Microsoft Corporation MSFT

516.17 18.24 3.66% as of 25 Sep
Market cap
$3.68T
P/E
28.7×
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Microsoft Corporation (MSFT) Free cash flow margin

Microsoft Corporation's free cash flow margin over the twelve months to 30 June 2026 was 20.2%. Over the past ten years it has ranged from 20.2% (fiscal 2026) to 33.4% (fiscal 2021) — the current reading is the lowest in ten years. That is above the Software Infrastructure industry median of 1.67% and above the Technology sector median of 1.52%.

Free cash flow margin, annual

Annual

Period Free cash flow margin Change (points)
FY2026 20.2% (5.23)
FY2025 25.4% (4.80)
FY2024 30.2% 2.15
FY2023 28.1% (4.79)
FY2022 32.9% (0.53)
FY2021 33.4% 1.76
FY2020 31.6% 1.23
FY2019 30.4% 1.18
FY2018 29.2% (3.27)
FY2017 32.5% 5.08

Against its own ten years

Low 20.2% High 33.4%
Ten-year median 29.7%
Current reading's percentile 8

Free cash flow margin against peers

Company Free cash flow margin
PLTR Palantir Technologies Inc. compare 54.6%
FTNT Fortinet, Inc. compare 41.4%
PANW Palo Alto Networks, Inc. compare 35.8%
SNPS Synopsys, Inc. compare 29.2%
CRWD CrowdStrike compare 28.0%
MSFT Microsoft Corporation 20.2%
NET Cloudflare, Inc. compare 12.5%
ORCL Oracle Corporation compare −40.0%
NBIS Nebius Group N.V. compare −433.8%
Software Infrastructure industry median 1.67%
Technology sector median 1.52%
Market median 0.00%

What Free cash flow margin is

Free Cash Flow Margin tells an investor how much of each sale turns into cash the company keeps after paying for investment in its assets.

(Operating Cash Flow + Property, Plant, Equipment Change (Net) + Intangible Assets Change (Net)) ÷ Revenue

The full definition of Free cash flow margin →

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