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Microsoft (MSFT) financial statements: income, balance sheet and cash flow

Nasdaq: MSFT · Information technology · United States

Signed off by OffScriptBySami on  · Updated

Data as of  · For information only, not investment advice.

In brief

Microsoft (Nasdaq: MSFT) had revenue of USD 90.0 billion and net income of USD 35.8 billion in Q4 FY2026, the quarter ended 30 Jun 2026, derived from its Form 10-K for FY2026. For the year, capital expenditure was USD 116 billion, and free cash flow, our calculation, was USD 67.0 billion.

Data as of Source: Form 10-K for FY2026, filed

Key facts

Data as of

Microsoft (Nasdaq: MSFT) · USD · fiscal year ends 30 June · figures from SEC filings; derived values are marked.

Revenue, TTM (USD bn)
332
TTM to · Form 10-K
Revenue by quarter, from USD 65.6 bn in Q1 FY2025 to USD 90.0 bn in Q4 FY2026
Operating income, TTM (USD bn)
155
TTM to · Form 10-K
Net income, TTM (USD bn)
134
TTM to · Form 10-K
Free cash flow, TTM (USD bn)
67.0
TTM to · derived
Total assets (USD bn)
758
at · Form 10-K
Net cash (USD bn)
36.5
at · derived: cash and short-term investments minus total debt

What the numbers show

Microsoft's income statement for Q4 FY2026, the quarter ended 30 Jun 2026, shows revenue of USD 90.0 billion, up 17.7% on a year earlier, and operating income of USD 40.6 billion. That is an operating margin of 45.1%, our calculation, against 48.9% in Q1 FY2026 and 44.9% in Q4 FY2025. Net income was USD 35.8 billion. The 10-K reports only the full year, so the Q4 cells are derived and marked D.

For FY2026, the year ended 30 Jun 2026, revenue was USD 332 billion and net income USD 134 billion. Revenue grew 13.7% a year from FY2022, our calculation, and operating income 16.8% a year, while SG&A, which we combine from two filed lines, grew 5.7% a year. In Q2 FY2026 net income of USD 38.5 billion exceeded operating income of USD 38.3 billion. Pre-tax income was USD 48.2 billion, and these tables do not show what sits between the two.

On Microsoft's balance sheet, total assets were USD 758 billion at 30 Jun 2026, against USD 619 billion a year earlier. Property, plant and equipment, net, rose from USD 205 billion to USD 313 billion, more than any other asset line shown. Cash and short-term investments fell from USD 94.6 billion to USD 76.8 billion.

Total debt, our calculation, was USD 40.3 billion, down from USD 43.2 billion, so net cash was USD 36.5 billion against USD 51.4 billion, our calculation. Total liabilities rose from USD 276 billion to USD 316 billion while debt fell, so that rise sits in lines the tables do not itemise.

The cash flow statement links these lines. Cash from operations was USD 183 billion in FY2026, against USD 136 billion in FY2025, and capital expenditure was USD 116 billion, against USD 64.6 billion. Free cash flow, our calculation, was USD 67.0 billion, below the USD 71.6 billion of FY2025. Quarterly capital expenditure went from USD 19.4 billion in Q1 FY2026 to USD 35.8 billion in Q4. Free cash flow was USD 5.88 billion in Q2 and USD 19.6 billion in Q4.

Diluted EPS was USD 17.95 per share in FY2026, from USD 9.65 per share in FY2022, a compound annual growth rate of 16.8%, our calculation. The diluted share count went from 7,540 million shares to 7,453 million shares, and net income grew 16.4% a year, so the smaller count added little. Microsoft stock fundamentals sets capital expenditure against cash from operations over five years.

