$MSFT

MICROSOFT CORP

CIK:0000789019|SEC Filings

INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2024
Revenue	$ 331,839	$ 281,724	$ 245,122
Cost of revenue	106,374	87,831	74,114
Gross margin	225,465	193,893	171,008
Research and development	35,562	32,488	29,510
Sales and marketing	26,710	25,654	24,456
General and administrative	7,956	7,223	7,609
Operating income	155,237	128,528	109,433
Other income (expense), net	10,697	(4,901)	(1,646)
Income before income taxes	165,934	123,627	107,787
Provision for income taxes	32,185	21,795	19,651
Net income	$ 133,749	$ 101,832	$ 88,136
Earnings per share:
Basic	$ 18.00	$ 13.70	$ 11.86
Diluted	$ 17.95	$ 13.64	$ 11.80
Weighted average shares outstanding:
Basic	7,429	7,433	7,431
Diluted	7,453	7,465	7,469
Product
Revenue	$ 64,696	$ 63,946	$ 64,773
Cost of revenue	12,098	13,501	15,272
Service and Other
Revenue	267,143	217,778	180,349
Cost of revenue	$ 94,276	$ 74,330	$ 58,842

CASH FLOWS STATEMENTS - USD ($) $ in Millions	12 Months Ended
CASH FLOWS STATEMENTS - USD ($) $ in Millions	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2024
Operations
Net income	$ 133,749	$ 101,832	$ 88,136
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other	38,534	29,433	20,958
Stock-based compensation expense	12,405	11,974	10,734
Net recognized losses (gains) on investments and derivatives	(11,047)	5,329	1,634
Deferred income taxes	14,189	(7,056)	(4,738)
Changes in operating assets and liabilities:
Accounts receivable	(12,737)	(10,581)	(7,191)
Inventories	(461)	309	1,284
Other current assets	(2,627)	(3,044)	(1,648)
Other long-term assets	(3,964)	(2,950)	(6,817)
Accounts payable	5,268	569	3,545
Unearned revenue	9,361	5,438	5,348
Income taxes	(1,875)	(38)	1,687
Other current liabilities	6,847	5,922	4,867
Other long-term liabilities	(4,707)	(975)	749
Net cash from operations	182,935	136,162	118,548
Financing
Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net	0	(5,746)	5,250
Proceeds from issuance of debt	0	0	24,395
Repayments of debt	(3,000)	(3,216)	(29,070)
Common stock issued	2,009	2,056	2,002
Common stock repurchased	(22,271)	(18,420)	(17,254)
Common stock cash dividends paid	(26,445)	(24,082)	(21,771)
Other, net	(2,839)	(2,291)	(1,309)
Net cash used in financing	(52,546)	(51,699)	(37,757)
Investing
Additions to property and equipment	(115,948)	(64,551)	(44,477)
Acquisition of companies, net of cash acquired and divestitures, and purchases of intangible and other assets	(1,743)	(5,978)	(69,132)
Purchases of investments	(58,351)	(29,775)	(17,732)
Maturities of investments	34,605	16,079	24,775
Sales of investments	21,798	9,309	10,894
Other, net	(19,861)	2,317	(1,298)
Net cash used in investing	(139,500)	(72,599)	(96,970)
Effect of foreign exchange rates on cash and cash equivalents	(196)	63	(210)
Net change in cash and cash equivalents	(9,307)	11,927	(16,389)
Cash and cash equivalents, beginning of period	30,242	18,315	34,704
Cash and cash equivalents, end of period	$ 20,935	$ 30,242	$ 18,315

BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2026	Jun. 30, 2025
Current assets:
Cash and cash equivalents	$ 20,935	$ 30,242
Short-term investments	55,908	64,323
Total cash, cash equivalents, and short-term investments	76,843	94,565
Accounts receivable, net of allowance for doubtful accounts of $1,040 and $944	80,876	69,905
Inventories	1,397	938
Other current assets	48,594	25,723
Total current assets	207,710	191,131
Property and equipment, net of accumulated depreciation of $118,691 and $93,653	313,076	204,966
Operating lease right-of-use assets	24,177	24,823
Equity and other investments	36,348	15,405
Goodwill	119,651	119,509
Intangible assets, net	18,609	22,604
Other long-term assets	38,805	40,565
Total assets	758,376	619,003
Current liabilities:
Accounts payable	42,416	27,724
Current portion of long-term debt	9,227	2,999
Accrued compensation	14,945	13,709
Short-term income taxes	2,534	7,211
Short-term unearned revenue	72,965	64,555
Other current liabilities	26,738	25,020
Total current liabilities	168,825	141,218
Long-term debt	31,067	40,152
Long-term income taxes	28,647	25,986
Long-term unearned revenue	2,747	2,710
Deferred income taxes	3,054	2,835
Operating lease liabilities	16,532	17,437
Other long-term liabilities	65,117	45,186
Total liabilities	315,989	275,524
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital - shares authorized 24,000; outstanding 7,427 and 7,434	117,406	109,095
Retained earnings	328,265	237,731
Accumulated other comprehensive loss	(3,284)	(3,347)
Total stockholders’ equity	442,387	343,479
Total liabilities and stockholders’ equity	$ 758,376	$ 619,003