The company develops, licenses, and supports software, cloud services, devices, and related solutions spanning productivity applications, server and cloud infrastructure, and personal computing products. It organizes its business into segments covering productivity and business processes (including office productivity suites, professional networking services, and business applications), intelligent cloud (including server products and cloud computing services), and more personal computing (including operating systems, devices, gaming platforms, and search advertising). Its customers include individual consumers, small and medium-sized businesses, large enterprises, educational institutions, and government entities, served through direct sales channels and an indirect network of partners and original equipment manufacturers across domestic and international markets.
| Income statement · $ millions | 2026 | 2025 | 2024 | |
|---|---|---|---|---|
| Total revenues | 331,839 | 281,724 | 245,122 | 4 |
| · Server products and cloud services | 129,425 | 98,435 | 79,828 | |
| · Microsoft 365 commercial products and cloud services | 101,997 | 87,767 | 76,969 | |
| · XBOX | 21,790 | 23,455 | 21,503 | |
| 19,817 | 17,812 | 16,372 | ||
| · Windows and devices | 17,084 | 17,314 | 17,026 | |
| · Search advertising | 15,176 | 13,878 | 12,306 | |
| · Microsoft 365 consumer products and cloud services | 9,175 | 7,404 | 6,648 | |
| · Dynamics products and cloud services | 9,006 | 7,827 | 6,831 | |
| · Enterprise and partner services | 8,260 | 7,760 | 7,594 | |
| · Other products and services | 109 | 72 | 45 | |
| Cost of revenue | 106,374 | 87,831 | 74,114 | 1 |
| Gross profit | 225,465 | 193,893 | 171,008 | 1 |
| Research and development | 35,562 | 32,488 | 29,510 | |
| Selling, general and administrative | 7,956 | 7,223 | 7,609 | |
| Total operating expenses | 70,228 | 65,365 | 61,575 | |
| Operating income | 155,237 | 128,528 | 109,433 | 1 |
| Interest expense | — | — | 2,935 | |
| Other income (expense), net | 10,697 | (4,901) | (1,646) | |
| Income before income taxes | 165,934 | 123,627 | 107,787 | 1 |
| Income tax provision | 32,185 | 21,795 | 19,651 | 2 |
| — of which current | 17,761 | 28,851 | 24,389 | 1 |
| Net income attributable to common | 133,749 | 101,832 | 88,136 | 2 |
| Diluted earnings per share | $17.95 | $13.64 | $11.80 | |
| Weighted-average diluted shares | 7,453 | 7,465 | 7,469 | 1 |
| Cash flow · $ millions | 2026 | 2025 | 2024 | |
|---|---|---|---|---|
| Net income incl. noncontrolling interests | 133,749 | 101,832 | 88,136 | |
| Share-based compensation | 12,405 | 11,974 | 10,734 | |
| Deferred income taxes | 14,424 | (7,056) | (4,738) | |
| Change in receivables | 12,737 | 10,581 | 7,191 | |
| Change in inventories | 461 | (309) | (1,284) | |
| Change in payables | 5,268 | 569 | 3,545 | |
| Net cash provided by operating activities | 182,935 | 136,162 | 118,548 | 3 |
| Capital expenditure | 115,948 | 64,551 | 44,477 | 1 |
| Net cash used in investing activities | (139,500) | (72,599) | (96,970) | |
| Dividends paid | 26,445 | 24,082 | 21,771 | 1 |
| Repurchases of common stock | 22,271 | 18,420 | 17,254 | 1 |
| Net cash used in financing activities | (52,546) | (51,699) | (37,757) | |
| Cash and equivalents at end of period | 20,935 | 30,242 | 18,315 |