Income statement

Chart 1

Microsoft quarterly revenue, Q1 FY2025 to Q4 FY2026

USD bn · quarters ended to

Revenue by quarter, from USD 65.6 bn in Q1 FY2025 to USD 90.0 bn in Q4 FY2026.025507510090.0Q1FY25Q2Q3Q4Q1FY26Q2Q3Q4stockfactsheet.com
Source: Microsoft Forms 10-Q and 10-K, SEC EDGAR Data as of

Annual

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Table 1 Microsoft income statement, annual, FY2022–FY2026 (USD millions) USD millions, except per-share data (USD) and percentages · Fiscal year ends 30 June
USD mFY2026ended FY2025ended FY2024ended FY2023ended FY2022ended CAGRFY22–FY26
Revenue331,839281,724245,122211,915198,270increased 13.7%
Revenue YoY %increased 17.8%increased 14.9%increased 15.7%increased 6.9%increased 18.0%not available
Cost of revenue106,37487,83174,11465,86362,650increased 14.2%
Gross profit225,465193,893171,008146,052135,620increased 13.6%
Gross margin %67.9%68.8%69.8%68.9%68.4%not available
R&D35,56232,48829,51027,19524,512increased 9.7%
SG&A34,666 D32,877 D32,065 D30,334 D27,725 Dincreased 5.7%
Operating income155,237128,528109,43388,52383,383increased 16.8%
Operating margin %46.8%45.6%44.6%41.8%42.1%not available
Pre-tax income165,934123,627107,78789,31183,716increased 18.7%
Income tax32,18521,79519,65116,95010,978increased 30.9%
Net income133,749101,83288,13672,36172,738increased 16.4%
Net margin %40.3%36.1%36.0%34.1%36.7%not available
Per share
Diluted EPS (USD)17.9513.6411.809.689.65increased 16.8%
Diluted shares (m)7,4537,4657,4697,4727,540not available
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Source: Microsoft Forms 10-Q and 10-K, SEC EDGAR Data as of

  • D Combined from line items reported in the same filing (see Methodology).
  • Not available

CAGR: compound annual growth rate from FY2022 to FY2026, our calculation; n/m when the endpoints differ in sign or the base is zero or negative.

Totals may not add up because of rounding.

Arrows show direction of change only, not whether a change is good or bad.

Quarterly

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Table 2 Microsoft income statement, quarterly, Q1 FY2025–Q4 FY2026 (USD millions) USD millions, except per-share data (USD) and percentages · Fiscal year ends 30 June
USD mQ4 FY2026ended Q3 FY2026ended Q2 FY2026ended Q1 FY2026ended Q4 FY2025ended Q3 FY2025ended Q2 FY2025ended Q1 FY2025ended
Revenue90,007 D82,88681,27377,67376,441 D70,06669,63265,585
Revenue YoY %increased 17.7%increased 18.3%increased 16.7%increased 18.4%increased 18.1%increased 13.3%increased 12.3%increased 16.0%
Cost of revenue29,525 D26,82825,97824,04324,014 D21,91921,79920,099
Gross profit60,482 D56,05855,29553,63052,427 D48,14747,83345,486
Gross margin %67.2%67.6%68.0%69.0%68.6%68.7%68.7%69.4%
R&D9,997 D8,9158,5048,1468,829 D8,1987,9177,544
SG&A9,882 D8,745 D8,516 D7,523 D9,275 D7,949 D8,263 D7,390 D
Operating income40,603 D38,39838,27537,96134,323 D32,00031,65330,552
Operating margin %45.1%46.3%47.1%48.9%44.9%45.7%45.5%46.6%
Pre-tax income44,047 D39,34048,24634,30132,616 D31,37729,36530,269
Income tax8,281 D7,5629,7886,5545,383 D5,5535,2575,602
Net income35,766 D31,77838,45827,74727,233 D25,82424,10824,667
Net margin %39.7%38.3%47.3%35.7%35.6%36.9%34.6%37.6%
Per share
Diluted EPS (USD)not available4.275.163.72not available3.463.233.30
Diluted shares (m)not available7,4457,4607,466not available7,4617,4687,470
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Source: Microsoft Forms 10-Q and 10-K, SEC EDGAR Data as of

  • D Fourth quarter derived as the fiscal year minus the nine-month year-to-date total.
  • D Combined from line items reported in the same filing (see Methodology).
  • Not available

Totals may not add up because of rounding.

