Form 8-K

8-K — MICROSOFT CORP

Accession: 0001193125-26-323632

Filed: 2026-07-29

Period: 2026-07-29

CIK: 0000789019

SIC: 7372 (SERVICES-PREPACKAGED SOFTWARE)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — msft-20260729.htm (Primary)

EX-99.1 (msft-ex99_1.htm)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K

8-K (Primary)

Filename: msft-20260729.htm · Sequence: 1

8-K

0000789019false00007890192026-07-292026-07-290000789019us-gaap:CommonStockMember2026-07-292026-07-290000789019msft:NotesTwoPointSixTwoFivePercentDueMayTwoTwentyThirtyThreeMember2026-07-292026-07-290000789019msft:NotesThreePointOneTwoFivePercentDueDecemberSixTwentyTwentyEightMember2026-07-292026-07-29

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) July 29, 2026

Microsoft Corporation

Washington

001-37845

91-1144442

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

One Microsoft Way, Redmond, Washington 98052-6399

(425) 882-8080

www.microsoft.com/investor

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):



Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)



Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)



Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))



Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of exchange on which registered

Common stock, $0.00000625 par value per share

MSFT

Nasdaq

3.125% Notes due 2028

MSFT

Nasdaq

2.625% Notes due 2033

MSFT

Nasdaq

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02.

Results of Operations and Financial Condition

On July 29, 2026, Microsoft Corporation issued a press release announcing its financial results for the fiscal quarter and year ended June 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.

Financial Statements and Exhibits

(d) Exhibits:

99.1

Press release, dated July 29, 2026 issued by Microsoft Corporation

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MICROSOFT CORPORATION

(Registrant)

Date: July 29, 2026

/s/ ALICE L. JOLLA

Alice L. Jolla

Corporate Vice President and

Chief Accounting Officer

EX-99.1

Filename: msft-ex99_1.htm · Sequence: 2

EX-99.1

Exhibit 99.1

Microsoft Cloud and AI Strength Fuels Fourth Quarter Results

REDMOND, Wash. — July 29, 2026 — Microsoft Corp. today announced the following results for the quarter ended June 30, 2026, as compared to the corresponding period of last fiscal year:

•

Revenue was $90.0 billion and increased 18% (up 17% in constant currency)

•

Operating income was $40.6 billion and increased 18%

•

Net income was $35.8 billion and increased 31% on a GAAP basis, and was $35.3 billion and increased 22% on a non-GAAP basis

•

Diluted earnings per share was $4.81 and increased 32% on a GAAP basis, and was $4.74 and increased 23% on a non-GAAP basis

•

Non-GAAP results exclude the impact from investments in OpenAI, explained in the Non-GAAP Definition section below

Several discrete items impacted our financial results in the quarter when compared to our forward-looking guidance provided on April 29, 2026, resulting in a benefit of $0.27 on diluted earnings per share. These include a $3.2 billion gain from our investment in Anthropic and lower-than-expected expenses related to the Voluntary Retirement Program which were partially offset by severance expense and impairment charges in XBOX. When adjusting for these items, we exceeded expectations across revenue, operating income, and diluted earnings per share.

“We are advancing the frontier on the cost-to-outcome curve, ensuring every customer can turn tokens into business results,” said Satya Nadella, chairman and chief executive officer of Microsoft. “This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation.”

“We delivered a strong quarter to close out the fiscal year, highlighted by Microsoft Cloud revenue of $59.3 billion, up 27% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

The following table adjusts for the impact from investments in OpenAI and reconciles our financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

Three Months Ended June 30,

2026

2025

Percentage Change Y/Y

($ in millions, except per share amounts)

As Reported (GAAP)

Impact from OpenAI*

As Adjusted (non-GAAP)

As Reported (GAAP)

Impact from OpenAI*

As Adjusted (non-GAAP)

GAAP

Constant Currency

Net Impact from OpenAI*

Non-GAAP

Non-GAAP Constant Currency

Net Income

$35,766

$(480)

$35,286

$27,233

$1,575

$28,808

31%

$(2,055)

22%

Diluted Earnings per Share

$4.81

$(0.07)

$4.74

$3.65

$0.21

$3.86

32%

$(0.28)

23%

*Impact from OpenAI adjusts for the impact from investments in OpenAI

Business Highlights

Microsoft Cloud revenue was $59.3 billion and increased 27%, and commercial remaining performance obligation increased 84% to $678 billion.

