MSFT (Microsoft) Moat Score: 9/10 (As of Jun. 26, 2026)


MSFT Microsoft Corp MSFT
92 GF Score
Price $352.83
GF Value $558.08
Valuation Significantly Undervalued
! 2 Warning Signs
View Full Analysis

What is Microsoft Moat Score?

Microsoft MSFT -3.46% 92 Moat Score is 9 as of Jun. 26, 2026. GuruFocus rates MSFT with a GF Score™ of 92/100 and a GF Value™ of $558.08 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,848 Software companies, Microsoft ranks better than 99.96% on this metric.

Microsoft has the Moat Score of 9, which implies that the company might have Wide Moat - Clear and robust wide moat.

Microsoft has Wide Moat: Microsoft has a robust wide moat due to its market leadership, strong network effects, and high customer switching costs. Its valuable intellectual property, strong brand, and economies of scale further solidify its dominant position, supported by consistent innovation and R&D.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Microsoft might have Wide Moat - Clear and robust wide moat.

Microsoft  (NAS:MSFT) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Microsoft Moat Score Related Terms

MSFT vs ORCL, PLTR, PANW: Moat Score Comparison

For the Software - Infrastructure subindustry, Microsoft's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Software Industry

For the Software industry and Technology sector, Microsoft's Moat Score distribution charts can be found below:

* The bar in red indicates where Microsoft's Moat Score falls into.


MSFT
92GF Score
Microsoft Corp MSFT
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis
Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 9 mean?
Microsoft (MSFT) has a Moat Score of 9 as of Jun. 26, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Microsoft ranks #1 out of 2848 companies in the Software industry, placing it in the top 0%.
Is Microsoft's Moat Score too high?
Microsoft's current Moat Score is 9. Based on the distribution chart, Microsoft ranks #1 out of 2848 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Microsoft has a GF Score™ of 92/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's Moat Score compare to ORCL and PLTR?
According to the Software industry distribution chart, Microsoft ranks #1 out of 2848 companies for Moat Score. This places Microsoft in the top 0% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Software company?
A good Moat Score depends on the Software industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Microsoft's current Moat Score is 9. 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 (MSFT) is currently considered Significantly Undervalued. The stock's GF Value™ is $558.08, compared to a current price of $352.83 — trading 36.8% below its estimated fair value. The current Moat Score is 9. Microsoft's overall GF Score™ is 92/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Microsoft (MSFT), the current Moat Score is 9 as of Jun. 26, 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 (MSFT) Overvalued in 2026?

Based on GuruFocus' analysis, Microsoft stock appears to be undervalued. The current stock price of $352.83 is trading 36.8% below its estimated GF Value™ of $558.08. GuruFocus considers Microsoft to be Significantly Undervalued.

Key valuation signals for MSFT:

  • Moat Score: 9
  • GF Value™: $558.08 vs. price of $352.83 (36.8% below fair value)
  • GF Score™: 92/100 with 2 warning signs

No single metric tells the full story. See the MSFT 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).
92GF Score

Get the complete analysis for MSFT

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

$352.83
Price
$558.08
GF Value