How Does Microsoft Stock Stack Up Against Its Peers?
Microsoft’s stock delivered moderate 12M returns, lagging some major tech peers. Yet, against a backdrop of rapid AI and cloud expansion, how does it stack up? Analysis reveals MSFT boasts industry-leading operating margins and top-tier revenue growth, coupled with a competitive P/E. Its broad ecosystem offers stability, but significant upside depends on maintaining momentum against specialized innovators.
- MSFT’s 46.7% operating margin, highest among peers, stems from its high-margin software, cloud services, and strong operational efficiency.
- MSFT’s 16.7% revenue growth, outpacing peers, is driven by robust Azure (39% growth), AI tools like Copilot, and enterprise software demand.
- MSFT’s 3.8% stock gain, trailing peers, but 25.5 PE is below its 3-year average, suggesting fair value despite high AI CapEx.
Here’s how Microsoft stacks up across size, valuation, and profitability versus key peers.
| MSFT | GOOGL | AMZN | AAPL | ORCL | CRM | |
|---|---|---|---|---|---|---|
| Market Cap ($ Bil) | 3,039.0 | 3,604.3 | 2,283.5 | 3,797.1 | 438.1 | 189.0 |
| Revenue ($ Bil) | 305.5 | 402.8 | 716.9 | 435.6 | 61.0 | 41.5 |
| PE Ratio | 25.5 | 27.3 | 29.4 | 32.2 | 28.4 | 25.3 |
| LTM Revenue Growth | 16.7% | 15.1% | 12.4% | 10.1% | 11.1% | 9.6% |
| LTM Operating Margin | 46.7% | 32.0% | 11.2% | 32.4% | 31.9% | 21.5% |
| LTM FCF Margin | 25.3% | 18.2% | 1.1% | 28.3% | -21.6% | 34.7% |
| 12M Market Return | 3.8% | 73.9% | 6.2% | 9.9% | 2.4% | -28.9% |
For more details on Microsoft, read Buy or Sell MSFT Stock. Below we compare MSFT’s growth, margin, and valuation with peers across years
Revenue Growth Comparison
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| LTM | 2026 | 2025 | 2024 | 2023 | |
|---|---|---|---|---|---|
| MSFT | 16.7% | – | 14.9% | 15.7% | 6.9% |
| GOOGL | 15.1% | – | 15.1% | 13.9% | 8.7% |
| AMZN | 12.4% | – | 12.4% | 11.0% | 11.8% |
| AAPL | 10.1% | – | 6.4% | 2.0% | -2.8% |
| ORCL | 11.1% | – | 8.4% | 6.0% | 17.7% |
| CRM | 9.6% | 9.6% | 8.7% | 11.2% |
Operating Margin Comparison
| LTM | 2026 | 2025 | 2024 | 2023 | |
|---|---|---|---|---|---|
| MSFT | 46.7% | – | 45.6% | 44.6% | 41.8% |
| GOOGL | 32.0% | – | 32.0% | 32.1% | 27.4% |
| AMZN | 11.2% | – | 11.2% | 10.8% | 6.4% |
| AAPL | 32.4% | – | 32.0% | 31.5% | 29.8% |
| ORCL | 31.9% | – | 31.5% | 30.3% | 27.6% |
| CRM | 21.5% | 21.5% | 20.2% | 17.2% |
PE Ratio Comparison
| LTM | 2026 | 2025 | 2024 | 2023 | |
|---|---|---|---|---|---|
| MSFT | 25.5 | – | 35.3 | 35.5 | 38.7 |
| GOOGL | 27.3 | – | 28.7 | 23.3 | 23.9 |
| AMZN | 29.4 | – | 31.7 | 38.8 | 51.5 |
| AAPL | 32.2 | – | 36.3 | 41.0 | 31.3 |
| ORCL | 28.4 | – | 43.7 | 43.7 | 33.4 |
| CRM | 25.3 | 33.7 | 51.9 | 62.0 |
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