Microsoft MSFT
18 of 22 tests passed across all three checklists. These are separate views of the same company, not one rating; see each checklist below.
Microsoft (MSFT), in the Information Technology sector, currently passes 5 of 6 Buffett-inspired tests, 7 of 7 Trend Template-inspired tests (1 not evaluated) and 6 of 9 F-score-inspired tests.
On the Buffett-inspired quality & value checklist it passes on ROE above 15% for 10 straight years, debt-to-equity below 0.5 and consistent EPS growth among others, but falls short on price at or below owner-earnings value. Market value $3.95T is 6.96x the $568.01B you get by capitalising owner earnings of $56.80B at 10.0%; needs 1.00x or less.
On the Minervini Trend Template-inspired checklist, MSFT clears every test we could evaluate.
On the Piotroski F-score-inspired checklist it passes on positive return on assets, positive operating cash flow and return on assets improved among others, but falls short on current ratio improved, gross margin improved and asset turnover improved. Current ratio went from 1.35 to 1.23 (FY2025 to FY2026); needs to rise.
Over FY2017–FY2026, revenue went from $96.57B to $331.84B (14.7% a year) and net income from $25.49B to $133.75B.
Buffett-inspired quality & value: 5 of 6 tests passed
Fundamentals from the FY2026 annual report (year ended 30 June 2026). How the Buffett-inspired checklist works →
| Test | Value | Needs | Result |
|---|---|---|---|
| ROE above 15% for 10 straight yearsLowest return on equity in the last 10 fiscal years was 19.4% (FY2018); needs every year above 15.0%. | 19.4% | > 15.0% | Pass |
| Debt-to-equity below 0.5Total debt of $40.29B against shareholders' equity of $442.39B gives 0.09; needs below 0.50. | 0.09 | < 0.50 | Pass |
| Consistent EPS growthDiluted EPS fell in 1 of the last 10 years (max 2) and grew 21.5% a year overall, from $2.56 (FY2016) to $17.95 (FY2026). | 1 | <= 2 | Pass |
| Gross margin above 40%Gross profit was 67.9% of revenue in FY2026; needs above 40.0%. | 67.9% | > 40.0% | Pass |
| Positive free cash flow (5 years)Weakest free cash flow (operating cash flow minus capex) in the last 5 years was $59.48B (FY2023); needs every year above zero. | $59.48B | > $0.00 | Pass |
| Price at or below owner-earnings valueMarket value $3.95T is 6.96x the $568.01B you get by capitalising owner earnings of $56.80B at 10.0%; needs 1.00x or less. | 6.96x | <= 1.00x | Fail |
Minervini Trend Template-inspired: 7 of 7 tests passed
Based on daily closing prices to 26 October 2026. How the Trend Template-inspired checklist works →
| Test | Value | Needs | Result |
|---|---|---|---|
| Price above the 150-day and 200-day averagesClose of $532.60 is +20.4% above the higher of the 150-day ($442.45) and 200-day ($437.98) averages; needs to be above both. | +20.4% | > 0 | Pass |
| 150-day average above 200-day average150-day average $442.45 is +1.0% versus the 200-day $437.98; needs to be above it. | +1.0% | > 0 | Pass |
| 200-day average rising for at least a month200-day average moved +1.1% over the last 22 trading days ($433.14 to $437.98); needs to be rising. | +1.1% | > 0 | Pass |
| 50-day average above the 150-day and 200-day50-day average $509.17 is +15.1% above the higher of the 150-day and 200-day; needs to be above both. | +15.1% | > 0 | Pass |
| Price above the 50-day averageClose of $532.60 is +4.6% versus the 50-day average of $509.17; needs to be above it. | +4.6% | > 0 | Pass |
| At least 30% above the 52-week lowClose of $532.60 is 51.0% above the 52-week low of $352.83; needs at least 30.0%. | 51.0% | >= 30.0% | Pass |
