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How to read a 10-Q
The quarterly report in two parts: condensed statements, management's discussion and the items in Part II worth a look.
The short answer
A 10-Q is the quarterly report a US public company files for each of the first three quarters of its fiscal year. It has condensed financial statements for the quarter and the year to date, reviewed but not audited, plus management's discussion and any changes to the risks. Microsoft's latest 10-Q covers the quarter ended Sep 30, 2026 and reports revenue of $92.3B, against $77.7B a year earlier.
Two parts instead of four
The Form 10-Q instructions split the report in two.
| Part I: financial information | Part II: other information |
|---|---|
| Item 1. Financial statements and notes, condensed | Item 1. Legal proceedings |
| Item 2. MD&A for the quarter and year to date | Item 1A. Changes to the risk factors since the 10-K |
| Item 3. Market risk | Item 2. Share sales and buybacks in the quarter |
| Item 4. Controls and procedures | Item 5. Other information, including insiders' trading plans; Item 6. Exhibits |
Items that don't apply can be left out, which is why a 10-Q's Part II often jumps from Item 2 to Item 5.
Reading the columns
A 10-Q income statement usually shows the latest quarter next to the same quarter a year earlier, and for the second and third quarters a year-to-date column pair as well. The balance sheet compares the quarter-end date with the last fiscal year end, not with a year earlier.
Microsoft's fiscal year ends in June, so its quarter ended Sep 30, 2026 is the first quarter of fiscal 2027. Its 10-Q reports revenue of $92.3B for the three months, up 18.8% from $77.7B in the same quarter a year before. Because it's the first quarter, the quarter and the year to date are the same three months. Fiscal years and quarters explains the labels.
Source: Microsoft 10-Q for the quarter ended Sep 30, 2026, filed Oct 28, 2026
Reviewed, not audited
The statements carry the word "unaudited". The auditor performs a review, which is mostly questions and analysis, and is much narrower than the audit behind the 10-K. Some companies include the auditor's review report in the 10-Q; Microsoft's does, and it opens with "We have reviewed".
Two things in Part II worth a look
Item 2 has the monthly table of shares the company bought back, the average price paid and how much of the buyback program is left. Share buybacks covers what that does to the share count.
Item 5 has to say whether any director or officer adopted or ended a trading plan in the quarter. Microsoft's latest 10-Q says none did. 10b5-1 trading plans explains what those plans are.
Why there's no fourth-quarter 10-Q
The 10-K covers the full year, so the fourth quarter has no report of its own. Companies give fourth-quarter figures in their earnings release, and some include them in the 10-K. Otherwise the quarter can be worked out as the full year minus the first nine months.
Common questions
What is the difference between a 10-Q and a 10-K?
A 10-Q covers one quarter, has condensed statements that are reviewed but not audited, and only updates the risk factors. A 10-K covers the full year with audited statements and a complete description of the business.
How many 10-Qs does a company file each year?
Three, one for each of the first three quarters of its fiscal year. The fourth quarter is covered by the 10-K.
What does year to date mean in a 10-Q?
From the first day of the fiscal year to the end of the quarter. A second-quarter 10-Q shows six months year to date, a third-quarter 10-Q nine months.
Why does a 10-Q balance sheet compare with the fiscal year end?
Because the rules ask for the latest quarter-end balance sheet next to the one from the end of the last fiscal year. Comparing with the same date a year earlier needs the previous year's 10-Q.
Does a 10-Q include risk factors?
Only changes to them. Part II, Item 1A lists material changes since the 10-K, and many companies repeat the full section anyway. Microsoft's revenue in its latest 10-Q was $92.3B for the quarter. Source: Microsoft 10-Q.
Disclosures
- Editor holdings
- The editor holds no position in any company named on this page. As of Nov 11, 2026.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- Each company's own SEC filings, linked next to each number.
- Last updated
- Nov 9, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.
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