| Balance sheet · $ millions | 2026 | 2025 | |
|---|---|---|---|
| Cash and cash equivalents | 20,935 | 30,242 | |
| Short-term investments | 55,908 | 64,323 | |
| Receivables, net | 80,876 | 69,905 | 1 |
| Inventories | 1,397 | 938 | 1 |
| Total current assets | 207,710 | 191,131 | |
| Property, plant and equipment, net | 313,076 | 204,966 | |
| Goodwill | 119,651 | 119,509 | 1 |
| Intangible assets, net | 18,609 | 22,604 | |
| Total assets | 758,376 | 619,003 | 1 |
| Accounts payable | 42,416 | 27,724 | |
| Current debt | 9,227 | 2,999 | |
| Total current liabilities | 168,825 | 141,218 | |
| Long-term debt | 31,067 | 40,152 | |
| Total liabilities | 315,989 | 275,524 | |
| Stockholders' equity | 442,387 | 343,479 | |
| Total equity | 442,387 | 343,479 |
| Segments · as filed in the segment note · $ millions | Productivity and business processes | Intelligent cloud | More personal computing | Consolidated |
|---|---|---|---|---|
| Net sales | 139,996 | 137,791 | 54,052 | 331,839 |
| Cost of sales | 25,017 | 57,876 | 23,481 | 106,374 |
| Operating income | 83,879 | 56,972 | 14,386 | 155,237 |
| · operating margin | 59.9% | 41.3% | 26.6% | 46.8% |
Rows render only when the filed members reconcile to the consolidated line; Corporate / unallocated is consolidated − Σ segments, arithmetic on filed lines. A concept whose members do not faithfully partition the total is omitted, never approximated.
| Largest FY/FY moves · $ millions, ranked by |Δ| | FY2026 | FY2025 | Δ $ | Δ % | Reading |
|---|---|---|---|---|---|
| Total assets · BS | 758,376 | 619,003 | +139,373 | +22.5% | — |
| Property, plant and equipment, net · BS | 313,076 | 204,966 | +108,110 | +52.7% | ◐ outsized |
| Stockholders' equity · BS | 442,387 | 343,479 | +98,908 | +28.8% | — |
| Total equity · BS | 442,387 | 343,479 | +98,908 | +28.8% | — |
| Net cash used in investing activities · CF | (139,500) | (72,599) | −66,901 | -92.2% | ◐ outsized |
| Capital expenditure · CF | 115,948 | 64,551 | +51,397 | +79.6% | ◐ outsized |
| Total revenues · IS | 331,839 | 281,724 | +50,115 | +17.8% | — |
| Net cash provided by operating activities · CF | 182,935 | 136,162 | +46,773 | +34.4% | — |
| Income before income taxes · IS | 165,934 | 123,627 | +42,307 | +34.2% | — |
| Total liabilities · BS | 315,989 | 275,524 | +40,465 | +14.7% | — |
| Net income attributable to common · IS | 133,749 | 101,832 | +31,917 | +31.3% | — |
| Net income incl. noncontrolling interests · CF | 133,749 | 101,832 | +31,917 | +31.3% | — |
| Gross profit · IS | 225,465 | 193,893 | +31,572 | +16.3% | — |
| · Server products and cloud services · IS | 129,425 | 98,435 | +30,990 | +31.5% | — |
| Business quality — Buffett/Munger screen · deterministic · not part of the filing score | Value | Reading |
|---|---|---|
| Return on equity net income ÷ average of start- and end-of-year equity | 33.3% sector median 17.7% | strong |
| Share count, year-end (year-end shares − prior year-end) ÷ prior year-end | +0.0% sector median -0.7% | flat |
| Debt to equity (current debt + long-term debt) ÷ year-end equity | 0.13 sector median 0.43 | low |
| FCF consistency, 5yr operating cash flow − capital expenditure, per year | positive 5 of 5 | consistent |
