| Income statement | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue | $281.72B | $245.12B | $211.91B | $198.27B | $168.09B | $143.01B |
| Cost of revenue | $87.83B | $74.11B | $65.86B | $62.65B | $52.23B | $46.08B |
| Gross profit | $193.89B | $171.01B | $146.05B | $135.62B | $115.86B | $96.94B |
| Gross margin | 68.8% | 69.8% | 68.9% | 68.4% | 68.9% | 67.8% |
| R&D | $32.49B | $29.51B | $27.20B | $24.51B | $20.72B | $19.27B |
| Operating income | $128.53B | $109.43B | $88.52B | $83.38B | $69.92B | $52.96B |
| Operating margin | 45.6% | 44.6% | 41.8% | 42.1% | 41.6% | 37.0% |
| Pretax income | $123.63B | $107.79B | $89.31B | $83.72B | $71.10B | $53.04B |
| Income tax | $21.80B | $19.65B | $16.95B | $10.98B | $9.83B | $8.76B |
| Net income | $101.83B | $88.14B | $72.36B | $72.74B | $61.27B | $44.28B |
| Net margin | 36.1% | 36.0% | 34.1% | 36.7% | 36.5% | 31.0% |
| EPS (diluted) | $13.64 | $11.80 | $9.68 | $9.65 | $8.05 | $5.76 |
| EPS (basic) | $13.70 | $11.86 | $9.72 | $9.70 | $8.12 | $5.82 |
| Shares (diluted) | 7.46B | 7.47B | 7.47B | 7.54B | 7.61B | 7.68B |
| Shares (basic) | 7.43B | 7.43B | 7.45B | 7.50B | 7.55B | 7.61B |
| Balance sheet | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Total assets | $619.00B | $512.16B | $411.98B | $364.84B | $333.78B | $301.31B |
| Cash & equivalents | $30.24B | $18.32B | $34.70B | $13.93B | $14.22B | $13.58B |
| Total liabilities | $275.52B | $243.69B | $205.75B | $198.30B | $191.79B | $183.01B |
| Stockholders' equity | $343.48B | $268.48B | $206.22B | $166.54B | $141.99B | $118.30B |
| Cash flow | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Operating cash flow | $136.16B | $118.55B | $87.58B | $89.03B | $76.74B | $60.67B |
| Capital expenditure | $64.55B | $44.48B | $28.11B | $23.89B | $20.62B | $15.44B |
| Free cash flow | $71.61B | $74.07B | $59.48B | $65.15B | $56.12B | $45.23B |
| Profitability | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Gross margin | 68.8% | 69.8% | 68.9% | 68.4% | 68.9% | 67.8% |
| Operating margin | 45.6% | 44.6% | 41.8% | 42.1% | 41.6% | 37.0% |
| EBITDA margin | 45.6% | 44.6% | 41.8% | 42.1% | 41.6% | 37.0% |
| Net margin | 36.1% | 36.0% | 34.1% | 36.7% | 36.5% | 31.0% |
| Returns | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Return on equity | 29.6% | 32.8% | 35.1% | 43.7% | 43.2% | 37.4% |
| Return on assets | 16.5% | 17.2% | 17.6% | 19.9% | 18.4% | 14.7% |
| Return on invested capital | 26.3% | 27.2% | 30.4% | 33.3% | 30.4% | 24.9% |
| Return on capital employed | 26.9% | 28.3% | 28.8% | 30.9% | 28.5% | 23.1% |
| Liquidity | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Current ratio | 1.35 | 1.27 | 1.77 | 1.78 | 2.08 | 2.52 |
| Quick ratio | 1.35 | 1.27 | 1.75 | 1.75 | 2.05 | 2.49 |
| Cash ratio | 0.21 | 0.15 | 0.33 | 0.15 | 0.16 | 0.19 |
| Working capital | $49.91B | $34.45B | $80.11B | $74.60B | $95.75B | $109.61B |
| Leverage | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Debt to equity | 0.26 | 0.29 | 0.31 | 0.39 | 0.50 | 0.62 |
| Debt to assets | 0.14 | 0.15 | 0.16 | 0.18 | 0.21 | 0.24 |
| Net debt | $59.08B | $60.46B | $29.60B | $50.75B | $56.46B | $59.25B |
| Net debt / EBITDA | 0.46 | 0.55 | 0.33 | 0.61 | 0.81 | 1.12 |
| Interest coverage | 53.9× | 37.3× | 45.0× | 40.4× | 29.8× | 20.4× |
| Financial leverage | 1.80 | 1.91 | 2.00 | 2.19 | 2.35 | 2.55 |
| Efficiency | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Asset turnover | 0.46 | 0.48 | 0.51 | 0.54 | 0.50 | 0.47 |
| Inventory turnover | 93.64 | 59.48 | 26.35 | 16.74 | 19.81 | 24.32 |
| Receivables turnover | 4.03 | 4.31 | 4.35 | 4.48 | 4.42 | 4.47 |
| Days sales outstanding | 91 days | 85 days | 84 days | 81 days | 83 days | 82 days |
| Days inventory outstanding | 4 days | 6 days | 14 days | 22 days | 18 days | 15 days |
| Days payables outstanding | 115 days | 108 days | 100 days | 111 days | 106 days | 99 days |
| Cash flow | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Free cash flow | $71.61B | $74.07B | $59.48B | $65.15B | $56.12B | $45.23B |
