Microsoft (CHIX:MSFD) EBIT: €135,163 Mil (TTM As of Mar. 2026)


CHIX:MSFD Microsoft Corp CHIX:MSFD
85 GF Score
Price €329.50
GF Value €491.76
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Microsoft EBIT?

Microsoft CHIX:MSFD -0.18% 85 EBIT is €135,163 Mil as of Mar. 2026. GuruFocus rates CHIX:MSFD with a GF Score™ of 85/100 and a GF Value™ of €491.76 (Significantly Undervalued). The stock has 2 warning signs investors should review.

Microsoft's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €34,702 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €135,163 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Microsoft's annualized ROC % for the quarter that ended in Mar. 2026 was 20.98%. Microsoft's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 54.38%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Microsoft's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 5.60%.


Microsoft  (CHIX:MSFd) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Microsoft's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=132857.08 * ( 1 - 19.22% )/( (491681.106 + 531528.66)/ 2 )
=107321.949224/511604.883
=20.98 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=568167.908 - 33628.812 - ( 76395.424 - max(0, 111024.27 - 153882.26+76395.424))
=491681.106

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=600507.22 - 35530.74 - ( 67667.22 - max(0, 118211.765 - 151659.585+67667.22))
=531528.66

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Microsoft's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=138808.28/( ( (244439.566 + max(-29406.636, 0)) + (266100.815 + max(-26573.665, 0)) )/ 2 )
=138808.28/( ( 244439.566 + 266100.815 )/ 2 )
=138808.28/255270.1905
=54.38 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(48280.89 + 904.386 + 28301.56) - (33628.812 + 43875.104 + 29389.556)
=-29406.636

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(51935.465 + 1054.435 + 31002.465) - (35530.74 + 44049.26 + 30986.03)
=-26573.665

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Microsoft's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=135163.123/2412398.427
=5.60 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Microsoft EBIT Related Terms


Microsoft EBIT Historical Data

* Premium members only.

The historical data trend for Microsoft's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Microsoft EBIT Chart

Microsoft Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 60,961.84 81,146.93 84,250.52 102,860.74 109,252.40

Microsoft Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29,573.18 28,811.28 29,819.15 41,830.63 34,702.07

CHIX:MSFD vs ORCL, PLTR, PANW: EBIT Comparison

For the Software - Infrastructure subindustry, Microsoft's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Microsoft EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Microsoft's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Microsoft's EV-to-EBIT falls into.


CHIX:MSFD
85GF Score
Microsoft Corp CHIX:MSFD
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Microsoft EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €135,163 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €135,163 Mil mean?
Microsoft (CHIX:MSFD) has a EBIT of €135,163 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Microsoft.
Is Microsoft's EBIT too high?
Microsoft's current EBIT is €135,163 Mil. Overall, Microsoft has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's EBIT compare to ORCL and PLTR?
Microsoft's EBIT of €135,163 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Microsoft. Microsoft's current EBIT is €135,163 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microsoft stock overvalued right now?
Based on GuruFocus' analysis, Microsoft (CHIX:MSFD) is currently considered Significantly Undervalued. The stock's GF Value™ is €491.76, compared to a current price of €329.50 — trading 33% below its estimated fair value. The current EBIT is €135,163 Mil. Microsoft's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Microsoft (CHIX:MSFD), the current EBIT is €135,163 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Microsoft (CHIX:MSFD) Overvalued in 2026?

Based on GuruFocus' analysis, Microsoft stock appears to be undervalued. The current stock price of €329.50 is trading 33% below its estimated GF Value™ of €491.76. GuruFocus considers Microsoft to be Significantly Undervalued.

Key valuation signals for CHIX:MSFD:

  • EBIT: €135,163 Mil
  • GF Value™: €491.76 vs. price of €329.50 (33% below fair value)
  • GF Score™: 85/100 with 2 warning signs

No single metric tells the full story. See the CHIX:MSFD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Microsoft Business Description

Address One Microsoft Way, Redmond, WA, USA, 98052-6399
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
85GF Score

Get the complete analysis for CHIX:MSFD

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€329.50
Price
€491.76
GF Value