Business Description

Microsoft Corporation is a multinational technology company that develops, licenses, and supports software, services, devices, and solutions. The company is best known for its Windows operating systems, the Microsoft 365 productivity suite, and the Azure cloud computing platform.

Financial Statements

In thousands, USD
FY 2026FY 2025FY 2024FY 2023FY 2022
Total Revenues331,839,000281,724,000245,122,000211,915,000198,270,000
Cost of Sales106,374,00087,831,00074,114,00065,863,00062,650,000
Gross Profit225,465,000193,893,000171,008,000146,052,000135,620,000
Selling, General & Administrative Expenses34,666,00032,877,00032,065,00030,334,00027,725,000
Research & Development Expenses35,562,00032,488,00029,510,00027,195,00024,512,000
Operating Profit155,237,000128,528,000109,433,00088,523,00083,383,000
Non-Operating Income10,697,000(4,901,000)(1,646,000)788,000333,000
Total Non-Operating Income10,697,000(4,901,000)(1,646,000)788,000333,000
Income Before Provision for Income Taxes165,934,000123,627,000107,787,00089,311,00083,716,000
Provision for Income Taxes32,185,00021,795,00019,651,00016,950,00010,978,000
Consolidated Net Income133,749,000101,832,00088,136,00072,361,00072,738,000
Net Income Attributable to Common Shareholders133,749,000101,832,00088,136,00072,361,00072,738,000
Basic EPS18.0013.7011.869.729.70
Diluted EPS17.9513.6411.809.689.65
Basic Weighted Average Shares Outstanding7,429,0007,433,0007,431,0007,446,0007,496,000
Diluted Weighted Average Shares Outstanding7,453,0007,465,0007,469,0007,472,0007,540,000
Shares Outstanding7,427,0007,434,0007,434,0007,432,0007,464,000
FY 2026FY 2025FY 2024FY 2023FY 2022
Cash and Cash Equivalents20,935,00030,242,00018,315,00034,704,00013,931,000
Short-Term Investments55,908,00064,323,00057,228,00076,558,00090,826,000
Total Cash and Cash Equivalents76,843,00094,565,00075,543,000111,262,000104,757,000
Accounts Receivable80,876,00069,905,00056,924,00048,688,00044,261,000
Total Trade Receivables80,876,00069,905,00056,924,00048,688,00044,261,000
Inventories1,397,000938,0001,246,0002,500,0003,742,000
Other Current Assets48,594,00025,723,00026,021,00021,807,00016,924,000
Total Current Assets207,710,000191,131,000159,734,000184,257,000169,684,000
Net Property, Plant & Equipment337,253,000229,789,000154,552,000109,987,00087,546,000
Net Intangible Assets18,609,00022,604,00027,597,0009,366,00011,298,000
Goodwill119,651,000119,509,000119,220,00067,886,00067,524,000
Long-Term Investments36,348,00015,405,00014,600,0009,879,0006,891,000
Other Long-Term Assets38,805,00040,565,00036,460,00030,601,00021,897,000
Total Assets758,376,000619,003,000512,163,000411,976,000364,840,000
Accounts Payable42,416,00027,724,00021,996,00018,095,00019,000,000
Accrued Expenses14,945,00013,709,00012,564,00011,009,00010,661,000
Short-Term Debt9,227,0002,999,0008,942,0005,247,0002,749,000
Unearned Revenue72,965,00064,555,00057,582,00050,901,00045,538,000
Other Current Liabilities29,272,00032,231,00024,202,00018,897,00017,134,000
Total Current Liabilities168,825,000141,218,000125,286,000104,149,00095,082,000
Long-Term Debt31,067,00040,152,00042,688,00041,990,00047,032,000
Leases16,532,00017,437,00015,497,00012,728,00011,489,000
Other Long-Term Liabilities99,565,00076,717,00060,215,00046,886,00044,695,000
Total Long-Term Liabilities147,164,000134,306,000118,400,000101,604,000103,216,000
Total Liabilities315,989,000275,524,000243,686,000205,753,000198,298,000
Common Stock117,406,000109,095,000100,923,00093,718,00086,939,000
Accumulated Other Comprehensive Income(3,284,000)(3,347,000)(5,590,000)(6,343,000)(4,678,000)
