Short answer
Microsoft Corporation (MSFT) filed its Q4 2025 10-Q quarterly report on Jan 28, 2026 for the quarter ended Dec 31, 2025. Quarterly revenue was $81.3B (up 16.7% year over year) with net income of $38.5B.
Q4 2025 key financials · XBRL
- Revenue
- $81.3B
- +16.7% YoY · +4.6% QoQ
- Net income
- $38.5B
- +59.5% YoY · +38.6% QoQ
- Operating margin
- 47.1%
- Gross margin
- 68.0%
- EPS (diluted)
- $5.15
- +59.4% YoY · +38.4% QoQ
Source: XBRL data from the Microsoft Corporation (MSFT) Q4 2025 10-Q on SEC EDGAR. USD.
Microsoft Corporation Q4 2025 10-Q analysis
AI summary of MD&A and risk factor updates
Management Discussion & Analysis
- Revenue $81.3B, up 17% YoY (+$11.6B) driven by Intelligent Cloud +29% and Productivity & Business Processes +16%, offset by More Personal Computing -3%
- Operating margin 47.1% ($38.3B operating income) vs 45.5% ($31.7B) YoY, reflecting 21% operating income growth but slight gross margin % decrease in Microsoft Cloud to 67%
- Best segment: Intelligent Cloud revenue +29% to $32.9B with operating income +28% to $13.9B; Worst: More Personal Computing revenue -3% to $14.3B with operating income -3% to $3.8B, hurt by gaming declines
- Cash equivalents & short-term investments decreased to $89.5B from $94.6B; operating cash flow up $24.3B to $80.8B for six months; capital expenditures up $18.5B reflecting AI infrastructure investment
- Management highlights AI and cloud investments increasing operating costs and slightly pressuring margins; expects continued growth in AI demand; raised $7.6B net gain from OpenAI investment boosts net income impact; foresees ongoing supply chain and competitive challenges
Risk Factors
- New cybersecurity risk from November 2023 nation-state password spray attack compromising Microsoft email and source code repositories
- Updated AI regulatory risk: EU’s AI Act may increase costs and restrict AI service operations in Europe due to evolving AI-specific laws
- Legal risk: IRS audit with proposed $28.9B tax adjustment plus penalties related to intercompany transfer pricing disputes dating 2004–2013
- Operational risk: Supply chain constrained by limited suppliers for datacenter and device components; impacted by geopolitical and environmental factors
- Financial risk: Investment portfolio exposed to U.S. government credit rating downgrades and market downturns affecting fair value and impairment charges
Generated from the filing text; verify against the original. 10-K vs 10-Q vs 8-K
Other Microsoft Corporation quarterly reports
Ask about this quarter
Compare quarters, check guidance or see what insiders and funds did around the report.