Revenue in Productivity and Business Processes was $37.8 billion and increased 14%, with the following business highlights:

•

Microsoft 365 Commercial cloud revenue increased 16% when adjusted for the prior year comparable that benefited from 2 points of in-period revenue recognition. On a reported basis, Microsoft 365 Commercial cloud revenue increased 14%.

•

Microsoft 365 Consumer cloud revenue increased 24% (up 22% in constant currency)

•

LinkedIn revenue increased 12% (up 10% in constant currency)

•

Dynamics 365 revenue increased 13% (up 12% in constant currency)

Revenue in Intelligent Cloud was $39.3 billion and increased 32% (up 31% in constant currency), with the following business highlights:

•

Azure and other cloud services revenue increased 43%

Revenue in More Personal Computing was $12.9 billion and decreased 4% (down 5% in constant currency), with the following business highlights:

•

Windows OEM and Devices revenue decreased 7%

•

XBOX content and services revenue decreased 10%

•

Search advertising revenue excluding traffic acquisition costs increased 10% (up 9% in constant currency)

Microsoft returned $10.2 billion to shareholders in the form of dividends and share repurchases in the fourth quarter of fiscal year 2026.

Fiscal Year 2026 Results

Microsoft Corp. today announced the following results for the fiscal year ended June 30, 2026, as compared to the corresponding period of last fiscal year:

•

Revenue was $331.8 billion and increased 18% (up 16% in constant currency)

•

Operating income was $155.2 billion and increased 21% (up 19% in constant currency)

•

Net income was $133.7 billion and increased 31% on a GAAP basis, and increased 22% (up 20% in constant currency) on a non-GAAP basis

•

Diluted earnings per share was $17.95 and increased 32% on a GAAP basis, and increased 22% (up 21% in constant currency) on a non-GAAP basis

•

Non-GAAP results exclude the impact from investments in OpenAI, explained in the Non-GAAP Definition section below

The following table adjusts for the impact from investments in OpenAI and reconciles our financial results reported in accordance with GAAP to non-GAAP financial results. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

Twelve Months Ended June 30,

2026

2025

Percentage Change Y/Y

($ in millions, except per share amounts)

As Reported (GAAP)

Impact from OpenAI*

As Adjusted (non-GAAP)

As Reported (GAAP)

Impact from OpenAI*

As Adjusted (non-GAAP)

GAAP

Constant Currency

Net Impact from OpenAI*

Non-GAAP

Non-GAAP Constant Currency

Net Income

$133,749

$(4,963)

$128,786

$101,832

$3,620

$105,452

31%

30%

$(8,583)

22%

20%

Diluted Earnings per Share

$17.95

$(0.67)

$17.28

$13.64

$0.49

$14.13

32%

30%

$(1.16)

22%

21%

*Impact from OpenAI adjusts for the impact from investments in OpenAI

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Quarterly Highlights, Product Releases, and Customer Stories

Every quarter Microsoft delivers hundreds of products, services, and enhancements. These releases are driven by years of significant research and development investments, to empower customers with greater productivity, security, and differentiated value.

This momentum is reflected in stories that showcase how our technology is shaping industries and driving customer success. We share innovation updates on our product blogs across Azure, Microsoft 365, and more on our Official Microsoft blog.

Webcast Details

Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Brian DeFoe, deputy general counsel and corporate secretary, and Jonathan Neilson, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. Participants can also dial into the conference call at (877) 407-0666 or +1 (201) 689-8023 for international, no password required. The webcast will be available for replay through the close of business on July 29, 2027.