Arrows show direction of change only, not whether a change is good or bad.

Balance sheet

Annual

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Table 3 Microsoft assets, annual, FY2022–FY2026 (USD millions) USD millions
USD mFY2026at FY2025at FY2024at FY2023at FY2022at
Cash and short-term investments76,84394,56575,543111,262104,757
Receivables80,87669,90556,92448,68844,261
Inventory1,3979381,2462,5003,742
Total current assets207,710191,131159,734184,257169,684
PP&E (net)313,076204,966135,59195,64174,398
Goodwill and intangibles119,651 D119,509 D119,220 D67,886 D67,524 D
Total assets758,376619,003512,163411,976364,840
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Source: Microsoft Forms 10-Q and 10-K, SEC EDGAR Data as of

  • D Goodwill plus the intangible assets the filing reports under the standard intangible-asset tags or the components our mapping lists for the company, from the same filing. Intangible assets a company shows on separate balance sheet lines under other tags, such as licences, may not be included, so for some companies this line is goodwill alone; the lines included can change when the company changes its balance sheet.

Totals may not add up because of rounding.

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Table 4 Microsoft liabilities and shareholders' equity, annual, FY2022–FY2026 (USD millions) USD millions · net cash shown as a negative net debt
USD mFY2026at FY2025at FY2024at FY2023at FY2022at
Current liabilities168,825141,218125,286104,14995,082
Total debt40,294 D43,151 D51,630 D47,237 D49,781 D
Total liabilities315,989275,524243,686205,753198,298
Shareholders' equity442,387343,479268,477206,223166,542
Net debt / (net cash)−36,549 D−51,414 D−23,913 D−64,025 D−54,976 D
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Source: Microsoft Forms 10-Q and 10-K, SEC EDGAR Data as of

  • D Total debt = short-term debt + long-term debt, from the same filing.
  • D Net debt = total debt minus cash and short-term investments; a negative value is net cash.

Totals may not add up because of rounding.

Quarterly

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Table 5 Microsoft assets, quarterly, Q1 FY2025–Q4 FY2026 (USD millions) USD millions
USD mQ4 FY2026at Q3 FY2026at Q2 FY2026at Q1 FY2026at Q4 FY2025at Q3 FY2025at Q2 FY2025at Q1 FY2025at
Cash and short-term investments76,84378,27289,462102,01294,56579,61871,55578,428
Receivables80,87660,04156,53552,89469,90551,70048,18844,148
Inventory1,3971,2191,0591,1309388489091,626
Total current assets207,710175,329180,190189,066191,131156,644147,080149,926
PP&E (net)313,076283,228261,126230,861204,966183,939166,902152,863
Goodwill and intangibles119,651 D119,661 D119,622 D119,497 D119,509 D119,329 D119,191 D119,374 D
Total assets758,376694,228665,302636,351619,003562,624533,898523,013
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Source: Microsoft Forms 10-Q and 10-K, SEC EDGAR Data as of

  • D Goodwill plus the intangible assets the filing reports under the standard intangible-asset tags or the components our mapping lists for the company, from the same filing. Intangible assets a company shows on separate balance sheet lines under other tags, such as licences, may not be included, so for some companies this line is goodwill alone; the lines included can change when the company changes its balance sheet.

Totals may not add up because of rounding.

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Table 6 Microsoft liabilities and shareholders' equity, quarterly, Q1 FY2025–Q4 FY2026 (USD millions) USD millions · net cash shown as a negative net debt
USD mQ4 FY2026at Q3 FY2026at Q2 FY2026at Q1 FY2026at Q4 FY2025at Q3 FY2025at Q2 FY2025at Q1 FY2025at
Current liabilities168,825136,661130,005134,996141,218114,206108,882115,200
Total debt40,294 D40,262 D40,262 D43,208 D43,151 D42,881 D44,970 D45,117 D
Total liabilities315,989279,861274,427273,275275,524240,733231,203235,290
Shareholders' equity442,387414,367390,875363,076343,479321,891302,695287,723
Net debt / (net cash)−36,549 D−38,010 D−49,200 D−58,804 D−51,414 D−36,737 D−26,585 D−33,311 D
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Source: Microsoft Forms 10-Q and 10-K, SEC EDGAR Data as of

  • D Total debt = short-term debt + long-term debt, from the same filing.
  • D Net debt = total debt minus cash and short-term investments; a negative value is net cash.

