Software R&D Return Benchmark

Empirical R&D payback and SEC XBRL CapEx Test across 130 public software companies (130 ranked universe) — comparing expensed GAAP R&D against capitalized software and physical infrastructure CapEx.

Active Lens: Full CapEx TestUniverse Medians: 22.78% intensity · $0.41 returnM_CapEx = R&D_t-1 / (R&D_t-1 + |CapSoftware_t-1| + |CapEx_t-1|)

SEC XBRL CapEx Test LensSwitch lens to test whether capitalized software or physical CapEx dilutes R&D payback

Combines GAAP R&D, capitalized software, and physical CapEx (data centers, GPUs, servers) to test true cash reinvestment payback.

Sub-Sector:

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R&D Return 2×2 (Full CapEx Test)

x = (R&D + Cap. Software + CapEx) % of revenue · y = new GP per cash R&D + CapEx dollar

MSFT: Burner, B

Hover or tap a dot to inspect peer R&D intensity and return

R&D intensityModerate 10.52%p9TTM

How this is calculated

How R&D intensity is graded

Intensity = R&D ÷ revenue from the same period. The grade uses TTM when that period end is fresh; otherwise the latest fiscal year if that end is fresh; otherwise the name is ungraded. Bands describe spend level, not quality.

Freshness is form-aware: quarterly filers 120 days; annual-only 20-F/40-F 15 months past FY end.
Very High ≥ 30% · High 20–30% · Moderate 10–20% · Low 5–10% · Very Low under 5%.
Peer percentile sits next to the band for context. It is not the grade.
Missing R&D or revenue: ungraded. Negative R&D: data flag. Over 100%: Very High, manual review.

As of 2026-10-22.

MSFTMicrosoft Corporation

MSFT Research

BuyGrade BBurner10-K FY End: 2026-06-30

Multi-Year Quadrant Trajectory+0.10 return delta

Steady Harvesters (FY24 -> FY26)

Intensity

45.66%

TTM: 10.52%

R&D Return

$0.33

GAAP: $0.97

Rank

#75

GAAP #15

SEC XBRL CapEx Test Multiplier0.33x Full CapEx

GAAP Return$0.97

+ Cap. Soft (1.00x)$0.97

Full CapEx (0.33x)$0.33

Audited Annual 10-K Series (USD)

Full-year 10-K periods used for 1-yr lagged R&D & CapEx payback

Rule of 40: 31.1%

Revenue (FY):$331.84B

R&D (FY):$35.56B

Gross Profit (FY):$225.47B

GP (Prior FY):$193.89B

R&D (Prior FY):$32.49B

Cap. Soft (Prior FY):—

CapEx (FY):$115.95B

CapEx (Prior FY):$64.55B

Compare Peer:

What-If:

The Four Empirical R&D Quadrants

Counts and classifications below reflect the active Full CapEx Test lens.

Software R&D Return Leaderboard (130)

Tap any company row to highlight it on the 2×2 chart above, inspect its CapEx Multiplier, or open its equity research page.

