MSFT
Microsoft Corporation
MSFT has the edge over OTEX overall, supported by stronger modeled upside and lower modeled downside.
OTEX
Open Text Corporation
OTEX offers stronger valuation, but that advantage does not outweigh its weaker overall profile.
MSFT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Healthy | |
| Strong |
MSFT's revenue, profitability, cash flow and balance sheet are all currently healthy.
OTEX Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Strong | |
| Healthy | |
| Under pressure |
OTEX's profitability and cash flow are currently healthy, and its revenue is stable, but its balance sheet is under pressure.
MSFT PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 25x | $523 | — |
| Cheap | 27x | $525 | +0.4% |
| Current | 27x | $523 | — |
| Fair | 34x | $652 | +25% |
| Expensive | 37x | $711 | +36% |
Historical ranges are pointers, not guarantees.
MSFT's PE is in its cheap range at 27x. If earnings grow as analysts expect, today's price would be 25x next year's earnings.
OTEX PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 6.4x | $24.81 | — |
| Current | 9.4x | $24.81 | — |
| Cheap | 14x | $35.71 | +44% |
| Fair | 31x | $83.11 | +235% |
| Expensive | 53x | $139 | +462% |
Historical ranges are pointers, not guarantees.
OTEX has the edge over MSFT in the historical PE scenario, which offers more potential upside but is not a forecast.
MSFT Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Strong growth | |
| Strong growth | |
| Stable | |
| Moderate | |
| High |
MSFT has the edge over OTEX on the outlook, with more favorable earnings and revenue expectations.
OTEX Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Stable | |
| Stable | |
| Weakening | |
| Limited | |
| High |
Analysts expect OTEX's profitability to weaken, with its earnings and revenue holding steady.
MSFT Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $20.79 | +8.6% |
| Q3 2026 | $19.15 | +36% |
| Q2 2026 | $17.95 | +32% |
| Q1 2026 | $16.80 | +30% |
| Q4 2025 | $15.99 | +29% |
| Q3 2025 | $14.06 | +16% |
| Q2 2025 | $13.64 | +16% |
| Q1 2025 | $12.93 | +12% |
| Q4 2024 | $12.41 | +12% |
MSFT's earnings per share have climbed steadily: $19.15 over the past year, up 36% from the year before, and higher year over year for 14 quarters in a row.
OTEX Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $3.86 | +46% |
| Q3 2026 | $2.64 | +38% |
| Q2 2026 | $2.58 | +56% |
| Q1 2026 | $2.05 | -16% |
| Q4 2025 | $1.70 | -31% |
| Q3 2025 | $1.91 | +10% |
| Q2 2025 | $1.65 | -3.5% |
| Q1 2025 | $2.45 | +295% |
| Q4 2024 | $2.46 | +423% |
OTEX earned $2.64 per share over the past year, up 38% from the year before.
MSFT Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $92.3B | +19% |
| Q2 2026 | $90B | +18% |
| Q1 2026 | $82.9B | +18% |
| Q4 2025 | $81.3B | +17% |
| Q3 2025 | $77.7B | +18% |
| Q2 2025 | $76.4B | +18% |
| Q1 2025 | $70.1B | +13% |
| Q4 2024 | $69.6B | +12% |
MSFT has the edge over OTEX on sales, with more consistent year-over-year improvement.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 50% | +0.9 points |
| Q2 2026 | 45% | +0.2 points |
| Q1 2026 | 46% | +0.7 points |
| Q4 2025 | 47% | +1.6 points |
| Q3 2025 | 49% | +2.3 points |
| Q2 2025 | 45% | +1.8 points |
| Q1 2025 | 46% | +1.1 points |
| Q4 2024 | 45% | +1.9 points |
MSFT has the edge over OTEX on profitability, with a higher operating margin.
OTEX Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $1.2B | -4% |
| Q2 2026 | $1.3B | +2.9% |
| Q1 2026 | $1.3B | +2.2% |
| Q4 2025 | $1.3B | -0.6% |
| Q3 2025 | $1.3B | +1.5% |
| Q2 2025 | $1.3B | -3.8% |
| Q1 2025 | $1.3B | -13% |
| Q4 2024 | $1.3B | -13% |
OTEX's revenue fell from its 2023 peak and has held roughly level since: $1.2B last quarter, down 4% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 20% | -0.7 points |
| Q2 2026 | 24% | +9.8 points |
| Q1 2026 | 16% | -1 points |
| Q4 2025 | 22% | -0.2 points |
| Q3 2025 | 21% | +4.7 points |
| Q2 2025 | 14% | -0.3 points |
| Q1 2025 | 17% | +1 points |
| Q4 2024 | 22% | +5.6 points |
OTEX's operating margin was 20% last quarter, down 0.7 points from the same quarter a year ago.
MSFT Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $18.6B | -27% |
| Q2 2026 | $19.6B | -23% |
| Q1 2026 | $15.8B | -22% |
| Q4 2025 | $5.9B | -9.3% |
| Q3 2025 | $25.7B | +33% |
| Q2 2025 | $25.6B | +9.6% |
| Q1 2025 | $20.3B | -3.2% |
| Q4 2024 | $6.5B | -29% |
MSFT's free cash flow has been positive every quarter for seven years: $60B over the past year, down 23% from the year before.
