Peer & Competitor Identification, Sourcing.
Microsoft's Business Segment Mix vs Peers
Revenue by operating segment or division, as named and reported by each company. Segment names are the filer's own and are not standardized across companies. Do not assume a same-named or similarly-named segment is defined identically between two companies. Shares are of each company's own total revenue and are not required to sum to 100% (intersegment revenue, unallocated items).| Company | Largest Segment |
|---|---|
| Microsoft Corporation | Agents and Infra 83.22 % |
| Apple Inc | Americas 41.84 % |
| Alphabet Inc | Google Services 75.49 % |
| Amazon com Inc | North America 55.86 % |
| Meta Platforms Inc | Family of Apps 99.31 % |
| Broadcom Inc | Semiconductor Solutions 64.81 % |
Source: operating segment revenue as reported in each company's reports (10-K/10-Q), via the CSIMarket API, leaf-level reportable segments only (parent roll-up segments are excluded where sub-segments are separately disclosed).
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Microsoft's Productivity vs Peers Comparison
Revenue and income per employee, trailing 12 months, in $; market cap in millions of $| Company | Market Cap | Revenue / Employee | Income / Employee |
|---|---|---|---|
| Microsoft Corporation | 3,950,922 | 1,553,565 | 639,601 |
| Apple Inc | 5,039,791 | 2,867,269 | 791,467 |
| Alphabet Inc | 3,511,646 | 10,191,610 | 5,098,953 |
| Amazon com Inc | 2,833,890 | 506,407 | 85,520 |
| Meta Platforms Inc | 1,569,916 | 3,063,552 | 954,149 |
| Broadcom Inc | 1,435,263 | 2,700,121 | 1,159,545 |
| PEERS TOTAL | 19,410,753 | 686,318 | 162,224 |
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Microsoft's Geographic Revenue Exposure vs Peers
Revenue by country/region as reported in each company's most recent report. Disclosure granularity varies by filer (some report by country, others by broad region) and is shown as disclosed.| Company | Largest Market |
|---|---|
| Microsoft Corporation | US 53.60 % |
| Apple Inc | Other countries 47.76 % |
| Alphabet Inc | United States 53.05 % |
| Meta Platforms Inc | US & Canada 40.58 % |
| Broadcom Inc | Asia Pacific 60.15 % |
| Oracle Corporation | Americas 63.46 % |
Source: revenue geography as reported in each company's reports (10-K/10-Q), via the CSIMarket API. Percentages are of that company's own total consolidated revenue for its most recent reported period.
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Microsoft's Position in Industry Market Structure
Market-capitalization share and concentration across all 229 companies in Microsoft's industry classification, broader than the peer set above. Market cap in millions of $.Microsoft ranks #1 of 229 companies by market capitalization in its industry, holding 52.39 % of total industry market cap. The industry's Herfindahl-Hirschman Index (HHI) is 2,855, indicating a highly concentrated market structure (see Methodology: Market Structure & Concentration).
| Rank | Company | Market Cap | Industry Share |
|---|---|---|---|
| 1 | Microsoft Corporation | 3,954,636 | 52.39 % |
| 2 | Palantir Technologies Inc | 411,967 | 5.46 % |
| 3 | Oracle Corporation | 338,315 | 4.48 % |
| 4 | Sap Se | 307,220 | 4.07 % |
| 5 | Crowdstrike Holdings Inc | 1,234 | 5.2% |
| 6 | Shopify Inc | 1,234 | 5.2% |
| 7 | Full Truck Alliance Co Ltd | 1,234 | 5.2% |
| 8 | Salesforce Inc | 1,234 | 5.2% |
| 9 | Servicenow Inc | 1,234 | 5.2% |
| 10 | Snowflake Inc | 1,234 | 5.2% |
Market cap and industry share for the rest of Microsoft's industry peers requires a Commercial License.
Source: CSIMarket API (daily market-structure computation) across CSIMarket's industry classification, market capitalization as of 2026-11-06.
Microsoft's Same-Size Peers & Stock Performance
Peers chosen by closeness in market-cap rank within the same industry classification (not the named-competitor list above). Trailing 12-month total return, 3-month price momentum, beta and Sharpe ratio vs the broad U.S. market.| Rank | Company | Market Cap | TTM Return |
|---|---|---|---|
| 1 | Microsoft Corporation | 3,954,636 | 4.77 % |
| 2 | Palantir Technologies Inc | 411,967 | -14.74 % |
| 3 | Oracle Corporation | 1,234 | 12.3% |
| 4 | Sap Se | 1,234 | 12.3% |
| 5 | Crowdstrike Holdings Inc | 1,234 | 12.3% |
| 6 | Shopify Inc | 1,234 | 12.3% |
Market cap, return, momentum, beta and Sharpe ratio for the rest of Microsoft's same-size peers requires a Commercial License.
Source: CSIMarket API (daily market-structure computation); returns and risk metrics as of 2026-11-06. Beta and Sharpe ratio are versus the broad U.S. equity market, not this industry.
