Microsoft vs QUALCOMM: Business Model & Financial Comparison 2026
Microsoft · Technology / Software - Infrastructure·QUALCOMM · Technology / Semiconductors
Financial Comparison
| Metric | MSFTMicrosoft | QCOMQUALCOMM |
|---|---|---|
| Market Cap | $2.94T | $138.65B |
| Revenue (TTM) | $305.45B | $44.87B |
| Revenue Growth | 16.7% | 5.0% |
| Gross Margin | 68.6% | 55.1% |
| Operating Margin | 47.1% | 27.5% |
| Net Margin | 39.0% | 12.0% |
| Return on Equity | 34.4% | 21.5% |
| P/E (Trailing) | 24.8x | 26.2x |
| P/E (Forward) | 21.0x | 11.6x |
| Free Cash Flow | $53.64B | $10.42B |
| Cash | $89.46B | $11.82B |
| Total Debt | $123.28B | $14.82B |
Data sourced from Yahoo Finance. Green highlights indicate better performance for that metric. Use the interactive tool for real-time data.
Business Model Comparison
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 →QUALCOMM
QUALCOMM Incorporated stands as a leading company in Technology. Generating $44.87 billion in annual revenue (growing 5.0% year-over-year) and carrying a market capitalization of $146.32 billion, the company has cemented its position as a foundational player in the global Semiconductors landscape. Under the leadership of its leadership team, QUALCOMM Incorporated continues to execute on a multi-year strategic vision that balances growth investmen…
Full QUALCOMM analysis →SWOT Analysis Comparison
Strengths
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.
QUALCOMM
- With a market capitalization of $146.32B, QUALCOMM Incorporated is one of the largest companies in its sector, providing the scale advantages of brand recognition, supplier leverage, and capital acces
- QUALCOMM Incorporated's gross margin of 55.1% is well above industry averages, reflecting pricing power, operational efficiency, or a high-value product mix. The operating margin of 27.5% demonstrates
- A return on equity of 21.5% demonstrates that QUALCOMM Incorporated generates strong returns from shareholder capital, a hallmark of companies with durable competitive advantages.
Weaknesses
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
QUALCOMM
- QUALCOMM Incorporated's debt-to-equity ratio of 64.2 indicates meaningful financial leverage. Total debt stands at $14.82B against $11.82B in cash and equivalents.
Opportunities
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
QUALCOMM
- The rapid advancement of generative AI and large language models presents QUALCOMM Incorporated with opportunities to automate operations, enhance products, and develop new AI-native services. Compani
- QUALCOMM Incorporated operates in the Semiconductors segment of the broader Technology sector, which represents a $5.0 trillion by 2027 (IDC Global Technology Market). Even modest share gains in this
- 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 QUALCOM
Threats
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
QUALCOMM
- Global economic slowdowns, inflation, or rising interest rates can reduce consumer and enterprise spending. QUALCOMM Incorporated's revenue is not fully insulated from macroeconomic cycles, and a rece
- Increasing government regulation — particularly data privacy laws (GDPR, CCPA), antitrust enforcement, and trade restrictions — poses compliance costs and potential restrictions on QUALCOMM Incorporat
- 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 ToolMicrosoft vs QUALCOMM: FAQ
- Is Microsoft bigger than QUALCOMM?
- By market capitalization, Microsoft is larger at $2.94T vs QUALCOMM's $138.65B.
- Which has better profit margins — Microsoft or QUALCOMM?
- Microsoft has higher net profit margins (39.0%) compared to QUALCOMM (12.0%). Gross and operating margins are compared in the table above.
- What sectors do Microsoft and QUALCOMM operate in?
- Microsoft operates in the Technology sector (Software - Infrastructure). QUALCOMM operates in the Technology sector (Semiconductors).
- How does Microsoft's revenue compare to QUALCOMM's?
- Microsoft generates $305.45B in annual revenue (TTM) while QUALCOMM generates $44.87B. Microsoft is the larger company by revenue as of 2026.