MSFT
Microsoft Corporation
MSFT has the edge over RCAT overall, supported by lower modeled downside and stronger valuation.
RCAT
Red Cat Holdings, Inc.
RCAT's outlook is improving, though it still trails on the overall score.
MSFT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Healthy | |
| Strong |
MSFT's revenue, profitability, cash flow and balance sheet are all currently healthy.
RCAT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Under pressure | |
| Weak | |
| Unavailable |
RCAT's revenue is currently healthy, but its profitability and cash flow are under pressure. There isn't enough data to rate its balance sheet.
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.
RCAT PE Valuation
RCAT has no meaningful PE right now: it lost money over the past year.
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.
RCAT Forward outlook
| Metric | Outlook |
|---|---|
| -- | |
| Losses steady | |
| Strong growth | |
| Strongly improving | |
| Limited | |
| Moderate |
Analysts expect RCAT's revenue to grow and its profitability to improve, with its earnings 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 has the edge over RCAT on earnings quality, reporting a profit while its opponent remains loss making.
RCAT Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Q2 2026 | -$0.79 | +$0.04 |
| Q1 2026 | -$0.68 | +$0.16 |
| Q1 2023 | -$0.38 | -$0.07 |
| Q4 2022 | -$0.33 | +$0.27 |
| Q3 2022 | -$0.26 | +$0.33 |
| Q2 2022 | -$0.24 | +$0.32 |
RCAT lost $0.79 per share over the past year, about the same as its loss 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 RCAT on profitability, with a higher operating margin.
RCAT Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q2 2026 | $20.2M | +527% |
| Q1 2026 | $15.5M | +849% |
| Q4 2025 | $26.2M | +1866% |
| Q3 2025 | $9.6M | +529% |
| Q2 2025 | $3.2M | +16% |
| Q1 2025 | $1.6M | -74% |
| Q4 2024 | $1.3M | -77% |
| Q4 2024 | $1.5M | -61% |
RCAT's revenue has grown year over year for five quarters in a row: $20M last quarter, up 527% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q2 2026 | -191% | +202 points |
| Q1 2026 | -176% | +589 points |
| Q4 2025 | -91% | +616 points |
| Q3 2025 | -182% | +687 points |
| Q2 2025 | -393% | +54 points |
| Q1 2025 | -766% | -647 points |
| Q4 2024 | -707% | -631 points |
| Q4 2024 | -869% | -753 points |
RCAT's operating margin was −191% last quarter, up 202 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 has the edge over RCAT on cash generation, producing positive trailing cash flow while its opponent burns cash.
RCAT Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q2 2026 | -$52.6M | -$39.4M |
| Q1 2026 | -$38.7M | -$22.5M |
| Q4 2025 | -$41.9M | -$25.7M |
| Q3 2025 | -$24.5M | -$14.4M |
| Q2 2025 | -$13.2M | -$10.8M |
| Q1 2025 | -$16.2M | -$13.8M |
| Q4 2024 | -$16.1M | -$12M |
| Q4 2024 | -$10.2M | -$5.7M |
RCAT has burned cash in almost every quarter: −$158M over the past year, against −$56M 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 RCAT 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.
RCAT Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +13% | +16M shares |
| 1 year | +50% | +45.6M shares |
| 3 years | +146% | +81.2M shares |
| 5 years | +302% | +103M shares |
| Available history | +709% | +120M shares |
RCAT has 137M diluted shares, up 50% from a year ago.
| Quarter | Spent |
|---|---|
| Q4 2024 | — |
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).
RCAT Net Leverage
RCAT's operating earnings (EBITDA) were negative over the past year, so its debt can't be measured against them.
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).
RCAT Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 32.5 | Neutral |
| Stochastic | 7.9 | Oversold |
RCAT's weekly RSI is 32 (neutral) and its Stochastic is 8 (oversold).
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.
RCAT PE vs Technology Sector
RCAT has no meaningful PE right now: it lost money over the past year.
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 RCAT on trend strength, trading above more of its moving averages.
RCAT Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $5.07 | 22% below |
| 20 week MA | $7.21 | 45% below |
| 50 week MA | $9.91 | 60% below |
| 100 week MA | $9.20 | 57% below |
| 200 week MA | $5.43 | 27% below |
RCAT is in a downtrend: it's below all five of its weekly moving averages, and 27% 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 RCAT on returns for 2026, with the stronger performance.
RCAT Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $1.28 | $1.75 | +37% |
| 2021 | $1.75 | $2.18 | +25% |
| 2022 | $2.18 | $0.77 | -65% |
| 2023 | $0.77 | $0.88 | +14% |
| 2024 | $0.88 | $12.3 | +1293% |
| 2025 | $12.3 | $8.30 | -32% |
| 2026 YTD | $8.30 | $3.94 | -53% |
RCAT's yearly returns have swung widely, from +1293% in 2024 to −65% in 2022. It's down 53% so far in 2026.