Alphabet vs Microsoft (GOOG vs MSFT)
Side by side from their SEC filings: revenue, margins, growth, returns and valuation, plus short interest, insider activity and institutional ownership.
Alphabet is the larger company by revenue ($402.8B vs $331.8B) and market value ($4.1T vs $3.9T). Microsoft has grown revenue faster over the last 4 fiscal years (+67.4% cumulative vs +56.4%). Microsoft runs the higher operating margin (46.8% vs 32.0%). Alphabet trades at the lower trailing P/E (16.9x vs 29.5x).
About Alphabet
Alphabet Inc. operates as a collection of businesses, with its largest segment being Google. Google provides services including Search, YouTube, advertising platforms, Android, Chrome, and devices like the Pixel series, serving users worldwide. Alphabet also offers Google Cloud services to businesses, delivering cloud computing solutions and productivity tools.
About Microsoft
Microsoft Corporation develops, licenses, and supports a wide range of software products, services, and devices. Its main offerings include operating systems like Windows, cloud-based services, artificial intelligence solutions, and platform-based ecosystems for developers and users. Microsoft serves both business and consumer markets globally, competing in areas such as personal computing, cloud infrastructure, and AI technologies.
Head to head (GOOG FY2025 vs MSFT FY2026)
| Metric | GOOGFY2025 | MSFTFY2026 |
|---|---|---|
| Revenue | $402.84B | $331.84B |
| Revenue growth (YoY) | 15.1% | 17.8% |
| Gross margin | 59.7% | 67.9% |
| Operating margin | 32.0% | 46.8% |
| Net margin | 32.8% | 40.3% |
| Net income | $132.17B | $133.75B |
| Diluted EPS | $10.81 | $17.95 |
| FCF margin | 18.2% | 20.2% |
| ROE | 31.8% | 30.2% |
| Long-term debt / equity | 0.11× | 0.07× |
| Market cap | $4.12T | $3.93T |
| P/E | 16.9× | 29.5× |
Fundamentals are from each company’s SEC filings (GOOG FY2025, MSFT FY2026). ROE is net income over fiscal-year-end equity; long-term debt / equity counts non-current term debt only. P/E and market cap are derived from stored market prices, last retrieved on a rolling basis and typically within the past week.
Five-year trend (as reported)
| GOOG by fiscal year | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Revenue | $257.64B | $282.84B | $307.39B | $350.02B | $402.84B |
| Net income | $76.03B | $59.97B | $73.80B | $100.12B | $132.17B |
| Operating margin | 30.6% | 26.5% | 27.4% | 32.1% | 32.0% |
| MSFT by fiscal year | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
| Revenue | $198.27B | $211.91B | $245.12B | $281.72B | $331.84B |
| Net income | $72.74B | $72.36B | $88.14B | $101.83B | $133.75B |
| Operating margin | 42.1% | 41.8% | 44.6% | 45.6% | 46.8% |
Alphabet and Microsoft use different fiscal calendars (GOOG's FY2025 ended 2025-12-31, MSFT's FY2026 ended 2026-06-30), so their fiscal years are shown separately rather than forced into one timeline.
Peer standing
Where each company ranks among the 332 software companies, on the same scale. Each figure is ranked only against peers that report it. Percentiles describe position in the distribution, not a rating.
| Metric | GOOG | MSFT |
|---|---|---|
| Gross margin | 59.7%39th percentile of 265 | 67.9%52nd percentile of 265 |
| Operating margin | 32.0%95th percentile of 303 | 46.8%99th percentile of 303 |
| Net margin | 32.8%93rd percentile of 307 | 40.3%96th percentile of 307 |
| FCF margin | 18.2%57th percentile of 285 | 20.2%63rd percentile of 285 |
| Revenue growth (YoY) | +15.1%62nd percentile of 325 | +17.8%68th percentile of 325 |
| ROE | 31.8%88th percentile of 286 | 30.2%87th percentile of 286 |
| P/E | 16.9×31st percentile of 163 | 29.5×56th percentile of 163 |
| Long-term debt / equity | 0.11×22nd percentile of 126 | 0.07×18th percentile of 126 |
| Short interest (days to cover) | 2.81d40th percentile of 330 | 2.55d34th percentile of 330 |
Short interest
| FINRA settlement data | GOOG | MSFT |
|---|---|---|
| Shares sold short | 51.9M | 61.1M |
| Change vs prior settlement | +0.2% | -9.2% |
| Days to cover | 2.81 | 2.55 |
| As of settlement | 2026-09-30 | 2026-09-30 |
Source: FINRA Consolidated Short Interest. FINRA is the owner and source of the FINRA-supplied data; republishing or redistributing it is not permitted. Not presented as a percentage of float. No FINRA endorsement of this product is implied.
Insider activity (last 90 days)
| Form 4 activity (codes P/S) | GOOG | MSFT |
|---|---|---|
| Buys | — | 0 |
| Sells | — | 19 ($75.4M) |
Non-derivative purchases (code P) and sales (code S) reported on SEC Form 4, which may be open-market or private (grants, exercises and tax withholding excluded). For context, about 15% of covered companies saw any reported insider purchase (code P) in a 90-day window.
Held by the same investors
18 tracked 13F managers hold both Alphabet and Microsoft as of their latest quarterly filings: AQR Capital Management, ARK Investment Management, Bridgewater Associates, Citadel Advisors, Coatue Management, D. E. Shaw, Dodge & Cox, First Eagle Investment Management, Giverny Capital, Gotham Asset Management, Harris Associates (Oakmark), Markel Group and 6 more. See which superinvestors hold your own portfolio with the smart money checker.
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Data sourced from SEC EDGAR. Figures are as-reported and may be unaudited or restated; verify against the source filings before relying on them. Comparisons are descriptive (higher or lower on a reported figure), not a rating or a recommendation. Informational only. Not investment advice.