# Microsoft Corp.: business model and financials

> Latest period: FY ending Jun 2026, consolidated, US GAAP
> Unit: USD millions
> Sources: Form 10-K (0001193125-26-323660)
> Page: https://vizora.meequs.com/en/company/microsoft
> Retrieved: 2026-09-30T20:57:52.418Z

## Company

| Field | Value |
| --- | ---: |
| Legal name | Microsoft Corp. |
| Ticker | MSFT |
| Stock price | View on Yahoo Finance (https://finance.yahoo.com/quote/MSFT) |
| Fiscal year end | June |
| Industries (Vizora) | — |

## Key points (generated from figures)

- Microsoft brought in $331.8B in revenue.
- Out of every $100 of sales, about $47 is left as operating profit.
- Revenue changed +17.8% from the prior year, operating profit +20.8%.

## Company structure

- Segment revenue mix: Segment revenue breakdown is not disclosed
- Revenue → net income: $331839000000 → $133749000000
- Net income → operating cash flow: $133749000000 → $182935000000（difference $49186000000）
- Main uses of operating cash flow: CapEx $115948000000 / dividends $26445000000 / buybacks $22271000000
- Change in cash: $-9307000000
Segment shares use total reported segment revenue, which may include inter-segment sales. The cash bridge is operating cash flow minus net income and combines non-cash items and working-capital effects.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | $331.8B |  |
| Operating income | $155.2B | Margin 46.8% |
| Net income | $133.7B | Margin 40.3% |
| Free cash flow | $67B |  |
| Cash ratio | 2.8% | Cash ÷ revenue 6.3% |
| ROE | 34.0% | Equity approximated |
| ROA | 19.4% | Derived from disclosed figures |

## Notable figures

- FY2026, operating income keeps 47 per ¥100 of revenue
- FY2026, cash is 3% of total assets

## What changed in 5 years

| Metric | FY ending Jun 2021 | FY ending Jun 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | $168088000000 | $331839000000 | +97.4% |
| Operating income | $69916000000 | $155237000000 | +122.0% |
| Operating margin | 41.6% | 46.8% | +5.2 pp |
| Cash and equivalents | $14224000000 | $20935000000 | +47.2% |

### Change in segment revenue mix

Span: FY ending Jun 2021 → FY ending Jun 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

## Income statement（FY ending Jun 2026, consolidated, US GAAP）

| Item | Amount (USD mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 331,839 | 100.0% | 0001193125-26-323660 |
| Cost of revenue | 106,374 | 32.1% | 0001193125-26-323660 |
| Gross profit | 225,465 | 67.9% | 0001193125-26-323660 |
| SG&A | 70,228 | 21.2% | 0001193125-26-323660 |
| Operating income | 155,237 | 46.8% | 0001193125-26-323660 |
| Pretax income | 165,934 | 50.0% | 0001193125-26-323660 |
| Income tax | 32,185 | 9.7% | 0001193125-26-323660 |
| Net income | 133,749 | 40.3% | 0001193125-26-323660 |
| Net income attributable to owners | 133,749 | 40.3% | 0001193125-26-323660 |

## Per $100 of revenue（FY ending Jun 2026）

| Part | USD |
| --- | ---: |
| Cost of revenue | 32 |
| SG&A | 21 |
| Operating income | 47 |
| (Ref.) Net income | 40 |

### Margin funnel

Gross margin 67.9% → Operating margin 46.8% → Net margin 40.3%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +17.8%; Core profit growth: +20.8%
Growth quality: margin-expansion
Operating leverage (core profit growth ÷ revenue growth): 1.17×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Jun 2025 → FY ending Jun 2026、USD mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 281,724 | 331,839 | 50,115 | +17.8% |
| Gross profit | 193,893 | 225,465 | 31,572 | +16.3% |
| Operating income | 128,528 | 155,237 | 26,709 | +20.8% |
| Net income attributable to owners | 101,832 | 133,749 | 31,917 | +31.3% |
| Operating cash flow | 136,162 | 182,935 | 46,773 | +34.4% |
| Free cash flow | 71,611 | 66,987 | -4,624 | -6.5% |

## History（USD mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Jun 2020 | 143,015 | 52,959 | 37.0% | 44,281 | 60,675 | 45,234 | 0001564590-22-026876 |
| FY ending Jun 2021 | 168,088 | 69,916 | 41.6% | 61,271 | 76,740 | 56,118 | 0000950170-23-035122 |
| FY ending Jun 2022 | 198,270 | 83,383 | 42.1% | 72,738 | 89,035 | 65,149 | 0000950170-24-087843 |
| FY ending Jun 2023 | 211,915 | 88,523 | 41.8% | 72,361 | 87,582 | 59,475 | 0000950170-25-100235 |
| FY ending Jun 2024 | 245,122 | 109,433 | 44.6% | 88,136 | 118,548 | 74,071 | 0001193125-26-323660 |
| FY ending Jun 2025 | 281,724 | 128,528 | 45.6% | 101,832 | 136,162 | 71,611 | 0001193125-26-323660 |
| FY ending Jun 2026 | 331,839 | 155,237 | 46.8% | 133,749 | 182,935 | 66,987 | 0001193125-26-323660 |

