Company file · MSFT
Microsoft
Nearly two-thirds of Microsoft's revenue is now Microsoft Cloud
What Microsoft calls Microsoft Cloud brought in $214.4B in FY2026, 65% of revenue, up from 56% in FY2024. Server products and cloud services, the line that includes Azure, grew 31.5% to $129.4B.
Key facts
In fiscal 2026, which ended Jun 30, 2026, Microsoft (Nasdaq: MSFT) took in $331.8B of revenue (up 17.8% on fiscal 2025); net income was $133.7B (up 31.3%). The most recent quarter, ended Mar 31, 2026, brought revenue of $82.9B, up 18.3% year over year, with net income of $31.8B. Productivity and Business Processes was the biggest single line by segment: 42% of fiscal 2026 revenue. Sources: 10-K for fiscal 2026 (filed Jul 29, 2026) and 10-Q for the quarter ended Mar 31, 2026 (filed Apr 29, 2026).
Source: 10-K FY2026, filed Jul 29, 2026
Source: 10-Q filed Oct 29, 2025 · 10-Q filed Jan 28, 2026 · 10-Q filed Apr 29, 2026
How it makes money
By segment, FY2026
- LineAmountSharevs FY2025
- Productivity and Business Processes$140.0B42%+15.9%
- Intelligent Cloud$137.8B42%+29.7%
- More Personal Computing$54.1B16%−1.1%
Source: 10-K FY2026, XBRL breakdown
Productivity and Business Processes (42%) and Intelligent Cloud (42%) brought in most of FY2026 revenue; More Personal Computing was 16%. Microsoft Cloud, a grouping that cuts across the segments, was $214.4B, or 65% of revenue.
Source: 10-K FY2026
By product line, FY2026
Share is of the FY2026 total; the last column is the change from FY2025.
What changed last quarter
Source: 10-Q, quarter ended Mar 31, 2026, filed Apr 29, 2026
The bull case and the bear case
The bull case
- Server products and cloud services, the line that includes Azure, grew 31.5% in FY2026 to $129.4B. 10-K, FY2026
- Net income rose 31.3% in FY2026 to $133.7B, on revenue up 17.8%. 10-K, FY2026
- Operating cash flow rose 34.4% in FY2026 to $182.9B. 10-K, FY2026
- Revenue in the quarter ended Mar 31, 2026 was $82.9B, up 18.3% on a year earlier. 10-Q, quarter ended Mar 31, 2026
The bear case
- Gaming revenue fell 7.1% in FY2026, and Windows and Devices dipped 1.3%. 10-K, FY2026
- More Personal Computing revenue fell 1.3% in the quarter ended Mar 31, 2026, while the other two segments grew 16.9% and 29.6%. 10-Q, quarter ended Mar 31, 2026
- The 10-K warns that its large investments in AI and cloud infrastructure may not pay off as expected and could lower operating margins. 10-K, Item 1A
- It also lists competition-law cases, other regulation and cybersecurity breaches among its risk factors. 10-K, Item 1A
What optimists and skeptics tend to point to, each tied to a filing. Ticker Sage doesn't pick a side, and neither list is a reason to buy or sell.
What the company does
Microsoft sells software, cloud computing and devices to businesses and consumers, including Azure, Microsoft 365, Windows, LinkedIn, Dynamics, Xbox and Bing.
Microsoft reports three segments. Productivity and Business Processes is mainly Microsoft 365 (Office, Teams and related cloud services) for businesses and consumers, plus LinkedIn and Dynamics business software. Intelligent Cloud is mainly Azure and other cloud services, server software such as SQL Server and Windows Server, and enterprise support. More Personal Computing covers Windows, devices such as Surface, gaming (Xbox) and search and news advertising (Bing).
Its fiscal year ends on June 30, so FY2026 means the twelve months to Jun 30, 2026.
