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MSFT

Microsoft Corporation

MSFT

Microsoft Corporation • NASDAQ
$492.01 ▲ 1.34% (+6.51)
Market Cap $3.66 T
52w High $555.45
52w Low $344.79
Dividend Yield 3.40%
P/E 34.97
Volume 10.51M
Outstanding Shares 7.43B

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $77.673B ▲ $15.669B ▼ $27.747B ▲ 35.723% ▲ $3.73 ▲ $48.06B ▲
Q4-2025 $76.441B ▲ $18.104B ▲ $27.233B ▲ 35.626% ▼ $3.67 ▲ $44.434B ▲
Q3-2025 $70.066B ▲ $16.147B ▼ $25.824B ▲ 36.857% ▲ $3.47 ▲ $40.711B ▲
Q2-2025 $69.632B ▲ $16.18B ▲ $24.108B ▼ 34.622% ▼ $3.24 ▼ $36.786B ▼
Q1-2025 $65.585B $14.934B $24.667B 37.611% $3.32 $38.234B

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $102.012B ▲ $636.351B ▲ $273.275B ▼ $363.076B ▲
Q4-2025 $94.565B ▲ $619.003B ▲ $275.524B ▲ $343.479B ▲
Q3-2025 $79.612B ▲ $562.624B ▲ $240.733B ▲ $321.891B ▲
Q2-2025 $71.551B ▼ $533.898B ▲ $231.203B ▼ $302.695B ▲
Q1-2025 $78.429B $523.013B $235.29B $287.723B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $27.747B ▲ $45.057B ▲ $-28.35B ▲ $-11.799B ▼ $4.816B ▲ $25.663B ▲
Q4-2025 $27.233B ▲ $42.647B ▲ $-30.572B ▼ $-10.844B ▲ $1.414B ▼ $25.568B ▲
Q3-2025 $25.824B ▲ $37.044B ▲ $-12.714B ▲ $-13.036B ▼ $11.346B ▲ $20.299B ▲
Q2-2025 $24.108B ▼ $22.291B ▼ $-14.112B ▲ $-11.243B ▲ $-3.358B ▼ $6.487B ▼
Q1-2025 $24.667B $34.18B $-15.201B $-16.576B $2.525B $19.257B

Revenue by Products

Product Q2-2025Q3-2025Q4-2025Q1-2026
Devices
Devices
 $4.51Bn ▲$4.14Bn ▼$4.33Bn ▲$4.55Bn ▲
Dynamics Products And Cloud Services
Dynamics Products And Cloud Services
 $1.91Bn ▲$1.93Bn ▲$2.14Bn ▲$2.14Bn ▲
Enterprise Services
Enterprise Services
 $1.89Bn ▲$1.95Bn ▲$1.99Bn ▲$2.02Bn ▲
Gaming
Gaming
 $6.58Bn ▲$5.72Bn ▼$5.53Bn ▼$5.51Bn ▼
Linked In Corporation
Linked In Corporation
 $4.59Bn ▲$4.31Bn ▼$4.62Bn ▲$4.71Bn ▲
Microsoft Three Six Five Commercial Products And Cloud Services
Microsoft Three Six Five Commercial Products And Cloud Services
 $21.12Bn ▲$21.88Bn ▲$24.32Bn ▲$23.97Bn ▼
Microsoft Three Six Five Consumer Products and Cloud Services
Microsoft Three Six Five Consumer Products and Cloud Services
 $1.82Bn ▲$1.82Bn ▲$2.04Bn ▲$2.20Bn ▲
Other Products And Services
Other Products And Services
 $10.00M ▲$50.00M ▲$10.00M ▼$0 ▼
Search And News Advertising
Search And News Advertising
 $3.56Bn ▲$3.50Bn ▼$3.59Bn ▲$3.70Bn ▲
Server Products And Tools
Server Products And Tools
 $23.64Bn ▲$24.76Bn ▲$27.88Bn ▲$28.87Bn ▲

Five-Year Company Overview

Income Statement

Income Statement Microsoft’s income statement shows a large, diversified business that has grown steadily over the past five years, with revenue and profits rising each year. Profitability is very strong: as sales have increased, earnings have grown even faster, suggesting good operating leverage and cost control. High margins across software, cloud, and enterprise services provide a cushion against slowdowns in any one area. Key risks are that growth is now coming off a very large base, so maintaining the same pace becomes harder, and enterprise and cloud spending can be cyclical if the economy weakens.

Balance Sheet

Balance Sheet The balance sheet is a clear strength. Assets and shareholder equity have been climbing consistently, while debt has stayed manageable and relatively stable. Cash levels remain solid, giving Microsoft flexibility to invest in growth, withstand downturns, or handle shocks. The overall picture is of a company with low financial strain and significant balance sheet resilience, though ongoing acquisitions and technology investments mean the asset mix can change over time.

Cash Flow

Cash Flow Microsoft generates substantial cash from its operations, and that cash flow has grown meaningfully over the period shown. Free cash flow remains strong even though the company is sharply ramping up capital spending, likely on data centers, cloud infrastructure, and AI-related hardware. This pattern—rising investment but still healthy surplus cash—points to a business funding its own expansion rather than stretching its finances. The main watchpoint is that continued heavy investment could pressure free cash flow if growth in cloud and AI does not keep pace.

Competitive Edge

Competitive Edge Microsoft holds a very strong competitive position, anchored by its dominance in enterprise software, productivity tools, and a rapidly expanding cloud platform in Azure. Deep integration between Windows, Microsoft 365, Azure, and other products creates high switching costs for corporate customers. Scale, brand trust, security reputation, and a large developer ecosystem further reinforce its moat. However, it faces intense competition from other tech giants in cloud, office productivity, search, and gaming, along with regulatory and antitrust scrutiny given its size and influence.

Innovation and R&D

Innovation and R&D Innovation is a central pillar for Microsoft. The company is aggressively embedding AI (through Copilot and Azure AI) across its product stack, leveraging its partnership with OpenAI to differentiate its cloud and productivity tools. It continues to invest in new platforms such as mixed reality (HoloLens), gaming ecosystems (Game Pass and cloud gaming), and longer-term areas like quantum computing. The opportunity is to deepen customer lock-in and open new revenue streams, but it must execute well, manage AI-related risks, and ensure that heavy R&D and infrastructure spending translate into durable customer adoption.

Summary

Overall, Microsoft combines strong and growing profits, a very solid balance sheet, and robust cash generation with a powerful competitive moat and a clear focus on AI and cloud as long-term growth engines. Its financial profile suggests resilience and flexibility, while its ecosystem and switching costs help protect its position. Key areas to watch include the pace of AI monetization, returns on large cloud and data-center investments, competitive pressure in key franchises, and any regulatory developments that could affect its business model or strategic options.

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