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Microsoft's finances, and what holding MSFT would have done
Microsoft's revenue, profit, cash flow and debt from SEC filings, and what holding MSFT would have done in the past.
Microsoft (MSFT) was the number 3 US company by market value on 5 November 2026, at about $4.1 trillion, on the companiesmarketcap.com ranking. Its figures come from its SEC filings, read on 5 November 2026. A figure a filing lacks is marked as not reported.
What Microsoft sells
Microsoft sells Windows, Office and the Microsoft 365 subscription, the Azure cloud computing service, LinkedIn, Xbox and business software. Most of its money now comes from subscriptions and cloud services that customers pay for each month or year.
The finances
- Revenue: $332 billion in the year to 30 June 2026 (10-K), up 17.8% from $282 billion. The 12 months to 30 September 2026: $346 billion. Double-digit growth is solid at this size.
- Net income: $134 billion in the year to 30 June 2026 (10-K), against $102 billion a year earlier; net margin 40.3%. The 12 months to 30 September 2026: $143 billion. About $40 of every $100 of sales stayed as profit, a very high margin.
- Free cash flow: $67.0 billion in the year to 30 June 2026 (10-K), which is $183 billion of operating cash flow minus $116 billion of capital spending. The 12 months to 30 September 2026: $60.0 billion. That is the cash left after running and equipping the business.
- Cash and debt: $20.3 billion in cash and $35.5 billion of debt (10-Q, 30 September 2026). It owed more than it held in cash.
- Share count: 7.45 billion average diluted shares in the year to 30 June 2026 (10-K), down 0.2% from 7.46 billion. Fewer shares, usually from buybacks, make each one a bigger slice.
One thing to notice: Spending on equipment and buildings was $115.9 billion in the year to June 2026, and $135.9 billion over the 12 months to 30 September 2026. That is why its free cash flow is much smaller than its operating cash flow.
What holding it would have done
From our free long-term checker, which looks back only:
- Past returns, price only: 1-year +1% (SPY +10%), 3-year +48% (SPY +74%), 5-year +56% (SPY +62%), 10-year +788% (SPY +248%). That 10-year gain is 24.5% a year, against 13.3% for SPY.
- Worst fall: -37.6%, from the close on 19 November 2021 to the low on 3 November 2022 (349 days). Getting back to that high took another 224 days, to 15 June 2023. SPY's worst fall was -34.1%.
- How often holding ended higher: 83% of 1-year holds (worst -36%) and 100% of 5-year holds (worst +32%).
- Monthly buying against a lump sum: over the past 10 years, $100 a month ($12,100 in total) would have grown to $36,096. The same money in on day one would have grown to $107,393; in SPY, monthly buying ends at $24,571 and the lump sum at $42,078.
Price only: no dividends, fees or tax. Daily closes, 10 November 2016 to 3 November 2026. SPY is an S&P 500 fund.
What this does and does not tell you
The finances say how the business did. The long test says how the share price did. They are different things, and neither says what comes next. A good business can still be a poor buy at a high price.
This is one company over one stretch of history: an in-sample look at the past, not a promise. It is general information, not a call to buy or sell MSFT, and it sets no price target.
More
The other 24 are in The 25 biggest US stocks. To check any other stock, use the long-term checker.
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