Business Description

Microsoft Corporation is a multinational technology company that develops, licenses, and supports software, services, devices, and solutions. The company is best known for its Windows operating systems, the Microsoft 365 productivity suite, and the Azure cloud computing platform.

Financial Statements

In thousands, USD
FY 2025FY 2024FY 2023FY 2022
Total Revenues281,724,000245,122,000211,915,000198,270,000
Cost of Sales87,831,00074,114,00065,863,00062,650,000
Gross Profit193,893,000171,008,000146,052,000135,620,000
Selling, General & Administrative Expenses32,877,00032,065,00030,334,00027,725,000
Research & Development Expenses32,488,00029,510,00027,195,00024,512,000
Operating Profit128,528,000109,433,00088,523,00083,383,000
Non-Operating Income(4,901,000)(1,646,000)788,000333,000
Total Non-Operating Income(4,901,000)(1,646,000)788,000333,000
Income Before Provision for Income Taxes123,627,000107,787,00089,311,00083,716,000
Provision for Income Taxes21,795,00019,651,00016,950,00010,978,000
Consolidated Net Income101,832,00088,136,00072,361,00072,738,000
Net Income Attributable to Common Shareholders101,832,00088,136,00072,361,00072,738,000
Basic EPS13.7011.869.729.70
Diluted EPS13.6411.809.689.65
Basic Weighted Average Shares Outstanding7,433,0007,431,0007,446,0007,496,000
Diluted Weighted Average Shares Outstanding7,465,0007,469,0007,472,0007,540,000
Shares Outstanding7,434,0007,434,0007,432,0007,464,000
FY 2025FY 2024FY 2023FY 2022
Cash and Cash Equivalents30,242,00018,315,00034,704,00013,931,000
Short-Term Investments64,323,00057,228,00076,558,00090,826,000
Total Cash and Cash Equivalents94,565,00075,543,000111,262,000104,757,000
Accounts Receivable69,905,00056,924,00048,688,00044,261,000
Total Trade Receivables69,905,00056,924,00048,688,00044,261,000
Inventories938,0001,246,0002,500,0003,742,000
Other Current Assets25,723,00026,021,00021,807,00016,924,000
Total Current Assets191,131,000159,734,000184,257,000169,684,000
Net Property, Plant & Equipment229,789,000154,552,000109,987,00087,546,000
Net Intangible Assets22,604,00027,597,0009,366,00011,298,000
Goodwill119,509,000119,220,00067,886,00067,524,000
Long-Term Investments15,405,00014,600,0009,879,0006,891,000
Other Long-Term Assets40,565,00036,460,00030,601,00021,897,000
Total Assets619,003,000512,163,000411,976,000364,840,000
Accounts Payable27,724,00021,996,00018,095,00019,000,000
Accrued Expenses13,709,00012,564,00011,009,00010,661,000
Short-Term Debt6,693,0000
Current Portion of Long-Term Debt2,999,0002,249,0005,247,0002,749,000
Unearned Revenue64,555,00057,582,00050,901,00045,538,000
Other Current Liabilities32,231,00024,202,00018,897,00017,134,000
Total Current Liabilities141,218,000125,286,000104,149,00095,082,000
Long-Term Debt40,152,00042,688,00041,990,00047,032,000
Leases17,437,00015,497,00012,728,00011,489,000
Other Long-Term Liabilities76,717,00060,215,00046,886,00044,695,000
Total Long-Term Liabilities134,306,000118,400,000101,604,000103,216,000
Total Liabilities275,524,000243,686,000205,753,000198,298,000
Common Stock109,095,000100,923,00093,718,00086,939,000
Accumulated Other Comprehensive Income(3,347,000)(5,590,000)(6,343,000)(4,678,000)
Retained Earnings237,731,000173,144,000118,848,00084,281,000
