Microsoft

Microsoft is a technology company committed to making digital technology and artificial intelligence (“AI”) available broadly and doing so responsibly.

10-K, Jul 29, 2026

Voices · third-party opinions, not SEC data

Not investment advice. They could be wrong or outdated. See the original source and date; the view may have changed.

What do investors say about Microsoft?

Bill AckmanInvestorAug 12, 2026Invests

Our summary: Pershing's Q2 2026 letter argues M365 is far more resilient to AI disruption than point solutions and that Azure's capex is prudent, supporting high-teens long-term earnings growth.

“far more resilient to AI disruption than point solution software”

Pershing Square letter ›

Details ⓘ

Speaker: Bill Ackman, Pershing Square
Role: Investor
Source: Pershing Square
Format: Fund letter
Date: Aug 12, 2026
Checked: Oct 15, 2026

Voice details · not SEC data. As stated on Aug 12, 2026; the view may have changed.

Dan NilesInvestorJul 10, 2026Skeptical

Our summary: Niles said Microsoft is not a compelling investment because it lacks its own leading large language model and depends on OpenAI, and flagged AI disintermediation of software spend; he prefers names like Meta.

“I don't think Microsoft's a compelling investment for one reason”

Yahoo Finance interview ›

Details ⓘ

Speaker: Dan Niles, Niles Investment Management
Role: Investor
Source: Yahoo Finance
Format: TV interview
Date: Jul 10, 2026
Checked: Oct 15, 2026

Voice details · not SEC data. As stated on Jul 10, 2026; the view may have changed.

Bill AckmanInvestorMay 15, 2026Invests

Our summary: Ackman disclosed a new Microsoft position built after the post-earnings sell-off, arguing investors are overly worried about its AI position and Azure growth and that he bought at about 21x forward earnings.

“We were able to establish our position at a valuation of 21 times forward earnings”

CNBC article ›

Details ⓘ

Speaker: Bill Ackman, Pershing Square
Role: Investor
Source: CNBC
Format: News article
Date: May 15, 2026
Checked: Oct 15, 2026

Voice details · not SEC data. As stated on May 15, 2026; the view may have changed.

All 3 Voices on Microsoft ›

Business

How does Microsoft make money?

Productivity & Business is 42.2% of revenue.

Productivity & Business42.2%

Intelligent Cloud41.5%

More Personal Computing16.3%

What is left of every $100?

Of every $100 in revenue, $40 is net income.

Revenue$100

Gross profit$68

Operating income$47

Net income$40

Free cash flow$20

Where do customers sit?

51.5% of revenue is from United States.

United States51.5%

Outside the US48.5%

In the company’s words ›

“Our mission is to empower every person and every organization on the planet to achieve more.”

“We develop and support a broad portfolio of technology solutions for individuals and businesses, focusing on secure, trusted, and innovative platforms and applications that meet evolving customer needs across AI, cloud computing, productivity and collaboration, and personal computing.”

“We strive to create opportunity, growth, and impact in every country around the world.”

Item 1 · Business · 10-K · 0001193125-26-323660 · filed Jul 29, 2026

Where did the growth actually come from?

Intelligent Cloud drove 54% of growth.

Revenue FY2023$211.9B

Intelligent Cloud+$64.8B

Productivity & Business+$45.8B

More Personal Computing+$9.2B

Revenue FY2026$331.8B

Thesis

Why do people invest?

3 reasons in the company’s own words.

