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 331,839M vs 2,862,730M combined for tracked competitors (10.4% combined share).
- Trending: Latest-quarter revenue run-rate is accelerating (+8.5% annualized vs trailing 12 months), vs accelerating (+4.1%) for its tracked peer group.
- Growth: Microsoft generated 17.8% revenue growth year over year in Q4 2026, vs 17.7% for its tracked competitors combined.
- Profitability: Its 39.7% net margin compares with 32.9% for the peer group.
- Scale: Microsoft ranks #1 of 260 companies by market capitalization in the Software & Programming industry, holding 50.3% of industry market cap.
- Peer revenue share: Microsoft accounted for 10.8% of combined revenue among its tracked peer group, up from 10.8% a year earlier.
- Peer differentiation: Revenue per employee of $1.49M compares with $0.67M for the peer group (2.2x).
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, Q4 2026
Microsoft reported revenue growth of 17.75 % year on year in Q4 2026, above its competitors' combined revenue growth of 17.74 %.
With a net margin of 39.74 %, Microsoft achieved higher profitability than its competitors (32.90 %).
Microsoft generated 10.78 % of the combined sales of its peer group, up from 10.78 % a year earlier.
Microsoft vs. its Competitors, Q4 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 an SEC filing; 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 (97) | $12,345M | +12.3% · Accelerating |
| Similar-Size Competitors (4) | $12,345M | +12.3% · Accelerating |
| Similar Growth & Profitability (5) | $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 16.0% year over year, combined, vs 17.8% for Microsoft. Microsoft's share of combined industry revenue moved from 27.61% to 28.03%, a gain of 0.41 percentage points.
Microsoft's Competitor Quality Breadth
Share of each group, trailing 12 months: profitable (net margin > 0), expanding (revenue growth > 0), growing faster than the industry's own median, and financially distressed (Piotroski F-Score of 2 or below).
| Entity | Profitable | Expanding | Above Industry Growth | Distressed |
|---|---|---|---|---|
| Microsoft Corporation | Yes | Yes | Yes | Yes |
| Competitors combined (163) | ||||
| High-Confidence Competitors (143) | ||||
| Similar-Size Competitors (5) | ||||
| Similar Growth & Profitability (8) | 100.00 % (8 of 8) | 100.00 % (8 of 8) | 75.00 % (6 of 8) | 12.50 % (1 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 | Digitalocean Holdings Inc | 282.9% | Outperformed |
| 2 | Intel Corporation | 282.9% | Outperformed |
| 3 | Fastly Inc | 282.9% | Outperformed |
| 4 | Rackspace Technology Inc | 282.9% | Outperformed |
| 5 | Ringcentral Inc | 282.9% | Outperformed |
TTM share price return and U.S.A. 500 outperformance for Microsoft's best-performing tracked 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 | 3,795,216.66 | 331,839.00 |
| Apple Inc | 4,979,446.36 | 466,823.00 |
| Alphabet Inc | 4,174,720.44 | 445,866.00 |
| Amazon com Inc | 2,683,773.45 | 776,231.00 |
| Meta Platforms Inc | 1,836,280.92 | 228,248.00 |
| Broadcom Inc | 1,708,348.59 | 89,104.00 |
| SUBTOTAL | 24,619,864.22 | 3,296,806.88 |
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Sources: Microsoft Corporation's official press releases and regulatory filings; CSIMarket.com's market research; and the financial filings and press releases of the other companies cited.
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 SEC filings and corroborating sources, each with a basis and confidence.| Competitor | Basis | Confidence |
|---|---|---|
| Mongodb Inc | Named by the company | 85% |
| Domo Inc | Named by the company | 85% |
| Couchbase Inc | Named by the company | 85% |
| Urban One Inc | Named by the company | 85% |
| Okta | Named by the company | 85% |
| Gen Digital Inc | Named by the company | 85% |
| Chegg Inc | Named by the company | 85% |
| Health Catalyst Inc | Named by the company | 85% |
| Playstudios Inc | Named by the company | 85% |
| On24 Inc | Named by the company | 85% |
| Egain Corporation | Named by the company | 85% |
| Versus Systems Inc | Named by the company | 85% |
| Gamestop Corp | Named by the company | 85% |
| Nft Gaming Co Inc | Named by the company | 85% |
| Professional Diversity Network Inc | Named by the company | 85% |
| Dropbox Inc | Named by the company | 85% |
| Atlassian Corporation | Named by the company | 85% |
| Data Storage Corporation | Named by the company | 85% |
| Take two Interactive Software Inc | Named by the company | 85% |
| Freshworks Inc | Named by the company | 85% |
| Smartsheet Inc | Named by the company | 85% |
| Zoom | Named by the company | 85% |
| Hashicorp Inc | Named by the company | 85% |
| Cisco Systems Inc | Named by the company | 85% |
| System1 Inc | Named by the company | 85% |
| Digitalocean Holdings Inc | Named by the company | 85% |
| Alteryx Inc | Named by the company | 85% |
| Backblaze Inc | Named by the company | 85% |
| Quantum X Labs Inc | Named by the company | 85% |
| Gitlab Inc | Named by the company | 85% |
| Criteo S a | Named by the company | 85% |
| Jamf Holding Corp | Named by the company | 85% |
| Datadog Inc | Named by the company | 85% |
| Paltalk Inc | Named by the company | 85% |
| Taoweave Inc | Named by the company | 85% |
| Veeva Systems Inc | Named by the company | 85% |
| Fastly Inc | Named by the company | 85% |
| Workday Inc | Named by the company | 85% |
| Snail Inc | Named by the company | 85% |
| Motorsport Games Inc | Named by the company | 85% |
Filing basis, confidence, active dates and source counts for Microsoft's named competitors require a Commercial License.
