Microsoft (MSFT) financial statements
Microsoft reported revenue of $331.8B in fiscal 2026, up 14.7% a year over 9 years.
Net income was $133.7B and the operating margin 46.8%, against 30.1% in 2017.
Free cash flow was $67.0B, and the company returned $26.4B in dividends and $22.3B in net buybacks.
The diluted share count fell 5% over the period (buybacks).
Revenue and free cash flow
Fiscal years, $ billions.
Income statement
Fiscal years, from Microsoft's 10-K filings with the SEC.
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $96.6B | $110.4B | $125.8B | $143.0B | $168.1B | $198.3B | $211.9B | $245.1B | $281.7B | $331.8B |
| Cost of revenue | $34.3B | $38.4B | $42.9B | $46.1B | $52.2B | $62.6B | $65.9B | $74.1B | $87.8B | $106.4B |
| Gross profit | $62.3B | $72.0B | $82.9B | $96.9B | $115.9B | $135.6B | $146.1B | $171.0B | $193.9B | $225.5B |
| Research and development | $13.0B | $14.7B | $16.9B | $19.3B | $20.7B | $24.5B | $27.2B | $29.5B | $32.5B | $35.6B |
| Selling, general and admin | $19.9B | $22.2B | $23.1B | $24.7B | $25.2B | $27.7B | $30.3B | $32.1B | $32.9B | $34.7B |
| Operating income | $29.0B | $35.1B | $43.0B | $53.0B | $69.9B | $83.4B | $88.5B | $109.4B | $128.5B | $155.2B |
| Interest expense | $2.2B | $2.7B | $2.7B | $2.6B | $2.3B | $2.1B | $2.0B | $2.9B | $2.4B | $3.1B |
| Pre-tax income | $29.9B | $36.5B | $43.7B | $53.0B | $71.1B | $83.7B | $89.3B | $107.8B | $123.6B | $165.9B |
| Income tax | $4.4B | $19.9B | $4.4B | $8.8B | $9.8B | $11.0B | $16.9B | $19.7B | $21.8B | $32.2B |
| Net income | $25.5B | $16.6B | $39.2B | $44.3B | $61.3B | $72.7B | $72.4B | $88.1B | $101.8B | $133.7B |
| EPS (diluted) | $3.25 | $2.13 | $5.06 | $5.76 | $8.05 | $9.65 | $9.68 | $11.80 | $13.64 | $17.95 |
| Diluted shares | 7.83B | 7.79B | 7.75B | 7.68B | 7.61B | 7.54B | 7.47B | 7.47B | 7.46B | 7.45B |
| Gross margin | 64.5% | 65.2% | 65.9% | 67.8% | 68.9% | 68.4% | 68.9% | 69.8% | 68.8% | 67.9% |
| Operating margin | 30.1% | 31.8% | 34.1% | 37.0% | 41.6% | 42.1% | 41.8% | 44.6% | 45.6% | 46.8% |
| Net margin | 26.4% | 15.0% | 31.2% | 31.0% | 36.5% | 36.7% | 34.1% | 36.0% | 36.1% | 40.3% |
Balance sheet
Fiscal years, from Microsoft's 10-K filings with the SEC.
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash and short-term investments | $133.0B | $133.8B | $133.8B | $136.5B | $130.3B | $104.8B | $111.3B | $75.5B | $94.6B | $76.8B |
| Receivables | $22.4B | $26.5B | $29.5B | $32.0B | $38.0B | $44.3B | $48.7B | $56.9B | $69.9B | $80.9B |
| Inventory | $2.2B | $2.7B | $2.1B | $1.9B | $2.6B | $3.7B | $2.5B | $1.2B | $938M | $1.4B |
| Total current assets | $162.7B | $169.7B | $175.6B | $181.9B | $184.4B | $169.7B | $184.3B | $159.7B | $191.1B | $207.7B |
| Property, plant and equipment | $23.7B | $29.5B | $36.5B | $44.2B | $59.7B | $74.4B | $95.6B | $135.6B | $205.0B | $313.1B |
| Goodwill | $35.1B | $35.7B | $42.0B | $43.4B | $49.7B | $67.5B | $67.9B | $119.2B | $119.5B | $119.7B |
| Total assets | $250.3B | $258.8B | $286.6B | $301.3B | $333.8B | $364.8B | $412.0B | $512.2B | $619.0B | $758.4B |
| Total current liabilities | $55.7B | $58.5B | $69.4B | $72.3B | $88.7B | $95.1B | $104.1B | $125.3B | $141.2B | $168.8B |
| Long-term debt | $76.1B | $72.2B | $66.7B | $59.6B | $50.1B | $47.0B | $42.0B | $42.7B | $40.2B | $31.1B |
| Total liabilities | $162.6B | $176.1B | $184.2B | $183.0B | $191.8B | $198.3B | $205.8B | $243.7B | $275.5B | $316.0B |
| Shareholders' equity | $87.7B | $82.7B | $102.3B | $118.3B | $142.0B | $166.5B | $206.2B | $268.5B | $343.5B | $442.4B |
| Net debt | $69.5B | $64.3B | $60.8B | $49.8B | $43.9B | $35.9B | $12.5B | $26.6B | $12.9B | $19.4B |
Cash flow
Fiscal years, from Microsoft's 10-K filings with the SEC.
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating cash flow | $39.5B | $43.9B | $52.2B | $60.7B | $76.7B | $89.0B | $87.6B | $118.5B | $136.2B | $182.9B |
| Capital spending | $8.1B | $11.6B | $13.9B | $15.4B | $20.6B | $23.9B | $28.1B | $44.5B | $64.6B | $115.9B |
| Free cash flow | $31.4B | $32.3B | $38.3B | $45.2B | $56.1B | $65.1B | $59.5B | $74.1B | $71.6B | $67.0B |
| Stock-based compensation | $3.3B | $3.9B | $4.7B | $5.3B | $6.1B | $7.5B | $9.6B | $10.7B | $12.0B | $12.4B |
| Dividends paid | $11.8B | $12.7B | $13.8B | $15.1B | $16.5B | $18.1B | $19.8B | $21.8B | $24.1B | $26.4B |
| Share buybacks (net) | -$11.8B | -$10.7B | -$19.5B | -$23.0B | -$27.4B | -$32.7B | -$22.2B | -$17.3B | -$18.4B | -$22.3B |
| Free cash flow margin | 32.5% | 29.2% | 30.4% | 31.6% | 33.4% | 32.9% | 28.1% | 30.2% | 25.4% | 20.2% |
| Dividends per share | $1.51 | $1.63 | $1.78 | $1.97 | $2.17 | $2.41 | $2.65 | $2.91 | $3.23 | $3.55 |
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Open MSFT in InvestinglyQuestions
What was Microsoft's revenue in 2026?
$331.8B in fiscal 2026, from its 10-K filing.
How much free cash flow does Microsoft generate?
$67.0B in fiscal 2026 (operating cash flow minus capital spending).
From Microsoft's annual reports filed with the SEC (XBRL data), standardised by Investingly. Information only, not investment advice.