Is MSFT halal in 2026?

Microsoft earns its revenue from Windows, Office and Microsoft 365, the Azure cloud platform, LinkedIn, Xbox, and Surface hardware. These are permissible activities under AAOIFI Shari'a Standard No. 21, with no alcohol, gambling, conventional finance, or other prohibited business lines.

On the quantitative screens Microsoft passes clearly. Interest-bearing debt is 1.0% of market capitalization, well under the 30% AAOIFI ceiling, and interest-bearing deposits and securities are well clear of the limit. Non-permissible income, essentially interest on Microsoft's cash and investment portfolio, is well clear of the limit (the 5% threshold).

Why do some screeners reach a stricter verdict on Microsoft? Not because of debt, which sits far inside every standard's limit. The disagreement is about classifying revenue. Since the Activision Blizzard acquisition, gaming is a large revenue line, and some screeners and scholars treat part of video-game content (for example titles built around gambling mechanics or impermissible content) as non-permissible revenue, which pushes their non-permissible-income figure higher. HalalScreener classifies gaming, LinkedIn and search as permissible lines of business under AAOIFI Shari'a Standard No. 21 and counts interest income toward the 5% test. If you follow a stricter view on games, check Microsoft's revenue mix against that view rather than relying on any single screener's label.

Microsoft pays a regular dividend, so purification applies to both dividends and realized gains. The precise figure tracks the non-permissible-income ratio shown on the live MSFT page, though many investors round up for caution. HalalScreener's purification calculator computes the exact amount for your holding.