Totals may not add up because of rounding.

Cash flow

Chart 2

Microsoft quarterly free cash flow, Q1 FY2025 to Q4 FY2026

USD bn · quarters ended to

Free cash flow by quarter, from USD 19.3 bn in Q1 FY2025 to USD 19.6 bn in Q4 FY2026.010203019.6Q1FY25Q2Q3Q4Q1FY26Q2Q3Q4stockfactsheet.com
Source: Microsoft Forms 10-Q and 10-K, SEC EDGAR Data as of

Annual

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Table 7 Microsoft cash flow, annual, FY2022–FY2026 (USD millions) USD millions · outflows shown with a minus sign
USD mFY2026ended FY2025ended FY2024ended FY2023ended FY2022ended
Cash from operations182,935136,162118,54887,58289,035
Capital expenditure−115,948−64,551−44,477−28,107−23,886
Free cash flow66,987 D71,611 D74,071 D59,475 D65,149 D
Dividends paid−26,445−24,082−21,771−19,800−18,135
Share buybacks−22,271−18,420−17,254−22,245−32,696
Cash from investing−139,500−72,599−96,970−22,680−30,311
Cash from financing−52,546−51,699−37,757−43,935−58,876
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Source: Microsoft Forms 10-Q and 10-K, SEC EDGAR Data as of

  • D Free cash flow = cash from operations minus capital expenditure.

Totals may not add up because of rounding.

Quarterly

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Table 8 Microsoft cash flow, quarterly, Q1 FY2025–Q4 FY2026 (USD millions) USD millions · outflows shown with a minus sign
USD mQ4 FY2026ended Q3 FY2026ended Q2 FY2026ended Q1 FY2026ended Q4 FY2025ended Q3 FY2025ended Q2 FY2025ended Q1 FY2025ended
Cash from operations55,441 D46,67935,75845,05742,647 D37,04422,29134,180
Capital expenditure−35,802 D−30,876−29,876−19,394−17,079 D−16,745−15,804−14,923
Free cash flow19,639 D15,803 D5,882 D25,663 D25,568 D20,299 D6,487 D19,257 D
Dividends paid−6,758 D−6,756−6,762−6,169−6,169 D−6,169−6,170−5,574
Share buybacks−4,579 D−4,627−7,415−5,650−4,546 D−4,781−4,986−4,107
Cash from investing−54,831 D−27,405−22,705−34,559−30,572 D−12,714−14,112−15,201
Cash from financing−11,779 D−11,351−17,617−11,799−10,844 D−13,036−11,243−16,576
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Source: Microsoft Forms 10-Q and 10-K, SEC EDGAR Data as of

  • D Fourth quarter derived as the fiscal year minus the nine-month year-to-date total.
  • D Free cash flow = cash from operations minus capital expenditure.

Totals may not add up because of rounding.

Per share and dividends

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Table 9 Microsoft per-share data and dividends, annual, FY2022–FY2026 USD per share, split-adjusted · shares in millions
USDFY2026ended FY2025ended FY2024ended FY2023ended FY2022ended
Basic EPS (USD)18.0013.7011.869.729.70
Diluted EPS (USD)17.9513.6411.809.689.65
Dividends declared per share (USD)3.643.323.002.722.48
Diluted shares (m)7,4537,4657,4697,4727,540
Shares outstanding at year end (m)7,4277,4347,4347,4327,464
FCF cover (×)2.5×3.0×3.4×3.0×3.6×
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Source: Microsoft Forms 10-Q and 10-K, SEC EDGAR Data as of

