NASDAQ: MSFT · Systems Software
Microsoft
Microsoft, based in Redmond, Washington, sells software, cloud services, devices and games. In fiscal 2026 (year ended June 30, 2026) revenue rose 18% to $331,839 million across three segments: Productivity and Business Processes (Microsoft 365, LinkedIn, Dynamics; $139,996 million), Intelligent Cloud (Azure, server products; $137,791 million, up 30% with Azure and other cloud services up 41%) and More Personal Computing (Windows, Xbox, search advertising; $54,052 million). Microsoft Cloud revenue reached $214.4 billion and commercial remaining performance obligation grew 84% to $678 billion. Net income was $133,749 million, including $5.0 billion of net gains from its investments in OpenAI, its long-term strategic partner. Capital spending more than doubled in two years to $115,948 million as Microsoft builds AI datacenters. It acquired Activision Blizzard for $75.4 billion in 2023 and employs about 223,000 people.
Last updated
Analysis last edited: October 30, 2026 · Financial data fetched: October 30, 2026 12:59 (SEC EDGAR) · Source 10-K filed: July 29, 2026
Built on10-K FY2026 · filed 2026-07-2910-Q (quarter ended 2026-09-30) · filed 2026-10-28Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 14.6%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 46.8%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- +18.2 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- -0.2x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 1.37x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 5 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 28.9x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 1.10
Higher than 80% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 95% of 311 non-financial companies
Latest fiscal year (FY2026)
Higher than 85% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 19% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 39% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; trailing 12 months to 2026-09-30
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$554.35close on 2026-11-04
Market cap$4,117.16B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 28.9x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 9.3x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 21.5x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 1.6%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 0.7%
At FY2026 year-end: 20.8x
Earnings: trailing 12 months to 2026-09-30
At FY2026 year-end: 6.3x
Book value at FY2026 year-end
At FY2026 year-end: 14.7x
EBITDA for FY2026
At FY2026 year-end: 2.4%
Free cash flow for FY2026
Dividends per share for FY2026
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Sep 30, 2026.
- Revenue$77.67B → $92.28B (vs. a year earlier)↑ +18.8%$77.67B → $92.28B (vs. a year earlier)
- Operating margin48.9% → 49.8% (vs. a year earlier)↑ +0.9 pts48.9% → 49.8% (vs. a year earlier)
- Net income$27.75B → $36.63B (vs. a year earlier)↑ +32.0%$27.75B → $36.63B (vs. a year earlier)
- Diluted EPS$3.72 → $4.92 (vs. a year earlier)↑ +32.3%$3.72 → $4.92 (vs. a year earlier)
- Cash$20.94B → $20.28B (vs. previous quarter-end)↓ −3.1%$20.94B → $20.28B (vs. previous quarter-end)
- Long-term debt$40.29B → $35.48B (vs. previous quarter-end)↓ −11.9%$40.29B → $35.48B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Oct 28, 2026.
Key changes
Q1 revenue $92.3B, up 19%. Source sentence
Revenue was $92.3 billion and increased 19%
Operating income $45.9B, up 21%. Source sentence
Operating income was $45.9 billion and increased 21% (up 22% in constant currency)
Commercial RPO up 73% to $677B. Source sentence
Commercial remaining performance obligation increased 73% to $677 billion
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- MICROSOFT CORP
- Headquarters
- REDMOND, WA
- Incorporated in
- Washington
- Fiscal year end
- 06/30
- Exchange & ticker
- NASDAQ: MSFT
- Industry
- Systems Software
- CIK
- 789019
- Website
- https://www.microsoft.com/ ↗
Workforce (as of FY2026 year-end)
Employees
223,000
Source: Form 10-K (FY2026) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q2 FY2027
