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DAISY Analysis

See any stock's exact valuation. Our trained AI analyses each one.

Microsoft CorporationMSFT

Stock Summary

Powered by DAISY
Large-cap cloud & AI software
Global leader in cloud, productivity and AI platforms; strong profitability and cash flow with EPS TTM $16.80; inventory growth flagged as a potential near-term concern.
Sector: TechnologyIndustry: Software - Infrastructure
HelloStocks Score

Focus on better stocks with our unique scoring system

Microsoft CorporationMSFT
HelloStocks Score
Overall Rating
8.0
Growth
7.8
Financial Strength
9.4
Value
6.7
Fundamentals

See how fundamentals compare to industry and sector competitors

Microsoft CorporationMSFT

Financial Strength

Metricvs Sector
Gross Margin: 67.6%High (top 70%)
Operating Margin: 46.8%Very High (top 98%)
Net Margin: 39.3%Very High (top 96%)
ROE: 33.1%High (top 74%)
ROA: 19.2%Very High (top 87%)
ROIC: 29.0%High (top 75%)
Free Cash Flow (TTM): 72.9 billionVery High (top 100%)
Debt to Equity: 0.14Low (bottom 37%)
Book Value / Share: 55.80Very High (top 94%)
Financial Strength Score: 9.4Very High (top 96%)
Earnings Audit

Avoid misleading earnings with AI normalized results for each stock.

Microsoft CorporationMSFT

Earnings Audit

DAISY uses saved SEC-backed normalized EPS data. You can remove, add back, or edit adjustment items to see how EPS, P/E, and PEG change.
DAISY
Your AI Earnings Auditor
Suggested Normalized EPS
16.19
Adjusted for one-time items
GAAP EPS
16.8
DAISY Summary
Over the latest four quarters, normalized EPS is 16.19 versus GAAP EPS of 16.80. The main adjustments identified from SEC filing reconciliations were openai investment impact.
DAISY Explanation
Adjustments Made (TTM total)
  • +OpenAI investment impact+0.41
  • -OpenAI investment impact-1.02
Quarterly EPS Breakdown
QuarterPeriod EndGAAPAdj DilutedAdj BasicDAISY
Q1 2026Mar 31, 20264.27--4.27
Q4 2025Dec 31, 20255.16--4.14
Q3 2025Sep 30, 20253.72--4.13
Q2 2025Jun 30, 20253.65--3.65
TTM16.816.8-16.19
Valuation Station
Adjust values to effect the valuation metrics
editable
Market: 384.36
editable
Reported: 16.80
editable
Base: 16.57%
%
calculated
23.74
Base: 22.88
PEG Ratio1.43
Fair
01234+
LowFairPriceyHigh
What is the PEG Ratio?

The PEG ratio combines price-to-earnings with expected earnings growth to assess value.

Formula: P/E Ratio divided by expected annual earnings growth %

Industry Outlook

Understand the wider industry growth with AI analysis and growth expectations.

Microsoft CorporationMSFT

Industry Outlook

DAISY OutlookAI cloud growth remains strong
Powered by DAISY

Global dealmaking is running at its strongest pace since 2021, and spending on AI infrastructure, cloud migration, and automation remains a key support despite tighter scrutiny on software bills.

Long Term Annual Industry Growth
Low 11%High 25%
DAISY expects: 18%

Macro Environment

Mixed

The macro setup is supportive but not clean. AI infrastructure spending, cloud migration, and new U.S. capital-spending incentives are helping demand stay firm. At the same time, Middle East supply shocks have lifted inflation risk, and higher power, data-center, and financing costs make buyers more careful about new commitments.

Competitive Dynamics

Expanding

Competition is expanding as AI lowers the cost of building new software tools and makes it easier for customers to test alternatives. Large platforms still have advantages because they control customer relationships, developer ecosystems, and cloud distribution. Margins should improve for scaled vendors, but smaller entrants may need to spend heavily on sales, compute, and product development to stay relevant.

Growth Outlook

Expanding

The industry is still expanding because companies need better data systems, stronger security, and AI features that plug into daily work. Growth is broadest where software helps customers save labor, protect systems, or run cloud workloads more efficiently. The weak spot is budget fatigue, because customers are actively looking for unused seats, overlapping tools, and cloud capacity they can cut.

Key Near-Term Risks

Elevated

The first risk is that AI projects do not deliver clear savings or revenue fast enough, causing customers to slow deployments. The second is cloud cost control, because customers can cut unused capacity, delay migrations, or renegotiate contracts when bills rise faster than budgets. The third is a major cyberattack or tougher data-location rule that forces slower rollouts in regulated industries.

AI-generated content may be wrong; please perform your own research

Updated Jul 5, 2026
Strategy Match

See whether the stock fits the investing rules and filters you care about.

Microsoft CorporationMSFT

Strategy Match

See how this stock aligns with your saved strategies.