| Within 25% of the 52-week highClose of $532.60 is 2.0% below the 52-week high of $543.45; needs to be within 25.0%. | 2.0% | <= 25.0% | Pass |
| Relative strength rank 70 or higherNot evaluated: ranking needs at least 50 stocks; this run loaded 5. | n/a | >= 70 | n/a |
Piotroski F-score-inspired: 6 of 9 tests passed
Fundamentals from the FY2026 annual report (year ended 30 June 2026). How the F-score-inspired checklist works →
| Test | Value | Needs | Result |
|---|---|---|---|
| Positive return on assetsNet income was 21.6% of beginning-of-year total assets in FY2026; needs to be positive. | 21.6% | > 0.0% | Pass |
| Positive operating cash flowOperating cash flow was $182.94B in FY2026; needs to be positive. | $182.94B | > $0.00 | Pass |
| Return on assets improvedReturn on assets went from 19.9% to 21.6% (FY2025 to FY2026); needs to rise. | +1.7 pts | > 0 | Pass |
| Cash flow exceeds net incomeOperating cash flow was 29.6% of assets versus net income at 21.6%; cash needs to come in above reported profit. | +7.9 pts | > 0 | Pass |
| Long-term debt ratio fellLong-term debt went from 7.1% to 4.5% of average total assets (FY2025 to FY2026); needs to fall. | -2.6 pts | < 0 | Pass |
| Current ratio improvedCurrent ratio went from 1.35 to 1.23 (FY2025 to FY2026); needs to rise. | -0.12 | > +0.00 | Fail |
| No new shares issuedDiluted share count changed -0.2% (FY2025 to FY2026); needs no increase. | -0.2% | <= 0 | Pass |
| Gross margin improvedGross margin went from 68.8% to 67.9% (FY2025 to FY2026); needs to rise. | -0.9 pts | > 0 | Fail |
| Asset turnover improvedRevenue per dollar of beginning assets went from 0.55 to 0.54 (FY2025 to FY2026); needs to rise. | -0.01 | > +0.00 | Fail |
MSFT ten-year fundamentals
From Microsoft's 10-K filings. ROE uses average shareholders' equity; free cash flow is operating cash flow minus capital expenditure; EPS is diluted and restated for any stock splits onto today's share basis.
| FY | Revenue | Net income | EPS | Gross margin | ROE | Free cash flow | Debt/equity |
|---|---|---|---|---|---|---|---|
| 2026 | $331.84B | $133.75B | $17.95 | 67.9% | 34.0% | $66.99B | 0.09 |
| 2025 | $281.72B | $101.83B | $13.64 | 68.8% | 33.3% | $71.61B | 0.13 |
| 2024 | $245.12B | $88.14B | $11.80 | 69.8% | 37.1% | $74.07B | 0.19 |
| 2023 | $211.91B | $72.36B | $9.68 | 68.9% | 38.8% | $59.48B | 0.23 |
| 2022 | $198.27B | $72.74B | $9.65 | 68.4% | 47.2% | $65.15B | 0.30 |
| 2021 | $168.09B | $61.27B | $8.05 | 68.9% | 47.1% | $56.12B | 0.41 |
| 2020 | $143.01B | $44.28B | $5.76 | 67.8% | 40.1% | $45.23B | 0.54 |
| 2019 | $125.84B | $39.24B | $5.06 | 65.9% | 42.4% | $38.26B | 0.71 |
| 2018 | $110.36B | $16.57B | $2.13 | 65.2% | 19.4% | $32.25B | 0.92 |
| 2017 | $96.57B | $25.49B | $3.25 | 64.5% | 29.8% | $31.38B | 0.98 |
How to read these results
Each checklist turns a published investing approach into yes/no tests. A pass means MSFT met that one threshold on the latest data; it doesn't mean the stock is cheap, safe or likely to rise. The fundamental tests use Microsoft's annual reports, so they change only when a new 10-K is filed. The trend tests use daily closing prices and can flip from one day to the next.
"n/a" means the data needed wasn't available. Common reasons are a company that doesn't report a figure (banks, for example, have no gross margin) or not enough years of history. Those tests are left out of the score rather than counted as fails.
Data comes from Microsoft's SEC filings (latest 10-K filed 29 July 2026) and Marketstack end-of-day prices. Last updated 26 October 2026.