| Free cash flow margin | 25.4% | 30.2% | 28.1% | 32.9% | 33.4% | 31.6% |
| Income quality (CFO / net income) | 1.34 | 1.35 | 1.21 | 1.22 | 1.25 | 1.37 |
| Capex to revenue | 22.9% | 18.1% | 13.3% | 12.0% | 12.3% | 10.8% |
| Per share | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue per share | $37.90 | $32.99 | $28.46 | $26.45 | $22.27 | $18.79 |
| Book value per share | $46.21 | $36.13 | $27.70 | $22.22 | $18.81 | $15.55 |
| Cash per share | $4.07 | $2.46 | $4.66 | $1.86 | $1.88 | $1.78 |
| Free cash flow per share | $9.63 | $9.97 | $7.99 | $8.69 | $7.44 | $5.94 |
| Growth | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 |
|---|---|---|---|---|---|---|
| Revenue growth (YoY) | 14.9% | 15.7% | 6.9% | 18.0% | 17.5% | — |
| Net income growth (YoY) | 15.5% | 21.8% | -0.5% | 18.7% | 38.4% | — |
| EPS growth (YoY) | 15.5% | 22.0% | 0.2% | 19.5% | 39.5% | — |
Microsoft Corporation is a global technology company whose business spans cloud infrastructure, productivity software, developer tooling, operating systems, gaming, and AI products and services. The business reports across three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. Intelligent Cloud, which includes Azure, has been the largest engine of growth since the company's strategic pivot toward cloud and AI under Satya Nadella's tenure as CEO.
Azure is one of the three global hyperscale cloud platforms, alongside AWS and Google Cloud. Microsoft has positioned Azure as the canonical infrastructure layer for AI workloads, including through a structural multi-year partnership and equity relationship with OpenAI that gives Azure preferred-supplier status for OpenAI compute. Azure operates one of the world's largest deployments of NVIDIA GPUs, with multi-million-GPU build-outs of Blackwell and Vera Rubin generations contracted across multiple years. Microsoft has also developed in-house AI silicon (Maia accelerator, Cobalt Arm-based CPU) to complement merchant GPUs and reduce structural dependence on NVIDIA.
The Productivity and Business Processes segment is built around Microsoft 365 (Word, Excel, PowerPoint, Teams, Outlook), Dynamics 365 (CRM and ERP), and LinkedIn. Copilot, the company's generative-AI assistant brand, is deeply integrated across these surfaces and licensed as a paid premium tier to enterprises. GitHub, acquired in 2018 for $7.5 billion, sits within this segment and includes GitHub Copilot, one of the most widely adopted AI coding assistants in the developer ecosystem.
More Personal Computing covers Windows (desktop and Surface), search and advertising (Bing, with Copilot integration), and gaming (Xbox hardware, Game Pass, and the studios acquired from Activision Blizzard in the $69 billion 2023 transaction). Gaming is the largest gross-revenue category within the segment, with Game Pass providing recurring subscription revenue across console, PC, and cloud-streamed deployments.
Microsoft's AI strategy is fundamentally a platform strategy. Rather than positioning as a single-model AI lab, Microsoft has built a stack that combines partnership access to OpenAI's frontier models, in-house first-party models (Phi family for small-form-factor inference), Azure's infrastructure layer, Copilot products across productivity, GitHub, and Bing, and developer tooling through Azure AI Foundry. The strategy positions Microsoft to monetize AI across the full layer cake from infrastructure to applications.
The company's relationship with OpenAI is structurally consequential. Microsoft has invested billions of dollars into OpenAI across multiple funding rounds, holds preferential Azure compute supply rights, and integrates OpenAI models throughout Copilot products. The partnership has periods of stated tension and reorganization, but the structural ties (capital, compute, distribution) remain central to both companies' positioning in the AI cycle.
