MICROSOFT CORP financial statements

Income statement, balance sheet and cash flow statement for the last 10 fiscal years, taken from the XBRL data MICROSOFT CORP files with the SEC in its annual reports.

In USD millions, except per-share amounts. Outflows in the cash flow statement are negative.

Income statement

	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026
Revenue	96,571	110,360	125,843	143,015	168,088	198,270	211,915	245,122	281,724	331,839
Cost of revenue	34,261	38,353	42,910	46,078	52,232	62,650	65,863	74,114	87,831	106,374
Gross profit	62,310	72,007	82,933	96,937	115,856	135,620	146,052	171,008	193,893	225,465
Research and development	13,037	14,726	16,876	19,269	20,716	24,512	27,195	29,510	32,488	35,562
Selling and marketing	15,461	17,469	18,213	19,598	20,117	21,825	22,759	24,456	25,654	26,710
General and administrative	4,481	4,754	4,885	5,111	5,107	5,900	7,575	7,609	7,223	7,956
Operating expenses							57,529	61,575	65,365	70,228
Operating income	29,025	35,058	42,959	52,959	69,916	83,383	88,523	109,433	128,528	155,237
Interest expense	2,222	2,733	2,686	2,591	2,346	2,063	1,968	2,935	2,385	3,051
Other non-operating income	876	1,416	729	77	1,186	333	788	-1,646	-4,901	10,697
Pre-tax income	29,901	36,474	43,688	53,036	71,102	83,716	89,311	107,787	123,627	165,934
Income tax	4,412	19,903	4,448	8,755	9,831	10,978	16,950	19,651	21,795	32,185
Net income	25,489	16,571	39,240	44,281	61,271	72,738	72,361	88,136	101,832	133,749
EBITDA	35,125	42,758	52,659	63,659	79,216	95,983	99,523	124,633	150,528	189,537
EPS, basic	3.29	2.15	5.11	5.82	8.12	9.70	9.72	11.86	13.70	18.00
EPS, diluted	3.25	2.13	5.06	5.76	8.05	9.65	9.68	11.80	13.64	17.95
Shares, basic (weighted)	7,746	7,700	7,673	7,610	7,547	7,496	7,446	7,431	7,433	7,429
Shares, diluted (weighted)	7,832	7,794	7,753	7,683	7,608	7,540	7,472	7,469	7,465	7,453
Dividend per share	1.56	1.68	1.84	2.04	2.24	2.48	2.72	3.00	3.32	3.64

Balance sheet

	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026
Cash and equivalents	7,663	11,946	11,356	13,576	14,224	13,931	34,704	18,315	30,242	20,935
Short-term investments		121,822	122,463	122,951	116,110	90,826	76,558	57,228	64,323	55,908
Receivables	22,431	26,481	29,524	32,011	38,043	44,261	48,688	56,924	69,905	80,876
Inventory	2,181	2,662	2,063	1,895	2,636	3,742	2,500	1,246	938	1,397
Other current assets	5,103	6,751	10,146	11,482	13,393	16,924	21,807	26,021	25,723	48,594
Total current assets	162,696	169,662	175,552	181,915	184,406	169,684	184,257	159,734	191,131	207,710
Property, plant and equipment	23,734	29,460	36,477	44,151	59,715	74,398	95,641	135,591	204,966	313,076
Lease right-of-use assets	6,555	6,686	7,379	8,753	11,088	13,148	14,346	18,961	24,823	24,177
Goodwill	35,122	35,683	42,026	43,351	49,711	67,524	67,886	119,220	119,509	119,651
Intangible assets	10,106	8,053	7,750	7,038	7,800	11,298	9,366	27,597	22,604	18,609
Long-term investments	6,023	1,862	2,649	2,965	5,984	6,891	9,879	14,600	15,405	36,348
Other non-current assets	6,076	7,442	14,723	13,138	15,075	21,897	30,601	36,460	40,565	38,805
Total assets	250,312	258,848	286,556	301,311	333,779	364,840	411,976	512,163	619,003	758,376
Accounts payable	7,390	8,617	9,382	12,530	15,163	19,000	18,095	21,996	27,724	42,416
Accrued liabilities	5,819	6,103	6,830	7,874	10,057	10,661	11,009	12,564	13,709	14,945
Deferred revenue	24,013	28,905	32,676	36,000	41,525	45,538	50,901	57,582	64,555	72,965
Short-term debt	1,049	3,998	5,516	3,749	8,072	2,749	5,247	2,249	2,999	9,227
Total current liabilities	55,745	58,488	69,420	72,310	88,657	95,082	104,149	125,286	141,218	168,825
Long-term debt	76,073	72,242	66,662	59,578	50,074	47,032	41,990	42,688	40,152	31,067
Lease liabilities	5,372	5,568	6,188	7,671	9,629	11,489	12,728	15,497	17,437	16,532
Other non-current liabilities	3,549	5,211	7,581	10,632	13,427	15,526	17,981	27,064	45,186	65,117
Total liabilities	162,601	176,130	184,226	183,007	191,791	198,298	205,753	243,686	275,524	315,989
Total debt	77,100	76,200	72,178	63,327	58,146	49,781	47,237	44,937	43,151	40,294
Paid-in capital	69,315	71,223	78,520	80,552	83,111	86,939	93,718	100,923	109,095	117,406
Retained earnings	17,769	13,682	24,150	34,566	57,055	84,281	118,848	173,144	237,731	328,265
Other comprehensive income	627	-2,187	-340	3,186	1,822	-4,678	-6,343	-5,590	-3,347	-3,284
Shareholders' equity	87,711	82,718	102,330	118,304	141,988	166,542	206,223	268,477	343,479	442,387
Total equity	87,711	82,718	102,330	118,304	141,988	166,542	206,223	268,477	343,479	442,387
Total liabilities and equity	250,312	258,848	286,556	301,311	333,779	364,840	411,976	512,163	619,003	758,376
Shares outstanding	7,708	7,677	7,643	7,571	7,519	7,464	7,432	7,434	7,434	7,427

