Key Highlights

  • Microsoft (NASDAQ:MSFT) beat Revenue estimates in 8 of 8 reported quarters by an average of 2.1% and beat Earnings Per Share estimates in 8 of 8 by an average of 7.6%, a published scorecard shows.
  • Satya Nadella has been chief executive for 12 years and owns 0.012% of the company, valued at USD 466M, while founder Bill Gates is also noted; the scorecard rates management great.
  • Microsoft trades at a trailing price to earnings ratio of 27.7x against a five-year average of 32.2x, and the scorecard rates the valuation attractive, with the stock at USD 531.01.
  • The scorecard's own label for Microsoft is Buy, with a Business composite of 4.5 out of 5; this is the scorecard's output and not our recommendation or Investment advice.

The Beat Record

The scorecard compares eight quarters of results with estimates, from the first quarter of 2025 to the fourth quarter of 2026, and shows a beat each time. On revenue, the average surprise is 2.1%, and quarterly revenue rises from USD 65.6B to USD 90B across the period. On earnings per share the average surprise is 7.6%, with results moving from USD 3.30 to USD 4.74. Beating a consensus figure is not the same as outperforming expectations that investors hold privately, since analysts often set estimates they expect companies to meet. The scorecard also rates management great, citing CEO Satya Nadella's 12 years in the role and an employee rating of 4.0 out of 5 on review sites for Microsoft (NASDAQ:MSFT).

Valuation Versus Average

The scorecard applies trailing price to earnings because it places Microsoft in the Capital return phase, where profits are established. It reports 27.7x today against a five-year average of 32.2x, and it marks USD 545 as the cheap threshold, USD 617 as average and USD 688 as expensive. The latest price shown is USD 531.01, below the cheap marker. Other multiples are 11.4x sales, 8.4x book and 65.8x free cash flow, so the earnings measure looks cheaper than the Cash Flow measure. The Dividend Yield is 0.7% and the total Shareholder yield is 1.4%. That discount to history is the basis for the scorecard's attractive rating, which is a view, not a fact.

Risks And Checks

A discount to a five-year average does not guarantee a re-rating, because the average itself reflects a period of different growth expectations. The scorecard rates growth only average, with revenue up 17.9% over one year but earnings growth in the latest period shown at 6.6%. The 65.8x free cash flow multiple suggests that cash generation is a weaker support than earnings. Investors can compare each new Quarterly Report from Microsoft (NASDAQ:MSFT) with the estimates, since the beat record is the main evidence offered. No dates for upcoming reports are given in the materials reviewed. A single miss would end the 8 of 8 run, which is why each report matters.

Where Things Stand

Microsoft (NASDAQ:MSFT) has beaten estimates in 8 of 8 quarters because, on the scorecard's evidence, revenue has grown steadily and analysts have underestimated it by 2.1% on average on revenue and 7.6% on earnings. The scorecard applies a Buy label, based on a 4.5 out of 5 business composite and a 27.7x price to earnings multiple against a 32.2x average. Those are its outputs, not advice. The main counterpoints are average growth, a 65.8x free cash flow multiple and the fact that a beat streak can end.