Quarter end: December 2026. In past years, Q2 results were released 28–30 days after quarter end (Jan 28, 2026; Jan 29, 2025; Jan 30, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around June 30.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 25–30 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q1 FY2027 | Sep 30, 2026 | Oct 28, 2026 (+28 days) | Oct 28, 2026 10-Q (+28 days) |
| Q4 FY2026 | Jun 30, 2026 | Jul 29, 2026 (+29 days) | Jul 29, 2026 10-K (+29 days) |
| Q3 FY2026 | Mar 31, 2026 | Apr 29, 2026 (+29 days) | Apr 29, 2026 10-Q (+29 days) |
| Q2 FY2026 | Dec 31, 2025 | Jan 28, 2026 (+28 days) | Jan 28, 2026 10-Q (+28 days) |
| Q1 FY2026 | Sep 30, 2025 | Oct 29, 2025 (+29 days) | Oct 29, 2025 10-Q (+29 days) |
| Q4 FY2025 | Jun 30, 2025 | Jul 30, 2025 (+30 days) | Jul 30, 2025 10-K (+30 days) |
| Q3 FY2025 | Mar 31, 2025 | Apr 30, 2025 (+30 days) | Apr 30, 2025 10-Q (+30 days) |
| Q2 FY2025 | Dec 31, 2024 | Jan 29, 2025 (+29 days) | Jan 29, 2025 10-Q (+29 days) |
| Q1 FY2025 | Sep 30, 2024 | Oct 30, 2024 (+30 days) | Oct 30, 2024 10-Q (+30 days) |
| Q4 FY2024 | Jun 30, 2024 | Jul 30, 2024 (+30 days) | Jul 30, 2024 10-K (+30 days) |
| Q3 FY2024 | Mar 31, 2024 | Apr 25, 2024 (+25 days) | Apr 25, 2024 10-Q (+25 days) |
| Q2 FY2024 | Dec 31, 2023 | Jan 30, 2024 (+30 days) | Jan 30, 2024 10-Q (+30 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Productivity and Business Processes
Microsoft 365 and Copilot
Commercial and consumer productivity subscriptions; M365 commercial cloud revenue +17%.
Productivity and Business Processes
LinkedIn and Dynamics
Professional network and business applications.
Intelligent Cloud
Azure
Cloud infrastructure and AI services; Azure and other cloud services revenue +41%.
More Personal Computing
Windows, Xbox and search
Windows OEM and devices, Xbox content and services (incl. Activision Blizzard), and search advertising.
From the Form 10-K, FY2026, year ended 2026-06-30.
U.S. and worldwide share of flagship products/services
Microsoft does not state market share percentages in its 10-K.
Reviewed: Form 10-K (FY2026, year ended 2026-06-30) · Form 10-Q (quarter ended 2026-09-30)
07
Recent strategic focusSite analysis
Recent developments.
Segment recast
Microsoft recast prior amounts in October 2026 to reflect new segment reporting.
Source: Form 8-K (2026-10-28) — Item 8.01 (segment recast)
OpenAI partnership
Net gains from OpenAI investments added $5.0B ($0.67 per share) to fiscal 2026 net income.
Source: Form 10-K (FY2026, year ended 2026-06-30)
AI infrastructure
Capital expenditures of $115.9B in fiscal 2026, primarily datacenters.
Source: Form 10-K (FY2026, year ended 2026-06-30)
Capex ÷ D&A (FY2026)
3.38x
Well above depreciation — expansion-stage investment
formulacapital expenditures ÷ depreciation & amortization
e.g.$115,948M ÷ $34,300M = 3.38x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
R&D-to-revenue ratio (FY2026)
10.7%
formularesearch & development expense ÷ revenue × 100
e.g.$35,562M ÷ $331,839M × 100 = 10.7%
Where the money goes, over time
Unit: $M. Capex went from $20.62B in FY2021 to $115.95B in FY2026
- Capex
- R&D
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-29
08
Key figures at a glanceFrom SEC data
FY2021–FY2026, 6 years.
Revenue (FY2026)
$331.84B
As reported in the 10-K
Revenue CAGR (5 years)
+14.6%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($331,839M ÷ $168,088M) ^ (1÷5) − 1 = 14.6%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2026)
46.8%▲favorable
+5.2pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$155,237M ÷ $331,839M × 100 = 46.8%
ROE (FY2026)
34.0%▲favorable
6-year average: 38.9%
As reported in the 10-K
P/B (FY2026 end)
6.26x
formulafiscal year-end closing price ÷ book value per share
e.g.$373.02 ÷ $59.56 = 6.26x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2026 end)
14.7x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($2,770,420M + $40,294M − $20,935M) ÷ ($155,237M + $34,300M) = 14.7x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +14.6% a year over 5 years (strong growth)
From $168.09B in FY2021 to $331.84B in FY2026. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▲
Operating margin improved: 41.6% → 46.8%
How much operating profit is left per $100 of revenue. It moved +5.2 points over 5 years — pricing power, cost control, and product mix all show up here.