Cash flow statement

	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026
Net income	25,489	16,571	39,240	44,281	61,271	72,738	72,361	88,136	101,832	133,749
Depreciation and amortization	6,100	7,700	9,700	10,700	9,300	12,600	11,000	15,200	22,000	34,300
Stock-based compensation	3,266	3,940	4,652	5,289	6,118	7,502	9,611	10,734	11,974	12,405
Deferred income tax	-829	-5,143	-6,463	11	-150	-5,702	-6,059	-4,738	-7,056	14,424
Change in receivables	-1,216	-3,862	-2,812	-2,577	-6,481	-6,834	-4,087	-7,191	-10,581	-12,737
Change in inventory	50	-465	597	168	-737	-1,123	1,242	1,284	309	-461
Change in payables	81	1,148	232	3,018	2,798	2,943	-2,721	3,545	569	5,268
Cash from operations	39,507	43,884	52,185	60,675	76,740	89,035	87,582	118,548	136,162	182,935
Capital expenditures	-8,129	-11,632	-13,925	-15,441	-20,622	-23,886	-28,107	-44,477	-64,551	-115,948
Purchases of investments	-176,905	-137,380	-57,697	-77,190	-62,924	-26,456	-37,651	-17,732	-29,775	-58,351
Sales and maturities of investments	28,044	26,360	20,043	66,449	51,792	16,451	33,510	24,775	16,079	34,605
Cash from investing	-46,781	-6,061	-15,773	-12,223	-27,577	-30,311	-22,680	-96,970	-72,599	-139,500
Stock issued	772	1,002	1,142	1,343	1,693	1,841	1,866	2,002	2,056	2,009
Share buybacks	-11,788	-10,721	-19,543	-22,968	-27,385	-32,696	-22,245	-17,254	-18,420	-22,271
Dividends paid	-11,845	-12,699	-13,811	-15,137	-16,521	-18,135	-19,800	-21,771	-24,082	-26,445
Cash from financing	8,408	-33,590	-36,887	-46,031	-48,486	-58,876	-43,935	-37,757	-51,699	-52,546
Exchange rate effect	19	50	-115	-201	-29
Net change in cash	1,153	4,283	-590	2,220	648	-293	20,773	-16,389	11,927	-9,307
Free cash flow	31,378	32,252	38,260	45,234	56,118	65,149	59,475	74,071	71,611	66,987
Interest paid	1,600	2,400	2,400	2,400	2,000	1,900	1,700	1,700	1,600	1,500
Income taxes paid	2,400	5,500	8,400	12,500	13,400	16,000	23,100	23,400	28,700	21,188

Key metrics

Worked out from the statements above. Latest values use fiscal 2026. Valuation uses the share price of $516.17 on September 25, 2026.