Microsoft's Profitability & Cost Structure
Trailing 12-month margins from SEC-filed financials. Operating margin is compared to the Software & Programming industry median; gross margin, EBITDA margin and capital intensity are compared to the live industry average (442 companies). See the full Software & Programming industry profitability benchmarks.| Metric | Company | Industry | Difference |
|---|---|---|---|
| Gross Margin | 67.66 % | 50.50 % (avg) | +17.2 pp |
| Operating Margin | 47.10 % | industry median | +40.1 pp |
| EBITDA Margin | 64.19 % | 1.87 % (avg) | +62.3 pp |
| Capital Intensity (Capex / Revenue) | 39.23 % | 5.22 % (avg) | +34.0 pp |
Source: CSIMarket API, trailing 12 months. SG&A and R&D as a share of revenue have limited coverage as this data is backfilled and appear only where reported. Higher capital intensity is not inherently negative; it reflects the industry's asset requirements.
Microsoft's Valuation vs Competitive Position
Valuation multiples vs the Software & Programming industry average (442 companies, excluding loss-making/negative-equity outliers), alongside returns on capital for context on whether a premium or discount lines up with measurably stronger or weaker returns. See the full Software & Programming industry valuation benchmarks.| Metric | Company | Industry Average | Difference |
|---|---|---|---|
| P/E | 24.2x | 40.4x | -16.3x |
| EV / EBITDA | 15.6x | 20.3x | -4.7x |
| P/B | 8.2x | 5.5x | +2.7x |
| Return on Equity | 34.15 % | industry aggregate | 2.73 % |
| Return on Invested Capital | 16.08 % | -3.23 % (avg) | 19.31 % |
Source: CSIMarket API, trailing 12 months. A valuation premium or discount is not, by itself, a judgment of over- or under-valuation. Compare it against the return and growth context shown elsewhere on this page.
Microsoft's Multi-Year Financial Trajectory
Fiscal-year revenue growth, operating margin, return on invested capital and P/E, as reported in company reports.| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue Growth | 19.82 % | 13.33 % | 14.18 % | 20.63 % | 10.38 % | 11.51 % | 15.04 % | 16.67 % |
| Operating Margin | 32.82 % | 36.74 % | 39.24 % | 42.52 % | 40.58 % | 44.17 % | 46.96 % | 46.67 % |
| Return on Invested Capital | 13.53 % | 15.37 % | 16.67 % | 19.20 % | 18.05 % | 18.94 % | 18.50 % | 16.17 % |
| P/E | 24.5x | 27.1x | 32.5x | 34.7x | 26.7x | 32.2x | 34.3x | 31.3x |
Source: CSIMarket API, fiscal-year figures. P/E is this company's own historical ratio at each fiscal year end and can swing sharply around an earnings trough: that is real, not a data error.
Microsoft's Strategic Group Map
Microsoft is shown in red; its closest peers by combined growth, margin and ROIC are labeled. See Methodology: Strategic Group Map for how this chart is built.
Microsoft's trailing-12-month revenue growth of 17.9% and operating margin of 47.1% compares with an average of 15.9% growth and 38.6% margin across its 8 closest peers by combined growth, margin and ROIC -- Microsoft sits above that peer average on growth and above it on margin.
Source: CSIMarket API, trailing 12 months. Extreme outlier values (from near-zero-revenue companies) are excluded from the plotted cloud but never from the highlighted company or its labeled peers.
Microsoft's BCG Growth-Share Matrix
See Methodology: BCG Growth-Share Matrix for how relative share and growth are calculated and thresholded.
Microsoft falls in the Star quadrant: relative market share of 9.60x vs its largest competitor, in an industry growing revenue 11.3% (median, trailing 12 months).
Source: CSIMarket API (market-cap share and industry revenue growth). The 10% growth and 1.0x share lines are standard textbook thresholds, not derived from this industry's own distribution.
Microsoft's Competitive Forces (Porter's Five Forces)
Only the forces this data can support honestly are shown; the other three are marked as such rather than guessed.| Force | Assessment | Basis |
|---|---|---|
| Competitive Rivalry | Low | Industry HHI of 2,855 (see Industry Market Structure & Concentration above) |
| Barriers to Entry | High (capital intensive) | Capital intensity (capex / revenue) of 39.23 % vs industry average 5.22 % (see Profitability & Cost Structure above) |
Note: see Methodology: Porter's Five Forces. Supplier power and buyer power are covered on Microsoft's dedicated Suppliers and Customers pages, not here.
Microsoft's Industry Attractiveness & Competitive Strength
See Methodology: GE/McKinsey Matrix for how the two axes are built.
Microsoft falls in the Medium attractiveness / High strength cell: Invest / Grow.
Source: CSIMarket API, trailing 12 months. Each axis score is a simple 1(low)/2(medium)/3(high) average across its three inputs -- a transparent, disclosed simplification, not a validated academic scoring model.