Microsoft maintains a robust balance sheet, generates substantial free cash flow, and returns capital through both buybacks and dividends. The capital allocation profile balances AI infrastructure capex, M&A (Activision, Nuance, LinkedIn, GitHub), and shareholder returns.
Harvard dropout who co-founded Microsoft in 1975 with childhood friend Paul Allen. Served as CEO until 2000 and as Chairman until 2014, departed the board entirely in 2020 to focus on the Bill and Melinda Gates Foundation.
Co-founded Microsoft with Bill Gates in 1975. Left active operations at Microsoft in 1983 after a cancer diagnosis. Continued as a major investor and technologist through Vulcan Inc. until his death in 2018.
Microsoft's customer base spans nearly every segment of the technology economy. Enterprise is the largest by revenue: Fortune 500 companies and large public-sector organizations license Microsoft 365, Dynamics, GitHub, and Azure across multi-year enterprise agreements. AI labs and AI-native startups deploy on Azure under preferential pricing programs, with OpenAI as the anchor reference customer. Developers consume GitHub, Visual Studio, Azure AI Foundry, and other developer-platform products through paid and free tiers. Small and medium businesses license Microsoft 365 and Dynamics through reseller channels. Consumers buy Windows licenses (typically bundled with OEM hardware), Xbox consoles and games, Surface devices, and Game Pass subscriptions. Governments at every level are major Azure customers, particularly for cloud workloads requiring U.S. government cloud regions or sovereign cloud deployments.
| Date | Insider | Role | Type | Shares | Price | Value |
|---|---|---|---|---|---|---|
| Jun 15, 2026 | Jolla Alice L. | Chief Accounting Officer | Grant | 5,004 | — | — |
| Jun 15, 2026 | Coleman Amy | EVP, Chief Human Resources Off | Tax withholding | 36 | $390.74 | $14,043 |
| Jun 11, 2026 | Walmsley Emma N | Director | Grant | 3 | — | — |
| Jun 11, 2026 | Rainey John D | Director | Grant | 1 | — | — |
| Jun 11, 2026 | Mason Mark | Director | Grant | 1 | — | — |
| Jun 11, 2026 | Peterson Sandra E | Director | Grant | 61 | — | — |
| Jun 11, 2026 | Macgregor Catherine | Director | Grant | 5 | — | — |
| Jun 11, 2026 | List Teri | Director | Grant | 54 | — | — |
| Jun 11, 2026 | Johnston Hugh F | Director | Grant | 5 | — | — |
| Jun 11, 2026 | Di Sibio Carmine | Director | Grant | 0 | — | — |
| Jun 11, 2026 | Hoffman Reid | Director | Grant | 39 | — | — |
| Jun 11, 2026 | Pritzker Penny S | Director | Grant | 33 | — | — |
| Jun 10, 2026 | Numoto Takeshi | EVP, Chief Marketing Officer | Sell | 4,500 | $402.84 | $2M |
| Jun 8, 2026 | Numoto Takeshi | EVP, Chief Marketing Officer | Sell | 2,500 | $412.45 | $1M |
| Jun 5, 2026 | Rainey John D | Director | Grant | 150 | — | — |
Source: SEC Form 4. Grants, gifts and option exercises show no market value.
744 institutional holders · $20.9B · 13F, Jun 2026
| Holder | Shares | Value |
|---|---|---|
| Assenagon Asset Management S.A. | 10,444,656 | $3.9B |
| Handelsbanken Fonder Ab | 3,811,080 | $1.4B |
| Pinestone Asset Management Inc. | 2,586,687 | $965M |
| Cardano Risk Management B.V. | 2,430,917 | $907M |
| Czech National Bank | 2,114,417 | $789M |
| Wellcome Trust Ltd (The) As Trustee Of The Wellcome Trust | 1,695,117 | $632M |
| Sarasin & Partners Llp | 1,519,029 | $567M |
| Pensiondanmark Pensionsforsikringsaktieselskab | 1,419,491 | $529M |
| Aegon Asset Management Uk Plc | 1,410,777 | $526M |
| Qrg Capital Management, Inc. | 1,280,983 | $478M |
| Davenport & Co Llc | 1,017,438 | $379M |
| Congress Asset Management Co | 815,323 | $304M |
| E. Ohman J:Or Asset Management Ab | 736,068 | $275M |
| Armstrong Henry H Associates Inc | 622,401 | $232M |
| Eastern Bank | 594,556 | $222M |
| Fisher Funds Management Ltd | 564,767 | $211M |
| Hyperion Asset Management Ltd | 524,265 | $196M |
| Quintet Private Bank (Europe) S.A. | 439,355 | $164M |
| Sapient Capital Llc | 438,394 | $164M |
| Riverbridge Partners Llc | 413,524 | $154M |
Source: SEC Form 13F (latest reported quarter; managers file up to 45 days after quarter-end).