Non-GAAP Definition

Impact from investments in OpenAI. In fiscal year 2026, net income and diluted earnings per share were impacted by net gains from investments in OpenAI, which resulted in an increase in net income and diluted earnings per share of $480 million and $0.07, respectively, in the fourth quarter, and $4,963 million and $0.67, respectively, for the full fiscal year. In fiscal year 2025, net income and diluted earnings per share were impacted by net losses from investments in OpenAI, which resulted in a decrease in net income and diluted earnings per share of $1,575 million and $0.21, respectively, in the fourth quarter, and $3,620 million and $0.49, respectively, for the full fiscal year.

Microsoft has provided non-GAAP financial measures related to the impact from investments in OpenAI to aid investors in better understanding our performance. Microsoft believes these non-GAAP measures assist investors by providing additional insight into its operational performance and help clarify trends affecting its business. For comparability of reporting, management considers non-GAAP measures in conjunction with GAAP financial results in evaluating business performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Constant Currency

Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Financial Performance Constant Currency Reconciliation

Three Months Ended June 30,

2026

2025

Percentage Change Y/Y

($ in millions, except per share amounts)

As Reported (GAAP)

As Adjusted (non-GAAP)

As Reported (GAAP)

As Adjusted (non-GAAP)

GAAP

Non-GAAP

Constant Currency Impact

Constant Currency

Non-GAAP Constant Currency

Revenue

$90,007

$76,441

18%

$391

17%

Operating Income

$40,603

$34,323

18%

$269

18%

Net Income

$35,766

$35,286

$27,233

$28,808

31%

22%

$40

31%

22%

Diluted Earnings per Share

$4.81

$4.74

$3.65

$3.86

32%

23%

$0.01

32%

23%

Twelve Months Ended June 30,

2026

2025

Percentage Change Y/Y

($ in millions, except per share amounts)

As Reported (GAAP)

As Adjusted (non-GAAP)

As Reported (GAAP)

As Adjusted (non-GAAP)

GAAP

Non-GAAP

Constant Currency Impact

Constant Currency

Non-GAAP Constant Currency

Revenue

$331,839

$281,724

18%

$4,445

16%

Operating Income

$155,237

$128,528

21%

$2,896

19%

Net Income

$133,749

$128,786

$101,832

$105,452

31%

22%

$1,772

30%

20%

Diluted Earnings per Share

$17.95

$17.28

$13.64

$14.13

32%

22%

$0.24

30%

21%

Segment Revenue Constant Currency Reconciliation

Three Months Ended June 30,

2026

2025

Percentage Change Y/Y

($ in millions)

As Reported (GAAP)

GAAP

Constant Currency Impact

Constant Currency

Productivity and Business Processes

$37,847

$33,112

14%

$244

14%

Intelligent Cloud

$39,306

$29,878

32%

$80

31%

More Personal Computing

$12,854

$13,451

(4)%

$67

(5)%

Selected Product and Service Information Constant Currency Reconciliation

Three Months Ended June 30, 2026

Percentage Change Y/Y (GAAP)

Constant Currency Impact

Percentage Change Y/Y Constant Currency

Microsoft Cloud revenue

27%

Commercial remaining performance obligation

84%

Microsoft 365 Commercial cloud revenue

14%

Microsoft 365 Consumer cloud revenue

24%

(2)%

22%

LinkedIn revenue

12%

(2)%

10%

Dynamics 365 revenue

13%

(1)%

12%

Azure and other cloud services revenue

43%

Windows OEM and Devices revenue

(7)%

XBOX content and services revenue

(10)%

Search advertising revenue excluding traffic acquisition costs

10%

(1)%

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

•

intense competition in all of our markets that could adversely affect our results of operations;

•

substantial investments in cloud and AI strategy that depend on customer demand, technological developments, competitive dynamics, and regulatory condition;

•

development, delivery, and maintenance of competitive cloud-based and AI products and services that achieve broad customer adoption and sustainable revenue growth;

