Microsoft Corporation(MSFT)NASDAQ
Stock Overview & Analysis
Microsoft Corporation (MSFT) quick overview 2026-02-20
- The stock is currently trading at $397.23, experiencing a short-term pullback within a declining trend—trading below its 50-day average while below the 200-day.
- Analysts appear optimistic, with a 1-year price target of $596.00 (50.0% upside).
- Volatility is elevated (38.67% annualized), implying wide price swings.
- The fundamental story is nuanced: solid revenue growth (16.70% YoY) alongside significant competitive pressures.
Here's What You Need to Know Right Now
Concise, actionable context
Microsoft Corporation - Historical Price & Volume
Market Cap
Enterprise Value: $3.00T
P/E Ratio
Forward P/E: 21.20
Revenue Growth
Year over Year
Analyst Target
+50.0% upside potential
Key Investor Questions
Clarity over jargon
- Technicals say: Neutral (RSI 32.05)
- Fundamentals say: Caution warranted (high leverage concerns)
- Future growth will depend on performance in core Software - Infrastructure operations.
- The ability to manage competitive pressures will be crucial for sustained growth.
- $123.28B in debt could be a headwind in a high-rate environment.
- Fierce competition from established players in Software - Infrastructure.
Trading Range
Over the past year, the stock traded between $344.79 and $555.45—recovering meaningfully from lows and currently near the higher end. Big swings are likely unless a major catalyst emerges.
Volatility
With 38.67% annualized volatility and β=1.08, the stock exhibits moderate correlation to market moves—suitable for investors comfortable with active risk management.
Ownership Snapshot
High institutional backing, but elevated short interest signals a potential battleground stock.
Analyst Sentiment
Latest News
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Frequently Asked Questions
Common investor questions about Microsoft Corporation
Microsoft Corporation (MSFT) is currently trading at $397.23. The RSI (14-day) is at 32.0, indicating neutral territory. Wall Street analysts have a consensus "strong_buy" recommendation. The mean analyst price target of $596.00 implies 50.0% upside from current levels. Volatility is moderate at 38.7% annualized, meaning price movements are relatively contained. Investors should consider their risk tolerance, investment horizon, and portfolio diversification before making a decision.
Based on current valuation metrics for Microsoft Corporation (MSFT): The trailing P/E ratio is 25.01, which is in line with broader market averages. The forward P/E is 21.20, lower than the trailing P/E, suggesting analysts expect earnings improvement. The PEG ratio is 1.52, near 1.0, suggesting roughly fair value relative to growth. Price-to-Book is 7.59. Price-to-Sales is 9.72. Valuation should be compared to Software - Infrastructure industry peers for context, as different sectors trade at different multiples.
Based on 53 analysts covering MSFT, the consensus price target is $596.00. This represents a 50.0% upside from the current price of $397.23. The range spans from a low target of $392.00 to a high target of $730.00, reflecting varying levels of optimism among analysts. The consensus recommendation is "strong_buy". Note: Analyst price targets are forward-looking estimates and not guarantees of future performance.
Yes, Microsoft Corporation (MSFT) pays a dividend with a current yield of approximately 87.00%. The annualized dividend rate is $3.48 per share. The payout ratio is 21.3%, which is conservative and suggests the dividend is well-covered by earnings with room for future increases. The most recent ex-dividend date was 2026-02-19.
Key risks for Microsoft Corporation (MSFT) investors include: 1. Moderate volatility (38.7% annualized)—price swings are notable. 2. Elevated short interest (79.0% of float) suggests significant bearish sentiment. 3. Broader market and macroeconomic risks (interest rates, inflation, geopolitical events). 4. Software - Infrastructure sector-specific competitive pressures. Investors should diversify and consider their risk tolerance before investing.
Here is Microsoft Corporation's (MSFT) current debt and financial health profile: Total debt stands at $123.28B. The debt-to-equity ratio is 31.54, which is moderate and generally manageable for most companies. The current ratio is 1.39, indicating adequate short-term liquidity. The quick ratio is 1.24. The company holds $89.46B in cash and equivalents. Free cash flow is positive at $53.64B, providing a cushion for debt servicing and shareholder returns.