- ▲
Equity ratio is 58.3% (a high level of financial stability)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 38.9% over 6 years (latest: 34.0%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
- OpenAI
- Activision Blizzard
07 · what it does
Key activities
- Productivity and Business Processes: Microsoft 365, LinkedIn, Dynamics
- Intelligent Cloud: Azure, server products, enterprise services
- More Personal Computing: Windows, devices, Xbox, search and news advertising
06 · what it draws on
Key resources
- About 223,000 employees (77,000 in R&D)
- Global datacenter network
- Strategic partnership with OpenAI
02 · why customers buy
Value propositions
- Cloud (Azure), productivity (Microsoft 365), business software, Windows, gaming and LinkedIn, mostly built in-house.
04 · how it keeps them
Customer relationships
- Cloud subscriptions and enterprise agreements.
03 · how it reaches them
Channels
- Direct sales, partners and resellers, OEMs, and online stores.
01 · who it serves
Customer segments
- Enterprises and governments
- Consumers and gamers
- OEMs and advertisers
09 · where money goes
Cost structure
FY2026, share of revenue ($331.84B)
- Cost of revenue32.1%
- Research & development10.7%
- Selling, general & administrative2.4%
- Other operating costs8.0%
Operating profit left: 46.8% of revenue. Depreciation & amortization (inside the costs above): $34.3B. Capital spending: $115.95B.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Productivity and Business Processes $139,996M (FY2026)
- Intelligent Cloud $137,791M
- More Personal Computing $54,052M
Value propositions, channels and customer relationships: Form 10-K (FY2026)
Sells cloud subscriptions (Azure, Microsoft 365, Dynamics), software licenses, LinkedIn, search advertising, Windows licenses to OEMs, and gaming content and hardware, investing heavily in datacenters and AI.
01 what it draws on
Inputs & resources
- About 223,000 employees (77,000 in R&D)
- Global datacenter network
- Strategic partnership with OpenAI
02 what it does
Activities
- Productivity and Business Processes: Microsoft 365, LinkedIn, Dynamics
- Intelligent Cloud: Azure, server products, enterprise services
- More Personal Computing: Windows, devices, Xbox, search and news advertising
03 who it serves
Customers
- Enterprises and governments
- Consumers and gamers
- OEMs and advertisers
04 how money comes in
How it earns
- Productivity and Business Processes $139,996M (FY2026)
- Intelligent Cloud $137,791M
- More Personal Computing $54,052M
How the business makes money
- Microsoft Cloud revenue $214.4B (+27%).
- Commercial remaining performance obligation $678B (+84%).
- U.S. revenue $170,794M; other countries $161,045M.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Microsoft earns substantial revenue from governments and is subject to trade rules.
Government as customer
Government contracts
Derives substantial revenue from government contracts.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2026)
Trade & export rules
Export controls and sanctions
Subject to trade controls and cooperates with law-enforcement investigations.
Constrains the businessTouches: CustomersSource: Form 10-K (FY2026)
Revenue by segment (FY2026)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Productivity and Business Processes
139,996 (42%)Intelligent Cloud
137,791 (42%)More Personal Computing
54,052 (16%)
Source: Form 10-K (FY2026, year ended 2026-06-30) Segment revenue for fiscal 2026 (year ended June 30, 2026); segments were recast in October 2026.
10
Where it earnsSite analysis
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2026)
United States — 51% of revenue
Revenue by country / region (FY2026)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
170,794 (51%)Other countries
161,045 (49%)
Source: Form 10-K (FY2026, year ended 2026-06-30) Revenue by geography; U.S. includes certain OEM and multinational billings.
11
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
12
Alliances & capital tiesSite analysisShow
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Capital tie / equity stake
OpenAI
Long-term strategic partnership and investment; FY2026 net gains from OpenAI investments raised net income by $5.0B.
Pending or recent acquisition
Activision Blizzard
Acquired October 13, 2023 for $75.4B.
13
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Enterprises, governments, consumers, OEMs and advertisers.
Named by the company
No customer concentration is disclosed.
Suppliers
Hardware, chip and datacenter suppliers.
Named by the company
No material supplier is named here.
14
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Microsoft describes competition by product area (hyperscalers, security vendors, console platforms, search engines, etc.) but does not name companies in the 10-K.