OTEX Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $138.5M | +37% |
| Q2 2026 | $122M | -1.6% |
| Q1 2026 | $304.9M | -18% |
| Q4 2025 | $279.4M | -8.9% |
| Q3 2025 | $101.2M | +$218.4M |
| Q2 2025 | $124M | -15% |
| Q1 2025 | $373.8M | +7.4% |
| Q4 2024 | $306.7M | +0.4% |
OTEX has the edge over MSFT on cash flow, with more consistent year-over-year improvement.
MSFT Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.1% | -7M shares |
| 1 year | -0.3% | -20M shares |
| 3 years | -0.2% | -16M shares |
| 5 years | -1.6% | -121M shares |
| Available history | -3.2% | -245M shares |
MSFT has 7.4B diluted shares, about the same as a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | $4.4B |
| Q2 2026 | $4.6B |
| Q1 2026 | $4.6B |
| Q4 2025 | $7.4B |
| Q3 2025 | $5.7B |
| Q2 2025 | $4.5B |
| Q1 2025 | $4.8B |
| Q4 2024 | $5B |
MSFT spent $21B buying back its own shares over the past year, up 5.2% from the year before.
OTEX Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -2.9% | -7.3M shares |
| 1 year | -4.6% | -11.7M shares |
| 3 years | -11% | -29.8M shares |
| 5 years | -11% | -31.1M shares |
| Available history | -11% | -29.5M shares |
OTEX has the edge over MSFT on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q3 2026 | $30M |
| Q2 2026 | $11.8M |
| Q1 2026 | $247M |
| Q4 2025 | $50M |
| Q3 2025 | $107.6M |
| Q2 2025 | $145.3M |
| Q1 2025 | $114.6M |
| Q4 2024 | $66M |
OTEX spent $339M buying back its own shares over the past year, down 22% from the year before.
MSFT Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 0.1x | Very low |
| Q2 2026 | 0.1x | Very low |
MSFT has the edge over OTEX on leverage, with a lower net debt burden relative to earnings.
OTEX Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 3.2x | Elevated |
| Q2 2026 | 3.2x | Elevated |
| Q1 2026 | 3.6x | Elevated |
| Q4 2025 | 3.6x | Elevated |
| Q3 2025 | 3.8x | Elevated |
| Q2 2025 | 3.9x | Elevated |
| Q1 2025 | 3.7x | Elevated |
| Q4 2024 | 3.7x | Elevated |
OTEX's net debt is about 3.2 years of its operating earnings (EBITDA), down from 3.8 years a year ago.
MSFT Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 62.1 | Neutral |
| Stochastic | 68.0 | Neutral |
MSFT's weekly RSI is 62 (neutral) and its Stochastic is 68 (neutral).
OTEX Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 50.9 | Neutral |
| Stochastic | 57.4 | Neutral |
OTEX's weekly RSI is 51 (neutral) and its Stochastic is 57 (neutral).
MSFT PE vs Technology Sector
| Metric | MSFT | Sector median | Relative |
|---|---|---|---|
| PE | 27x | 28x | 2% below |
| PE % | 16 | 35 | 19 pts below |
MSFT is trading at 27x earnings, in line with the Technology sector's median of 28x.
OTEX PE vs Technology Sector
| Metric | OTEX | Sector median | Relative |
|---|---|---|---|
| PE | 9.4x | 28x | 66% below |
| PE % | 2 | 35 | 33 pts below |
OTEX has the edge over MSFT on valuation relative to its sector.
MSFT Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $524.7 | 0.3% below |
| 20 week MA | $484.8 | 7.9% above |
| 50 week MA | $446.9 | 17% above |
| 100 week MA | $453.8 | 15% above |
| 200 week MA | $411.5 | 27% above |
MSFT has the edge over OTEX on trend strength, trading above more of its moving averages.
OTEX Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $24.8 | 0.2% above |
| 20 week MA | $24.2 | 2.5% above |
| 50 week MA | $25.1 | 1.1% below |
| 100 week MA | $27.6 | 10% below |
| 200 week MA | $31.8 | 22% below |
OTEX has bounced recently, but its long-term trend is still down: it's above its 8- and 20-week averages, but 22% below its 200-week average.
MSFT Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $159.0 | $222.8 | +40% |
| 2021 | $222.8 | $334.7 | +50% |
| 2022 | $334.7 | $238.7 | -29% |
| 2023 | $238.7 | $376.0 | +58% |
| 2024 | $376.0 | $430.5 | +14% |
| 2025 | $430.5 | $487.7 | +13% |
| 2026 YTD | $487.7 | $523.0 | +7.2% |
MSFT has the edge over OTEX on returns for 2026, with the stronger performance.
OTEX Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $44.1 | $45.7 | +3.8% |
| 2021 | $45.7 | $47.4 | +3.6% |
| 2022 | $47.4 | $29.0 | -39% |
| 2023 | $29.0 | $42.0 | +45% |
| 2024 | $42.0 | $28.3 | -33% |
| 2025 | $28.3 | $33.5 | +18% |
| 2026 YTD | $33.5 | $24.8 | -26% |
OTEX has finished higher in four of the last six years. It's down 26% so far in 2026.