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
More on MSFT
- Revenue
- Net income
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- 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
- The full statement