MICROSOFT CORPMSFT
MICROSOFT CORP Financial Overview 2021–2025
Updated Jul 10, 2026Microsoft's net income surged 60% to $38.5 billion in Q2 2026, driven by massive gains from its OpenAI investment that offset escalating artificial intelligence infrastructure costs. The software giant has effectively transformed into a dedicated AI and cloud infrastructure powerhouse, leveraging immense capital advantages to lock in enterprise technology budgets.
This shift is evident across its long-term trajectory, as total revenue grew from $168.1 billion in FY2021 to $281.7 billion in FY2025. The core growth engine rapidly accelerated over this period, pushing Microsoft Cloud revenue to $168.9 billion in FY2025—a 23% increase fueled by a 34% surge in Azure and other cloud services. To sustain this momentum, the company is spending heavily on compute capacity, which compressed profitability to a 69% cloud gross margin in Q3 2025. Despite these capital outlays, the business remains a cash engine, returning $24.7 billion in dividends and $13.0 billion via share repurchases in FY2025.
The market has richly rewarded this AI-driven transition. At the close of FY2025, Microsoft traded at 36.5x earnings with a share price of $497.41. This multiple commanded a $3.70 trillion market cap, reflecting deep investor confidence in a commercial pipeline that featured a $392 billion remaining performance obligation by Q1 2026.
Recent Developments (Q2 and Q3 2026)
Microsoft maintained rapid top-line expansion through Q3 2026, with total revenue rising 18% year-over-year to $82.9 billion. This growth was spearheaded by the Intelligent Cloud segment, which surged 30% to $34.7 billion. Broader Microsoft Cloud revenue accelerated to $54.5 billion, representing a 29% increase, while the More Personal Computing unit experienced a 1% revenue decline. At the board level, Carmine Di Sibio joined the audit and compensation committees on May 13, 2026, while long-time director Reid Hoffman announced his departure ahead of the 2026 Annual Meeting.
Bulls argue the stock presents a compelling entry point at 31.1x earnings as of the April 29, 2026 report date, given the sustained double-digit cloud expansion. Bears warn that escalating artificial intelligence infrastructure costs and growing compute usage are continuously pressuring gross margins across core business lines.
What to watch: gross margin compression from ongoing artificial intelligence infrastructure outlays; developments in the pending 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
All MSFT Financial Metrics(58)
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Recent SEC Filings
MICROSOFT CORP 8-K Report, Regulation FD Disclosure (Sep 2, 2026)
Microsoft Corporation announced a significant organizational change effective fiscal year 2027, which will alter how the company reports its financial performance. The company is transitioning to a new reporting structure with two primary segments: 'Agents and Infra' and 'Devices and Consumer'. This move is intended to provide investors with a clearer view of performance within these redefined operational areas. The presentation materials detailing these changes and historical data on the new segment basis have been made available on the Investor Relations website.
MICROSOFT CORP 8-K Report, Financial Results (Jul 29, 2026)
Microsoft Corporation (MSFT) has filed an 8-K report on July 29, 2026, to announce its financial results for the fiscal quarter and year ended June 30, 2026. The primary purpose of this filing is to furnish a press release containing these key financial details, as detailed in Item 2.02 of the report. Investors should note that while this information provides timely updates, it is furnished and not formally "filed" under Section 18 of the Exchange Act, meaning it does not carry the same legal liability. However, it remains a crucial source for understanding the company's recent performance.
MICROSOFT CORP 8-K Report, Executive Changes (Jun 5, 2026)
Microsoft Corporation (MSFT) has filed an 8-K report detailing the upcoming departure of a key board member, Reid Hoffman. Mr. Hoffman, who has served on the Board of Directors since 2017, has informed the company of his decision not to seek re-election at the upcoming 2026 annual shareholder meeting. This transition marks the end of his tenure, though he will continue to serve until the meeting concludes. Importantly, the company explicitly states that Mr. Hoffman's decision is not due to any disagreements with management regarding the company's operations, policies, or practices, providing reassurance to investors about internal stability.
MICROSOFT CORP 8-K Report, Executive Changes (May 14, 2026)
Microsoft Corporation (MSFT) announced a significant addition to its Board of Directors with the appointment of Carmine Di Sibio, effective May 13, 2026. Mr. Di Sibio's appointment brings valuable experience to the board, and he will immediately contribute to key governance functions by serving on both the Audit Committee and the Compensation Committee. This strategic move suggests the board is looking to leverage his expertise in critical areas of financial oversight and executive remuneration.
MICROSOFT CORP 8-K Report, Financial Results (Apr 29, 2026)
Microsoft Corporation (MSFT) has filed a Current Report on Form 8-K dated April 29, 2026, primarily to announce its financial results for the fiscal quarter ended March 31, 2026. The report directs investors to a press release, furnished as Exhibit 99.1, for the detailed financial performance. While the full financial details are within the press release, this 8-K serves as the official notification of their release to the market. Investors should refer to the press release (Exhibit 99.1) for specific figures regarding revenue, net income, earnings per share, and segment performance. This filing confirms that Microsoft has met its obligation to disclose quarterly financial information, allowing stakeholders to assess the company's recent operational and financial health. The company emphasizes that the information furnished in this report, including the press release, is not considered "filed" for the purposes of certain SEC regulations, thereby limiting liability under specific sections of the Exchange Act, unless expressly incorporated into other filings.
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