Methodology: relationships are extracted from SEC filings (named-competitor disclosures) and corroborating sources. Named by the company = explicitly disclosed as a competitor; Inferred = derived from corroborating signals. Confidence reflects evidence strength.
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 | Productivity and Business Processes 42.19 % |
| Apple Inc | Americas 41.84 % |
| Alphabet Inc | Google Services 85.60 % |
| Amazon com Inc | North America 57.75 % |
| Meta Platforms Inc | Family of Apps 99.29 % |
| Broadcom Inc | Semiconductor Solutions 64.81 % |
Source: operating segment revenue as reported in each company's SEC filings (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 | 3,795,217 | 1,488,067 | 599,771 |
| Apple Inc | 4,979,446 | 2,812,187 | 776,687 |
| Alphabet Inc | 4,174,720 | 9,645,768 | 5,283,078 |
| Amazon com Inc | 2,683,773 | 492,532 | 85,838 |
| Meta Platforms Inc | 1,836,281 | 2,894,161 | 863,476 |
| Broadcom Inc | 1,708,349 | 2,700,121 | 1,159,545 |
| PEERS TOTAL | 20,824,648 | 668,650 | 157,965 |
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Microsoft's Geographic Revenue Exposure vs Peers
Revenue by country/region as reported in each company's most recent filing. Disclosure granularity varies by filer (some report by country, others by broad region) and is shown as disclosed.| Company | Largest Market |
|---|---|
| Microsoft Corporation | US 51.47 % |
| Alphabet Inc | United States 47.77 % |
| Meta Platforms Inc | US & Canada 37.77 % |
| Broadcom Inc | Asia Pacific 60.15 % |
| Oracle Corporation | Americas 63.46 % |
| Palo Alto Networks Inc | United States 61.76 % |
Source: revenue geography as reported in each company's SEC filings (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 236 companies in Microsoft's industry classification, broader than the peer set above. Market cap in millions of $.Microsoft ranks #1 of 236 companies by market capitalization in its industry, holding 50.30 % of total industry market cap. The industry's Herfindahl-Hirschman Index (HHI) is 2,661, indicating a highly concentrated market structure (U.S. antitrust guidance: below 1,500 unconcentrated, 1,500 to 2,500 moderately concentrated, above 2,500 highly concentrated).
| Rank | Company | Market Cap | Industry Share |
|---|---|---|---|
| 1 | Microsoft Corporation | 3,756,759 | 50.30 % |
| 2 | Palantir Technologies Inc | 486,305 | 6.51 % |
| 3 | Oracle Corporation | 388,902 | 5.21 % |
| 4 | Sap Se | 268,701 | 3.60 % |
| 5 | Crowdstrike Holdings Inc | 1,234 | 5.2% |
| 6 | Salesforce Inc | 1,234 | 5.2% |
| 7 | Shopify Inc | 1,234 | 5.2% |
| 8 | Full Truck Alliance Co Ltd | 1,234 | 5.2% |
| 9 | Servicenow Inc | 1,234 | 5.2% |
| 10 | Cloudflare 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 2026-09-28.