1 strategy matches
My Growth at a Reasonable Price Strategy
Durable growth and reasonable valuation.
8 / 8100%
Financial Powerhouses
Margins, cash flow, and balance sheet strength.
7 / 888%
Low Valued Fast Growers
Growth with valuation discipline.
5 / 771%

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I've worked in data analytics and data engineering for over a decade, and I've been building stock market analysis tools for the last 8 years. HelloStocks started as a tool I built for my own investing, using past data trends which had consistently helped identify better opportunities. Once I began sharing my analysis on YouTube, people asked to use it, so I opened it up and kept building.

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What Makes This Different

Built Around a Method,
Not a Pile of Data

Trained on Our Method

Meet DAISY, an AI Analyst With Standards

Every finance app has a chatbot now. DAISY is different: she is trained on our bespoke methodology. She audits reported earnings and adjusts for one-off events like tax events, flags warning signs, researches industry outlooks, and builds strategies from a plain-English description.

  • Audits earnings and adjusts for one-off events
  • Analyses earnings calls & flags warning signs
  • Builds strategies from plain-English descriptions
DAISY - AI Strategy Builder

Find me undervalued tech stocks with strong earnings growth and low debt

DAISY

I've built a strategy with these filters:

Sector:Technology
P/E Ratio:Below Industry Avg
EPS Growth:> 15% YoY
Debt/Equity:< 0.5

✓ 23 stocks match this strategy

DAISY Valuation

See What a Stock Is Actually Worth

Every stock page opens with DAISY's valuation. She weighs true earnings power, growth potential, quality, financial strength, industry dynamics and warning signs to set a fair value range, then shows you exactly where today's price sits on it.

  • Fair value band built on true earnings power
  • Today's price plotted from Worryingly Cheap to Expensive
  • Quality, risk and business type all priced in
DAISY Valuation
Fairly Valued

Fair value band $86 to $112

$94
Worryingly CheapUndervaluedFairly ValuedPriceyExpensive
Deep Analysis

Every Metric, Ranked & Explained

See how any stock compares to its industry peers across 50+ metrics. Color-coded from red to green, labeled Very Low to Very High. Understand any stock at a glance.

  • Industry & sector rankings
  • Color-coded metric bands
  • Historical trend tracking
Stock Analysis - MSFT
MSFT
Technology · Software-Infrastructure · NASDAQ
HelloStocks Score
7.9
7.3
Growth
9.6
Financial Strength
6.7
Value
Company Metrics - Compared to Sector
Revenue Growth (1Y, TTM)16.7%
Medium (top 54%)
Operating Margin46.7%
Very High (top 98%)
ROE33.6%
High (top 75%)
Debt / Equity0.15
Low (bottom 38%)
P/E Ratio25.31
Medium (bottom 43%)
Sentiment

Market Mood at a Glance

Our proprietary Fear & Greed model scores every industry from 0 to 100. See which sectors are overheated and which are unloved - all in a single heatmap updated daily.

  • Proprietary Fear & Greed score per industry
  • Color-coded heatmap across all sectors
  • Spot rotation and sentiment shifts early
Industry Mood Heatmap
AllTechnologyHealthcareFinancialEnergy
Semiconductors
82
Extreme Greed
Software
71
Greed
Internet Content
68
Greed
Drug Manufacturers
65
Greed
Auto Manufacturers
52
Neutral
Banks - Regional
38
Fear
Oil & Gas E&P
41
Fear
Asset Management
50
Neutral
Medical Devices
58
Greed
REITs - Retail
22
Extreme Fear
Aerospace & Defense
61
Greed
Telecom Services
45
Neutral
Consumer Electronics
73
Greed
Utilities - Regulated
34
Fear
Restaurants
56
Greed
Extreme Fear
Fear
Neutral
Greed
Ext. Greed
Market Intel

Daily Briefs, Powered by DAISY

Every morning, DAISY combines AI-driven news analysis with market data to give you a concise brief - so you know what matters before the market opens.

  • AI-curated market outlook each morning
  • Key industry trends with reasoning
  • Actionable insights, not just headlines
Discover — DAISY Daily Brief
DAISY Daily Brief
Wed Mar 4
Market Outlook

Markets are showing resilience despite mixed economic signals. Tech continues to lead on strong AI spending, while defensive sectors see rotation as investors hedge against rate uncertainty.

Industry Highlights
Semiconductors

AI capex cycle accelerating. Demand outpacing supply forecasts through 2026.

Regional Banks

CRE exposure weighing on sentiment. Watch for Q2 earnings guidance revisions.

Drug Manufacturers

GLP-1 pipeline expanding. Sector benefiting from strong clinical trial readouts.

Powered by DAISY · Updated daily before market open
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Your Strategies
HelloStocks – Balanced Risk
Holdings: 26Criteria: 7
AI OverviewShow Criteria
TickerCompanySectorCriteria
NVDANVIDIA CorpTech7/7
GOOGLAlphabet IncTech7/7
MSFTMicrosoft CorpTech7/7
AMZNAmazon.comConsumer7/7
TSMTaiwan SemiTech7/7
Updated daily after market close
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