Microsoft Corporation (MSFT) financials

NASDAQ · Technology · Software - Infrastructure · 223,000 employees · CEO Satya Nadella

Price: $521.91 -1.55%
Market cap: $3.88T
Enterprise value: $3.99T
Last report: Q1 '27 filed 2026-10-28
Next report: 2027-01-27 EPS est. $4.85

Revenue (TTM)$346B+17.9% vs a year agoLast 4 quarters; bars = each quarter

Operating margin (TTM)47.1%+0.8 pp vs a year agoOperating income $163B

Net income (TTM)$143B+36.0% vs a year agoAfter tax, incl. non-operating gains

Free cash flow (TTM)$60B-23.1% vs a year agoCapex $136B

Diluted EPS (TTM)$19.15+36.2% vs a year agoSum of the last 4 quarters

Net cash-$69.3B-277.2% vs a year agoCash + short-term investments - debt

Valuation & key figures

Market cap: $3.88T
Revenue: $346B
Revenue growth: +19%
Profit margin: 41.2%
P/E: 27.2×
P/S: 11.2×
EV / EBITDA: 17.9×
Free cash flow: $60B
Net income: $143B
Revenue estimate: $395B
Earnings: 2027-01-27
Dividend: $3.64

Key takeaways

Computed from the reported numbers - every statement carries the figure it rests on.

Last report (2026-10-28): revenue beat by 1.8%, EPS beat by 3.6%Revenue $92.3B vs $90.6B expected (+1.8%); EPS $4.89 vs $4.72 (+3.6%).
Revenue growth accelerating: 18.8% year on yearQ1 '27 revenue $92.3B, against an average of 17.8% over the four quarters before.
Operating margin 47.1% (TTM), +0.8 pp on a year agoOperating income grew 20.0% while revenue grew 17.9%.
Capex 39.2% of revenue (a year ago 23.5%)$136B invested in the last 4 quarters (+96.9% on a year earlier). Free cash flow $60B = 42.0% of net income.
Returned $48B to shareholders = 80.1% of free cash flowBuybacks $21B (a year earlier $20B), dividends $27B, stock-based pay $12.6B (TTM).
Diluted share count down 0.3% in a year7.45B diluted shares in Q1 '27, 7.47B a year earlier.
Net debt $69.3BCash + short-term investments $64.6B, debt incl. leases $134B; a year ago net debt $18.4B.
Agents And Infra: revenue +24.5%, margin 52.8% (was 53.1%)Fastest-growing reported segment in Q1 '27: operating income $40.6B on revenue $76.8B (from the segment note of the filing).

Last quarter: Q1 '27

Quarter ended 2026-09-30. Compared with the same quarter a year earlier and with the analyst consensus before the report.

Quarter vs a year ago

	Q1 '27	Year ago	Change
Revenue	$92.3B	$77.7B	+18.8%
Gross margin	67.8%	69.0%	-1.3 pp
Operating income	$45.9B	$38B	+21.0%
Operating margin	49.8%	48.9%	+0.9 pp
Net income	$36.6B	$27.7B	+32.0%
Diluted EPS	$4.92	$3.72	+32.3%
Operating cash flow	$58B	$45.1B	+28.7%
Capex	$39.4B	$19.4B	+103.0%
Free cash flow	$18.6B	$25.7B	-27.4%
R&D	$9.05B	$8.15B	+11.1%
Stock-based compensation	$3.13B	$2.98B	+5.1%

Reported vs consensus

2026-10-28

	Actual	Consensus	vs consensus
Revenue	$92.3B	$90.6B	+1.8%
EPS (as estimated)	$4.89	$4.72	+3.6%

From the report of 2026-10-28 for Q1 '27: revenue and the EPS analysts estimate (often adjusted), so it can differ from the EPS of the statements above.

EPS vs consensus

last 8 reports

Revenue

Where the money comes from - by business line and by region, quarter by quarter.

