NetIncome News & Analysis

Microsoft Reports 25 P/E Ratio, Lowest in Magnificent Seven Amid Challenges

Microsoft (NASDAQ: MSFT) now has a price-to-earnings ratio of 25, the lowest among the Magnificent Seven stocks, a valuation not seen since the bear market of 2022. The company's backlog includes 45% tied to its partnership with OpenAI, valued at $625 billion. In the first half of fiscal 2026, Microsoft reported $159 billion in revenue, an 18% increase year-over-year, and net income of $66 billion, rising 36% year-over-year. Microsoft’s capital expenditures reached $49 billion during the same period, with expectations to total $100 billion for the fiscal year.