MSFT

Microsoft Corp.

HALAL — FINANCIAL SCREENS PASSstock

Is MSFT Halal?

Current total-assets financial screens pass; software and cloud are generally permissible, while business-subcategory disclosure remains incomplete.

What You Should Know

Microsoft's primary business (software, cloud computing, productivity tools) is generally permissible. Conventional investment income may require purification under the investor's selected methodology. The March 2026 quantitative review confirms that debt, conventional liquidity, receivables, and a conservative interest-and-dividend income upper bound remain within the examined total-assets limits. Microsoft does not disclose enough subcategory revenue to calculate an exact prohibited-revenue or purification percentage.

⚠️ Concerns

  • Interest and dividend income combined were 1.05% of nine-month revenue, but Microsoft does not separate the two
  • Gaming, search advertising, and LinkedIn require qualitative review because potentially non-compliant subcategory revenue is not separately disclosed

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-12.

USD · millions
Interest-bearing debt / assets
5.80%Within limit
Below 33.333% under FTSE Yasaar

40,262 / 694,228

Cash + interest-bearing securities / assets
12.76%Within limit
Below 33.333% under FTSE Yasaar

88,574 / 694,228

Receivables + cash / assets
13.27%Within limit
Below 50% under FTSE Yasaar

92,146 / 694,228

Non-compliant income / revenue (upper bound)
1.05%Within limit
No more than 5% under FTSE Yasaar

2,546 / 241,832

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Incomplete

Debt, liquidity, receivables-plus-cash, and the conservative interest-and-dividend income upper bound all remain below the published limits. The business-activity percentage remains undisclosed.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Pass
Overall
Incomplete

Debt, cash plus interest-bearing securities, and receivables plus cash are all below the 33.33% total-assets thresholds. The business-activity percentage still requires evidence beyond the filing.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Incomplete

Identifiable conventional cash and interest-bearing instruments and interest-bearing debt are below 33% of total assets. This is a calculation against the SAC ratios, not an official SAC classification of a U.S.-listed security.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A properly licensed and reproducible 24- or 36-month issuer market-cap history is not yet stored, so these methods are not estimated from a current spot price.

Business-activity disclosure

Microsoft's disclosed core businesses are software, cloud infrastructure, productivity tools, operating systems, professional networking, search advertising, devices, and gaming. Software and cloud services are generally permissible activities.

Limitation: Microsoft does not separately disclose revenue from potentially non-compliant advertisements, gaming mechanics, mature content, or other screened sub-activities. A defensible prohibited-revenue percentage cannot be calculated from the filing alone.

Purification

Interest and dividend income combined were 1.05% of nine-month revenue. That is a conservative upper bound if the full combined amount is treated as non-compliant, not a prescribed purification percentage, because Microsoft does not separate interest from dividends and standards can differ in treatment.

Inputs, assumptions and primary sources
  • Interest-bearing debt is the current portion of long-term debt of 8,839 plus long-term debt of 31,423.
  • Cash and cash equivalents of 32,105 already include 18,281 of debt investments. Interest-bearing securities adds the 46,123 of short-term debt investments and 10,346 of debt investments recorded in equity and other investments, without double counting the cash-equivalent portion.
  • Accounts receivable is the reported net balance of 60,041.
  • Revenue and interest-and-dividend income use the same nine-month period ended March 31, 2026.
  • Microsoft combines interest and dividend income. Treating the full 2,546 as non-compliant is a conservative upper bound, not an exact interest-income amount.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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