MSFT
Microsoft Corporation
MSFT has lower modeled downside risk, despite its lower overall score.
PDFS
PDF Solutions, Inc.
PDFS has the edge over MSFT overall, supported by stronger valuation and stronger modeled upside.
MSFT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Healthy | |
| Strong |
MSFT's revenue, profitability, cash flow and balance sheet are all currently healthy.
PDFS Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Healthy | |
| Under pressure | |
| Strong |
PDFS's revenue, profitability and balance sheet are currently healthy, but its cash flow 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.
PDFS PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 26x | $40.64 | — |
| Current | 107x | $40.64 | — |
| Cheap | 184x | $69.88 | +72% |
| Fair | 405x | $154 | +279% |
| Expensive | 968x | $368 | +805% |
Historical ranges are pointers, not guarantees.
PDFS 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 |
Analysts expect strong earnings and revenue growth for MSFT, with profitability holding steady.
PDFS Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Strong growth | |
| Strongly improving | |
| Limited | |
| High |
PDFS has the edge over MSFT on the outlook, with more favorable profitability expectations.
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 has the edge over PDFS on earnings, with more consistent year-over-year improvement.
PDFS Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $1.55 | +308% |
| Q3 2026 | $0.38 | +$0.39 |
| Q2 2026 | $0.25 | +1150% |
| Q1 2026 | $0.18 | +500% |
| Q4 2025 | -$0.02 | -120% |
| Q3 2025 | -$0.01 | -108% |
| Q2 2025 | $0.02 | +$0.09 |
| Q1 2025 | $0.03 | -50% |
| Q4 2024 | $0.10 | +25% |
PDFS has returned to profit: it earned $0.38 per share over the past year, after losing money 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's revenue has grown year over year every quarter since late 2020: $92.3B last quarter, up 19% from the same quarter a year ago.
| 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 PDFS on profitability, with a higher operating margin.
PDFS Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $68.3M | +20% |
| Q2 2026 | $61.5M | +19% |
| Q1 2026 | $60.1M | +26% |
| Q4 2025 | $62.4M | +25% |
| Q3 2025 | $57.1M | +23% |
| Q2 2025 | $51.7M | +24% |
| Q1 2025 | $47.8M | +16% |
| Q4 2024 | $50.1M | +22% |
PDFS has the edge over MSFT on sales, with stronger typical year-over-year growth.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 12% | +3.7 points |
| Q2 2026 | 8.2% | +6.1 points |
| Q1 2026 | 11% | +18 points |
| Q4 2025 | 5.5% | +2.6 points |
| Q3 2025 | 8.4% | +0.6 points |
| Q2 2025 | 2.2% | -2 points |
| Q1 2025 | -7.4% | -6.8 points |
| Q4 2024 | 2.9% | +2.6 points |
PDFS's operating margin was 12% last quarter, up 3.7 points from the same quarter a year ago, near the top of its range since 2019.
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 has the edge over PDFS on cash generation, producing positive trailing cash flow while its opponent burns cash.
PDFS Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | -$1.1M | +$1.8M |
| Q2 2026 | $2.3M | +$16.1M |
| Q1 2026 | -$8.8M | -1745% |
| Q4 2025 | $7.6M | +$11.5M |
| Q3 2025 | -$2.9M | -158% |
| Q2 2025 | -$13.8M | -$9.1M |
| Q1 2025 | $535K | +$4.4M |
| Q4 2024 | -$4M | -$3.3M |
PDFS's free cash flow was −$23,000 over the past year, against −$20M the year before.
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 the edge over PDFS on shareholder dilution, with a more favorable share count trend.
| 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.
PDFS Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +2.9% | +1.2M shares |
| 1 year | +8.5% | +3.4M shares |
| 3 years | +13% | +4.8M shares |
| 5 years | +15% | +5.8M shares |
| Available history | +33% | +10.6M shares |
PDFS has 43M diluted shares, up 8.5% from a year ago.
| Quarter | Spent |
|---|---|
| Q4 2025 | — |
| Q3 2025 | $244,000 |
| Q4 2024 | — |
| Q3 2024 | — |
| Q2 2024 | — |
| Q1 2024 | $6.9M |
| Q4 2023 | — |
| Q4 2022 | — |
MSFT Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | 0.1x | Very low |
| Q2 2026 | 0.1x | Very low |
MSFT's net debt is less than a year of its operating earnings (EBITDA).
PDFS Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -1.4x | Net Cash |
| Q2 2026 | -1.9x | Net Cash |
| Q1 2026 | 1.7x | Healthy |
| Q4 2025 | 2.5x | Moderate |
| Q3 2025 | 4.4x | High |
| Q2 2025 | 5.4x | High |
| Q1 2025 | 3.8x | Elevated |
| Q4 2024 | -8.9x | Net Cash |
PDFS has the edge over MSFT on leverage, with a lower net debt burden relative to earnings.
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).
PDFS Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 45.0 | Neutral |
| Stochastic | 22.2 | Neutral |
PDFS's weekly RSI is 45 (neutral) and its Stochastic is 22 (neutral).
MSFT PE vs Technology Sector
| Metric | MSFT | Sector median | Relative |
|---|---|---|---|
| PE | 27x | 28x | 2% below |
| PE % | 16 | 35 | 19 pts below |
MSFT has the edge over PDFS on valuation relative to its sector.
PDFS PE vs Technology Sector
| Metric | PDFS | Sector median | Relative |
|---|---|---|---|
| PE | 107x | 28x | 284% above |
| PE % | 1 | 35 | 34 pts below |
PDFS is trading at 107x earnings, a 284% premium to the Technology sector's median of 28x.
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 PDFS on trend strength, trading above more of its moving averages.
PDFS Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $44.7 | 9% below |
| 20 week MA | $47.4 | 14% below |
| 50 week MA | $42.6 | 4.6% below |
| 100 week MA | $32.7 | 24% above |
| 200 week MA | $33.6 | 21% above |
PDFS has slipped below its 8-, 20- and 50-week averages, though it's still 21% above 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 finished higher in five of the last six years, two of them by more than 50%. It's up 7.2% so far in 2026.
PDFS Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $16.5 | $22.0 | +34% |
| 2021 | $22.0 | $31.3 | +42% |
| 2022 | $31.3 | $28.6 | -8.9% |
| 2023 | $28.6 | $32.1 | +13% |
| 2024 | $32.1 | $27.9 | -13% |
| 2025 | $27.9 | $29.3 | +5.1% |
| 2026 YTD | $29.3 | $40.6 | +39% |
PDFS has the edge over MSFT on returns for 2026, with the stronger performance.