Berkshire Hathaway vs Microsoft: Business Model & Financial Comparison 2026
Berkshire Hathaway · Financial Services / Insurance - Diversified·Microsoft · Technology / Software - Infrastructure
Financial Comparison
| Metric | BRK-BBerkshire Hathaway | MSFTMicrosoft |
|---|---|---|
| Market Cap | $1.06T | $2.99T |
| Revenue (TTM) | $371.44B | $305.45B |
| Revenue Growth | -0.7% | 16.7% |
| Gross Margin | 26.1% | 68.6% |
| Operating Margin | 33.0% | 47.1% |
| Net Margin | 18.0% | 39.0% |
| Return on Equity | 9.8% | 34.4% |
| P/E (Trailing) | 15.8x | 25.1x |
| P/E (Forward) | 22.7x | 21.3x |
| Free Cash Flow | $36.80B | $53.64B |
| Cash | $373.31B | $89.46B |
| Total Debt | $135.37B | $123.28B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
Berkshire Hathaway
Berkshire Hathaway Inc. stands as a leading company in Financial Services. Generating $371.44 billion in annual revenue (growing -0.7% year-over-year) and carrying a market capitalization of $1.08 trillion, the company has cemented its position as a foundational player in the global Insurance - Diversified landscape. Under the leadership of its leadership team, Berkshire Hathaway Inc. continues to execute on a multi-year strategic vision that bal…
Full Berkshire Hathaway analysis →Microsoft
Microsoft stands as the world's leading enterprise software and cloud computing company. Generating $305.45 billion in annual revenue (growing 16.7% year-over-year) and carrying a market capitalization of $3.05 trillion, the company has cemented its position as a foundational player in the global Software - Infrastructure landscape. Under the leadership of Satya Nadella, Microsoft continues to execute on a multi-year strategic vision that balance…
Full Microsoft analysis →SWOT Analysis Comparison
Strengths
Berkshire Hathaway
- With a market capitalization of $1.08T, Berkshire Hathaway Inc. is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital acces
- Berkshire Hathaway Inc. maintains a gross margin of 26.1% and operating margin of 33.0%, demonstrating consistent operational execution and cost discipline in a competitive market.
- Berkshire Hathaway Inc. generated $36.80B in free cash flow, providing financial flexibility to invest in growth initiatives, return capital to shareholders, or strengthen the balance sheet.
Microsoft
- With a market capitalization of $3.05T, Microsoft is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital access that smaller
- Microsoft's gross margin of 68.6% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 47.1% demonstrates disciplined
- Revenue grew 16.7% year-over-year to $305.45B, indicating strong demand for Microsoft's products and services and outperformance relative to many industry peers.
Weaknesses
Berkshire Hathaway
- Year-over-year revenue declined 0.7%, raising questions about demand for Berkshire Hathaway Inc.'s core offerings and requiring management to articulate a credible recovery path.
Microsoft
- With 228,000 employees globally, Microsoft faces inherent challenges in agility, decision-making speed, and maintaining a consistent culture across geographies — advantages that smaller, nimbler compe
- Windows consumer PC market has been structurally declining for a decade
- Azure still trails AWS in market share (22% vs 32%); gap may be difficult to close
Opportunities
Berkshire Hathaway
- Berkshire Hathaway Inc. operates in the Insurance - Diversified segment of the broader Financial Services sector, which represents a $26.5 trillion global financial services market by 2028. Even modes
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Berkshi
- With $373.31B in cash and strong free cash flow generation, Berkshire Hathaway Inc. is well-positioned to pursue strategic acquisitions that expand its capabilities, customer base, or geographic reach
Microsoft
- The rapid advancement of generative AI and large language models presents Microsoft with opportunities to automate operations, enhance products, and develop new AI-native services. Companies in Techno
- Microsoft operates in the Software - Infrastructure segment of the broader Technology sector, which represents a $5.0 trillion by 2027 (IDC Global Technology Market). Even modest share gains in this e
- Emerging markets — particularly India (1.4B people, rapidly growing middle class), Southeast Asia (700M people), and Sub-Saharan Africa — represent significant untapped addressable markets for Microso
Threats
Berkshire Hathaway
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Berkshire Hathaway Inc.'s revenue is not fully insulated from macroeconomic cycles, and a re
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Berkshire Hathaway
- Competition for skilled technology, engineering, and management talent remains intense. High employee turnover or inability to attract top talent could slow innovation and execution — particularly cri
Microsoft
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. Microsoft's revenue is not fully insulated from macroeconomic cycles, and a recession scenar
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on Microsoft's busines
- The technology sector evolves at a pace where today's competitive advantages can erode quickly. New entrants with AI-native approaches, open-source alternatives, or disruptive business models could ch
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Open Comparison ToolBerkshire Hathaway vs Microsoft: FAQ
- Is Berkshire Hathaway bigger than Microsoft?
- By market capitalization, Microsoft is larger at $2.99T vs Berkshire Hathaway's $1.06T.
- Which has better profit margins — Berkshire Hathaway or Microsoft?
- Microsoft has higher net profit margins (39.0%) compared to Berkshire Hathaway (18.0%). Gross and operating margins are compared in the table above.
- What sectors do Berkshire Hathaway and Microsoft operate in?
- Berkshire Hathaway operates in the Financial Services sector (Insurance - Diversified). Microsoft operates in the Technology sector (Software - Infrastructure).
- How does Berkshire Hathaway's revenue compare to Microsoft's?
- Berkshire Hathaway generates $371.44B in annual revenue (TTM) while Microsoft generates $305.45B. Berkshire Hathaway is the larger company by revenue as of 2026.