Microsoft Corporation
MSFT Technology Software Infrastructure
Microsoft Corporation’s revenue for fiscal 2026 (year ended June 2026) was $331.8 billion, up 17.8% from fiscal 2025. Member of the S&P 500, Nasdaq 100 and Dow Jones; dividend growth for ten consecutive years, revenue growth for ten, operating cash flow growth for three; insiders bought in the last twelve months.
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Microsoft Corporation (MSFT) Altman Z-score
Microsoft Corporation's Altman Z-score for fiscal 2026 is 7.04, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 7.04 | (2.78) |
| FY2025 | 9.83 | (0.09) |
| FY2024 | 9.92 | 0.66 |
| FY2023 | 9.26 | 1.56 |
| FY2022 | 7.69 | (0.48) |
| FY2021 | 8.17 | 1.45 |
| FY2020 | 6.73 | 1.89 |
| FY2019 | 4.84 | 0.79 |
| FY2018 | 4.05 | 0.70 |
| FY2017 | 3.35 | (0.08) |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.05 | — | 0.06 | |
| Retained earnings / total assets | 0.43 | — | 0.61 | |
| EBIT / total assets | 0.20 | — | 0.68 | |
| Market value of equity / total liabilities | 8.77 | — | 5.26 | |
| Sales / total assets | 0.44 | — | 0.44 | |
| Altman Z-score | Safe zone | 7.04 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 4.59 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| PLTR Palantir Technologies Inc. compare | 180× |
| CRWD CrowdStrike compare | 10.6× |
| NET Cloudflare, Inc. compare | 9.4× |
| PANW Palo Alto Networks, Inc. compare | 7.4× |
| MSFT Microsoft Corporation | 7.0× |
| FTNT Fortinet, Inc. compare | 5.3× |
| SNPS Synopsys, Inc. compare | 2.8× |
| ORCL Oracle Corporation compare | 2.3× |
| NBIS Nebius Group N.V. compare | 2.1× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets
More on MSFT
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- Beneish M-score
- The full statement