Microsoft Corporation (MSFT) — Free Cash Flow Yield
Technology
Microsoft Corporation, a technology company, develops and supports a portfolio of technology solutions for individuals and businesses worldwide. Its products include operating systems, server applications, business solution applications, software development tools, desktop and server management tools, and video games; and devices, such as PCs, tablets, gaming and entertainment consoles, other intelligent devices, and related accessories. The company's Productivity and Business Processes segment offers Microsoft 365 Commercial, Enterprise Mobility + Security, Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, Microsoft 365 Copilot, and Windows Commercial on-premises and Office licensed on-premises. This segment also provides Microsoft 365 Consumer products and cloud services; LinkedIn, including talent solutions, marketing solutions, subscriptions, and sales solutions; Dynamics 365, a set of cloud-based applications; and on-premises ERP and CRM applications. Its Intelligent Cloud segment offers server products and cloud services; cloud and AI consumption-based services, GitHub cloud services, health and life sciences cloud services, as well as virtual desktop offerings, and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related client access licenses; and enterprise support services, industry solutions, Microsoft partner network, and learning experience. The company's More Personal Computing segment provides Windows OEM licensing and devices comprising Surface and PC accessories; XBOX hardware, and XBOX first- and third-party content and services; XBOX Game Pass and other subscriptions; XBOX Cloud Gaming, advertising, and other cloud services; and search advertising consisting of Bing, Copilot, Microsoft News, Microsoft Edge, and third-party affiliates. It sells its products through partners and retail networks. The company was founded in 1975 and is headquartered in Redmond, Washington.
| Metric | Value |
|---|---|
| FCF Yield | 1.8% |
| Technology Sector Avg FCF Yield | 4.0% |
| Annual Free Cash Flow | $67.0B |
| Market Cap | $3.7T |
| P/E Ratio | 27.6x |
Microsoft Corporation's FCF yield of 1.8% is below the Technology sector average (4.0%).
Frequently Asked Questions
What is Microsoft Corporation's (MSFT) free cash flow yield?
Microsoft Corporation's (MSFT) free cash flow yield is 1.8%. That is below the Technology sector average (4.0%).
Is MSFT's free cash flow yield good?
At 1.8%, MSFT's free cash flow yield is considered weak — yields above 10% are generally excellent, 7–10% good, 4–7% fair, and below 4% weak, though context varies by sector and growth stage.
How much free cash flow does Microsoft Corporation generate?
Microsoft Corporation generated $67.0B in free cash flow, against a market cap of $3.7T.
How is free cash flow yield calculated?
Free cash flow yield = (Free Cash Flow ÷ Market Capitalization) × 100%. Free cash flow equals operating cash flow minus capital expenditures.
Data from public filings. Not investment advice. Calculate your own FCF yield →