Compliance Status

Halal

Screened on Oct 18, 2026 · AAOIFI Standard 21

A+

Excellent

93Score

Is Microsoft Corporation (MSFT) halal? Halal. Based on AAOIFI screening, Microsoft Corporation passes both qualitative (business activity) and quantitative (financial ratio) screens with a compliance score of 93/100 (Grade: A+).

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HalalScreener rates Microsoft Corporation (MSFT) Halal, 93/100, grade A+ under AAOIFI Standard 21, screened Oct 18, 2026. Source: https://halalscreener.app/en/stock/MSFT

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

1.0% of 30.0% limit
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Screened according to AAOIFI Standard 21

What this means for you

You can own MSFT

It passes both the business activity and financial ratio screens under AAOIFI Standard 21.

Purification amount is Pro

We have screened MSFT's prohibited income, but the exact share you would need to purify is part of Pro.

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Microsoft Corporation

MSFT: Is Microsoft Corporation Halal?

Microsoft Corporation

NASDAQTechnologyUS

$529.05

-1.93%

Market Cap: 3.9T

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About Microsoft Corporation

Microsoft Corporation is a prominent global technology firm that invents, markets, and provides ongoing assistance for a diverse range of software, digital services, computing devices, and comprehensive solutions. Its operations are organized into three primary divisions: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment delivers crucial tools for both enterprises and individual users. This includes the extensive Office suite (comprising Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business), along with popular consumer offerings like Skype, Outlook.com, OneDrive, and LinkedIn. It also features Dynamics 365, a suite of integrated cloud and on-premises business applications tailored for organizations. The Intelligent Cloud division focuses on sophisticated infrastructure and platform services. Here, Microsoft licenses key products such as SQL Server, Windows Servers, Visual Studio, System Center, and associated Client Access Licenses. It also includes GitHub, a leading platform for developer collaboration and code hosting; Nuance, offering advanced AI solutions for healthcare and businesses; and Azure, its expansive cloud computing platform. This segment further encompasses enterprise support, Microsoft consulting services, and Nuance professional services, assisting clients with the development, deployment, and management of Microsoft's server and desktop technologies, alongside offering product training and certification. Finally, the More Personal Computing segment covers a broad spectrum of consumer and commercial computing experiences. It generates revenue through Windows operating system licensing, including agreements with original equipment manufacturers (OEMs), non-volume licensing, and various Windows Commercial offerings (such as volume licensing and cloud services), as well as patent licensing and Windows Internet of Things (IoT). This division also supplies its own hardware, including Surface devices, PC accessories, and gaming/entertainment consoles. Its Gaming portfolio features Xbox hardware, content, and subscription services, in addition to video games and royalties from third-party titles. Furthermore, it manages search services like Bing and Microsoft's advertising platforms. Microsoft distributes its extensive product line via numerous channels, including original equipment manufacturers, wholesale distributors, and various resellers, complementing direct sales through digital marketplaces, its own online storefronts, and physical retail outlets. The company, established in 1975, maintains its headquarters in Redmond, Washington.

Sector: Technology · Industry: Software - Infrastructure

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Is Microsoft (MSFT) Stock Halal? Shariah Compliance Analysis

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 18, 2026

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Screened according to AAOIFI Standard 21

Compliance History

Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2026Data source: EDGAR
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Frequently Asked Questions

Is Microsoft Corporation (MSFT) halal to invest in?
Based on AAOIFI Standard 21 screening, Microsoft Corporation (MSFT) is rated Halal with a compliance grade of A+ (Excellent). It passes both the business activity screen (no primary involvement in prohibited sectors) and the quantitative financial ratio screen (debt, interest deposits, and prohibited income all below AAOIFI thresholds).
Why did Microsoft Corporation get a A+ compliance rating?
Microsoft Corporation (MSFT) received a grade of A+ (Excellent) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 1.0% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Microsoft Corporation's Shariah verdict?
Microsoft Corporation's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Microsoft Corporation re-screened for Shariah compliance?
Microsoft Corporation (MSFT) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.