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Jun 2026, consolidated, US GAAP）

| Item | Amount (USD mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | 182,935 | 55.1% | 0001193125-26-323660 |
| Capital expenditure | 115,948 | 34.9% | 0001193125-26-323660 |
| Free cash flow | 66,987 | 20.2% | 算出 |
| Investing cash flow | -139,500 | -42.0% | 0001193125-26-323660 |
| Financing cash flow | -52,546 | -15.8% | 0001193125-26-323660 |
| Dividends paid | 26,445 | 8.0% | 0001193125-26-323660 |
| Share buyback | 22,271 | 6.7% | 0001193125-26-323660 |
| Change in cash | -9,307 | -2.8% | 0001193125-26-323660 |
| Cash and equivalents | 20,935 | 6.3% | 0001193125-26-323660 |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Jun 2022 | FY ending Jun 2023 | FY ending Jun 2024 | FY ending Jun 2025 | FY ending Jun 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 13,931 | 34,704 | 18,315 | 30,242 | 20,935 | 0000950170-24-087843, 0000950170-25-100235, 0001193125-26-323660 |
| Total assets | 364,840 | 411,976 | 512,163 | 619,003 | 758,376 | 0000950170-23-035122, 0000950170-24-087843, 0000950170-25-100235, 0001193125-26-323660 |
| Net assets | 166,542 | 206,223 | 268,477 | 343,479 | 442,387 | 0000950170-24-087843, 0000950170-25-100235, 0001193125-26-323660 |

### Balance sheet history

| Metric | FY ending Jun 2022 | FY ending Jun 2023 | FY ending Jun 2024 | FY ending Jun 2025 | FY ending Jun 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 364,840 | 411,976 | 512,163 | 619,003 | 758,376 |
| Equity | 166,542 | 206,223 | 268,477 | 343,479 | 442,387 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 13,931 | 34,704 | 18,315 | 30,242 | 20,935 |

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 2.8% |
| Cash ÷ revenue | 6.3% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | 117.8% |
| Cash vs. profit gap | 49,186 USD mn (of net income 36.8%) |
| Shareholder returns / net income | 36.4% |
| Shareholder returns / FCF | 72.7% |
| Shareholder payments — dividends / net income | 19.8% |
| Shareholder payments — dividends / FCF | 39.5% |
| CapEx intensity (capex ÷ revenue) | 34.9% |
| Investing CF relative to operating CF | 76.3% |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 36.7% | 0.54× | 19.9% | 2.19× | 43.7% | 0000950170-24-087843, 0000950170-23-035122 |
| 2023 | 34.1% | 0.55× | 18.6% | 2.08× | 38.8% | 0000950170-25-100235, 0000950170-24-087843 |
| 2024 | 36.0% | 0.53× | 19.1% | 1.95× | 37.1% | 0001193125-26-323660, 0000950170-25-100235 |
| 2025 | 36.1% | 0.50× | 18.0% | 1.85× | 33.3% | 0001193125-26-323660 |
| 2026 | 40.3% | 0.48× | 19.4% | 1.75× | 34.0% | 0001193125-26-323660 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| Form 10-K | 0001193125-26-323660 | 2026-07-29 | https://www.sec.gov/Archives/edgar/data/789019/000119312526323660/msft-20260630.htm |
| Form 10-K | 0000950170-25-100235 | 2025-07-30 | https://www.sec.gov/Archives/edgar/data/789019/000095017025100235/msft-20250630.htm |
| Form 10-K | 0000950170-24-087843 | 2024-07-30 | https://www.sec.gov/Archives/edgar/data/789019/000095017024087843/msft-20240630.htm |
| Form 10-K | 0000950170-23-035122 | 2023-07-27 | https://www.sec.gov/Archives/edgar/data/789019/000095017023035122/msft-20230630.htm |
| Form 10-K | 0001564590-22-026876 | 2022-07-28 | https://www.sec.gov/Archives/edgar/data/789019/000156459022026876/msft-10k_20220630.htm |

## Definitions

- Amounts are in USD millions (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- $100 model = breakdown per $100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are SEC EDGAR accession numbers. "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: SEC EDGAR (U.S. Securities and Exchange Commission). Processed by Vizora.