What does Microsoft do?
Who founded Microsoft?
When did Microsoft go public?
What is Microsoft's relationship with OpenAI?
Who are Microsoft's main competitors?
What is Azure Maia?
How does Microsoft monetize AI?
Hyperscaler AI CapEx: $620B and Still Climbing
Five of the world's largest technology companies reported in the same week of April 2026, collectively disclosing or guiding toward more than $620 billion in 2026 capital expendit…
Microsoft Q3 FY2026: Azure Hits 40%, AI ARR Surpasses $37B as CapEx Ramp Tests Free Cash Flow
A broad beat on revenue and EPS masks a post-earnings stock decline driven by Q4 CapEx guidance above $40 billion and a Q4 revenue midpoint marginally below consensus — the tensio…
Q4 2025 Altimeter Capital: AI Infrastructure Reloaded, China Fully Exited, 8 Positions Closed
Brad Gerstner's Altimeter Capital ended 2025 with its most active quarter of portfolio reshaping in the trailing year — eliminating all China-linked exposure, near-fully exiting B…
Tiger Global Q4 2025: Mega-Cap Tech Dominates a Low-Turnover Portfolio
Chase Coleman's fund ended Q4 2025 with $29.71B across 54 disclosed positions, posting -4.55% on the quarter while outpacing the S&P 500 by ~6 percentage points over the trailing …
Coatue Management Q4 2025: 35 Position Cuts, Rotates Deeper Into Semiconductors
Philippe Laffont's $40B technology fund pruned its portfolio from roughly 75 to 52 holdings in Q4 2025, exiting CoreWeave, Intuit, Atlassian, and KKR while doubling down on semico…
Q4 2025 Institutional Convergence: AI Infrastructure Anchors Cross-Style Portfolios
Across 41 tracked discretionary funds, Amazon is the only stock held by managers from every category — Value, Activist, Growth, Macro, Multi-Strategy, and Asset Manager — while NV…
The AI Flywheel: Cloud Reacceleration at Scale
AWS, Azure, and Google Cloud all posted accelerating growth in Q4 2025 — simultaneously and across meaningfully different bases — with each management team signaling that AI deman…
ESET Finds 11 Microsoft-Signed UEFI Shims That Bypassed Secure Boot for Over a Decade
ESET researchers discovered 11 old Microsoft-signed UEFI shim bootloaders, some over a decade old, that could bypass Secure Boot on virtually any UEFI-based computer. Microsoft revoked the vulnerable binaries via its…
Microsoft Signs Capacity Deal at Pure DC's 550MW Finland Campus, $8.55B Buildout Planned
Pure Data Centres has signed Microsoft as the anchor tenant for its 550MW data center campus in Seinäjoki, Finland, with total investment projected at €7.5 billion ($8.55 billion). Phase 1 delivers 110MW for…
New York Enacts Nation's First Statewide Data Center Moratorium, Blocking Hyperscale AI Facilities for One Year
New York Governor Kathy Hochul signed Executive Order 62 on July 14, 2026, imposing the nation's first statewide moratorium on new hyperscale data centers for up to one year. The order blocks state environmental…
UK Treasury Designates AWS, Azure, Google Cloud, Oracle as Critical Third Parties Under Direct Oversight
HM Treasury has formally designated Amazon Web Services, Microsoft Azure, Google Cloud, and Oracle as Critical Third Parties to the UK financial system, effective July 13, 2026. The designation — the first under the…
White House Plans Expanded Ratepayer Pledge Bringing Utilities Into Data Center Cost Framework
The White House is preparing a new event in the coming weeks to expand its Ratepayer Protection Pledge, bringing utility companies and data center developers into the voluntary framework originally signed by seven…
Microsoft Cloud and AI Strength Fuels Third Quarter Results REDMOND, Wash.
Microsoft Cloud and AI Strength Drives Second Quarter Results REDMOND, Wash.
Microsoft Cloud and AI Strength Drives First Quarter Results REDMOND, Wash.
Microsoft Cloud and AI Strength Fuels Fourth Quarter Results REDMOND, Wash.
Microsoft Cloud and AI Strength Drives Third Quarter Results REDMOND, Wash.
Microsoft Cloud and AI Strength Drives Second Quarter Results REDMOND, Wash.
Contacts are a premium feature
Upgrade to MLQ.ai premium to search verified business contacts at Microsoft Corporation by department, seniority, and role.
Upgrade to premium