Microsoft's SWOT
Every point below is a fixed rule applied to a metric already shown elsewhere on this page (Market Structure, Profitability, Valuation, Run-Rate, Stock Performance, Quality Breadth) not an independent strategic assessment. A blank quadrant means no rule was met, not that none apply.Strengths
- Market leader by capitalization in its industry (#1 of 229, 52.39 % share).
- Operating margin 40.1 points above the industry median.
- Latest-quarter revenue run-rate is accelerating (+6.5% annualized vs trailing 12 months).
Weaknesses
- Underperforming the U.S.A. 500 over the trailing 12 months.
- Piotroski F-Score of 2 or below, the standard financial-distress signal.
Opportunities
- Industry revenue growing at a healthy 11.3% median pace.
- Trades at a lower P/E than the industry average (24.2x vs 40.4x) despite a higher return on invested capital -- a possible re-rating opportunity.
Threats
- High capital intensity requires continuous reinvestment just to keep pace with the industry.
Methodology: see Methodology: SWOT Analysis.
Microsoft's Financial Strength vs Peers Comparison
Quick ratio, working capital, debt to equity and asset turnover, trailing 12 months| Company | Quick Ratio | Working Capital | Debt / Equity |
|---|---|---|---|
| Microsoft Corporation | 0.16 | 1.27 | 0.10 |
| Apple Inc | 0.27 | 1.02 | 0.88 |
| Alphabet Inc | 0.63 | 2.40 | 0.16 |
| Amazon com Inc | 0.35 | 1.06 | 0.25 |
| Meta Platforms Inc | 0.42 | 2.23 | 0.29 |
| Broadcom Inc | 0.99 | 2.05 | 0.75 |
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Quick ratio = cash / current liabilities; working capital ratio = current assets / current liabilities; asset turnover = revenue / total assets. Peers in the Blank Checks industry are excluded.
Microsoft's Revenue and Income Growth vs Peers
Quarterly revenue and net income growth, year over year and quarter over quarter| Company | Period | Revenue Y/Y | Income Y/Y |
|---|---|---|---|
| Microsoft Corporation | Q3 2026 | +18.8 % | +32.0 % |
| Apple Inc | Q3 2026 | +11.7 % | +11.8 % |
| Alphabet Inc | Q3 2026 | +24.7 % | -24.3 % |
| Amazon com Inc | Q3 2026 | +12.1 % | -2.4 % |
| Meta Platforms Inc | Q3 2026 | +26.1 % | +264.0 % |
| Broadcom Inc | Q2 2026 | +85.5 % | +216.1 % |
| PEERS TOTAL | +15.0 % | +20.2 % |
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Growth is shown only where both periods are positive. Peers in the Blank Checks industry are excluded.
Microsoft's Peers' Costs of Sales and Capital Expenditures
Context for revenue growth: peer costs and capex, year over year and quarter over quarter| Company | Period | Costs Y/Y | Capex Y/Y |
|---|---|---|---|
| Microsoft Corporation | Q3 2026 | +23.6 % | +103.0 % |
| Apple Inc | Q3 2026 | +10.2 % | -30.8 % |
| Alphabet Inc | Q3 2026 | +24.3 % | +114.4 % |
| Amazon com Inc | Q3 2026 | +6.7 % | +20.1 % |
| Meta Platforms Inc | Q3 2026 | +45.2 % | +80.3 % |
| Broadcom Inc | Q2 2026 | +74.0 % | +274.6 % |
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Microsoft's Returns and Turnover vs Peers
ROA, ROI and ROE (trailing 12 months), receivables and inventory turnover| Company | ROA | ROI | ROE |
|---|---|---|---|
| Microsoft Corporation | 20.01% | 23.87% | 34.15% |
| Apple Inc | 34.37% | 57.35% | 127.61% |
| Alphabet Inc | 29.24% | 34.26% | 42.62% |
| Amazon com Inc | 13.23% | 18.74% | 26.71% |
| Meta Platforms Inc | 17.81% | 20.54% | 30.27% |
| Broadcom Inc | 21.57% | 24.07% | 43.74% |
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ROA = net income / total assets; ROI = net income / investments; ROE = net income / equity; turnover ratios use trailing 12 month revenue (receivables) and cost of sales (inventory).
Microsoft's Valuation vs Peers
P/E, price to sales, PEG, price to cash flow and price to book| Company | P/E | Price / Sales |
|---|---|---|
| Microsoft Corporation | 27.71 | 11.40 |
| Apple Inc | 38.21 | 10.53 |
| Alphabet Inc | 14.82 | 7.45 |
| Amazon com Inc | 20.95 | 3.55 |
| Meta Platforms Inc | 20.82 | 6.50 |
| Broadcom Inc | 37.41 | 16.11 |
| PEERS AVERAGE | 26.46 | 6.72 |
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P/E = price / diluted EPS (trailing 12 months); PEG = P/E divided by EPS growth; the average row divides the peers' combined market cap by their combined income, sales, cash flow and equity.