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Microsoft Corporation

Microsoft CorporationMSFT Rule of 40

Rule of 40 combines revenue growth and free cash flow margin in one quarterly score.

Median 40.9 Above 40 0–40 Below 0
45
Q3
22
2024 Q4
42
Q1
52
Q2
51
Q3
24
2025 Q4
37
Q1
39
2026 Q2 40 0 Mix

Latest Rule of 40: +39 (2026Q2); −13 pts YoY.

Across the 8 quarters from 2024Q3 to 2026Q2, Rule of 40 ranged from +22 in 2024Q4 to +52 in 2025Q2.

Other MSFT Charts

More quarter-by-quarter fundamentals for Microsoft Corporation

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