Microsoft develops software, devices, and cloud services. Windows is an operating system that runs on personal computers, Office provides productivity apps, and Azure offers cloud computing and developer tools. The company differentiates itself with a large, integrated ecosystem of software, devices, and services, plus long-standing partnerships with PC makers and a broad enterprise footprint. Its goal is to put a computer on every desk and in every home, and to extend that reach through cloud services, professional networking (LinkedIn), and gaming.
Company Size
10,001+
Company Stage
IPO
Headquarters
Redmond, Washington
Founded
1975
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Nokia and Microsoft have expanded their partnership to integrate Nokia Data Suite with Microsoft Fabric, creating an AI-driven foundation for telecommunications network operations. The solution allows operators to access structured network data in minutes rather than weeks and is currently available. For Nokia, the collaboration accelerates monetisation within its AI & Cloud segment, which saw order intake reach €2.8 billion in Q2 2026 and net sales surge 105% year-over-year. The company maintains €2.78 billion in net cash to support the initiative. For Microsoft, the partnership strengthens Azure's enterprise ecosystem, supporting its 43% revenue growth and expanding Microsoft Cloud revenue beyond its $59.3 billion quarterly base. However, Nokia faces restructuring expenses that pushed reported operating margin to negative 1.0% in Q2 2026. Microsoft contends with substantial AI infrastructure investments weighing on free cash flow.
Microsoft and Apple are competing for leadership in the AI era while offering investors different value propositions. Microsoft trades at 25x forward P/E versus Apple's 38x, below the sector average of 35x. Microsoft's sales grew 17.7% year-over-year to $90 billion, whilst Apple's rose 16.4% to $109.4 billion. Microsoft retained nearly 40% of revenue as income compared to Apple's 27%. However, Apple's return on equity reached 135% versus Microsoft's 32%. For dividends, Microsoft offers a 0.76% yield with a 20.53% payout ratio, whilst Apple yields 0.32% with a 12.11% payout ratio, giving both room for increases. Analysts rate Microsoft a "strong buy" with 35% upside potential, whilst Apple receives a "moderate buy" rating with 17% upside.
Microsoft is cutting approximately 500 additional jobs, with 277 positions eliminated in the Puget Sound region, according to a WARN filing. The cuts, which began on 22 September, primarily affect the Xbox gaming division, with smaller reductions in cloud and artificial intelligence units. The layoffs follow Microsoft's July announcement of 4,800 job cuts, representing 2.1% of its global workforce. The company aims to reduce Xbox staff by roughly 20% by fiscal year-end. Affected employees at Microsoft's Redmond facilities and remote positions were notified on 22 September, with eliminations scheduled for 21 November. The company stated facilities will remain open, though some positions may relocate to other Microsoft operations. Earlier this year, Microsoft also offered voluntary buyouts to senior US employees, with over 30% of eligible staff participating in its retirement programme.
Michael Burry, the hedge fund manager who predicted the 2008 financial crisis, has warned that AI companies are hiding $3 trillion in data centre debts that could destabilise the global economy. Burry's analysis of regulatory filings reveals Apple, Google, Microsoft, Meta and Oracle have accumulated massive off-balance-sheet obligations. The five companies have signed $1.2 trillion in data centre leases, with at least $857 billion non-cancellable, plus over $1.5 trillion in supply chain purchase commitments. These liabilities don't appear on their balance sheets under current accounting rules. Burry warns this could reach $5 trillion by 2028. With combined annual earnings under $400 billion, Burry questions what happens if AI growth disappoints. Oracle, Microsoft and Meta shares have already fallen from recent peaks.
DrugBank has launched a plugin integrating its Knowledge Graph with Microsoft Copilot, providing biopharma research and development teams with traceable, deterministic data within Copilot tools including Chat, Word, Excel, and PowerPoint. The plugin connects over 150 million structured data points and billions of relationships covering drugs, targets, diseases, and trials. This allows teams to receive consistent, citable answers grounded in DrugBank's 20-year curated database rather than AI-generated responses. The integration aims to streamline high-friction points in drug discovery, including target identification, competitive landscaping, and portfolio evaluation. DrugBank's Knowledge Graph includes all FDA, EMA, and Health Canada approved drugs, clinical trials since 2020, and clinical-stage assets mapped to over 20 industry ontologies. DrugBank is used by 10 of the top 20 global pharmaceutical companies and has received more than 65,000 academic citations. The plugin is now available on Microsoft Marketplace.