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SWOTPal Stability Score

Microsoft Stability Score: 78/100

78/ 100

Q3 FY2026 (March 2026) · Last updated 2026-05-10

Microsoft scores 78/100 on the SWOTPal Stability Score for Q3 FY2026 (March 2026), ranking 2 of 10 — between Google (Alphabet) (86) and Meta (75) in our coverage. The strongest dimension is Profitability at 25/25; the weakest is Valuation at 7/25.

Profitability

25/25

Gross margin 69.7%, operating margin 43.5%, ROIC 33.0%. 3-year net margin trend: rising.

  • Gross margin69.7% · 8/8

    > 50% → 8 pts

  • Operating margin43.5% · 8/8

    > 25% → 8 pts

  • ROIC33.0% · 5/5

    > 20% → 5 pts

  • 3-year net margin trendrising · 4/4

    rising → 4 pts

Solvency

23/25

Debt / equity 0.16, interest coverage 44.00×, current ratio 1.27, FCF / total debt 144.0%.

  • Debt / Equity16.0% · 8/8

    ≤ 0.5 → 8 pts

  • Interest coverage44.00 · 8/8

    > 15× → 8 pts

  • Current ratio1.27 · 3/5

    1.0–1.5 → 3 pts

  • FCF / Total Debt1.44 · 4/4

    > 30% → 4 pts

Volatility

23/25

5-year beta 0.90, max drawdown 38.0%, 8-quarter EPS CV 0.10.

  • 5-year beta90.0% · 8/8

    0.8–1.2 → 8 pts

  • 8-quarter EPS CV10.0% · 8/8

    ≤ 0.10 → 8 pts

  • 5-year max drawdown38.0% · 3/5

    35–50% → 3 pts

  • Revenue growth std dev4.0% · 4/4

    ≤ 5% → 4 pts

Valuation

7/25

P/E in the 84th percentile of the S&P 500; P/S in the 96th percentile. Lower percentiles score more points (cheaper relative to broad market).

  • P/E percentile vs S&P 50084.0% · 2/8

    75–90th → 2 pts

  • P/S percentile vs S&P 50096.0% · 0/8

    > 90th → 0 pts

  • EV/EBITDA percentile vs S&P 50087.0% · 1/5

    75–90th → 1 pt

  • Forward P/E discount17.0% · 4/4

    > 10% → 4 pts

Where this score sits in our coverage

All 10 companies SWOTPal currently scores, ranked by total. Highlighted row is the company on this page.

What this score means

What this number means

A SWOTPal Stability Score of 78/100 places Microsoft in the moderate (60–79 band). The score measures financial stability — the company's capacity to absorb shocks across credit and macro cycles — not stock-price upside or competitive moat. Higher = more stable.

Where the score concentrates

Microsoft's profile is uneven: Profitability scores 25/25 while Valuation scores only 7/25. Read the dimension cards above for the underlying ratios driving each score.

What the score doesn't capture

The Stability Score is purely quantitative — it doesn't include regulatory action, governance changes, product-execution risk, or geopolitical exposure. For Microsoft, those qualitative dimensions are covered in the full SWOT analysis. The numeric score and the SWOT are designed to read together.

Methodology summary

Each dimension contributes 0–25 points. Metric scores are assigned by threshold-based cutpoints applied to public financial data. The score does not capture regulatory, governance, product, or geopolitical risk — only quantifiable financial signal.

Read full methodology →

Sources

See Microsoft SWOT Analysis →Read full Microsoft blog →