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Microsoft MSFT Free cash flow margin

Free cash flow margin at other companies

International Business Machines logo
International Business MachinesIBM
18.7%-1.3pp
Apple logo
AppleAAPL
28.6%+4.0pp
Electronic Arts logo
Electronic ArtsEA
30.8%+5.9pp
PTC logo
PTCPTC
31%-4.0pp
Take-Two Interactive Software logo
Take-Two Interactive SoftwareTTWO
6.9%
Amazon logo
AmazonAMZN
1.4%-1.8pp

Other financials

Income statement

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Revenue$82.9B+18.3%
Gross profit$56.1B+16.4%
Operating income$38.4B+20.0%
Net income$31.8B+23.1%
EPS (diluted)$4.27+23.4%

Balance sheet

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Cash & equivalents$32.1B+11.4%
Total debt$125.43B+19.4%
Total equity$414.37B+28.7%
Total assets$694.23B+23.4%

Cash flow

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Operating cash flow$46.7B+26.0%
CapEx$30.9B+84.4%
Free cash flow$15.8B-22.2%

Valuation

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Market cap$2.81T-1.5%
Enterprise value$2.91T-0.9%
P/E22.5×-7.1×
P/S8.8×-1.7×

Profitability

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Gross margin68.3%-0.8pp
Operating margin46.8%+1.6pp
Net margin39.3%+3.6pp

Returns & leverage

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Return on equity34%+0.4pp
Debt / equity0.3×0.0×
Current ratio1.3×-0.1×

Where this comes from

Calculated from Microsoft’s reported figures.

Based on trailing twelve months.

The official record: Microsoft’s 10-Q, filed April 29, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Microsoft's free cash flow margin?
Microsoft (MSFT) reported free cash flow margin of 22.9% in Q1 2026.
How has Microsoft's free cash flow margin changed year-over-year?
Microsoft's free cash flow margin decreased by 10.8% year-over-year, from 25.7% to 22.9%.
What is the long-term trend for Microsoft's free cash flow margin?
Over 4 years (2021 to 2025), Microsoft's free cash flow margin has grown at a -5.5% compound annual growth rate (CAGR), from 133.4% to 106.4%.
What does free cash flow margin mean?
How much real, spendable cash each sales dollar generates after reinvestment.
How do you interpret free cash flow margin?
A high and rising FCF margin is the hallmark of a cash-generative business. Persistent gaps between net margin and FCF margin warrant a look at working capital or capital intensity.
How does free cash flow margin compare across companies?
Strong cross-company quality signal; capital-light compounders post structurally higher FCF margins than asset-heavy peers.