Notes on these figures

  • R Restated
    • None in the periods shown.
  • D Derived by StockFactsheet
    • Combined from line items reported in the same filing (see Methodology).
    • Fourth quarter derived as the fiscal year minus the nine-month year-to-date total.
    • Goodwill plus the intangible assets the filing reports under the standard intangible-asset tags or the components our mapping lists for the company, from the same filing. Intangible assets a company shows on separate balance sheet lines under other tags, such as licences, may not be included, so for some companies this line is goodwill alone; the lines included can change when the company changes its balance sheet.
    • Total debt = short-term debt + long-term debt, from the same filing.
    • Net debt = total debt minus cash and short-term investments; a negative value is net cash.
    • Free cash flow = cash from operations minus capital expenditure.
  • Template: standard statement set (not bank or insurer).
  • Arrows show direction of change only, not whether a change is good or bad.

How we got these numbers

Every figure comes from Microsoft's Forms 10-Q and 10-K as filed with the SEC. Derived values are marked D and explained below.

Full method for this page
Source documents
Forms 10-Q (Q1 FY2025 to Q4 FY2026) and 10-K (FY2022 to FY2026)
Period covered
8 quarters and 5 fiscal years
Calculations
TTM = sum of the last 4 quarters. Q4 = fiscal year minus the nine-month YTD. Margins = line item ÷ revenue. FCF = cash from operations − capital expenditure. CAGR = compound annual growth across the annual table.
Restatements
None in the periods shown.
Comparator
None: this page shows the company's own figures only.
Currency
As reported (USD); no FX conversion.
Read the full methodology

CSV downloads

One file per statement, with the annual and quarterly figures on this page in full units.

Sources and data

Data as of Figures are as reported in the filings below. Derived figures are our calculations (see Methodology).

(opens in new tab)
  1. [1] Filing Form 10-K, fiscal year ended 30 Jun 2026 Microsoft Corporation · · sec.gov
  2. [2] Filing Form 10-Q, quarter ended 31 Mar 2026 Microsoft Corporation · · sec.gov
  3. [3] Filing Form 10-Q, quarter ended 31 Dec 2025 Microsoft Corporation · · sec.gov
  4. [4] Filing Form 10-Q, quarter ended 30 Sep 2025 Microsoft Corporation · · sec.gov
  5. [5] Filing Form 10-K, fiscal year ended 30 Jun 2025 Microsoft Corporation · · sec.gov
  6. [6] Filing Form 10-Q, quarter ended 31 Mar 2025 Microsoft Corporation · · sec.gov
  7. [7] Filing Form 10-Q, quarter ended 31 Dec 2024 Microsoft Corporation · · sec.gov
  8. [8] Filing Form 10-Q, quarter ended 30 Sep 2024 Microsoft Corporation · · sec.gov
  9. [9] Filing Form 10-K, fiscal year ended 30 Jun 2024 Microsoft Corporation · · sec.gov
  10. [10] Filing Form 10-K, fiscal year ended 30 Jun 2023 Microsoft Corporation · · sec.gov
  11. [11] Filing Form 10-K, fiscal year ended 30 Jun 2022 Microsoft Corporation · · sec.gov
  12. [12] Filing Form 10-Q, quarter ended 31 Mar 2024 Microsoft Corporation · · sec.gov
  13. [13] Filing Form 10-Q, quarter ended 31 Dec 2023 Microsoft Corporation · · sec.gov
  14. [14] Filing Form 10-Q, quarter ended 30 Sep 2023 Microsoft Corporation · · sec.gov
  15. [15] Filing Form 10-K, fiscal year ended 30 Jun 2021 Microsoft Corporation · · sec.gov
  16. [16] Our dataset StockFactsheet fundamentals dataset, extracted from SEC EDGAR XBRL on ; derived values (Q4, TTM, free cash flow, net debt, margins, growth rates and ratios) are explained in Methodology.

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StockFactsheet (2026). "Microsoft (MSFT) financial statements: income, balance sheet and cash flow." Signed off by OffScriptBySami. Updated ; data as of . https://stockfactsheet.com/stocks/msft/financials/

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