Source: 10-K, Item 1 Business
Main risks the company lists
Our plain-English paraphrase of the risk factors in Microsoft's latest 10-K. Read the original for the full list.
- CompetitionIt competes in every business with large and small rivals, including free and open-source products, and shifts such as AI could change which platforms customers choose.
- Cloud and AI spendingIt is investing heavily in data centers, AI and new products, which may not earn the returns it expects and can lower operating margins.
- Security and dataCyberattacks on its systems or products, or misuse of customer data, could harm customers, its reputation and results.
- AIBuilding and offering AI brings legal, ethical, reputational and technical issues of its own.
- Capacity and outagesIts online services depend on data centers, power, network capacity and components that can be scarce or disrupted.
- Law and regulationCompetition law, privacy and data rules and other regulation around the world could limit how it designs, sells and prices products.
- Lawsuits, taxes and IPLitigation, changes in tax law and intellectual-property disputes could bring fines, damages or higher costs.
- Economy and world eventsWeak economies, currency moves, catastrophes and geopolitical tension could cut demand or disrupt operations.
Source: 10-K, Item 1A Risk Factors (the full list, in the company's words)
Three years of key numbers
Every number links to its filing; hover for the XBRL tag. A dash means the number isn't cleanly available, and we don't estimate it.
| US$ | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue | $245.1B | $281.7B | $331.8B |
| Net income | $88.1B | $101.8B | $133.7B |
| Operating cash flow | $118.5B | $136.2B | $182.9B |
| Cash & equivalents (year end) | $18.3B | $30.2B | $20.9B |
| Total debt (year end) | $51.6B | $43.2B | $40.3B |
| Diluted shares | 7.47B | 7.46B | 7.45B |
- Revenue: Total revenue from products and services.
- Net income: Profit after all costs and taxes.
- Operating cash flow: Cash the business brought in from its day-to-day operations during the year (cash flow statement).
- Cash & equivalents: Cash and short-term investments that count as cash equivalents on the balance sheet. Excludes longer-dated marketable securities.
- Total debt: Commercial paper plus the current and non-current portions of long-term debt, at carrying value.
- Diluted shares: Weighted average shares outstanding for the year, including the effect of options and stock awards.
About these numbers
- Microsoft Cloud is Microsoft's own measure: Azure and other cloud services, Microsoft 365 commercial cloud, Dynamics 365, the commercial part of LinkedIn and other commercial cloud services. It overlaps all three segments, so it is shown on its own rather than as a slice of the segment chart.
- Microsoft's latest annual report (FY2026, to Jun 30, 2026) is newer than its latest 10-Q, which covers the quarter ended Mar 31, 2026. Microsoft doesn't file a 10-Q for its fourth fiscal quarter, so “What changed last quarter” uses the Mar 31, 2026 quarter. We don't back out a fourth-quarter figure.
Recent filings
Latest filings
- Oct 156:05 PM ET
Form 4
Microsoft Chief Human Resources Officer Amy Coleman reports about 32 shares withheld for taxes
The filing reports about 32 shares withheld to pay the exercise price or tax (code F).
- Oct 146:08 PM ET
Form 4
Microsoft CFO Amy Hood reports selling 7,305 shares under a 10b5-1 plan
The filing reports 7,305 shares in an open-market or private sale (code S) at weighted-average prices from $544.80 to $546.51, about $4.0 million in total.
Common questions about Microsoft
How does Microsoft make money?
In fiscal 2026, revenue totaled $331.8B. Productivity and Business Processes (42%) and Intelligent Cloud (42%) brought in most of FY2026 revenue; More Personal Computing was 16%. Microsoft Cloud, a grouping that cuts across the segments, was $214.4B, or 65% of revenue. Source: 10-K for fiscal 2026, filed Jul 29, 2026.
What was Microsoft's revenue in fiscal 2026?
