Microsoft (MSFT) is rated questionable by Zoya using AAOIFI standards. That's not a pass and it's not a fail — it's a middle category that means the company's primary business activities don't violate Islamic guidelines, but there are specific financial characteristics that require consideration before investing. For most Muslim investors, the key question is whether those characteristics are within acceptable limits and what purification looks like.
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What Microsoft actually does
Microsoft is a technology company operating across three segments: Productivity and Business Processes (Office, LinkedIn, Dynamics), Intelligent Cloud (Azure, server products), and More Personal Computing (Windows, devices, gaming). Revenue for the fiscal year ending June 30, 2025 was $281.7 billion. None of Microsoft's primary business activities — software, cloud services, productivity tools — are inherently haram under Islamic guidelines.
Why it's rated questionable
The questionable rating comes from interest income. Microsoft reported interest income of $2.647 billion for the fiscal year ending June 30, 2025. That represents 0.94% of the combined revenue and interest income total. Under AAOIFI standards, a company can earn up to 5% of combined revenue from impermissible sources — including interest — and remain within the compliant range. Microsoft's 0.94% is well below that threshold, which is why Zoya rates it questionable rather than non-compliant.
In plain terms: Microsoft earns interest on the cash and short-term investments it holds on its balance sheet. This is common for large corporations, and the AAOIFI framework acknowledges this reality by setting a tolerance threshold rather than requiring zero interest income.
What AAOIFI standards mean for investors
AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) is the leading international body that sets standards for Islamic finance. Their Shariah board includes scholars such as Sheikh Muhammad Taqi Usmani, Sheikh Nizam Yaquby, and Dr. Aznan Hassan. When Zoya applies AAOIFI standards to screen stocks, they're using a framework that is widely accepted across different schools of Islamic jurisprudence, not a single scholar's opinion.
Under these standards, a stock rated questionable is generally considered permissible to invest in, with the requirement to purify the impermissible portion of any returns. Microsoft's compliance status is updated at minimum quarterly as new financial data comes in. For a side-by-side look at how the two main screening platforms evaluate stocks like MSFT, see the HalalWallet Zoya vs. Musaffa comparison.
Purification: what it means and how it works
Purification means donating a calculated portion of your investment returns to charity to account for the impermissible revenue. The exact percentage to purify corresponds to the proportion of impermissible income — in Microsoft's case, the interest income percentage. Zoya's app calculates this automatically if you link your brokerage account. The purification amount is typically small given Microsoft's low interest income ratio.
How to check Microsoft's current status
Shariah compliance status can change as a company's financials change. Microsoft's 0.94% interest income ratio could shift if the company changes how it manages its cash reserves. Check the current rating through a halal stock screener before investing, and enable alerts to get notified of any status changes. For a deeper look at how shariah screening works and what the criteria are, read What Makes a Stock Halal?
Should Muslim investors buy Microsoft stock?
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That's an investment decision, not just a halal/haram question. Microsoft's compliance rating is one input. The investment case — growth prospects, valuation, portfolio diversification — is another. If you're looking for a Shariah-screened tool to help you screen and manage a portfolio of individual stocks, see the HalalWallet Zoya app review for a full breakdown of how it works. And if Amazon, Google, or other tech stocks are on your radar, the same screening logic applies — see Is Nvidia Stock Halal? for a direct comparison.
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Bottom line
Microsoft is rated questionable by Zoya under AAOIFI standards. Its primary business — software and cloud — has no inherently haram activities. The interest income of 0.94% is well under the 5% AAOIFI threshold. Most scholars consider stocks in this category permissible with purification. Verify the current status in Zoya before investing since compliance ratings update with new financial data.
Frequently asked questions
Is MSFT stock halal to buy in 2026?
Zoya rates MSFT as questionable under AAOIFI standards, which most scholars consider permissible to invest in with purification of the impermissible revenue portion. Interest income represents 0.94% of Microsoft's combined revenue, well under the 5% AAOIFI threshold.
Why is Microsoft rated questionable instead of halal?
Microsoft earns interest income on cash and investments held on its balance sheet — $2.647 billion in the fiscal year ending June 2025. This interest income, while small relative to total revenue, triggers the questionable rating rather than a clean pass.
Do I need to purify returns from Microsoft stock?
Yes, if you hold MSFT. The purification amount corresponds to the impermissible revenue percentage. Zoya's app calculates this automatically. The amount is typically small given Microsoft's low interest income ratio.
How often does Microsoft's shariah compliance status change?
Zoya reviews compliance at minimum quarterly, and updates immediately if significant changes occur. Enable alerts in the Zoya app to get notified if MSFT's status changes.
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What is the best app for checking if a stock is halal?
Zoya is the most widely used halal stock screening tool among Muslim investors in the U.S. It covers over 30,000 global stocks using AAOIFI standards, updated daily. Musaffa is the main alternative. For a comparison of both, read the Zoya vs. Musaffa guide on HalalWallet.