Retained Earnings328,265,000237,731,000173,144,000118,848,00084,281,000
Total Common Shareholders' Equity442,387,000343,479,000268,477,000206,223,000166,542,000
Total Shareholders' Equity442,387,000343,479,000268,477,000206,223,000166,542,000
Total Liabilities and Shareholders' Equity758,376,000619,003,000512,163,000411,976,000364,840,000
FY 2026FY 2025FY 2024FY 2023FY 2022
Net Income133,749,000101,832,00088,136,00072,361,00072,738,000
Depreciation & Amortization38,534,00029,433,00020,958,00013,861,00014,460,000
Share-Based Compensation Expense12,405,00011,974,00010,734,0009,611,0007,502,000
Other Adjustments3,142,000(1,727,000)(3,104,000)(5,863,000)(6,111,000)
Changes in Trade Receivables(12,737,000)(10,581,000)(7,191,000)(4,087,000)(6,834,000)
Changes in Inventories(461,000)309,0001,284,0001,242,000(1,123,000)
Changes in Accounts Payable5,268,000569,0003,545,000(2,721,000)2,943,000
Changes in Income Taxes Payable(1,875,000)(38,000)1,687,000(358,000)696,000
Changes in Unearned Revenue9,361,0005,438,0005,348,0005,535,0005,109,000
Changes in Other Operating Activities(4,451,000)(1,047,000)(2,849,000)(1,999,000)(345,000)
Cash from Operating Activities182,935,000136,162,000118,548,00087,582,00089,035,000
Capital Expenditure(115,948,000)(64,551,000)(44,477,000)(28,107,000)(23,886,000)
Purchases of Investments(58,351,000)(29,775,000)(17,732,000)(37,651,000)(26,456,000)
Proceeds from Sale of Investments56,403,00025,388,00035,669,00047,864,00044,894,000
Payments for Business Acquisitions(1,743,000)(5,978,000)(69,132,000)(1,670,000)(22,038,000)
Other Investing Activities(19,861,000)2,317,000(1,298,000)(3,116,000)(2,825,000)
Cash from Investing Activities(139,500,000)(72,599,000)(96,970,000)(22,680,000)(30,311,000)
Issuance of Short-Term Debt0(5,746,000)5,250,00000
Net Issuance / (Repayments) of Short-Term Debt0(5,746,000)5,250,00000
Issuance of Long-Term Debt0024,395,00000
Repayments of Long-Term Debt(3,000,000)(3,216,000)(29,070,000)(2,750,000)(9,023,000)
Net Issuance / (Repayments) of Long-Term Debt(3,000,000)(3,216,000)(4,675,000)(2,750,000)(9,023,000)
Issuance of Common Shares2,009,0002,056,0002,002,0001,866,0001,841,000
Repurchases of Common Shares(22,271,000)(18,420,000)(17,254,000)(22,245,000)(32,696,000)
Net Issuance / (Repurchases) of Common Shares(20,262,000)(16,364,000)(15,252,000)(20,379,000)(30,855,000)
Common Share Dividends Paid(26,445,000)(24,082,000)(21,771,000)(19,800,000)(18,135,000)
Other Financing Activities(2,839,000)(2,291,000)(1,309,000)(1,006,000)(863,000)
Cash from Financing Activities(52,546,000)(51,699,000)(37,757,000)(43,935,000)(58,876,000)
Effect of Exchange Rate Changes on Cash and Cash Equivalents(196,000)63,000(210,000)(194,000)(141,000)
Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash(9,307,000)11,927,000(16,389,000)20,773,000(293,000)

Key Metrics & Ratios

MetricValue
Market Cap$3697.75B
P/E36.47x
P/S13.13x
EV/EBITDA22.52x
Return on Equity33.3%
Return on Invested Capital26.7%
Current Ratio1.35x
Dividend Yield0.7%
Free Cash Flow Margin25.4%

Margins

Gross margin
67.9%
Operating margin
46.8%
Net margin
40.3%

Quarterly Trend

QuarterRevenueYoY growthOperating marginOperating income
Q3 2026 $82.89B +18.3% 46.3% $38.40B
Q2 2026 $81.27B +16.7% 47.1% $38.27B
Q1 2026 $77.67B +18.4% 48.9% $37.96B
Q4 2025 $76.44B +18.1% 44.9% $34.32B
Q3 2025 $70.07B — 45.7% $32.00B
Q2 2025 $69.63B — 45.5% $31.65B
Q1 2025 $65.58B — 46.6% $30.55B
Q4 2024 $64.73B — 43.1% $27.93B

More on Microsoft Corporation

Figures compiled from public company filings.

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