Competitors named in the 10-K
No competitor is named in the 10-K.
Peer group the company chose
Compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Peer group from the 2026 proxy statement.
- Adobesite ↗
- Alphabet (Google)site ↗
- Amazonsite ↗
- Applesite ↗
- Broadcomsite ↗
- Cisco Systemssite ↗
- IBMsite ↗
- Intelsite ↗
- Meta Platformssite ↗
- NVIDIAsite ↗
- Oraclesite ↗
- Qualcommsite ↗
- Salesforcesite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
15
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-29
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-29
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-29
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-29
| Line item | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ | FY202610-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 168,088 | 198,270 | 211,915 | 245,122 | 281,724 | 331,839 |
| Operating income | 69,916 | 83,383 | 88,523 | 109,433 | 128,528 | 155,237 |
| Pretax income | 71,102 | 83,716 | 89,311 | 107,787 | 123,627 | 165,934 |
| Net income (attributable) | 61,271 | 72,738 | 72,361 | 88,136 | 101,832 | 133,749 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 18.0% | 6.9% | 15.7% | 14.9% | 17.8% |
| Operating margincalcoperating income ÷ revenue × 100 | 41.6% | 42.1% | 41.8% | 44.6% | 45.6% | 46.8% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 36.5% | 36.7% | 34.1% | 36.0% | 36.1% | 40.3% |
| Balance sheet ($M) | ||||||
| Total assets | 333,779 | 364,840 | 411,976 | 512,163 | 619,003 | 758,376 |
| Total equity | 141,988 | 166,542 | 206,223 | 268,477 | 343,479 | 442,387 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 58,146 | 49,781 | 47,237 | 51,630 | 43,151 | 40,294 |
| Equity ratio | 42.5% | 45.6% | 50.1% | 52.4% | 55.5% | 58.3% |
| ROE | 43.2% | 47.2% | 38.8% | 37.1% | 33.3% | 34.0% |
| Cash flow ($M) | ||||||
| Operating CF | 76,740 | 89,035 | 87,582 | 118,548 | 136,162 | 182,935 |
| Investing CF | -27,577 | -30,311 | -22,680 | -96,970 | -72,599 | -139,500 |
| Financing CF | -48,486 | -58,876 | -43,935 | -37,757 | -51,699 | -52,546 |
| Free cash flowcalccash flow from operations − capital expenditures | 56,118 | 65,149 | 59,475 | 74,071 | 71,611 | 66,987 |
| Cash and equivalents | 14,224 | 13,931 | 34,704 | 18,315 | 30,242 | 20,935 |
| Per share & other | ||||||
| EPS ($) | 8.05 | 9.65 | 9.68 | 11.80 | 13.64 | 17.95 |
| BVPS ($) | 18.88 | 22.31 | 27.75 | 36.11 | 46.20 | 59.56 |
| Dividend per share ($) | 2.24 | 2.48 | 2.72 | 3.00 | 3.32 | 3.64 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 27.8% | 25.7% | 28.1% | 25.4% | 24.3% | 20.3% |
| P/E (x) | 33.7 | 26.6 | 35.2 | 37.9 | 36.5 | 20.8 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 26.3 | 20.3 | 25.6 | 26.9 | 24.7 | 14.7 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 14.35 | 11.51 | 12.27 | 12.38 | 10.77 | 6.26 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-09-30 | $92.28B+18.8% | $45.92B+21.0% | $36.63B+32.0% | $4.92 |
| 2026-06-30 † | $90.01B+17.7% | $40.6B+18.3% | $35.77B+31.3% | — |
| 2026-03-31 | $82.89B+18.3% | $38.4B+20.0% | $31.78B+23.1% | $4.27 |
| 2025-12-31 | $81.27B+16.7% | $38.28B+20.9% | $38.46B+59.5% | $5.16 |
| 2025-09-30 | $77.67B | $37.96B | $27.75B | $3.72 |
| 2025-06-30 † | $76.44B | $34.32B | $27.23B | — |
| 2025-03-31 | $70.07B | $32B | $25.82B | $3.46 |
| 2024-12-31 | $69.63B | $31.65B | $24.11B | $3.23 |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
16
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2026)
29.1%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$155,237M × (1 − 18.5%) ÷ $434,656M × 100 = 29.1%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
10.93%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $2,770.42B ÷ ($2,770.42B + $40.29B) = 98.6%
e.g.Debt weight: $40.29B ÷ ($2,770.42B + $40.29B) = 1.4%
e.g.WACC: 11.0% × 98.6% + 7.6% × (1 − 18.5%) × 1.4% = 10.93%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 9.0%–13.3% and ROIC − WACC runs +15.8 to +20.1 points. The sign holds across this range. This describes the latest year and does not predict future value creation.
