Is Microsoft Stock Halal?
Microsoft Corporation · MSFT · NASDAQ
Microsoft Corporation (MSFT) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-03-31) interest-bearing debt is 2.0% of market cap and cash plus interest-bearing securities 2.7% — both inside the 30% AAOIFI thresholds. It is independently held by Shariah-screened ETFs SPUS and HLAL, confirming it passes professional screens. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.
Financial data as of 2026-03-31 · Screening basis: AAOIFI · Last reviewed 2026-06-15
Our Analysis
Microsoft's core businesses - productivity software, enterprise cloud (Azure), Windows and developer tools - are permissible activities. The Shariah debate around Microsoft concentrates on its gaming and advertising lines. After acquiring Activision Blizzard in 2023, Microsoft became one of the world's largest video-game publishers, and its More Personal Computing segment includes Xbox content and services plus Search and news advertising from Bing; LinkedIn adds further advertising revenue. Screeners differ on how much of gaming revenue to treat as impermissible (some count only games with prohibited content or in-game gambling mechanics, others take a stricter view of the entertainment category as a whole), and on how to treat general advertising that may promote impermissible products.
This is a genuine scholars-differ area, and the third-party signals reflect it. As of June 11, 2026, Microsoft is held by both SPUS (S&P Shariah screen) and HLAL (FTSE Shariah screen) - meaning it passes both of those institutional index screens - while Zoya publicly flags the stock as questionable and Musaffa classifies it as not halal under their stricter AAOIFI-based revenue analyses. An investor's conclusion will therefore depend on which methodology they follow and how that methodology categorizes gaming and advertising income against the 5% impermissible-revenue tolerance.
On financial ratios, Microsoft's debt is modest relative to its very large market value, and it holds a substantial investment portfolio that produces interest income - incidental income that compliant-leaning investors would purify. Practical guidance: investors who follow FTSE or S&P Shariah standards have index-level support for holding Microsoft; investors who follow Zoya's or Musaffa's AAOIFI interpretations should review those platforms' current reports before investing, since the disagreement here is about business-screen categorization rather than excessive debt.
Business Activity Screen
Microsoft develops and licenses software, cloud services, devices and related solutions. Its 10-K reports three segments: Productivity and Business Processes (Microsoft 365/Office, LinkedIn, Dynamics), Intelligent Cloud (Azure and other cloud services, server products), and More Personal Computing (Windows, Devices, Gaming including Xbox and Activision Blizzard content, and Search and news advertising).
The More Personal Computing segment contains the lines most scrutinized by Shariah screens: Gaming (Xbox hardware, Xbox content and services, and Activision Blizzard titles following the 2023 acquisition) and Search and news advertising (Bing/Microsoft Advertising, which can carry ads for impermissible products). LinkedIn also carries advertising revenue within Productivity and Business Processes. Microsoft discloses Gaming and Search/news advertising revenue in its 10-K segment discussion; exact current-year figures were not independently re-verified for this research and are omitted. Microsoft additionally earns interest income on its investment portfolio.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 2.0% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 2.7% | < 30% | Pass |
| Impermissible income / total revenueInterest income $2.65B on $281.72B total revenue (Microsoft Corporation FY2025 (fiscal year ended 2025-06-30, Form 10-K)) = 0.9% — under AAOIFI's 5% limit. | 0.9% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-03-31 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How Microsoft screens across Shariah standards
All three mainstream bases below reach the same conclusion for this company.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 2.0% | 2.7% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 2.0% | 2.7% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 5.8% | 11.3% | < 33.33% of total assets | Pass |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-03-31) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
SP Funds S&P 500 Sharia ETF (SPUS)
Held in SPUS as of 2026-06-11 — passed the S&P Shariah screen applied by the fund.
Source →Wahed FTSE USA Shariah ETF (HLAL)
Held in HLAL as of 2026-06-11 — passed the FTSE Shariah screen applied by the fund.
Source →Zoya
Zoya's public stock page flags MSFT as questionable under its AAOIFI-based screen (checked 2026-06-11).
Source →Musaffa
Musaffa's public stock page classifies MSFT as NOT HALAL under its AAOIFI-based methodology, as of May 2026.
Source →
Purification
Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures.
Purification calculatorKeep your portfolio halal
A pass today isn't a pass forever — ratios drift across thresholds between filings. A halal screener monitors holdings continuously.
Related guides
Consider Consulting an Islamic Scholar
Major whether Microsoft Corporation is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
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Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
- MSFT latest quarterly filing (balance sheet 2026-03-31)
- AAOIFI Shariah Standards
- Microsoft 10-K filings - SEC EDGAR (CIK 0000789019)
- SPUS holdings (sp-funds.com, table dated 06/11/2026)
- HLAL fund page with official Holdings link (funds.wahedinvest.com)
- Zoya public compliance page for MSFT
- Musaffa public compliance page for MSFT
- HalalWallet Methodology
- Editorial Policy
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