MicrosoftCHIX:MSFD -0.18%85 EBITDA Margin % is 60.67% as of Mar. 2026, which is 25% above its 10-year median of 48.73. 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. Among 2,818 Software companies, Microsoft ranks better than 97.84% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. Microsoft's EBITDA for the
three
months ended in Mar. 2026 was €43,497 Mil. Microsoft's Revenue for the
three
months ended in Mar. 2026 was €71,696 Mil. Therefore, Microsoft's EBITDA margin for the quarter that ended in Mar. 2026 was 60.67%.
Microsoft (CHIX:MSFd) EBITDA Margin % Explanation
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Microsoft EBITDA Margin % Related Terms
Microsoft EBITDA Margin % Historical Data
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The historical data trend for Microsoft's EBITDA Margin % 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.
CHIX:MSFD vs ORCL, PLTR, PANW: EBITDA Margin % Comparison
For the Software - Infrastructure subindustry, Microsoft's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Software Industry
For the Software industry and Technology sector, Microsoft's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Microsoft's EBITDA Margin % falls into.
* 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 (CHIX:MSFD) has a EBITDA Margin % of 60.67% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Microsoft and its competitors. This is 25% above median its historical median of 48.73. Over the past decade, Microsoft's EBITDA Margin % has ranged from 36.76 to 64.03. According to the industry distribution chart, Microsoft ranks #61 out of 2818 companies in the Software industry, placing it in the top 2.2%.
Is Microsoft's EBITDA Margin % too high?
Microsoft's current EBITDA Margin % of 60.67% is 25% above median its 10-year median of 48.73. Over the past 10 years, this metric has ranged from a low of 36.76 to a high of 64.03. The Software industry median EBITDA Margin % is 8.07. Microsoft's value of 60.67% is 651.8% above this industry median. Based on the distribution chart, Microsoft ranks #61 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. 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 EBITDA Margin % compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #61 out of 2818 companies for EBITDA Margin %. This places Microsoft in the top 2% of its industry — outperforming the majority of peers. The industry median EBITDA Margin % is 8.07. Microsoft's value of 60.67% is 651.8% above this benchmark. Historically, Microsoft's own EBITDA Margin % has ranged from 36.76 to 64.03 over the past decade. While the company's 10-year median is 48.73 vs. the industry median of 8.07, Microsoft has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBITDA Margin % for a Software company?
The median EBITDA Margin % among Software companies is 8.07, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microsoft's current EBITDA Margin % of 60.67% is 651.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Microsoft and its competitors. For the Software industry, the median EBITDA Margin % is 8.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microsoft's current EBITDA Margin % is 60.67%, which is 25% above median its own 10-year median of 48.73. 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 EBITDA Margin % is 60.67%, which is 25% above median its 10-year median of 48.73 and 651.8% above the Software industry median of 8.07. 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 EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Microsoft (CHIX:MSFD), the current EBITDA Margin % is 60.67% 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:
EBITDA Margin %: 60.67% (25% above median its 10-year median of 48.73)
GF Value™: €491.76 vs. price of €329.50 (33% below fair value)
Industry Position: 651.8% above the Software median (#61 of 2818)
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 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
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