Software Quality Ratings & R&D Return

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See how 130 public software companies (ranked universe) score from 0-100 on revenue growth, profit margins, and R&D payback using SEC filings with zero stock-price inputs.

Medians: 20.75% · $0.48

Advanced Lens & Cohort Controls

Cohort:

Scores software companies strictly on expensed GAAP R&D, our baseline Quality Rating input.

Formula & 1-Yr Lag (?)

GAAP R&D Formula & Lag

Multiplier = 1.00x (Income-Statement R&D Baseline)

Payback = (Gross Profit FY - Gross Profit Prior FY) / Prior FY Spend

Prior-year product engineering spend is matched against current-year incremental gross profit dollars to capture commercialization lag.

Active Medians: 20.75% intensity · $0.48 payback

R&D Return 2×2 (GAAP R&D)

x = GAAP R&D % of revenue (FY) · y = new gross profit per prior R&D dollar

MSFT: Harvester, AA

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MSFTMicrosoft Corporation

MSFT Research

BuyGrade AAHarvesterSEC Filings FY End: 2026-06-30

Intensity

10.72%

TTM: 10.52%

R&D Return

$0.97

Per $1 prior R&D

Rank

#15

89th pct

vs Infrastructure & Cloud Median (22 ranked)Ratings Index

Intensity vs Sector-7.5% ptsMed: 18.24%

Payback vs Sector+$0.46Med: $0.51

CapEx Haircut-67% vs GAAPFull CapEx basis

SEC Filings CapEx Test Multiplier0.33x Full CapEx

GAAP Return$0.97

+ Cap. Soft (Not reported)Not reported

Full CapEx (0.33x)$0.33

Compare Peer:

What-If:

Annual SEC Filings Series (USD) · 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):Not reported

CapEx (FY):$115.95B

CapEx (Prior FY):$64.55B