Profitability

Metric	Value	How it is calculated
Gross margin	67.9%	Gross profit / revenue.
Operating margin	46.8%	Operating income / revenue.
EBITDA margin	57.1%	EBITDA (operating income + depreciation and amortization) / revenue.
Pre-tax margin	50.0%	Pre-tax income / revenue.
Net margin	40.3%	Net income / revenue.
FCF margin	20.2%	Free cash flow (cash from operations - capital expenditures) / revenue.
Operating cash flow margin	55.1%	Cash from operations / revenue.
Effective tax rate	19.4%	Income tax / pre-tax income, when pre-tax income is positive.
Return on equity (ROE)	34.0%	Net income / average shareholders' equity (opening and closing). Not shown when equity is negative.
Return on assets (ROA)	19.4%	Net income / average total assets.
Return on invested capital (ROIC)	30.6%	Approximation: operating income x (1 - tax rate) / average (total debt + equity - cash). Tax rate is the effective rate when between 0% and 50%, else 21%.
R&D / revenue	10.7%	Research and development expense / revenue.
Stock-based pay / revenue	3.7%	Stock-based compensation (from the cash flow statement) / revenue.
Capex / revenue	34.9%	Capital expenditures / revenue.
D&A / revenue	10.3%	Depreciation and amortization / revenue.

Growth

Metric	Value	How it is calculated
Revenue growth, 1y	17.8%	Revenue vs the same period a year earlier. Only from a positive base.
Revenue CAGR, 3y	16.1%	Compound annual growth of revenue over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Revenue CAGR, 5y	14.6%	Compound annual growth of revenue over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Gross profit growth, 1y	16.3%	Gross profit vs the same period a year earlier. Only from a positive base.
Gross profit CAGR, 3y	15.6%	Compound annual growth of gross profit over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Gross profit CAGR, 5y	14.2%	Compound annual growth of gross profit over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating income growth, 1y	20.8%	Operating income vs the same period a year earlier. Only from a positive base.
Operating income CAGR, 3y	20.6%	Compound annual growth of operating income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating income CAGR, 5y	17.3%	Compound annual growth of operating income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EBITDA growth, 1y	25.9%	EBITDA vs the same period a year earlier. Only from a positive base.
EBITDA CAGR, 3y	24.0%	Compound annual growth of ebitda over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EBITDA CAGR, 5y	19.1%	Compound annual growth of ebitda over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Net income growth, 1y	31.3%	Net income vs the same period a year earlier. Only from a positive base.
Net income CAGR, 3y	22.7%	Compound annual growth of net income over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Net income CAGR, 5y	16.9%	Compound annual growth of net income over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
EPS growth, 1y	31.6%	EPS vs the same period a year earlier. Only from a positive base.
EPS CAGR, 3y	22.9%	Compound annual growth of eps over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
EPS CAGR, 5y	17.4%	Compound annual growth of eps over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Operating cash flow growth, 1y	34.4%	Operating cash flow vs the same period a year earlier. Only from a positive base.
Operating cash flow CAGR, 3y	27.8%	Compound annual growth of operating cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Operating cash flow CAGR, 5y	19.0%	Compound annual growth of operating cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Free cash flow growth, 1y	-6.5%	Free cash flow vs the same period a year earlier. Only from a positive base.
Free cash flow CAGR, 3y	4.0%	Compound annual growth of free cash flow over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Free cash flow CAGR, 5y	3.6%	Compound annual growth of free cash flow over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Dividend per share growth, 1y	9.6%	Dividend per share vs the same period a year earlier. Only from a positive base.
Dividend per share CAGR, 3y	10.2%	Compound annual growth of dividend per share over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Dividend per share CAGR, 5y	10.2%	Compound annual growth of dividend per share over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Book value growth, 1y	28.8%	Book value vs the same period a year earlier. Only from a positive base.
Book value CAGR, 3y	29.0%	Compound annual growth of book value over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Book value CAGR, 5y	25.5%	Compound annual growth of book value over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Total assets growth, 1y	22.5%	Total assets vs the same period a year earlier. Only from a positive base.
Total assets CAGR, 3y	22.6%	Compound annual growth of total assets over 3 fiscal years: (end / start)^(1/3) - 1. Only when both values are positive.
Total assets CAGR, 5y	17.8%	Compound annual growth of total assets over 5 fiscal years: (end / start)^(1/5) - 1. Only when both values are positive.
Share count change, 1y	-0.2%	Change in diluted weighted shares vs a year earlier. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 3y	-0.1%	Change in diluted weighted shares, per year over 3 years. Negative means buybacks shrank the share count; positive means dilution.
Share count change per year, 5y	-0.4%	Change in diluted weighted shares, per year over 5 years. Negative means buybacks shrank the share count; positive means dilution.