Revenue came to $331.8B in the year ended Jun 30, 2026. Going back two years, it was $245.1B in fiscal 2024 and $281.7B in fiscal 2025, so the latest year was up 17.8%. Source: 10-K for fiscal 2026, filed Jul 29, 2026.
Is Microsoft profitable?
Yes, by US accounting rules (GAAP): net income was $133.7B in fiscal 2026, up 31.3% from $101.8B a year earlier. For the quarter ended Mar 31, 2026, net income was $31.8B. The page's About these numbers section explains what is included. Source: 10-K for fiscal 2026, filed Jul 29, 2026.
What did Microsoft report in its latest quarterly filing?
The 10-Q for the quarter ended Mar 31, 2026 shows revenue of $82.9B, against $70.1B in the same quarter a year before (up 18.3%), and net income of $31.8B, against $25.8B (up 23.1%). Source: 10-Q for the quarter ended Mar 31, 2026, filed Apr 29, 2026.
How much cash and debt does Microsoft have?
On Jun 30, 2026, cash and cash equivalents stood at $20.9B and total debt at $40.3B. Total debt here is commercial paper plus the current and non-current portions of long-term debt, at carrying value. Source: 10-K filed Jul 29, 2026.
What are the main risks Microsoft lists?
Item 1A of the fiscal 2026 10-K (filed Jul 29, 2026) sets out the risks. Grouped, they fall into 8 areas: Competition; cloud and AI spending; security and data; AI; capacity and outages; law and regulation; lawsuits, taxes and IP; economy and world events. To start with the first: It competes in every business with large and small rivals, including free and open-source products, and shifts such as AI could change which platforms customers choose. Source: 10-K, Item 1A Risk Factors.
Where do these Microsoft numbers come from?
Two filings Microsoft made with the SEC: its fiscal 2026 10-K, filed Jul 29, 2026, and its 10-Q for the quarter ended Mar 31, 2026, filed Apr 29, 2026. The figures are taken from the XBRL data the SEC publishes, and every one links back to its source. Methodology explains how fiscal years and missing numbers are handled.
Disclosures
- Editor holdings in MSFT
- The editor holds no position in Microsoft (MSFT). As of Oct 25, 2026.
- Trading rule
- The editor does not buy or sell MSFT from 3 days before to 3 days after this page is published or substantively updated.
- Compensation
- Nobody paid for this page. No affiliate links on this page.
- Sources
- The company's SEC filings, linked next to each number.
- Last updated
- Oct 25, 2026
General education, the same for every reader. Not a recommendation to buy, sell or hold MSFT, and it doesn't consider your situation.
Compare with peers
| Company | Fiscal year | Revenue | Revenue growth | Net income |
|---|---|---|---|---|
| MicrosoftMSFT | FY2026 | $331.8B | +17.8% | $133.7B |
| AppleAAPL | FY2025 | $416.2B | +6.4% | $112.0B |
| AlphabetGOOGL | FY2025 | $402.8B | +15.1% | $132.2B |
| AmazonAMZN | FY2025 | $716.9B | +12.4% | $77.7B |
Each row is that company’s latest fiscal year from its own 10-K, using its own revenue and net income lines. Fiscal years end in different months, and line definitions differ (banks, insurers and oil companies count revenue differently), so this is a rough side-by-side, not a like-for-like comparison.
More company files
- NVDA Nvidia
- META Meta
- BRK.B Berkshire Hathaway
- AVGO Broadcom
- TSLA Tesla
- JPM JPMorgan Chase
- LLY Eli Lilly
- MU Micron
- WMT Walmart
- AMD AMD
- V Visa
- XOM ExxonMobil
- JNJ Johnson & Johnson
- MA Mastercard
- ABBV AbbVie
- PLTR Palantir
- INTC Intel
- CVX Chevron
- COST Costco
- CSCO Cisco
- KO Coca-Cola
New to filings? Learn lists the first explainer topics. Methodology & Disclosures covers where every number comes from.