Revenue, operating income and growth

quarterly

Revenue by business line

stacked, quarterly

Segment	Q4 '26	y/y	Share	TTM	TTM y/y
Server products and cloud services	$37.1B	+33.1%	41.2%	$129B	+31.5%
Microsoft 365 Commercial products and cloud services	$27.9B	+14.8%	31.0%	$102B	+16.2%
Gaming	–	–	–	–	–
LinkedIn	$5.19B	+12.3%	5.8%	$19.8B	+11.3%
XBOX	$4.98B	–	5.5%	–	–
Windows and Devices	$4.01B	-7.3%	4.5%	$17.1B	-1.3%
Search advertising	$3.86B	–	4.3%	–	–
Search and news advertising	–	–	–	–	–
Dynamics products and cloud services	$2.37B	+11.1%	2.6%	$9.01B	+15.1%
Microsoft 365 Consumer products and cloud services	$2.37B	+16.4%	2.6%	$9.18B	+23.9%
Enterprise and partner services	$2.11B	+6.0%	2.3%	$8.26B	+6.4%
Other	$97M	+1,516.7%	0.1%	$109M	+51.4%

Revenue by region

share of total

Segment	Q4 '26	y/y	Share	TTM	TTM y/y	12 quarters
United States	$49.5B	+23.4%	53.6%	$180B	+19.6%
Non Us	$42.8B	+13.9%	46.4%	$166B	+16.2%

Segment profits

Operating income per reported segment, read from the segment note of each 10-Q / 10-K (the profit split most data feeds leave out).

Segments in Q1 '27

Segment	Revenue	y/y	Operating income	y/y	Margin	Margin a year ago	TTM operating income
Agents And Infra	$76.8B	+24.5%	$40.6B	+24.0%	52.8%	53.1%	–
Intelligent Cloud	–	–	–	–	–	43.3%	–
Productivity And Business Processes	–	–	–	–	–	61.8%	–
Devices And Consumer	$15.5B	-3.2%	$5.36B	+2.2%	34.6%	32.8%	–
More Personal Computing	–	–	–	–	–	30.3%	–

Operating income by segment

quarterly

Segment operating margin

quarterly

Fourth quarters are derived: the 10-K reports the full year, minus the three quarters of the 10-Qs.

Margins & cost structure

How much of each unit of revenue is left at each level - and where the costs go.

Margins

quarterly

Costs as % of revenue

quarterly

Cash flow & capital allocation

Cash generated, what it is spent on, and what reaches shareholders.

Operating cash flow, capex, free cash flow

quarterly

Uses of cash vs operating cash flow

fiscal years

Last 4 quarters

cash flow statement

Operating cash flow: $196B
Capex: -$136B
Buybacks: -$21B
Dividends: -$27B
Acquisitions: -$1.56B
Net debt issued: -$7.85B
Stock-based compensation: $12.6B
Free cash flow: $60B
Returned to shareholders / FCF: 80.1%

Share count and EPS

quarterly, diluted

Balance sheet

Liquidity, investments and debt at each quarter end.

Cash, investments and debt

quarter ends

Valuation & returns

Today's multiples against the company's own last five fiscal years; analyst targets and ratings.

Multiples and returns

TTM vs 5 fiscal years

	Now	5y average	Where today sits in the 5-year range
P/E (TTM)	27.2×	31.4×	20.7× – 38.5×
EV / EBITDA	17.9×	21.6×	13.9× – 26.1×
EV / Sales	11.5×	11.7×	8.7× – 14.2×
Price / FCF	64.6×	42.2×	29.6× – 51.6×
Price / Book	8.2×	10.7×	6.3× – 12.6×
FCF yield	1.5%	2.5%	1.9% – 3.4%
Return on invested capital	20.4%	22.7%	20.6% – 26.3%
Return on equity	33.2%	34.3%	29.6% – 43.7%

Analysts

Consensus target $611.74 (+17.2%)
range $440.00 – $750.00 · rating Buy

Strong buy0

Buy68

Hold15

Sell0

Strong sell0

Outlook

Analyst consensus for the coming fiscal years and what it implies at today's price.

