---
title: "Is Microsoft Stock Halal?"
canonical: https://www.halalwallet.ca/is-it-halal/microsoft-stock
publisher: HalalWallet
license: CC BY 4.0
verdict: halal
verdict_label: Halal
entity_type: stock
ticker: MSFT
exchange: NASDAQ
last_reviewed: 2026-06-15
data_as_of: 2026-03-31
standards_disagree: false
authorities_with_position: 5
authority_agreement: split
---
# Is Microsoft Stock Halal?

**Authority consensus:** Halal screening authorities disagree on Microsoft Corporation: halal (HalalWallet (AAOIFI), Wahed (HLAL ETF), SP Funds (SPUS ETF)); not halal (Musaffa); doubtful (Zoya).

**Verdict: Halal** (Generally permissible)

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.

> HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide.

## How we read the evidence

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

Result: Pass

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 (AAOIFI)

Data as of: 2026-03-31

| Screen | Value | Limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 2.0% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 2.7% | < 30% | Pass |
| Impermissible income / total revenue | 0.9% | < 5% | Pass |

Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology

## How it 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 threshold | 2.0% | 2.7% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basis | 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 < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen.

## Scholars' and screeners' positions

- **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](https://www.sp-funds.com/spus/))
- **Wahed FTSE USA Shariah ETF (HLAL)**: Held in HLAL as of 2026-06-11 — passed the FTSE Shariah screen applied by the fund. ([source](https://funds.wahedinvest.com/))
- **Zoya**: Zoya's public stock page flags MSFT as questionable under its AAOIFI-based screen (checked 2026-06-11). ([source](https://zoya.finance/stocks/msft))
- **Musaffa**: Musaffa's public stock page classifies MSFT as NOT HALAL under its AAOIFI-based methodology, as of May 2026. ([source](https://musaffa.com/stock/MSFT/))

## 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.

## Sources

- MSFT latest quarterly filing (balance sheet 2026-03-31) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Microsoft%20Corporation&type=10-Q)
- AAOIFI Shariah Standards (https://aaoifi.com)
- Microsoft 10-K filings - SEC EDGAR (CIK 0000789019) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000789019&type=10-K)
- SPUS holdings (sp-funds.com, table dated 06/11/2026) (https://www.sp-funds.com/spus/)
- HLAL fund page with official Holdings link (funds.wahedinvest.com) (https://funds.wahedinvest.com/)
- Zoya public compliance page for MSFT (https://zoya.finance/stocks/msft)
- Musaffa public compliance page for MSFT (https://musaffa.com/stock/MSFT/)

## Frequently asked questions

### Is Microsoft Corporation (MSFT) stock halal?

Yes, under our AAOIFI-based methodology Microsoft Corporation passes the business-activity and financial-ratio screens as shown on this page (data as of 2026-03-31). Check the dated ratio table before investing; ratios move with the share price.

### Does Microsoft Corporation pass the AAOIFI financial ratio screen?

As of 2026-03-31: interest-bearing debt is 2.0% of market cap (limit < 30%); cash plus interest-bearing securities is 2.7% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page.

### Is Microsoft Corporation held in halal ETFs like SPUS or HLAL?

Yes — as of our last check, Microsoft Corporation is held by SPUS and HLAL. ETF inclusion confirms it passed those funds' Shariah screens at the holdings date cited in the sources below.

### Do I need to purify dividends from Microsoft Corporation?

Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash; donate the proportional share of dividends attributable to that income.

## Related verdicts

- [Is Apple Stock Halal?](https://www.halalwallet.ca/is-it-halal/apple-stock.md) — Halal
- [Is Meta Platforms Stock Halal?](https://www.halalwallet.ca/is-it-halal/meta-platforms-stock.md) — Halal
- [Is NVIDIA Stock Halal?](https://www.halalwallet.ca/is-it-halal/nvidia-stock.md) — Halal
- [Is PepsiCo Stock Halal?](https://www.halalwallet.ca/is-it-halal/pepsico-stock.md) — Halal
- [Is Salesforce Stock Halal?](https://www.halalwallet.ca/is-it-halal/salesforce-stock.md) — Halal
- [Is Tesla Stock Halal?](https://www.halalwallet.ca/is-it-halal/tesla-stock.md) — Halal

---

Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30).

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