Revenue +18%

“Revenue increased $50.1 billion or 18% driven by growth in Microsoft Cloud.”
Item 7 · MD&A · 10-K · 0001193125-26-323660 · filed Jul 29, 2026
Number check (revenue): stated $50.1B matches the stored change ($50.1B, ±10%)

Revenue: $331.8B FY2026 · +17.8% vs FY2025 · KPIs
Position (in the company’s words)

“We are focused on helping customers use the breadth and depth of the Microsoft Cloud to get the most value out of their digital spend while leading the AI platform wave across our solution areas.”
Item 1 · Business · 10-K · 0001193125-26-323660 · filed Jul 29, 2026
R&D +9%

“Research and development expenses increased $3.1 billion or 9% driven by continued investments in compute capacity, AI talent, and data to support product development that benefits the entire portfolio, as well as impairment and other related expenses in our XBOX business.”
Item 7 · MD&A · 10-K · 0001193125-26-323660 · filed Jul 29, 2026
Number check (R&D expense): stated $3.1B matches the stored change ($3.1B, ±10%)

R&D expense: $35.6B FY2026 · +9.5% vs FY2025 · Profitability charts

Dependencies

Who does Microsoft depend on?

No customer above the disclosure threshold.

Customers, suppliers, stakes and mentions ›

Only what filings state. Anonymous customers stay anonymous.

Largest customers (Microsoft annual report)

No customer with a reported share of revenue (the 10-K names none above the disclosure threshold).

Suppliers named by Microsoft

No supplier among the covered companies is named in the filings.

Microsoft holds stakes in

No stake in a covered company found in SEC filings.

Others name Microsoft

18 competitor mentions (e.g. CoreWeave, Datadog, Fortinet, HPE) · 2 customer mentions (e.g. CoreWeave, Nebius) · 11 other mentions (e.g. AMD, CrowdStrike, Fortinet, MongoDB) · 12 partner mentions (e.g. Cerebras, Everpure, F5, GlobalFoundries) · 6 supplier mentions (e.g. AMD, Fortinet, Infosys, Okta) in covered companies’ filings. Mentions, not confirmed relationships.

Risks

What could go wrong?

3 of 10 risk factors, one per theme.

Competition
“We face intense competition across all markets for our products and services, which could adversely affect our results of operations.”
Item 1A · Risk Factors · 10-K · 0001193125-26-323660 · filed Jul 29, 2026
Competition
“Our competitors range in size from diversified global companies with significant research and development resources to small, specialized firms who may be more effective in deploying technical, marketing, and financial resources.”
Item 1A · Risk Factors · 10-K · 0001193125-26-323660 · filed Jul 29, 2026
Users and engagement
“Abuse of our platforms may harm our reputation or user engagement.”
Item 1A · Risk Factors · 10-K · 0001193125-26-323660 · filed Jul 29, 2026

Who’s invested

Who owns more than 5%?

Vanguard Capital Management LLC holds 7.48%.

Vanguard Capital Management LLC7.48%
13G · as of Mar 31, 2026 · filed Apr 30, 2026
BlackRock Inc.7.3% (then)
13G/A · filed Feb 13, 2024 · older than 18 months, current position unknown

13F holders and insider trades ›

Largest institutional holders, 13F, quarter ending Jun 30, 2026

BlackRock, Inc.11.0%
607.4M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Vanguard Capital Management LLC8.8%
485.2M shares · 13F filed Aug 13, 2026 · share of 13F-reported
State Street Corp5.7%
315.7M shares · 13F filed Aug 7, 2026 · share of 13F-reported
Geode Capital Management, LLC3.4%
189.6M shares · 13F filed Aug 12, 2026 · share of 13F-reported
Fmr LLC3.4%
186.0M shares · 13F filed Aug 13, 2026 · share of 13F-reported

6,214 13F filers report positions. 13F covers managers with over $100M in US equities; it is not a full shareholder list, and shares are not a percentage of shares outstanding. 1 large filing with inconsistent reported value per share left out.

Insiders, last 12 months (Form 4, open market)

1 purchases · 25 sales · $115M sold

Grants, gifts and tax withholding counted separately · window Oct 13, 2025 – Oct 13, 2026

All metrics

All metrics · 42 SEC metrics, FY2017–FY2026

Income statement 12

Metric	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026
Cost of revenue

D&A

G&A

Gross profit

Income taxes

Interest expense

Net income

Operating income

Research and development

Revenue

SG&A calc.

Sales & marketing

Balance sheet 9

Metric	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026
Cash and equivalents

Current liabilities

Current portion of long-term debt

Equity

Equity incl. NCI

Long-term debt

Total assets

Total debt calc.