Balance sheet health

Metric	Value	How it is calculated
Current ratio	1.23x	Current assets / current liabilities.
Quick ratio	0.93x	(Cash + short-term investments + receivables) / current liabilities.
Cash ratio	0.46x	(Cash + short-term investments) / current liabilities.
Debt / equity	0.09x	Total debt / shareholders' equity. Not shown when equity is negative.
Debt / assets	5.3%	Total debt / total assets.
Liabilities / assets	41.7%	Total liabilities / total assets.
Net debt	-$36.55B	Total debt - cash - short-term investments. Negative means more cash than debt.
Net debt / EBITDA	-0.19x	Net debt / EBITDA (twelve months), when EBITDA is positive.
Interest coverage	50.9x	Operating income / interest expense.
Working capital	$38.89B	Current assets - current liabilities.
Goodwill and intangibles / assets	18.2%	(Goodwill + intangible assets) / total assets.
Tangible book value	$304.13B	Shareholders' equity - goodwill - intangible assets.

Efficiency

Metric	Value	How it is calculated
Asset turnover	0.48x	Revenue / average total assets.
Fixed asset turnover	1.28x	Revenue / average property, plant and equipment.
Inventory turnover	91.1x	Cost of revenue / average inventory.
Days inventory	4 days	365 x average inventory / cost of revenue.
Receivables turnover	4.40x	Revenue / average receivables.
Days sales outstanding	83 days	365 x average receivables / revenue.
Days payables	120 days	365 x average accounts payable / cost of revenue.
Cash conversion cycle	-33 days	Days inventory + days sales outstanding - days payables.
FCF conversion	50.1%	Free cash flow / net income, when net income is positive.
Capex / operating cash flow	63.4%	Capital expenditures / cash from operations, when that is positive.

Per share

Metric	Value	How it is calculated
EPS, diluted	$17.95	Net income per diluted share, as reported (split-adjusted). Over the last twelve months: the four quarters summed, or net income / latest diluted shares when a quarter has no reported EPS.
EPS, basic	$18.00	Net income per basic share, as reported (split-adjusted).
Revenue per share	$44.52	Revenue / diluted weighted shares.
FCF per share	$8.99	Free cash flow / diluted weighted shares.
Operating cash flow per share	$24.55	Cash from operations / diluted weighted shares.
Book value per share	$59.56	Shareholders' equity / shares outstanding (diluted weighted shares when not reported).
Tangible book per share	$40.95	Tangible book value / shares outstanding.
Cash per share	$10.35	(Cash + short-term investments) / shares outstanding.
Dividend per share	$3.64	Dividend declared per common share (paid, when declared is not tagged).
Payout ratio	19.8%	Dividends paid / net income, when net income is positive.
Dividends / FCF	39.5%	Dividends paid / free cash flow, when free cash flow is positive.
Buybacks / FCF	33.2%	Share buybacks / free cash flow, when free cash flow is positive.

Valuation

Metric	Value	How it is calculated
Market cap	$3.83T	Share price x shares outstanding.
Enterprise value	$3.80T	Market cap + total debt - cash - short-term investments.
P/E	28.7x	Market cap / net income. Only when net income is positive.
P/S	11.6x	Market cap / revenue.
P/B	8.66x	Market cap / shareholders' equity. Only when equity is positive.
Price / tangible book	12.6x	Market cap / tangible book value, when positive.
P/FCF	57.2x	Market cap / free cash flow. Only when free cash flow is positive.
P/OCF	21.0x	Market cap / cash from operations, when positive.
EV/Sales	11.4x	Enterprise value / revenue.
EV/EBIT	24.5x	Enterprise value / operating income, when both are positive.
EV/EBITDA	20.0x	Enterprise value / EBITDA, when both are positive.
EV/FCF	56.7x	Enterprise value / free cash flow, when both are positive.
FCF yield	1.7%	Free cash flow / market cap.
Earnings yield	3.5%	Net income / market cap (the inverse of P/E).
Dividend yield	0.7%	Dividends paid over the period / market cap.
Shareholder yield	1.3%	(Dividends paid + share buybacks) / market cap.
PEG	1.25x	P/E / EPS growth per year over 3 years (in percent). Only when both are positive.

What was MICROSOFT CORP's revenue in fiscal 2026?

MICROSOFT CORP reported revenue of $331.84B for fiscal 2026, 17.8% higher than the year before.

Was MICROSOFT CORP profitable in fiscal 2026?

Yes. Net income was $133.75B, a net margin of 40.3%.

How much free cash flow did MICROSOFT CORP generate in fiscal 2026?

Cash from operations of $182.94B minus capital expenditures of $115.95B left free cash flow of $66.99B.

Source: SEC EDGAR XBRL company facts. Where a company tags only year-to-date figures, quarters are worked out as differences. Where a line is not tagged it is left empty, never estimated.

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