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 revenue.

Balance Sheet

Assets, liabilities, and equity

30 accounts · 3 years

Total assets $758.4B

Total liabilities $316.0B

Shareholders equity $442.4B

Account	2026	2025	2024
Assets
Cash and Cash Equivalents	6.3%	10.7%	7.5%
Short Term Investments	16.8%	22.8%	23.3%
Accounts Receivable	24.4%	24.8%	23.2%
Inventory	0.4%	0.3%	0.5%
Other Current Assets	14.6%	9.1%	10.6%
Total Current Assets	62.6%	67.8%	65.2%
Property,Plant and Equipment	94.3%	72.8%	55.3%
Operating Lease Assets	7.3%	8.8%	7.7%
Goodwill	36.1%	42.4%	48.6%
Intangible Assets	5.6%	8.0%	11.3%
Long Term Investments	11.0%	5.5%	6.0%
Other Noncurrent Assets	11.7%	14.4%	14.9%
Total Assets	228.5%	219.7%	208.9%
Liabilities
Accounts Payable	12.8%	9.8%	9.0%
Accrued Liabilities	5.3%	7.4%	7.2%
Deferred Revenue	22.0%	22.9%	23.5%
Current Portion of Long Term Debt	2.8%	1.1%	3.7%
Other Current Liabilities	8.1%	8.9%	7.8%
Total Current Liabilities	50.9%	50.1%	51.1%
Long Term Debt	9.4%	14.3%	17.4%
Deferred Revenue Noncurrent	0.8%	1.0%	1.1%
Operating Lease Liabilities Noncurrent	5.0%	6.2%	6.3%
Deferred Tax Liabilities	0.9%	1.0%	1.1%
Other Noncurrent Liabilities	28.3%	25.3%	22.4%
Total Liabilities	95.2%	97.8%	99.4%
Equity
Common Stock	35.4%	38.7%	41.2%
Retained Earnings	98.9%	84.4%	70.6%
Accumulated Other Comprehensive Income	-1.0%	-1.2%	-2.3%
Total Stockholders Equity	133.3%	121.9%	109.5%
Total Liabilitiesand Equity	228.5%	219.7%	208.9%

Income Statement

Revenue, expense, and profitability

14 accounts · 3 years

Revenue $331.8B

Operating income $155.2B

Net income $133.7B

Account	2026	2025	2024
IncomeStatement
Revenues Total Revenue	100.0%	100.0%	100.0%
Expenses Cost of Revenue	32.1%	31.2%	30.2%
Other Income Expense Gross Profit	67.9%	68.8%	69.8%
Expenses Research and Development	10.7%	11.5%	12.0%
Expenses Selling,General and Administrative	10.4%	11.7%	13.1%
Other Income Expense Operating Income	46.8%	45.6%	44.6%
Other Income Expense Other Income/expense	3.2%	-1.7%	-0.7%
Other Income Expense Income Before Tax	50.0%	43.9%	44.0%
Income Tax Income Tax Expense	9.7%	7.7%	8.0%
net Income net Income	40.3%	36.1%	36.0%
net Income Comprehensive Income	40.3%	36.9%	36.3%
Earnings Per Share Basic Eps	0.0%	0.0%	0.0%
Earnings Per Share Diluted Eps	0.0%	0.0%	0.0%
Earnings Per Share Weighted Average Shares Diluted	2.2%	2.6%	3.0%

Cash Flow Statement

Operating, investing, and financing flows

22 accounts · 3 years

Operating cash flow $182.9B

Investing cash flow $-139.5B

Financing cash flow $-52.5B

Account	2026	2025	2024
CashFlow
Operating Activities net Income	40.3%	36.1%	36.0%
Operating Activities Depreciation and Amortization	11.6%	10.4%	8.6%
Operating Activities Stock Based Compensation	3.7%	4.3%	4.4%
Operating Activities Deferred Income Taxes	4.3%	-2.5%	-1.9%
Operating Activities Changes In Operating Assets and Liabilities	-1.5%	-1.9%	0.7%
Operating Activities Other Non Cash Items	-3.3%	1.9%	0.7%
Operating Activities net Cash From Operating Activities	55.1%	48.3%	48.4%
Investing Activities Capital Expenditures	-34.9%	-22.9%	-18.1%
Investing Activities Business Acquisitions	-0.5%	-2.1%	-28.2%
Investing Activities Purchases of Investments	-17.6%	-10.6%	-7.2%
Investing Activities Proceeds From Sale of Investments	17.0%	9.0%	14.6%
Investing Activities Other Investing Activities	-6.0%	0.8%	-0.5%
Investing Activities net Cash From Investing Activities	-42.0%	-25.8%	-39.6%
Financing Activities Proceeds From Debt	0.0%	0.0%	10.0%
Financing Activities Repayment of Debt	-0.9%	-1.1%	-11.9%
Financing Activities Repurchase of Common Stock	-6.7%	-6.5%	-7.0%
Financing Activities Dividends Paid	-8.0%	-8.5%	-8.9%
Financing Activities Proceeds From Stock Issuance	0.6%	0.7%	0.8%
Financing Activities Other Financing Activities	-0.9%	-2.9%	1.6%
Financing Activities net Cash From Financing Activities	-15.8%	-18.4%	-15.4%
Cash Reconciliation Effect of Exchange Rate On Cash	-0.1%	0.0%	-0.1%
Cash Reconciliation net Change In Cash	-2.8%	4.2%	-6.7%

Key Ratios

Margins, returns, liquidity, leverage, efficiency

Computed at import · 3 years

Ratio	2026	2025	2024
Profitability
Gross margin	+67.9%	+68.8%	+69.8%
Operating margin	+46.8%	+45.6%	+44.6%
Net margin	+40.3%	+36.1%	+36.0%
FCF margin	+20.2%	+25.4%	+30.2%
Growth
Revenue CAGR (3y)	+16.1%	+12.4%	+13.4%
Returns
ROE	+30.2%	+29.6%	+32.8%
ROA	+17.6%	+16.5%	+17.2%
ROIC	+27.1%	+29.7%	+29.6%
Liquidity
Current ratio	1.23x	1.35x	1.27x
Quick ratio	0.60x	0.71x	0.60x
Leverage
D/E	0.71x	0.80x	0.91x
Interest coverage	—	—	—
Efficiency
Asset turnover	0.44x	0.46x	0.48x
Cash conversion cycle	-52d	-21d	-17d

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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