How Does Microsoft Stock Stack Up Against Its Peers?

MSFTYTD+11.3%SPYYTD+14.8%QQQYTD+22.6%
Analyze MSFT →

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

Trefis: MSFT Stock Insights

Revenue Growth Comparison

  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  

Still not sure about MSFT stock? Consider portfolio approach.

Portfolios Over Individual Stock Picks

Single stocks swing wildly but staying invested matters. A well built portfolio helps you stay invested, captures upside and softens the blows from individual stocks.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.