Microsoft

Information Technology Systems Software Redmond, Washington Last filing Jul 29, 2026 · FY2026

                    Revenue
                    FY2026
                
$331.8B
                    3y CAGR +16.1%
                    
                    P80
                    
                    +17.8%
                    
                    Net income
                    FY2026
                
$133.7B
                    Net margin +40.3%
                    
                    P87
                    
                    +31.3%
                    
                    Total assets
                    FY2026
                
$758.4B
                    ROA +17.6%
                    
                    P73
                    
                    +22.5%
                    
                    Operating cash flow
                    FY2026
                
$182.9B
                    FCF margin +20.2%
                    
                    P33
                    
                    +34.4%

19 yrs · FY2008–FY2026 9 filed · 0 derived · 0 blank

1Y 3Y 5Y 10Y

Dollars % of revenue % of assets YoY % CAGR

Each cell as a share of that year’s total assets.

Balance Sheet

Assets, liabilities, and equity

30 accounts · 5 years

Total assets $758.4B

Total liabilities $316.0B

Shareholders equity $442.4B

Account	2026	2025	2024	2023	2022
Assets
Cash and Cash Equivalents	2.8%	4.9%	3.6%	8.4%	3.8%
Short Term Investments	7.4%	10.4%	11.2%	18.6%	24.9%
Accounts Receivable	10.7%	11.3%	11.1%	11.8%	12.1%
Inventory	0.2%	0.2%	0.2%	0.6%	1.0%
Other Current Assets	6.4%	4.2%	5.1%	5.3%	4.6%
Total Current Assets	27.4%	30.9%	31.2%	44.7%	46.5%
Property,Plant and Equipment	41.3%	33.1%	26.5%	23.2%	20.4%
Operating Lease Assets	3.2%	4.0%	3.7%	3.5%	3.6%
Goodwill	15.8%	19.3%	23.3%	16.5%	18.5%
Intangible Assets	2.5%	3.7%	5.4%	2.3%	3.1%
Long Term Investments	4.8%	2.5%	2.9%	2.4%	1.9%
Other Noncurrent Assets	5.1%	6.6%	7.1%	7.4%	6.0%
Total Assets	100.0%	100.0%	100.0%	100.0%	100.0%
Liabilities
Accounts Payable	5.6%	4.5%	4.3%	4.4%	5.2%
Accrued Liabilities	2.3%	3.4%	3.4%	3.7%	4.0%
Deferred Revenue	9.6%	10.4%	11.2%	12.4%	12.5%
Current Portion of Long Term Debt	1.2%	0.5%	1.7%	1.3%	0.8%
Other Current Liabilities	3.5%	4.0%	3.7%	3.6%	3.6%
Total Current Liabilities	22.3%	22.8%	24.5%	25.3%	26.1%
Long Term Debt	4.1%	6.5%	8.3%	10.2%	12.9%
Deferred Revenue Noncurrent	0.4%	0.4%	0.5%	0.7%	0.8%
Operating Lease Liabilities Noncurrent	2.2%	2.8%	3.0%	3.1%	3.1%
Deferred Tax Liabilities	0.4%	0.5%	0.5%	0.1%	0.1%
Other Noncurrent Liabilities	12.4%	11.5%	10.7%	10.6%	11.4%
Total Liabilities	41.7%	44.5%	47.6%	49.9%	54.4%
Equity
Common Stock	15.5%	17.6%	19.7%	22.7%	23.8%
Retained Earnings	43.3%	38.4%	33.8%	28.8%	23.1%
Accumulated Other Comprehensive Income	-0.4%	-0.5%	-1.1%	-1.5%	-1.3%
Total Stockholders Equity	58.3%	55.5%	52.4%	50.1%	45.6%
Total Liabilitiesand Equity	100.0%	100.0%	100.0%	100.0%	100.0%

Income Statement

Revenue, expense, and profitability

14 accounts · 5 years

Revenue $331.8B

Operating income $155.2B

Net income $133.7B

Account	2026	2025	2024	2023	2022
IncomeStatement
Revenues Total Revenue	43.8%	45.5%	47.9%	51.4%	54.3%
Expenses Cost of Revenue	14.0%	14.2%	14.5%	16.0%	17.2%
Other Income Expense Gross Profit	29.7%	31.3%	33.4%	35.5%	37.2%
Expenses Research and Development	4.7%	5.2%	5.8%	6.6%	6.7%
Expenses Selling,General and Administrative	4.6%	5.3%	6.3%	7.4%	7.6%
Other Income Expense Operating Income	20.5%	20.8%	21.4%	21.5%	22.9%
Other Income Expense Other Income/expense	1.4%	-0.8%	-0.3%	0.2%	0.1%
Other Income Expense Income Before Tax	21.9%	20.0%	21.0%	21.7%	22.9%
Income Tax Income Tax Expense	4.2%	3.5%	3.8%	4.1%	3.0%
net Income net Income	17.6%	16.5%	17.2%	17.6%	19.9%
net Income Comprehensive Income	17.6%	16.8%	17.4%	17.2%	18.2%
Earnings Per Share Basic Eps	0.0%	0.0%	0.0%	0.0%	0.0%
Earnings Per Share Diluted Eps	0.0%	0.0%	0.0%	0.0%	0.0%
Earnings Per Share Weighted Average Shares Diluted	1.0%	1.2%	1.5%	1.8%	2.1%

