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Is Microsoft Corporation Growing?

MSFTTechnologySoftware - Infrastructure
Strong Growth
Profitable

Growth Summary

Microsoft Corporation (MSFT) is currently growing with a year-over-year revenue growth rate of 14.9%. The company operates in the Technology sector, specifically in the Software - Infrastructure industry.

Over the past 4 years, Microsoft Corporation has achieved a revenue compound annual growth rate (CAGR) of 7.4%, while earnings have grown at 8.9% CAGR.

The company's net profit margin stands at 36.1%, indicating strong profitability.

Latest Revenue
$281.72B
14.9% YoY
Net Income
$101.83B
15.5% YoY
5-Year Revenue CAGR
7.4%
4 years of data
Net Margin
36.1%
Latest period

Revenue Growth Over Time

Historical revenue and profitability trends for Microsoft Corporation

The chart above illustrates Microsoft Corporation's revenue trajectory over the past 4 years. The upward trend in revenue demonstrates the company's ability to expand its market presence and increase sales.

Year-over-Year Growth Rates

Annual percentage change in revenue and earnings

Growth rates provide insight into the momentum of Microsoft Corporation's business. Notably, earnings are growing faster than revenue, indicating improving operational efficiency.

Profit Margin Trends

How efficiently Microsoft Corporation converts revenue into profit

Understanding Profit Margins

Profit margins reveal how much of each dollar of revenue Microsoft Corporation retains at different stages:

  • Gross Margin (68.8%): What remains after direct production costs
  • Operating Margin (44.7%): Profit from core operations before interest and taxes
  • Net Margin (36.1%): Final profit after all expenses

A net margin above 15% indicates Microsoft Corporation is highly profitable relative to its revenue base.

Future Growth Outlook

Analyst estimates and forward-looking indicators

EPS Estimate 2026
$17.20
Current: $13.70
EPS Estimate 2027
$19.02
10.6% expected growth
Price Target
$596.00
Analyst consensus

What Analysts Are Saying

Wall Street analysts project Microsoft Corporation to continue growing earnings in the coming year. The consensus analyst rating is 4.5902 based on 61 analysts.

Growth Analysis Conclusion

Based on our comprehensive analysis, Microsoft Corporation (MSFT) demonstrates strong growth characteristics.

Key Takeaways:

  • Revenue Growth: 14.9% year-over-year, 7.4% CAGR over 4 years
  • Profitability: Net margin of 36.1% demonstrates the company is profitable
  • Efficiency: Return on equity of 32.4%, return on assets of 18.2%

Investment Considerations

This growth analysis provides a comprehensive view of Microsoft Corporation's historical performance and future outlook. Investors should consider these growth metrics alongside valuation, competitive positioning, and broader market conditions when making investment decisions. Past performance does not guarantee future results.

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