Microsoft Corporation (MSFT) FY2026 10-K Annual Report
Microsoft Corporation (MSFT) 10-K annual report for fiscal year 2026, filed with SEC EDGAR on Jul 29, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Microsoft Corporation FY2026 10-K Analysis
Business Overview
- • Core business: Technology company delivering AI, cloud computing, productivity, collaboration, and personal computing platforms and solutions globally
- • New emphasis on AI integration: Microsoft 365 Copilot, Azure AI Foundry, and AI-driven security and enterprise services heavily prioritized this year
- • Strategic shift: Leading AI platform wave, focusing on integrated AI solutions across cloud, productivity, security, gaming, and digital learning
- • Employee count 223,000, with 77,000 in R&D, highlighting significant investment in AI and product innovation
- • Noteworthy: Introduction of Azure AI Foundry as a unified AI application development platform and expansion of AI-powered Microsoft 365 Copilot
Management Discussion & Analysis
- • Revenue $331.8B, up 18% YoY driven by Microsoft Cloud growth ($214.4B, +27%)
- • Operating margin 46.8% vs 45.6%; Gross margin % decreased slightly; Microsoft Cloud gross margin 66% vs prior year (decreased)
- • Best segment: Intelligent Cloud revenue $137.8B (+30%), operating income $57.0B (+28%); Worst segment: More Personal Computing revenue $54.1B (-1%), operating income $14.4B (+2%)
- • Cash from operations $182.9B (+34%), Capex increased by $51.4B; Share repurchases $16.7B; Dividends $27.0B
- • Management investing heavily in AI infrastructure, cautious on supply chain risks, expects sufficient liquidity, tax audit risk with $28.9B IRS claim ongoing
Risk Factors
- • Regulatory risk: EU AI Act may increase costs or restrict AI model operations in European market
- • Geopolitical threat: Conflicts in Ukraine and Middle East causing sanctions, supply chain disruptions, and increased operating costs
- • Supply chain vulnerability: Shortages of semiconductors, power, cooling equipment limit datacenter expansion and increase costs
- • Market disruption risk: Competition from hyperscalers, open-source AI, and vertically-integrated rivals threatens cloud and AI services
- • Financial risk: IRS audit with $28.9B proposed tax adjustment plus penalties may cause significant tax liabilities
Microsoft Corporation FY2026 Key Financial MetricsXBRL
Revenue
$331.8B
▲ +17.8% YoY
Net Income
$133.7B
▲ +31.3% YoY
Gross Margin
67.9%
▼ -88bp YoY
Operating Margin
46.8%
▲ +116bp YoY
Net Margin
40.3%
▲ +416bp YoY
ROE
30.2%
▲ +59bp YoY
Total Assets
$758.4B
▲ +22.5% YoY
EPS (Diluted)
$17.95
▲ +31.6% YoY
Operating Cash Flow
$182.9B
▲ +34.4% YoY
Source: XBRL data from Microsoft Corporation FY2026 10-K filing on SEC EDGAR. All figures in USD.
Other Microsoft Corporation Annual Reports
Get deeper insights on Microsoft Corporation
Access full AI analysis, insider trading data, fund holdings, and cross-signal detection on SignalX.