Microsoft Corp

Company facts

Industry

Services-Prepackaged Software

Headquarters

Redmond, Washington

Most recent report

10-K, filed Jul 29, 2026

Incorporated

Washington

Filings on record

1,001+ filings

On EDGAR

CIK 789019

Fiscal year ends

June

Filer status

Large accelerated filer

What to read: FY2026 10-K

SECSift found 5 of 27 sections worth reading, with 9 positive, 15 notable, and 3 negative flags.

• Business (Item 1) Headcount drop, exec changes, segment rebranding, sustainability language shift.
  Notable

  • Gaming segment renamed XBOX; Search and news advertising renamed Search advertising.
  • Headcount dropped 5,000 to 223,000 as of June 30, 2026, from 228,000 a year earlier; R&D lost ~3,000, sales/marketing ~1,000.
  • Judson Althoff appointed CEO of Microsoft Commercial Business in October 2025, a new leadership role.
• Risk Factors (Item 1A) Contains company-specific quantified risks: $28.9B IRS dispute, nation-state attack, AI capex scale.
  Notable

  • Significant capex for AI/cloud on accelerated timeline; revenue may not materialize as expected.
  • New risk from agentic computing and AI systems that can take autonomous actions, FY2024.
  • Nation-state actor breached legacy test account in Nov 2023, accessed source code repositories, FY2024.
  Negative

  • IRS NOPA for $28.9B plus penalties and interest for intercompany transfer pricing, FY2024 period.
• Market for the Stock (Item 5) Specific changes in shareholder returns and registered holder count require attention.
  Positive

  • Quarterly dividend raised to $0.91 per share from $0.83, total payout $6.8B in Q4 FY2026.
  Notable

  • Registered holders fell to 74,199 from 77,014 a year earlier, a 3.7% decline.
  • Total return to shareholders increased to $10.2B in Q4 FY2026 from $9.4B in Q4 FY2025.
• Management's Discussion (Item 7) Core MD&A with all key revenue, margin, cash flow, and risk details for FY2026.
  Positive

  • Microsoft Cloud revenue grew 27% to $214.4B in FY2026, the core growth driver.
  • Microsoft 365 Commercial cloud grew 17% in FY2026, driven by Copilot and E5.
  • Consumer cloud revenue grew 28% in FY2026 on subscriber and per-user growth.
  • LinkedIn revenue up 11% in FY2026, growth across all lines of business.
  • Dynamics 365 revenue grew 18% in FY2026, across all workloads.
  • Azure and other cloud services grew 41% in FY2026, driven by AI demand.
  • Search ad revenue ex TAC rose 12% in FY2026 on higher volume and partnerships.
  • Operating cash flow surged $46.8B to $182.9B in FY2026 on strong collections.
  Notable

  • Commercial RPO, a future revenue indicator, jumped 84% to $678B in FY2026.
  • Cloud gross margin fell to 66% from 69% as AI infrastructure costs outpaced gains.
  • Net income got a $5.0B boost from OpenAI gains; adjusted EPS was $17.28 vs GAAP $17.95.
  • Share repurchases rose to $16.7B in FY2026 from $13B, a step-up in capital return.
  Negative

  • Windows OEM and Devices revenue declined slightly in FY2026, a small but negative trend.
  • XBOX content and services revenue fell 5% in FY2026, tough prior-year comparison.
• Financial Statements (Item 8) Core financials: net income, capex, OpenAI, and IRS dispute numbers are company-specific and large.
  Notable

  • OpenAI related-party revenue $24.1B in FY2026, with $6.0B receivables. $13.0B funding committed.
  • Effective tax rate rose to 19.4% in FY2026 from 17.6% in FY2025 due to earnings mix.
  • Remaining performance obligations hit $684B in FY2026, up from $375B in FY2025.

What changed: FY2026 vs. FY2025

About 8% of MSFT's FY2026 10-K is new information. 72 paragraphs were added, 252 changed, and 111 removed. Below are the most important lines SECSift identified.

• Management's Discussion (Item 7) 85
• Financial Statements (Item 8) 77
• Risk Factors (Item 1A) 70
• Business (Item 1) 36
• Cybersecurity (Item 1C) 7
• Market for the Stock (Item 5) 5
• Other Information (Item 9B) 3
• Form 10-K Summary (Item 16) 3
• Properties (Item 2) 3