WACC 10.93% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 1.10 (price-derived adjusted beta)
- Equity risk premium
- 5.5%
- Cost of equity
- 11.00%
- Cost of debt
- 7.57%
- Tax rate
- 18.5% (effective rate, FY2024–FY2026)
- Capital structure (equity : debt)
- 99% : 1%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 10.93%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 1.10 (price-derived adjusted beta. Raw β 1.15, R² 0.33, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 1.145 + 0.33 = 1.097
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 1.1 × 5.5% = 11.0%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
17
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
9.3%
Perpetual FCF growth: g = r − FCF ÷ EV = 10.9% − 1.6%
Past FCF growth (FY2021–FY2026)
+3.6%
Compound annual rate, 5 years
Past revenue growth (FY2021–FY2026)
+14.6%
Compound annual rate, 5 years
Inputs (FY2026): free cash flow $66.99B (operating CF − capex); enterprise value $4,080.61B = market cap $4,117.16B (latest close, 2026-11-04) + debt $40.29B − cash and short-term investments $76.84B; r = WACC of 10.9% using this page’s default assumptions (β 1.10, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$4,186.69B
FCF $66.99B ÷ (10.9% − 9.3%)
Theoretical ÷ actual enterprise value
1.03x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 8.9% | 9.9% | 10.9% | 11.9% | 12.9% |
|---|---|---|---|---|---|
| 0% | 0.18x | 0.17x | 0.15x | 0.14x | 0.13x |
| 2% | 0.24x | 0.21x | 0.18x | 0.17x | 0.15x |
| 4% | 0.34x | 0.28x | 0.24x | 0.21x | 0.18x |
| 6% | 0.57x | 0.42x | 0.34x | 0.28x | 0.24x |
| 8% | 1.82x | 0.86x | 0.57x | 0.42x | 0.34x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
18
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.29x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -7.1%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 94%
Most profit comes from core operations.
- ✓
Days sales outstanding: 83 → 83 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-29
Profit bridge (FY2026)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-07-29
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$182,935M ÷ $133,749M = 1.37x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$155,237M ÷ $165,934M × 100 = 94%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($69,905M + $80,876M) ÷ 2 ÷ $331,839M × 365 = 83 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
e.g.($938M + $1,397M) ÷ 2 ÷ $106,374M × 365 = 4 days
termsInventory · Cost of revenue (COGS)
19
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 74.1%
- Directors & officers (shares)
- <1%
- Everyone else (est.)
- 25.9%
- Directors & officers (voting power)
- <1%
- Institutional-ownership rank
- 361 of 416
- Beta (adjusted)
- 1.10
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 87% of covered companies have more
above 1 = swings more than the market
- 5,502.7M shares reported by 6,215 13F filers ÷ 7,425.5M shares outstanding on 2026-07-23. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-10-21 (beneficial ownership table) · Form 10-K cover page (shares outstanding as of 2026-07-23)
20
Strengths & weaknessesSite analysis
Strengths
1. Cloud scale
Microsoft Cloud revenue of $214.4B in fiscal 2026.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
2. Huge backlog
Commercial remaining performance obligation of $678B, up 84%.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
3. Profitability
Operating income of $155,237M on $331,839M of revenue (47%) in fiscal 2026.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
Weaknesses
1. Soaring capex
Capital expenditures rose from $44.5B (FY2024) to $115.9B (FY2026).
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
2. Consumer softness
More Personal Computing revenue fell 1% and Xbox content and services fell 5% in fiscal 2026.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
3. OpenAI-linked earnings volatility
Net income swung from a $3.6B OpenAI-related reduction in FY2025 to a $5.0B gain in FY2026.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
21
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2026)
20.8x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2026)
0.98%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2026)
20%
Dividends per share ÷ diluted EPS
FCF yield (FY2026)
2.4%
(Operating CF − capex) ÷ market cap
1. AI and cloud leadership
Azure and Microsoft 365 benefit from AI demand.
