Is Microsoft (MSFT) stock Halal?

Microsoft is a multinational technology corporation that develops, licenses, and supports a diverse range of software products, services, and hardware. At the forefront of its offerings is the Windows operating system, a fundamental platform for personal computing used globally. The company also provides productivity software, such as Microsoft Office, which includes widely utilized applications like Word, Excel, and PowerPoint. For Muslim investors, though, the most pressing question is simpler: is Microsoft a Halal investment?

Is Microsoft Shariah compliant?

Technology companies rarely fail AAOIFI screening on what they sell. Software, hardware and digital services are permissible business activities, so for a company like Microsoft the Shariah question moves to the balance sheet: how much of its market value sits in interest bearing debt, how much of its cash earns Riba in conventional deposits, and whether incidental income from impermissible sources creeps past 5% of revenue. These are exactly the ratios AAOIFI Shariah Standard No. 21 polices, and they move every month with the share price.

Does Microsoft pass the business activity test?

Yes. In the September 2026 screening Microsoft holds an overall PASS, which a stock only earns when its core business clears the activity screen. The watch item for technology names is incidental: cash returns and platform content can carry impermissible elements, which AAOIFI tolerates only below the thresholds.

Is Microsoft's income Halal?

Yes, within AAOIFI's tolerance. Microsoft's income from non-permissible sources stays below 5% of revenue in the September 2026 screening, and the small impure portion is handled through purification: the factor of 98.32% tells holders of MSFT what share of each dividend to keep and what remainder to donate to charity.

Does Microsoft meet AAOIFI's debt and investment ratio requirements?

Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation. Because the caps move with the share price, our Shariah Supervisory Board has MSFT re-screened every month, and the result above always shows the latest verdict.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the four screens? Read Why a Halal Stock Screener Matters for Halal Investing