MICROSOFT CORPMSFT
MICROSOFT CORP Financial Overview 2021–2025
Microsoft posted $38.5 billion in net income in the second quarter of FY2026, a massive 60% year-over-year surge fueled by cloud momentum and significant investment gains from OpenAI. This performance validates the company’s central thesis: aggressive capital allocation into AI infrastructure is successfully transforming Azure into the primary operating system for the global economy. The long-term financial arc confirms this scale, as total annual revenue expanded from $168.1 billion in FY2021 to $281.7 billion in FY2025.
Execution remains precise, balancing high-growth investments with substantial cash generation. In the quarter ended December 2025, Azure and other cloud services revenue grew 39%, driving total Microsoft Cloud revenue to $51.5 billion. Despite heavy capital expenditures on data centers, the company grew full-year operating income 17% to $128.5 billion in FY2025 while returning $37.7 billion to shareholders via dividends and buybacks. Investors valued this compounding power at a $3.70 trillion market cap and 36.5x earnings at the close of FY2025.
Recent Developments (Q1 and Q2 2026)
Microsoft sustained double-digit top-line expansion through the first half of FY2026, reporting $77.7 billion in revenue for the first quarter and $81.3 billion for the second, representing 18% and 17% growth respectively. While the December period benefited from investment gains, the September quarter included a $4.1 billion net loss from the OpenAI partnership, highlighting volatility in equity method accounting. Commercial remaining performance obligations reached $392 billion in Q1 2026, providing substantial forward visibility. Additionally, shareholders approved a new 2026 Stock Plan to secure talent as R&D expenses rose 7% in the most recent quarter.
Bulls cite the massive backlog and 29% growth in the Intelligent Cloud segment as evidence of structural dominance. Bears caution that heavy AI infrastructure spending is compressing gross margins, while an ongoing IRS audit regarding transfer pricing creates regulatory uncertainty. The stock traded at 35.3x earnings as of late January 2026, reflecting premium growth expectations.
What to watch: Impact of AI infrastructure costs on gross margins; resolution of the IRS transfer pricing audit.
Rev
$281.72B
FY2025
NI
$101.83B
FY2025
EPS
$13.70
FY2025
OCF
$136.16B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
MICROSOFT CORP 8-K Report, Financial Results (Jan 28, 2026)
Microsoft Corporation (MSFT) has filed a Form 8-K to report its financial results for the fiscal quarter ended December 31, 2025. The company issued a press release on January 28, 2026, detailing these results, which is furnished as part of this filing. Investors should refer to Exhibit 99.1 for the complete press release and specific financial data. This filing indicates the company's performance during the crucial holiday quarter, and details within the press release will shed light on key revenue drivers, profitability, and any forward-looking statements or guidance provided by management. While the 8-K itself is a notification of the press release, the substance of the financial update lies within the furnished exhibit. Investors will want to scrutinize the revenue growth across Microsoft's various segments, including Intelligent Cloud, Productivity and Business Processes, and More Personal Computing. Attention should also be paid to profitability metrics such as gross margins and operating income, as well as earnings per share. Any commentary on future performance, strategic initiatives, or significant business developments will be crucial for assessing the company's ongoing trajectory and potential investment value.
MICROSOFT CORP 8-K Report, Executive Changes (Dec 8, 2025)
Microsoft Corporation (MSFT) has filed an 8-K report detailing the outcomes of its 2025 Annual Shareholders Meeting held on December 5, 2025. The most significant development for investors is the overwhelming approval of the new "2026 Stock Plan," which will replace the existing 2017 plan. This plan is crucial for the company's ability to attract and retain talent, particularly in key areas like artificial intelligence, and its approval indicates shareholder confidence in management's compensation and equity-based incentive strategies. Furthermore, shareholders re-elected all 12 director nominees with strong support, demonstrating continued confidence in the board's oversight and strategic direction. The appointment of Deloitte & Touche LLP as the independent registered public accounting firm for fiscal year 2026 was also ratified with substantial approval. While most shareholder proposals, particularly those related to AI risks and human rights, did not pass, the robust approval of management-backed proposals highlights a generally supportive shareholder base for the company's current leadership and operational strategies.
MICROSOFT CORP 8-K Report, Financial Results (Oct 29, 2025)
Microsoft Corporation (MSFT) has filed an 8-K report on October 28, 2025, detailing its financial results for the fiscal quarter ended September 30, 2025, and providing updates on strategic initiatives. The company issued a press release on October 29, 2025, which is furnished as an exhibit, alongside an investor presentation with the same date, offering key financial and operational performance details for the first quarter of fiscal year 2026. Beyond financial reporting, Microsoft also disclosed significant strategic developments, notably a blog post on October 28, 2025, addressing "The next chapter of the Microsoft-OpenAI partnership." This suggests ongoing and evolving collaboration with OpenAI, which is likely to be a key area of focus for investors due to its implications for AI advancements and future product roadmaps. Investors should review the furnished press release and investor presentation for comprehensive financial metrics and strategic outlooks.
MICROSOFT CORP 8-K Report, Executive Changes (Sep 30, 2025)
Microsoft Corporation (MSFT) has filed a Current Report on Form 8-K to disclose the upcoming departure of a key board member. Carlos A. Rodriguez, a director on the Company's Board, has informed the Company of his decision not to seek re-election at the upcoming 2025 annual shareholder meeting. Mr. Rodriguez will continue in his role until the meeting concludes, ensuring a smooth transition. This departure is attributed to personal reasons and is explicitly stated to be unrelated to any disagreements with management regarding the company's operations, policies, or practices. Mr. Rodriguez has served as a director and held significant roles, including Chair of the Compensation Committee and a member of the Audit Committee, making his tenure noteworthy. The Company has expressed gratitude for his contributions.
MICROSOFT CORP 8-K Report, Financial Results (Jul 30, 2025)
Microsoft Corporation (MSFT) has filed an 8-K report on July 29, 2025, to announce its financial results for the fiscal quarter and year ended June 30, 2025. The company issued a press release on July 30, 2025, detailing these results, which is furnished as an exhibit to this filing. Investors should refer to this press release for comprehensive details on the company's performance during the period. This filing is primarily informational, serving to officially announce the release of the company's earnings. While the 8-K itself does not contain the detailed financial figures, it directs stakeholders to the accompanying press release (Exhibit 99.1) for such information. This is standard procedure for companies to promptly inform the market of their financial outcomes. Investors seeking a deep dive into revenue, profitability, segment performance, and forward-looking guidance should consult the full press release furnished with this 8-K.
View all 8-K filings →