Is Microsoft Corp. MSFT stock halal to invest in?

Yes, as of August 2026, Microsoft Corp. stock (MSFT) is classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. Microsoft Corp. currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 98.39%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of Microsoft Corp. and explore other Shariah compliant stocks in the Tabadulat app.

How often is Microsoft Corp. MSFT reviewed for Shariah compliance?

Tabadulat reviews Microsoft Corp. MSFT for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Microsoft Corp. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Microsoft Corp. MSFT pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Microsoft Corp. stock (MSFT) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Microsoft Corp.'s income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does Microsoft Corp. MSFT pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Microsoft Corp. stock (MSFT) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Microsoft Corp.'s interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Microsoft Corp. MSFT pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Microsoft Corp. stock (MSFT) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. Microsoft Corp.'s interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for Microsoft Corp. MSFT stock?

As of August 2026, the dividend purification factor for Microsoft Corp. (MSFT) is 98.39%. Purification (tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure halal investors use to work out that donation on Microsoft Corp. dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does Microsoft Corp. MSFT pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Microsoft Corp. stock (MSFT) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Microsoft Corp. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Microsoft Corp.

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MSFT

About

Microsoft Corp.

MSFT

Microsoft Corp. 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. Microsoft’s Azure cloud platform plays a significant role in the competitive cloud computing market, providing infrastructure, platforms, and services for businesses of all sizes. Additionally, Microsoft's involvement extends to gaming with its Xbox gaming consoles and a suite of gaming software and online services. Microsoft operates globally, serving individual consumers, small to medium-sized enterprises, and large corporations with enterprise-level solutions. Established in 1975 and headquartered in Redmond, Washington, Microsoft Corp. continues to influence software, cloud technology, and gaming industries, contributing significantly to technological advancements worldwide.

Sector:

Technology

Industry:

Software - Infrastructure

Employees:

228000

Website:

https://www.microsoft.com

MSFT

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Microsoft Corp.

About

Microsoft Corp.

MSFT

Frequently asked questions

Is Microsoft Corp. MSFT stock halal to invest in?

How often is Microsoft Corp. MSFT reviewed for Shariah compliance?

Does Microsoft Corp. MSFT pass the AAOIFI Non Permissible Income criteria?

Does Microsoft Corp. MSFT pass the AAOIFI Interest Bearing Investments criteria?

Does Microsoft Corp. MSFT pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Microsoft Corp. MSFT stock?

Does Microsoft Corp. MSFT pass the AAOIFI Preference Share screen?

How do I buy Microsoft (MSFT) stock?

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