Consensus estimates

Fiscal year	Revenue	Growth	EPS	Growth	P/E at today's price	Analysts (EPS)
FY2027	$395B	+18.9%	$20.01	+11.5%	26.1×	27
FY2028	$475B	+20.5%	$24.03	+20.1%	21.7×	28
FY2029	$581B	+22.2%	$29.50	+22.8%	17.7×	15
FY2030	$681B	+17.2%	$34.18	+15.9%	15.3×	6
FY2031	$896B	+31.6%	$46.31	+35.5%	11.3×	14

Financial statements

Every line of the income statement, balance sheet and cash flow statement - 12 quarters and 10 fiscal years, as values, as % of revenue or as growth.

Income statementRevenue, costs, operating income, net income and EPSOpen Balance sheetCash, investments, assets, debt, liabilities and equityOpen Cash flowOperating cash flow, capex, free cash flow, buybacks and dividendsOpen

Every reported line

All 269 figures Microsoft Corporation tagged in its recent 10-Q / 10-K filings, with the official SEC label and definition - including the notes (leases, taxes, buybacks, employees, ...).

Line (SEC label)	Latest quarter	Year ago	y/y	Latest FY	Prior FY	y/y
	–	–	–	$799M	–	–
	–	–	–	0.5%	–	–
	–	–	–	$603M	–	–
	–	–	–	$5.07B	–	–
	–	–	–	3.1%	–	–
	–	–	–	$6.25B	–	–
	–	–	–	$2.92B	–	–
Accounts Payable, Current	$42.6B	$32.6B	+30.8%	$42.4B	$27.7B	+53.0%
Accounts Receivable, after Allowance for Credit Loss, Current	$62.1B	$52.9B	+17.4%	$80.9B	$69.9B	+15.7%
Accounts Receivable, after Allowance for Credit Loss, Noncurrent	$5.6B	$5B	+12.0%	$5.5B	$5.2B	+5.8%
Accounts Receivable, Allowance for Credit Loss, Current	$728M	$687M	+6.0%	$1.04B	$944M	+10.2%
Accrued Income Taxes, Current	$1.45B	$3.66B	-60.4%	$2.53B	$7.21B	-64.9%
Accrued Income Taxes, Noncurrent	$29.2B	$26.6B	+10.0%	$28.6B	$26B	+10.2%
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$127B	$98.9B	+28.6%	$119B	$93.7B	+26.7%
Accumulated Other Comprehensive Income (Loss), Net of Tax	-$3.86B	-$2.76B	-39.7%	-$3.28B	-$3.35B	+1.9%
Advertising Expense	–	–	–	$2.7B	$2.1B	+28.6%
Amortization of Intangible Assets	$1B	$1.5B	-33.3%	$4.7B	$6B	-21.7%
Assets	$779B	$636B	+22.5%	$758B	$619B	+22.5%
Assets, Current	$186B	$189B	-1.5%	$208B	$191B	+8.7%
Buildings and Improvements, Gross	$195B	$152B	+27.7%	$183B	$138B	+32.5%
Cash and Cash Equivalents, at Carrying Value	$20.3B	$28.8B	-29.7%	$20.9B	$30.2B	-30.8%
Cash, Cash Equivalents, and Short-term Investments	$64.5B	$102B	-36.8%	$76.8B	$94.6B	-18.7%
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$20.3B	$28.8B	-29.7%	$20.9B	$30.2B	-30.8%
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	-$654M	-$1.39B	+53.1%	-$9.31B	$11.9B	-178.0%
Commercial Paper	–	–	–	$02025-06-30	$6.69B	-100.0%
Common Stock, Dividends, Per Share, Declared	$0.98	$0.91	+7.7%	$3.64	$3.32	+9.6%
Common Stock, Shares Authorized	24B	24B	0.0%	24B	24B	0.0%
Common Stock, Shares, Issued	7.43B	–	–	7.43B	7.43B	-0.1%
Common Stock, Shares, Outstanding	7.43B	7.43B	-0.1%	7.43B	7.43B	-0.1%
Common Stocks, Including Additional Paid in Capital	$120B	$111B	+7.8%	$117B	$109B	+7.6%
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$36.1B	$28.3B	+27.3%	$134B	$104B	+28.6%
Contract with Customer, Liability	$69.6B	$61.5B	+13.0%	$75.7B	$67.3B	+12.6%
Contract with Customer, Liability, Current	$66.9B	$59B	+13.4%	$73B	$64.6B	+13.0%