- What has to hold
- AI spending persists.
- The other side
- Heavy capex.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
2. Recurring revenue
Large subscription base and $678B RPO.
- What has to hold
- Customers keep renewing.
- The other side
- Competition.
Evidence: Form 10-K (FY2026, year ended 2026-06-30)
Fiscal years end June 30 (FY2026 = year ended June 30, 2026).
22
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2026)
Cash & short-term investments ÷ debt due within a year
8.3x
$76.84B vs. $9.23B
Interest coverage (operating income ÷ interest expense)
50.9x
$155.24B vs. $3.05B
Free cash flow ÷ dividends paid
2.5x
$66.99B vs. $26.45B (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | No decline in the record | — |
Covers only the 6 fiscal years on record (FY2021–FY2026), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Consistent growth
Revenue and operating income rose every fiscal year 2021–2026.
Source: Form 10-K (FY2026, year ended 2026-06-30)
23
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Microsoft’s main disclosed matters are an IRS transfer-pricing dispute and the LinkedIn GDPR appeal; legal accruals were $582M at September 30, 2026.
2 open matters (1 flagged as major)
IRS transfer-pricing NOPAs
PendingTax disputeMajorIRS
The IRS seeks $28.9B plus penalties and interest for tax years 2004–2013; Microsoft is contesting through IRS appeals.
- Amounts
- $28.9B plus penalties and interest
LinkedIn GDPR decision
On appealRegulatory proceedingIrish Data Protection Commission
The Irish DPC fined LinkedIn in October 2024 over targeted advertising; LinkedIn appealed in November 2024.
Source: Form 10-K (FY2026, year ended 2026-06-30) — Note on Contingencies
Company statement: Other proceedings are described as ordinary-course and not expected to be material.
Based on Form 10-K (FY2026, year ended 2026-06-30) — Note on Contingencies, reviewed 2026-10-30. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
24
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Competition & technology shift
AI competition
- Company disclosure (summarized from the 10-K)
- Competes with hyperscalers, open-source offerings and frontier model providers, some of them partners.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 2Law & regulation
Antitrust and privacy
- Company disclosure (summarized from the 10-K)
- Competition and data protection scrutiny worldwide, e.g. the IDPC GDPR decision against LinkedIn.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
- 3Law & regulation
Tax dispute
- Company disclosure (summarized from the 10-K)
- IRS NOPAs seek $28.9B plus penalties and interest for 2004–2013.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Med
- 4Demand & macro
AI capacity investment
- Company disclosure (summarized from the 10-K)
- Returns on very large datacenter spending depend on AI demand.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Med
- 5Information security
Cybersecurity
- Company disclosure (summarized from the 10-K)
- Attacks on Microsoft’s cloud and products.
- Company’s stated mitigation
- We operate a cybersecurity program and governance framework designed to protect our computing environments against cybersecurity threats, and we have controls, policies, and procedures to identify, manage, and mitigate cybersecurity threats.
- This site’s assessment
- Impact High / Likelihood Med
25
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (8)
Our cloud and AI strategy requires substantial investments and depends on evolving customer demand, technological developments, competitive dynamics, and regulatory conditions, any of which could adversely affect our business, financial condition, and results of operations. We have made and are continuing to make significant capital and operational investments to develop, train, deploy, and support AI models and related cloud-based services, including building and expanding datacenters, acquiring necessary components, and securing energy resources. These investments are being made at significant scale and on an accelerated timeline, require substantial and increasing capital expenditures and continued access to capital, and are in advance of fully developed revenue streams. The associated revenue may not be realized in the expected timeframes or at expected levels. Our capital and…
Demand for cloud-based and AI products and services is evolving and difficult to forecast. Read more
Overestimation of demand or misalignment of capacity investments may result in underutilization of infrastructure and may lead to impairment of assets on our balance sheet. Conversely, demand exceeding available capacity limits our ability to meet customer needs in a timely manner.
The cost structure for AI products and services is subject to significant uncertainty, including with respect to model training and inference costs, the availability and pricing of components, and energy costs. Read more
If these costs increase, remain elevated, or fail to decline, or if pricing for AI products and services declines as a result of competition, commoditization, or other market forces, our margins, financial condition, and results of operations could be adversely affected.