Scroll table horizontally for full R&D & CapEx metricsSwipe →

Rank↑	Ticker	Verdict	Quadrant	Grade	Intensity	TTM	R&D Return	CapEx Mult.	Revenue (FY)	R&D (FY)	Research
#1	PLTR Palantir Technologies	Buy	Harvesters	AAA	13.22%	9.83%	$2.66	0.98x	$4.48B	$557.7M	Research
#2	GEN Gen Digital Inc.	Buy	Harvesters	AAA	8.62%	8.22%	$2.22	0.96x	$5.00B	$409.0M	Research
#3	ZETA Zeta Global Holdings Corp.	Watch	Harvesters	AAA	11.81%	9.36%	$1.36	0.67x	$1.30B	$117.2M	Research
#4	FICO Fair Isaac Corporation	Watch	Harvesters	AAA	11.44%	8.71%	$1.36	0.87x	$1.99B	$188.3M	Research
#5	AVPT AvePoint, Inc.	Buy	Harvesters	AAA	13.41%	12.28%	$1.21	0.94x	$419.5M	$52.6M	Research
#6	SPSC SPS Commerce, Inc.	Buy	Harvesters	AAA	12.67%	8.73%	$1.12	0.76x	$751.5M	$68.7M	Research
#7	PRGS Progress Software Corporation	Watch	Harvesters	AAA	20.25%	19.53%	$1.10	0.97x	$977.8M	$192.3M	Research
#8	MNDY monday.com Ltd.	Watch	Compounders	AAA	27.69%	26.04%	$1.02	0.94x	$1.23B	$320.8M	Research
#9	PTC PTC Inc.	Watch	Harvesters	AAA	17.11%	16.06%	$0.98	0.97x	$2.74B	$457.7M	Research
#10	NAVN Navan, Inc.	Watch	Compounders	AAA	24.23%	20.96%	$0.96	0.88x	$702.3M	$151.2M	Research
#11	CVLT CommVault Systems, Inc.	Watch	Harvesters	AAA	14.34%	13.11%	$0.96	0.97x	$1.18B	$162.2M	Research
#12	IOT Samsara Inc.	Watch	Compounders	AAA	23.07%	20.34%	$0.91	0.94x	$1.62B	$344.6M	Research
#13	TYL Tyler Technologies	Watch	Harvesters	AA	10.18%	9.67%	$0.88	0.70x	$2.33B	$204.6M	Research
#14	TOST Toast, Inc.	Buy	Harvesters	AA	7.82%	5.95%	$0.88	0.77x	$6.15B	$374.0M	Research
#15	KVYO Klaviyo, Inc.	Watch	Compounders	AA	26.25%	23.13%	$0.80	0.93x	$1.23B	$291.2M	Research
#16	DUOL Duolingo, Inc.	Watch	Compounders	AA	32.15%	29.47%	$0.80	0.92x	$1.04B	$306.3M	Research
#17	RBRK Rubrik, Inc.	Watch	Compounders	AA	30.64%	28.59%	$0.79	0.97x	$1.32B	$373.7M	Research
#18	SHOP Shopify Inc.	Buy	Harvesters	AA	13.52%	12.49%	$0.78	0.99x	$11.56B	$1.54B	Research
#19	SAIL SailPoint, Inc.	Watch	Compounders	AA	22.78%	19.86%	$0.74	0.93x	$1.07B	$223.0M	Research
#20	INTU Intuit Inc.	Buy	Harvesters	AA	16.77%	15.74%	$0.72	0.96x	$21.45B	$3.38B	Research
#21	VRSN VeriSign, Inc.	Buy	Harvesters	AA	7.99%	6.24%	$0.72	0.74x	$1.66B	$103.6M	Research
#22	PEGA Pegasystems Inc.	Watch	Harvesters	AA	18.74%	18.38%	$0.71	0.97x	$1.75B	$312.7M	Research
#23	ROP Roper Technologies, Inc.	Buy	Harvesters	AA	12.24%	—	$0.71	0.89x	$7.90B	$852.5M	Research
#24	PAR PAR Technology Corporation	Pass	Harvesters	AA	19.76%	17.23%	$0.70	0.91x	$455.5M	$81.8M	Research
#25	DSGX The Descartes Systems Group Inc.	Buy	Harvesters	AA	15.23%	14.67%	$0.68	0.93x	$729.0M	$105.3M	Research

Showing 1–25 of 130 companies

Page 1 of 6

Institutional Scoring Methodology

1. Exact Formulas (Fundamentals Only)

Every score is derived strictly from annual and trailing-twelve-month SEC financial statements. Stock prices and valuation multiples are never used.

R&D Intensity (FY) = R&D (FY) / Revenue (FY)

R&D Intensity (TTM) = R&D (TTM) / Revenue (TTM)

R&D Return (FY) = (Gross Profit FY − Gross Profit Prior FY) / R&D Prior FY

2. SEC XBRL CapEx Test Multiplier

Companies that capitalize internal software development (ASC 350-40 / 985-20) or build GPU and cloud infrastructure shift engineering dollars off the income statement. Our CapEx Multiplier discounts R&D return proportionally:

CapEx Mult. = R&D Prior FY / (R&D Prior FY + |Cap. Software Prior FY| + |CapEx Prior FY|)

Full CapEx Return = GAAP R&D Return × CapEx Mult.

3. Empirical Medians & AAA–D Letter Grades

Quadrant cut-offs are computed dynamically from the medians of the ranked universe (22.78% intensity, $0.41 return). Letter grades map 10-point percentile bands of return among ranked names:

AAA≥90%AA≥80%A≥70%BBB≥60%BB≥50%B≥40%CCC≥30%CC≥20%C≥10%D≥0%

Strict Data Hygiene — Never Invented

The rated universe has no ungraded names. Prior-year R&D under $10M stays in the table with R&D marked below R&D floor and a fundamentals Buy/Watch/Pass grade. Stale filings (quarterly > 120 days; annual-only 20-F/40-F > 15 months past FY end) stay, graded on the latest filing, with a data-as-of / stale label. Disjoint SEC XBRL tags prevent double-counting capitalized software against PP&E CapEx. No input is invented.

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