Total Common Shareholders' Equity343,479,000268,477,000206,223,000166,542,000
Total Shareholders' Equity343,479,000268,477,000206,223,000166,542,000
Total Liabilities and Shareholders' Equity619,003,000512,163,000411,976,000364,840,000
FY 2025FY 2024FY 2023FY 2022
Net Income101,832,00088,136,00072,361,00072,738,000
Depreciation & Amortization34,153,00022,287,00013,861,00014,460,000
Share-Based Compensation Expense11,974,00010,734,0009,611,0007,502,000
Other Adjustments(6,447,000)(4,433,000)(5,863,000)(6,111,000)
Changes in Trade Receivables(10,581,000)(7,191,000)(4,087,000)(6,834,000)
Changes in Inventories309,0001,284,0001,242,000(1,123,000)
Changes in Accounts Payable569,0003,545,000(2,721,000)2,943,000
Changes in Income Taxes Payable(38,000)1,687,000(358,000)696,000
Changes in Unearned Revenue5,438,0005,348,0005,535,0005,109,000
Changes in Other Operating Activities(1,047,000)(2,849,000)(1,999,000)(345,000)
Cash from Operating Activities136,162,000118,548,00087,582,00089,035,000
Capital Expenditure(64,551,000)(44,477,000)(28,107,000)(23,886,000)
Purchases of Investments(29,775,000)(17,732,000)(37,651,000)(26,456,000)
Proceeds from Sale of Investments25,388,00035,669,00047,864,00044,894,000
Payments for Business Acquisitions(5,978,000)(69,132,000)(1,670,000)(22,038,000)
Other Investing Activities2,317,000(1,298,000)(3,116,000)(2,825,000)
Cash from Investing Activities(72,599,000)(96,970,000)(22,680,000)(30,311,000)
Issuance of Short-Term Debt(5,746,000)5,250,00000
Net Issuance / (Repayments) of Short-Term Debt(5,746,000)5,250,00000
Issuance of Long-Term Debt024,395,00000
Repayments of Long-Term Debt(3,216,000)(29,070,000)(2,750,000)(9,023,000)
Net Issuance / (Repayments) of Long-Term Debt(3,216,000)(4,675,000)(2,750,000)(9,023,000)
Issuance of Common Shares2,056,0002,002,0001,866,0001,841,000
Repurchases of Common Shares(18,420,000)(17,254,000)(22,245,000)(32,696,000)
Net Issuance / (Repurchases) of Common Shares(16,364,000)(15,252,000)(20,379,000)(30,855,000)
Common Share Dividends Paid(24,082,000)(21,771,000)(19,800,000)(18,135,000)
Other Financing Activities(2,291,000)(1,309,000)(1,006,000)(863,000)
Cash from Financing Activities(51,699,000)(37,757,000)(43,935,000)(58,876,000)
Effect of Exchange Rate Changes on Cash and Cash Equivalents63,000(210,000)(194,000)(141,000)
Increase / (Decrease) in Cash, Cash Equivalents and Restricted Cash11,927,000(16,389,000)20,773,000(293,000)

Key Metrics & Ratios

MetricValue
Market Cap$3697.75B
P/E36.47x
P/S13.13x
EV/EBITDA22.52x
Return on Equity33.3%
Return on Invested Capital26.7%
Current Ratio1.35x
Dividend Yield0.7%
Free Cash Flow Margin25.4%

Margins

Gross margin
68.8%
Operating margin
45.6%
Net margin
36.1%

Quarterly Trend

QuarterRevenueYoY growthOperating marginOperating income
Q3 2026 $82.89B +18.3% 46.3% $38.40B
Q2 2026 $81.27B +16.7% 47.1% $38.27B
Q1 2026 $77.67B +18.4% 48.9% $37.96B
Q4 2025 $76.44B +18.1% 44.9% $34.32B
Q3 2025 $70.07B 45.7% $32.00B
Q2 2025 $69.63B 45.5% $31.65B
Q1 2025 $65.58B 46.6% $30.55B
Q4 2024 $64.73B 43.1% $27.93B

More on Microsoft Corporation

Financial data last updated 2026-07-13. Figures compiled from public company filings.

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