Our AI strategy also depends in part on strategic relationships with third parties that provide technologies, models, products, and services that enhance our offerings. Read more
These relationships may change over time, and many of these partners compete with us with respect to certain products and services. Changes in strategic priorities, contractual arrangements, our access to third-party technologies, or key commercial relationships could adversely affect the competitiveness of our AI products and services. In some cases, these parties are significant customers of Azure and other cloud services. The economic benefits we expect to derive from these relationships, including through commercial arrangements, technology access, and Azure consumption, may not be realized or sustained. As we manage infrastructure capacity constraints and evolving customer demand, we may modify capacity allocations,…
Our success depends on our ability to develop, deliver, and maintain competitive cloud-based and AI products and services that achieve broad customer adoption and sustainable revenue growth. Read more
Our ability to succeed depends on our ability to develop and deliver differentiated products and services that meet evolving customer needs, achieve broad adoption, maintain customer trust, and generate sustainable revenue and growth. The markets for cloud-based and AI products and services are highly dynamic, characterized by shifting customer expectations, increasing regulatory and governmental scrutiny, intense competition, and rapid technological change, such as the accelerating importance of agentic computing. Whether we succeed in cloud-based and AI products and services depends on our execution in several areas, including:
Our cloud-based and AI products and services may be misused by customers, users, or malicious actors for unintended, fraudulent, abusive, or unlawful purposes. Read more
Our efforts to detect, prevent, and mitigate such misuse may not be successful, which could result in reputational harm, regulatory scrutiny, service disruptions, or adverse impacts on our business, financial condition, and results of operations.
The availability, reliability, and cost of electrical power are critical to the operation and expansion of our datacenters. Read more
In many regions, electricity generation, transmission, and distribution infrastructure is experiencing increasing demand and capacity constraints. Limitations in power availability, delays in obtaining power connections, outages, shortages, increased energy costs, or requirements imposed by utilities, regulators, or other market participants could restrict our ability to develop or expand datacenter capacity. In addition, alternative energy sources and other emerging solutions may not be available in sufficient quantities, may not timely scale to meet our requirements, or may be available only at higher costs. If we are unable to secure adequate power resources on commercially reasonable terms, our ability to support customer demand and execute our growth strategy…
Our ability to develop additional capacity is also subject to land availability, zoning restrictions, environmental reviews, permitting requirements, and other regulatory approvals. Read more
Changes in governmental policies, permitting processes, environmental regulations, sustainability requirements, building standards, energy regulations, or other factors beyond our control may delay projects, restrict development opportunities, impose additional compliance obligations, or increase costs. We also face community opposition, state and local moratoriums, and hyper-local dissent, as well as increasingly coordinated opposition to infrastructure development across jurisdictions, including through the involvement or influence of elected officials, policymakers, and advocacy groups. Our failure to navigate successfully any of these challenges may delay projects, restrict development opportunities,…
No longer in the text (3)
Our focus on cloud-based and AI services presents execution and competitive risks. Read more
We are incurring significant costs to build and maintain infrastructure to support cloud-based and AI services, reducing operating margins. Whether we succeed in cloud-based and AI services depends on our execution in several areas, including:
Our AI systems offer users powerful tools and capabilities. However, there may be instances where these systems are used in ways that are unintended or inappropriate. Read more
In addition, some users may also engage in fraudulent or abusive activities through our cloud-based and AI services, such as unauthorized account access, payment fraud, or terms of service violations including cryptocurrency mining or launching cyberattacks. While we are committed to detecting and controlling such misuse of our cloud-based and AI services, our efforts may not be effective, and we may incur reputational damage or experience adverse impacts to our business and results of operations.
Changes in the law may continue to weaken our ability to prevent the use of patented technology. Read more
Our increasing engagement with open source software will also cause us to license our intellectual property rights broadly in certain situations. If we are unable to protect our intellectual property, our results of operations could be adversely affected.
4 more paragraphs differ; the filings below have the full text.
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Jul 29, 2026 ↗ with the 10-K filed Jul 30, 2025 ↗.
26
What to watch going forwardSite analysis
- Azure growth versus capex.
- Copilot monetization.
- IRS transfer-pricing dispute.
27
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: October 30, 2026 · Financial data fetched: October 30, 2026 12:59 (SEC EDGAR) · Source 10-K filed: July 29, 2026
Built on10-K FY2026 · filed 2026-07-29Proxy statement (2026)
Next update expectedAfter FY2027’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Microsoft’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.