Contract with Customer, Liability, Noncurrent	$2.7B	$2.55B	+5.9%	$2.75B	$2.71B	+1.4%
Cost of Goods and Services Sold	$29.7B	$24B	+23.6%	$106B	$87.8B	+21.1%
Current Federal Tax Expense (Benefit)	–	–	–	$2.46B	$14.1B	-82.5%
Current Foreign Tax Expense (Benefit)	–	–	–	$12.6B	$11.4B	+10.2%
Current Income Tax Expense (Benefit)	–	–	–	$17.8B	$28.9B	-38.4%
Current State and Local Tax Expense (Benefit)	–	–	–	$2.71B	$3.34B	-18.8%
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net	$1.06B	$1.14B	-6.3%	$1.08B	$1.16B	-6.4%
Debt Securities, Available-for-sale	$58.9B	$91.9B	-35.9%	$71.1B	$84.3B	-15.6%
Debt Securities, Available-for-sale, Amortized Cost	$60.7B	$92.4B	-34.3%	$72.2B	$85.6B	-15.7%
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	$20.9B	$35.9B	-41.7%	$23.2B	$38.2B	-39.1%
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	$1.32B	$1.3B	+1.8%	$1.14B	$1.56B	-27.1%
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	$26.2B	$642M	+3,986.1%	$25.1B	$4.56B	+451.4%
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$610M	$55M	+1,009.1%	$137M	$65M	+110.8%
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Amortized Cost	$1.22B	$1.47B	-17.3%	$1.54B	$1.49B	+3.1%
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after 10 Years, Fair Value	$1.1B	$1.4B	-21.6%	$1.41B	$1.4B	+0.3%
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after Five Through Ten Years, Amortized Cost	$4.04B	$5.4B	-25.1%	$3.49B	$6.53B	-46.5%
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after Five Through Ten Years, Fair Value	$4.05B	$5.88B	-31.1%	$3.59B	$6.42B	-44.2%
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after One Through Five Years, Amortized Cost	$36.9B	$48.2B	-23.5%	$38.4B	$42.5B	-9.6%
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling after One Through Five Years, Fair Value	$35.3B	$47.5B	-25.7%	$37.4B	$41.5B	-9.9%
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Amortized Cost	$18.5B	$37.3B	-50.3%	$28.8B	$35.1B	-18.1%
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Rolling within One Year, Fair Value	$18.5B	$37.2B	-50.3%	$28.7B	$35B	-17.9%
Debt Securities, Available-for-sale, Realized Gain	$12M	$16M	-25.0%	$103M	$40M	+157.5%
Debt Securities, Available-for-sale, Realized Loss	$18M	$10M	+80.0%	$56M	$65M	-13.8%
Debt Securities, Available-for-sale, Unrealized Loss Position	$47.2B	$36.5B	+29.1%	$48.4B	$42.7B	+13.2%
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	$1.93B	$1.36B	+42.6%	$1.27B	$1.63B	-21.6%
Deferred Federal Income Tax Expense (Benefit)	–	–	–	$12.8B	-$6.25B	+304.5%
Deferred Foreign Income Tax Expense (Benefit)	–	–	–	$531M	$281M	+89.0%

Source: SEC companyfacts (XBRL of every 10-Q / 10-K). Cash-flow quarters are derived from the year-to-date figures the 10-Q tags. Segment breakdowns are tagged with dimensions and are shown in the segment section instead.

Sources

Statements, segment revenue, metrics, estimates: Financial Modeling Prep. Segment profits and every reported line: SEC EDGAR (XBRL). Filings read: 10-Q 2026-09-30, 10-K 2026-06-30, 10-Q 2026-03-31, 10-Q 2025-12-31, 10-Q 2025-09-30, 10-K 2025-06-30, 10-Q 2025-03-31, 10-Q 2024-12-31, 10-Q 2024-09-30

Data as of 2026-11-01