Cash Flow Statement

Operating, investing, and financing flows

22 accounts · 5 years

Operating cash flow $182.9B

Investing cash flow $-139.5B

Financing cash flow $-52.5B

Account	2026	2025	2024	2023	2022
CashFlow
Operating Activities net Income	17.6%	16.5%	17.2%	17.6%	19.9%
Operating Activities Depreciation and Amortization	5.1%	4.8%	4.1%	3.4%	4.0%
Operating Activities Stock Based Compensation	1.6%	1.9%	2.1%	2.3%	2.1%
Operating Activities Deferred Income Taxes	1.9%	-1.1%	-0.9%	-1.5%	-1.6%
Operating Activities Changes In Operating Assets and Liabilities	-0.6%	-0.9%	0.4%	-0.6%	0.1%
Operating Activities Other Non Cash Items	-1.5%	0.9%	0.3%	0.0%	-0.1%
Operating Activities net Cash From Operating Activities	24.1%	22.0%	23.1%	21.3%	24.4%
Investing Activities Capital Expenditures	-15.3%	-10.4%	-8.7%	-6.8%	-6.5%
Investing Activities Business Acquisitions	-0.2%	-1.0%	-13.5%	-0.4%	-6.0%
Investing Activities Purchases of Investments	-7.7%	-4.8%	-3.5%	-9.1%	-7.3%
Investing Activities Proceeds From Sale of Investments	7.4%	4.1%	7.0%	11.6%	12.3%
Investing Activities Other Investing Activities	-2.6%	0.4%	-0.3%	-0.8%	-0.8%
Investing Activities net Cash From Investing Activities	-18.4%	-11.7%	-18.9%	-5.5%	-8.3%
Financing Activities Proceeds From Debt	0.0%	0.0%	4.8%	0.0%	0.0%
Financing Activities Repayment of Debt	-0.4%	-0.5%	-5.7%	-0.7%	-2.5%
Financing Activities Repurchase of Common Stock	-2.9%	-3.0%	-3.4%	-5.4%	-9.0%
Financing Activities Dividends Paid	-3.5%	-3.9%	-4.3%	-4.8%	-5.0%
Financing Activities Proceeds From Stock Issuance	0.3%	0.3%	0.4%	0.5%	0.5%
Financing Activities Other Financing Activities	-0.4%	-1.3%	0.8%	-0.2%	-0.2%
Financing Activities net Cash From Financing Activities	-6.9%	-8.4%	-7.4%	-10.7%	-16.1%
Cash Reconciliation Effect of Exchange Rate On Cash	-0.0%	0.0%	-0.0%	-0.0%	-0.0%
Cash Reconciliation net Change In Cash	-1.2%	1.9%	-3.2%	5.0%	-0.1%

Key Ratios

Margins, returns, liquidity, leverage, efficiency

Computed at import · 5 years

Ratio	2026	2025	2024	2023	2022
Profitability
Gross margin	+67.9%	+68.8%	+69.8%	+68.9%	+68.4%
Operating margin	+46.8%	+45.6%	+44.6%	+41.8%	+42.1%
Net margin	+40.3%	+36.1%	+36.0%	+34.1%	+36.7%
FCF margin	+20.2%	+25.4%	+30.2%	+28.1%	+32.9%
Growth
Revenue CAGR (3y)	+16.1%	+12.4%	+13.4%	+14.0%	+16.4%
Returns
ROE	+30.2%	+29.6%	+32.8%	+35.1%	+43.7%
ROA	+17.6%	+16.5%	+17.2%	+17.6%	+19.9%
ROIC	+27.1%	+29.7%	+29.6%	+32.8%	+35.8%
Liquidity
Current ratio	1.23x	1.35x	1.27x	1.77x	1.78x
Quick ratio	0.60x	0.71x	0.60x	0.80x	0.61x
Leverage
D/E	0.71x	0.80x	0.91x	1.00x	1.19x
Interest coverage	—	—	—	—	—
Efficiency
Asset turnover	0.44x	0.46x	0.48x	0.51x	0.54x
Cash conversion cycle	-52d	-21d	-17d	-3d	-7d

Valuation

Price against fundamentals

MSFT $510 · 2025-09-12 · 414d old · FY2026

Market cap $3.8T

P/E 28.41x

P/S 11.45x

P/B 8.59x

EV $3.8T

EV/EBITDA —

FCF yield +1.8%

Dividend yield +0.7%

Notes

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