Microsoft Corp

Company facts

Industry

Services-Prepackaged Software

Headquarters

Redmond, Washington

Most recent report

8-K, filed Sep 2, 2026

Incorporated

Washington

Filings on record

1,012+ 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 10 positive, 13 notable, and 2 negative flags.

• Risk Factors (Item 1A)

  Contains company-specific quantified risks: $28.9B IRS claim, nation-state attack, massive AI spend with uncertain return.
  Notable

  • AI offerings compete with hyperscalers, open-source offerings, and frontier model providers, some of which are partners.
  • Microsoft is making significant, accelerated capital investments in AI and datacenters ahead of fully developed revenue streams.
  • New risk that AI services may be misused by customers or malicious actors, causing reputational harm or regulatory scrutiny.
  • Nation-state attack in late Nov 2023 compromised legacy test account, email accounts, and source code repositories.
  Negative

  • IRS seeking $28.9B additional tax plus penalties and interest for intercompany transfer pricing from 2004-2013.

• Properties (Item 2)

  Property footprint expanded 15% with key datacenter additions.
  Notable

  • Sweden added to largest owned international locations, indicating a new datacenter region.
  • Israel removed from largest leased international locations, a change from the prior year.

• Market for the Stock (Item 5)

  Capital return figures with Y/Y increases; dividend hike and buyback acceleration matter to shareholders.
  Positive

  • Total cash returned to shareholders rose 8.5% to $10.2 billion in Q4 FY2026 from $9.4 billion in Q4 FY2025.
  Notable

  • Registered holders of record dropped to 74,199 as of July 23, 2026, from 77,014 a year earlier.

• Management's Discussion (Item 7)

  MD&A with full FY2026 P&L, segment results, cash flows, and material commitments.
  Positive

  • Microsoft Cloud revenue grew 27% to $214.4B, accelerating from 23% growth in FY2025.
  • Commercial RPO jumped 84% to $678B, a huge leading indicator of future revenue.
  • Microsoft 365 Commercial cloud grew 17%, driven by Copilot and E5 revenue per user.
  • Microsoft 365 Consumer cloud grew 28%, accelerating from 11% growth last year.
  • LinkedIn grew 11% with growth across all lines of business.
  • Dynamics 365 revenue grew 18% with growth across all workloads.
  • Azure revenue grew 41%, accelerating from 34% in FY2025, driven by AI demand.
  • Search advertising ex TAC grew 12% driven by higher volume and revenue per search.
  Notable

  • Windows OEM and Devices revenue fell slightly, a reversal from 3% growth last year.
  • Microsoft Cloud gross margin fell to 66% from 69% due to AI infrastructure investments.
  • Net income includes $5.0B net gain from OpenAI investments, mostly from the dilution gain on the Recapitalization.
  • Property and equipment additions surged $51.4B to support AI and cloud infrastructure buildout.
  Negative

  • XBOX content and services revenue fell 5% after a prior year benefit from strong first-party content.

• Financial Statements (Item 8)

  Core financial data and notes: results, OpenAI, capex, tax dispute, lease commitments.
  Positive

  • Revenue from OpenAI was $24.1B in FY2026; OpenAI is now a related party with a 25% equity stake.
  Notable

  • Unrecognized tax benefits $25.8B; interest accrued on uncertain positions $9.4B as of June 30, 2026.
  • Leases not yet commenced jumped to $329.1B from $92.7B; massive future datacenter commitments.

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