MSFT
Microsoft Corporation
MSFT has the edge over POWI overall, supported by stronger valuation and lower modeled downside.
POWI
Power Integrations, Inc.
POWI offers stronger modeled upside, 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.
POWI Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Strong | |
| Strong | |
| Strong |
POWI's profitability, cash flow and balance sheet are currently strong, and its revenue is stable.
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 has the edge over POWI in the historical PE scenario, which offers more potential upside but is not a forecast.
POWI PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 23x | $18.45 | -60% |
| Forward | 26x | $46.06 | — |
| Fair | 53x | $41.55 | -9.8% |
| Current | 58x | $46.06 | — |
| Expensive | 97x | $76.52 | +66% |
Historical ranges are pointers, not guarantees.
POWI's PE is in its fair range at 58x. If earnings grow as analysts expect, today's price would be 26x next year's earnings, in its cheap range.
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.
POWI Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Growth | |
| Strongly improving | |
| Limited | |
| Moderate |
POWI 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 POWI on earnings, with more consistent year-over-year improvement.
POWI Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $1.76 | +123% |
| Q3 2026 | $0.79 | +163% |
| Q2 2026 | $0.45 | -21% |
| Q1 2026 | $0.30 | -53% |
| Q4 2025 | $0.39 | -30% |
| Q3 2025 | $0.30 | -55% |
| Q2 2025 | $0.57 | -24% |
| Q1 2025 | $0.64 | -30% |
| Q4 2024 | $0.56 | -42% |
POWI's earnings per share have fallen from their peak: $0.79 over the past year, against $3.41 in mid-2020.
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 POWI 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 POWI on profitability, with a higher operating margin.
POWI Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $125.5M | +5.5% |
| Q2 2026 | $118.9M | +2.7% |
| Q1 2026 | $108.3M | +2.6% |
| Q4 2025 | $103.2M | -1.9% |
| Q3 2025 | $118.9M | +2.7% |
| Q2 2025 | $115.9M | +9.1% |
| Q1 2025 | $105.5M | +15% |
| Q4 2024 | $105.3M | +18% |
POWI's revenue is recovering but still below its 2022 peak: $125M last quarter, up 5.5% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 15% | +19 points |
| Q2 2026 | 7.5% | +8.6 points |
| Q1 2026 | 1.3% | -5 points |
| Q4 2025 | 8.5% | +4.8 points |
| Q3 2025 | -3.3% | -13 points |
| Q2 2025 | -1.2% | -3 points |
| Q1 2025 | 6.4% | +5.9 points |
| Q4 2024 | 3.7% | +4.9 points |
POWI's operating margin was 15% last quarter, up 19 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.
POWI Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $36.5M | +51% |
| Q2 2026 | $17.7M | -24% |
| Q1 2026 | $18M | -13% |
| Q4 2025 | $19.2M | +64% |
| Q3 2025 | $24.2M | -11% |
| Q2 2025 | $23.1M | +72% |
| Q1 2025 | $20.7M | +79% |
| Q4 2024 | $11.7M | +15% |
POWI 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 the edge over POWI 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.
POWI Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.2% | -88K shares |
| 1 year | +1.5% | +812K shares |
| 3 years | -2% | -1.1M shares |
| 5 years | -7.7% | -4.8M shares |
| Available history | -5.7% | -3.4M shares |
POWI has 57M diluted shares, up 1.5% from a year ago.
| Quarter | Spent |
|---|---|
| Q3 2026 | — |
| Q2 2026 | — |
| Q1 2026 | — |
| Q4 2025 | — |
| Q3 2025 | $42.4M |
| Q2 2025 | $32.6M |
| Q1 2025 | $23.1M |
| Q4 2024 | $1.9M |
POWI hasn't bought back shares in the past year.
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).
POWI Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -1.5x | Net Cash |
| Q2 2026 | -1.7x | Net Cash |
| Q1 2026 | -2.0x | Net Cash |
| Q4 2025 | -1.5x | Net Cash |
| Q3 2025 | -1.4x | Net Cash |
| Q2 2025 | -1.3x | Net Cash |
| Q1 2025 | -0.9x | Net Cash |
| Q4 2024 | -1.0x | Net Cash |
POWI 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).
POWI Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 41.3 | Neutral |
| Stochastic | 14.0 | Oversold |
POWI's weekly RSI is 41 (neutral) and its Stochastic is 14 (oversold).
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 POWI on valuation relative to its sector.
POWI PE vs Technology Sector
| Metric | POWI | Sector median | Relative |
|---|---|---|---|
| PE | 58x | 28x | 109% above |
| PE % | 54 | 35 | 19 pts above |
POWI is trading at 58x earnings, a 109% 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 POWI on trend strength, trading above more of its moving averages.
POWI Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $47.2 | 2.4% below |
| 20 week MA | $55.2 | 17% below |
| 50 week MA | $55.5 | 17% below |
| 100 week MA | $53.1 | 13% below |
| 200 week MA | $64.5 | 29% below |
POWI is in a downtrend: it's below all five of its weekly moving averages, and 29% 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 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.
POWI Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $49.5 | $79.5 | +61% |
| 2021 | $79.5 | $89.4 | +12% |
| 2022 | $89.4 | $72.1 | -19% |
| 2023 | $72.1 | $82.1 | +14% |
| 2024 | $82.1 | $63.0 | -23% |
| 2025 | $63.0 | $37.3 | -41% |
| 2026 YTD | $37.3 | $46.1 | +23% |
POWI has the edge over MSFT on returns for 2026, with the stronger performance.