Is MSFT (Microsoft Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, MSFT is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (2.12% vs ≤33% threshold), interest income ratio (0.94% vs ≤5% threshold), and cash & securities ratio (3.31% vs ≤33% threshold).

Microsoft Corporation is a global technology titan that dominates both enterprise software and personal computing. Its business is built on pillars like the Intelligent Cloud segment, driven by Azure, and the Productivity and Business Processes segment, which houses essential tools like Office 36 5, Microsoft Teams, and LinkedIn. Beyond software, it maintains a significant hardware presence with Surface devices and Xbox, making it integral to modern digital infrastructure. For Muslim investors, Microsoft represents a straightforward 'Halal' investment opportunity, having passed all AAOIFI screening standards. The company's business activities are fundamentally permissible, avoiding prohibited industries like alcohol , gambling, or adult entertainment. This compliance status allows investors to gain exposure to one of the world's most valuable companies without compromising their ethical or religious values. Financially, Microsoft is exceptionally strong from an Islamic perspective, boasting very low leverage with a debt-to-market cap ratio of only 2.1%, far below the 33% limit . Furthermore, its interest income relative to total revenue is negligible at 0.94%, indicating that the vast majority of its earnings come from legitimate sales of software and services rather than interest-bearing cash piles. This low reliance on debt and interest makes it a stable cornerstone for a halal portfolio. While Microsoft is currently compliant, investors should always monitor its future acquisitions, particularly in the gaming sector, to ensure new revenue streams remain within halal boundaries. As the company expands into AI and gaming , the nature of the content hosted or produced remains the primary area for ongoing shariah diligence. Microsoft Corporation operates in the Technology sector under the Software - Infrastructure industry and is headquartered in Redmond, WA, US. The company is led by CEO Satya Nadella and employs approximately 228,000 people.

MSFT was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. MSFT passed 4 of these 4 screens.

Although MSFT passes all shariah screens, it does earn $2.65B in interest income (0.94% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.94 to purify the income.

MSFT was last screened on 2026-02-24. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.