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 | 3,756,759 | -0.59 % |
| 2 | Palantir Technologies Inc | 486,305 | 5.69 % |
| 3 | Oracle Corporation | 1,234 | 12.3% |
| 4 | Sap Se | 1,234 | 12.3% |
| 5 | Crowdstrike Holdings Inc | 1,234 | 12.3% |
| 6 | Salesforce 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 2026-09-28. 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 (343 companies).| Metric | Company | Industry | Difference |
|---|---|---|---|
| Gross Margin | 67.94 % | 64.28 % (avg) | +3.7 pp |
| Operating Margin | 46.78 % | industry median | +49.5 pp |
| EBITDA Margin | 61.76 % | 2.53 % (avg) | +59.2 pp |
| Capital Intensity (Capex / Revenue) | 34.94 % | 4.79 % (avg) | +30.2 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 (343 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.| Metric | Company | Industry Average | Difference |
|---|---|---|---|
| P/E | 22.5x | 39.5x | -16.9x |
| EV / EBITDA | 14.8x | 21.7x | -6.9x |
| P/B | 7.7x | 5.4x | +2.3x |
| Return on Equity | 34.22 % | industry aggregate | 9.02 % |
| Return on Invested Capital | 15.75 % | -0.26 % (avg) | 16.01 % |
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 SEC filings.| 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 % | 15.88 % |
| 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
Every company in Microsoft's industry and named-competitor list, plotted by trailing 12-month revenue growth and operating margin. Microsoft is shown in red; its closest peers by combined growth, margin and ROIC (the Similar Growth & Profitability group above) are labeled.
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
Relative market share (vs Microsoft's largest competitor by market cap) against industry revenue growth, using the standard textbook thresholds (1.0x share, 10% growth) a common framework, not a precision instrument.
Microsoft falls in the Star quadrant: relative market share of 7.73x vs its largest competitor, in an industry growing revenue 11.6% (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 2,661 (see Industry Market Structure & Concentration above) |
| Barriers to Entry | High (capital intensive) | Capital intensity (capex / revenue) of 34.94 % vs industry average 4.79 % (see Profitability & Cost Structure above) |
| Supplier Power | Not covered on this page | See Microsoft's dedicated suppliers page for concentration and dependency data |
| Buyer Power | Not covered on this page | See Microsoft's dedicated customers page for concentration and dependency data |
| Threat of Substitutes | - | No systematic data source for cross-product substitution exists in this system; not estimated |
Note: this is a partial, data-grounded application of the framework, not a complete strategic assessment. Rivalry and barriers-to-entry readings are mechanical translations of the HHI and capital-intensity figures shown elsewhere on this page, not independent judgments.
Microsoft's Industry Attractiveness & Competitive Strength
A CSIMarket composite, not a standard field: each axis is an equal-weighted average of three factors already shown elsewhere on this page (industry growth, industry profitability and rivalry for attractiveness; relative market share, profitability and growth vs industry for strength). Disclosed as a designed methodology, not a precision measurement.
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 236, 50.30 % share).
- Operating margin 49.5 points above the industry median.
- Return on equity 9.0 points above the industry aggregate.
- Latest-quarter revenue run-rate is accelerating (+8.5% 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 11.6% median pace.
- Trades at a lower P/E than the industry average (22.5x vs 39.5x) 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: mechanical, rule-based SWOT. Each bullet reuses a figure already sourced and cited elsewhere on this page; nothing here is generated narrative or independent analyst judgment.
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 | 0.13 | 1.31 | 0.11 |
| Apple Inc | 0.26 | 0.96 | 0.99 |
| Alphabet Inc | 0.55 | 2.13 | 0.13 |
| Amazon com Inc | 0.38 | 1.07 | 0.21 |
| Meta Platforms Inc | 0.47 | 2.29 | 0.25 |
| 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 | Q2 2026 | +17.7 % | +31.3 % |
| Apple Inc | Q2 2026 | +16.4 % | +27.1 % |
| Alphabet Inc | Q2 2026 | +24.2 % | +297.9 % |
| Amazon com Inc | Q2 2026 | +19.9 % | +244.9 % |
| Meta Platforms Inc | Q2 2026 | +28.0 % | -13.6 % |
| Broadcom Inc | Q2 2026 | +85.5 % | +216.1 % |
| PEERS TOTAL | +19.3 % | +86.8 % |
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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 | Q2 2026 | +22.9 % | +109.6 % |
| Apple Inc | Q2 2026 | +8.6 % | -29.1 % |
| Alphabet Inc | Q2 2026 | +17.7 % | +100.1 % |
| Amazon com Inc | Q2 2026 | +18.5 % | +300.3 % |
| Meta Platforms Inc | Q2 2026 | +33.4 % | +82.1 % |
| 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 | 19.76% | 22.48% | 34.22% |
| Apple Inc | 35.02% | 60.14% | 142.67% |
| Alphabet Inc | 35.42% | 42.01% | 50.84% |
| Amazon com Inc | 15.21% | 23.40% | 30.50% |
| Meta Platforms Inc | 17.98% | 20.69% | 29.73% |
| 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 | 28.37 | 11.44 |
| Apple Inc | 38.90 | 10.67 |
| Alphabet Inc | 17.03 | 9.36 |
| Amazon com Inc | 19.79 | 3.46 |
| Meta Platforms Inc | 26.98 | 8.05 |
| Broadcom Inc | 44.53 | 19.17 |
| PEERS AVERAGE | 29.51 | 7.47 |
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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.