Total liabilities & equity

Cash flow 7

Metric	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026
Buybacks

Capex

Dividends

Free cash flow calc.

Interest paid

Operating cash flow

Stock-based compensation

Per share & shares 4

Metric	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026
EPS basic

EPS diluted

Wtd. shares basic

Wtd. shares diluted

Segments 4

Metric	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2025	FY2026
Gaming revenue (Xbox content/services and hardware)

LinkedIn-Revenue

Revenue Server Products and Cloud Services (incl. Azure)

Segment revenue Intelligent Cloud

Other 6

Metric	FY2017	FY2018	FY2019	FY2020	FY2021	FY2022	FY2023	FY2024	FY2026
Azure revenue as stated (lower bound)	not reported	not reported	not reported	not reported	not reported	not reported	not reported	not reported

Other income (incl. interest)

Pretax income

Remaining Performance Obligation	not reported

Short-term borrowings / commercial paper				not reported	not reported	not reported			not reported

Total liabilities

Microsoft

Source and method

What do investors say about Microsoft?

Business

Productivity & Business is 42.2% of revenue. i

Source and method

Of every $100 in revenue, $40 is net income. i

Source and method

51.5% of revenue is from United States. i

Source and method

Intelligent Cloud drove 54% of growth.

Microsoft redrew its segments in FY2023.

Thesis

3 reasons in the company’s own words. i

Source and method

KPIs

Revenue grew 18% to $331.8B.

Revenue grew 18% YoY to $90.0B.

Per share, revenue grew 57.0%.

46.8% operating margin, up from 45.6%.

67.9% gross margin, down from 68.8%.

Operating income grew 21% to $155.2B.

Net income grew 31% to $133.7B.

R&D grew 9.5% to $35.6B.

SG&A grew 5.4% to $34.7B.

EPS diluted grew 32% to $17.95.

45.1% operating margin, up from 44.9%.

67.2% gross margin, down from 68.6%.

Operating income grew 18% YoY to $40.6B.

Net income grew 31% YoY to $35.8B.

R&D grew 13% YoY to $10.0B.

SG&A grew 6.5% YoY to $9.9B.

EPS diluted grew 32% YoY to $4.81.

Keeps $20 of every $100 as free cash.

Operating cash flow grew 34% to $182.9B.

Capex grew 80% to $115.9B.

Buybacks grew 21% to $22.3B.

Dividends grew 9.8% to $26.4B.

Stock-based compensation grew 3.6% to $12.4B.

Free cash flow fell 23% YoY to $19.6B.

Operating cash flow grew 30% YoY to $55.4B.

Capex grew 110% YoY to $35.8B.

Buybacks grew 0.7% YoY to $4.6B.

Dividends grew 9.5% YoY to $6.8B.

Stock-based compensation grew 1.6% YoY to $3.1B.

$20.9B cash vs $40.3B debt.

Total debt fell 6.6% to $40.3B.

Interest expense grew 28% to $3.1B.

Total assets grew 23% to $758.4B.

Equity grew 29% to $442.4B.

Cash fell 31% YoY to $20.9B.

Total debt fell 6.6% YoY to $40.3B.

Interest expense grew 36% YoY to $839M.

Total assets grew 23% YoY to $758.4B.

Equity grew 29% YoY to $442.4B.

Commercial RPO grew 82% to $684.0B.

Azure growth vs. prior year: 43% in FY2026 Q4.

Commercial RPO grew 82% YoY to $684.0B.

Dependencies

No customer above the disclosure threshold.

Risks

3 of 10 risk factors, one per theme. i

Source and method

Who’s invested

Vanguard Capital Management LLC holds 7.48%. i

Source and method

All metrics

Method

Productivity & Business is 42.2% of revenue.

Of every $100 in revenue, $40 is net income.

51.5% of revenue is from United States.

3 reasons in the company’s own words.

3 of 10 risk factors, one per theme.

Vanguard Capital Management LLC holds 7.48%.