Microsoft Corporation (MSFT) compounding analysis
Full-size annual and quarterly year-over-year growth charts for revenue, EPS, operating cash flow, EBITDA, and free cash flow against the 15%, 20%, and 30% bars over 3-, 5-, and 10-year windows, with each metric's valuation multiple vs its own history.
Revenue · 5YDoes not currently clear the 15%+, 20%+, or 30%+ revenue bars over 5Y.
- Score
- 32/100
- 5Y CAGR
- 14.5%
- Median YoY
- 16.4%
- YoY volatility
- σ 5.1pp· smooth
- Quarters ≥ 20%
- 3 of 20
- Negative quarters
- 0
- Valuation vs own 5Y history
- P/S 9.1x · 5Y median 12.2x · 13th percentile
How this score is computed
- Quarters at or above 20%: 3 of 20 → 6 of 40 pts
- Steadiness (typical swing 5.1pp) → 21.4 of 25 pts
- Pace (median 16.4% YoY) → 1.9 of 20 pts
- Latest quarter (18.3% YoY) → 2.5 of 15 pts
- Score: 32 of 100
Annual revenue · last 11 fiscal years
Quarterly YoY revenue growth vs the 20% line · 5Y
P/S multiple vs its 5Y median · context only
Across metrics · 5Y
| Metric | 5Y CAGR | Median YoY | YoY σ | Qtrs ≥ 20% | Neg. qtrs |
|---|---|---|---|---|---|
| RevenueRevenue | 14.5% | 16.4% | 5.1pp | 3 of 20 | 0 |
| EPSEPS | 18.8% | 18.8% | 18.4pp | 9 of 20 | 2 |
| Op cash flowOperating cash flow | 17.5% | 17.5% | 20.4pp | 9 of 20 | 3 |
| EBITDAEBITDA | 19.9% | 22.5% | 11.1pp | 13 of 20 | 1 |
| FCFFree cash flow | 9.6% | 9.4% | 27.1pp | 4 of 20 | 8 |
Reported figures over 5Y: annual-series CAGR, median and standard deviation (σ, percentage points) of quarterly year-over-year growth, quarters at or above 20%, and quarters with negative YoY. “—” means the window needs more comparable data.
Scores, qualification bars, and the 0–100 consistency methodology are documented on the compounders list page →
See also: MSFT on the compounders surface · All compounders, ranked
About Microsoft Corporation
Microsoft Corporation is a prominent global technology firm that invents, markets, and provides ongoing assistance for a diverse range of software, digital services, computing devices, and comprehensive solutions. Its operations are organized into three primary divisions: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment delivers crucial tools for both enterprises and individual users. This includes the extensive Office suite (comprising Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business), along with popular consumer offerings like Skype, Outlook.com, OneDrive, and LinkedIn. It also features Dynamics 365, a suite of integrated cloud and on-premises business applications tailored for organizations. The Intelligent Cloud division focuses on sophisticated infrastructure and platform services. Here, Microsoft licenses key products such as SQL Server, Windows Servers, Visual Studio, System Center, and associated Client Access Licenses. It also includes GitHub, a leading platform for developer collaboration and code hosting; Nuance, offering advanced AI solutions for healthcare and businesses; and Azure, its expansive cloud computing platform. This segment further encompasses enterprise support, Microsoft consulting services, and Nuance professional services, assisting clients with the development, deployment, and management of Microsoft's server and desktop technologies, alongside offering product training and certification. Finally, the More Personal Computing segment covers a broad spectrum of consumer and commercial computing experiences. It generates revenue through Windows operating system licensing, including agreements with original equipment manufacturers (OEMs), non-volume licensing, and various Windows Commercial offerings (such as volume licensing and cloud services), as well as patent licensing and Windows Internet of Things (IoT). This division also supplies its own hardware, including Surface devices, PC accessories, and gaming/entertainment consoles. Its Gaming portfolio features Xbox hardware, content, and subscription services, in addition to video games and royalties from third-party titles. Furthermore, it manages search services like Bing and Microsoft's advertising platforms. Microsoft distributes its extensive product line via numerous channels, including original equipment manufacturers, wholesale distributors, and various resellers, complementing direct sales through digital marketplaces, its own online storefronts, and physical retail outlets. The company, established in 1975, maintains its headquarters in Redmond, Washington.
- Sector
- Technology
- Industry
- Software - Infrastructure
- CEO
- Satya Nadella