| Margin stability pre-tax income ÷ revenue, swing across up to five years | pre-tax margin 43.9% sector median 20.1% | stable |
| Quarterly · as filed in 10-Q/10-K · $ millions | DEC 24 | MAR 25 | SEP 25 | DEC 25 | MAR 26 |
|---|---|---|---|---|---|
| Total revenues | 69,632 | 70,066 | 77,673 | 81,273 | 82,886 |
| Cost of revenue | 21,799 | 21,919 | 24,043 | 25,978 | 26,828 |
| Gross profit | 47,833 | 48,147 | 53,630 | 55,295 | 56,058 |
| Research and development | 7,917 | 8,198 | 8,146 | 8,504 | 8,915 |
| Selling, general and administrative | 1,823 | 1,737 | 1,806 | 1,932 | 1,931 |
| Total operating expenses | 16,180 | 16,147 | 15,669 | 17,020 | 17,660 |
| Operating income | 31,653 | 32,000 | 37,961 | 38,275 | 38,398 |
| Interest expense | 594 | 594 | 698 | 736 | 778 |
| Other income (expense), net | (2,288) | (623) | (3,660) | 9,971 | 942 |
| Income before income taxes | 29,365 | 31,377 | 34,301 | 48,246 | 39,340 |
| Income tax provision | 5,257 | 5,553 | 6,554 | 9,788 | 7,562 |
| Net income attributable to common | 24,108 | 25,824 | 27,747 | 38,458 | 31,778 |
| Diluted earnings per share | $3.23 | $3.46 | $3.72 | $5.16 | $4.27 |
| Weighted-average diluted shares | 7,468 | 7,461 | 7,466 | 7,460 | 7,445 |
| Net cash provided by operating activities | 22,291 | 37,044 | 45,057 | 35,758 | 46,679 |
| Largest QoQ moves · latest vs prior filed quarter | Prior | Latest | Δ $ | Δ % |
|---|---|---|---|---|
| Net cash provided by operating activities | 35,758 | 46,679 | +10,921 | +30.5% |
| Other income (expense), net | 9,971 | 942 | −9,029 | -90.6% |
| Income before income taxes | 48,246 | 39,340 | −8,906 | -18.5% |
| Net income attributable to common | 38,458 | 31,778 | −6,680 | -17.4% |
| Income tax provision | 9,788 | 7,562 | −2,226 | -22.7% |
| Total revenues | 81,273 | 82,886 | +1,613 | +2.0% |
| Cost of revenue | 25,978 | 26,828 | +850 | +3.3% |
| Gross profit | 55,295 | 56,058 | +763 | +1.4% |
| Ownership — insiders & floatForm 4 + 10-K cover · open-market trades only | Value | Reading |
|---|---|---|
| Public float | $3,600,000M | 10-K cover · as of 2025-12-31 |
| Insider Form 4s, 90d | 32 filings · 0 buys / 4 sells | net selling · −$10,508,461 |
| · Althoff Judson | SELL $7,145,314 | Form 4 filed 2026-06-02 · open market |
| · Numoto Takeshi | SELL $1,812,780 | Form 4 filed 2026-06-12 · open market |
| · Numoto Takeshi | SELL $1,031,125 | Form 4 filed 2026-06-10 · open market |
| · Coleman Amy | SELL $519,242 | Form 4 filed 2026-05-18 · open market |
| Insider ownership % | * | directors & officers as a group · DEF 14A filed 2025-10-21 |
| Institutional % | — | needs 13F aggregation — not read yet, never estimated |
| · 10b5-1 adopted | Amy E. Hood, Executive Vice President and Chief Financial Officer | June 10, 2026 · 48,700 shares shares · 10-K insider trading arrangements |
Not investment advice. DHI Signal publishes impersonal, rules-based research; no recommendation to buy or sell any security is made or implied. Every statement figure is transcribed from Microsoft's Form 10-K for FY2026 (accession 0001193125-26-323660), pulled from EDGAR XBRL. Derived measures are computed only from lines shown on this page and the arithmetic is displayed so it can be checked. MSFT is not in the tracked book. Market posture attaches only when the dashboard feed carries the name; this page computes none of it.