•

significant investments in products and services that may not achieve expected returns;

•

acquisitions, joint ventures, and strategic alliances that could have an adverse effect on our business;

•

cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;

•

disclosure and misuse of personal data that could cause liability and harm to our reputation;

•

the possibility that we may not be able to protect information in our products and services from use by others;

•

abuse of our platforms that may harm our reputation or user engagement;

•

products and services, how they are used by customers, and how third-party products and services interact with them, presenting security, privacy, and execution risks;

•

issues about the development, deployment, and use of AI that may result in reputational or competitive harm, or liability;

•

inability to develop and expand adequate infrastructure;

•

supply or other quality problems;

•

excessive outages, disruptions, or capacity constraints of our services if we fail to maintain an adequate operations infrastructure or secure resources necessary to support it;

•

potential consequences of new, existing, and evolving legal and regulatory requirements;

•

claims against us that could result in adverse outcomes in legal disputes;

•

uncertainties relating to our business with government customers;

•

additional tax liabilities;

•

an inability to protect and utilize our intellectual property may harm our business and operating results;

•

claims that Microsoft has infringed the intellectual property rights of others;

•

damage to our reputation or our brands that may harm our business and results of operations;

•

adverse economic or market conditions that could harm our business;

•

catastrophic events or geopolitical conditions that could disrupt our business;

•

exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange; and

•

the dependence of our business on our ability to attract and retain talented employees.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of June 30, 2026. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, press only:

Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

For more information, financial analysts and investors only:

Jonathan Neilson, Vice President, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

MICROSOFT CORPORATION

INCOME STATEMENTS

(In millions, except per share amounts) (Unaudited)

Three Months Ended

June 30,

Twelve Months Ended

June 30,

2026

2025

2026

2025

Revenue:

Product

$17,234

$17,136

$64,696

$63,946

Service and other

72,773

59,305

267,143

217,778

Total revenue

90,007

76,441

331,839

281,724

Cost of revenue:

Product

2,938

3,314

12,098

13,501

Service and other

26,587

20,700

94,276

74,330

Total cost of revenue

29,525

24,014

106,374

87,831

Gross margin

60,482

52,427

225,465

193,893

Research and development

9,997

8,829

35,562

32,488

Sales and marketing

7,595

7,285

26,710

25,654

General and administrative

2,287

1,990

7,956

7,223

Operating income

40,603

34,323

155,237

128,528

Other income (expense), net

3,444

(1,707)

10,697

(4,901)

Income before income taxes

44,047

32,616

165,934

123,627

Provision for income taxes

8,281

5,383

32,185

21,795

Net income

$35,766

$27,233

$133,749

$101,832

Earnings per share:

Basic

$4.82

$3.66

$18.00

$13.70

Diluted

$4.81

$3.65

$17.95

$13.64

Weighted average shares outstanding:

Basic

7,427

7,432

7,429

7,433

Diluted

7,443

7,461

7,453

7,465

COMPREHENSIVE INCOME STATEMENTS

(In millions) (Unaudited)

Three Months Ended

Twelve Months Ended

June 30,

2026

2025

2026

2025

Net income

$35,766

$27,233

$133,749

$101,832

Other comprehensive income (loss), net of tax:

Net change related to derivatives

(9)

(5)

Net change related to investments

(72)

444

215

1,574

Translation adjustments and other

1,051

(160)

674

Other comprehensive income (loss)

(56)

1,486

2,243

Comprehensive income

$35,710

$28,719

$133,812

$104,075

BALANCE SHEETS

(In millions) (Unaudited)

June 30,

2026

June 30,

2025

Assets

Current assets:

Cash and cash equivalents

$20,935

$30,242

Short-term investments

55,908

64,323

Total cash, cash equivalents, and short-term investments

76,843

94,565

Accounts receivable, net of allowance for doubtful accounts of $1,040 and $944

80,876

69,905

Inventories

1,397

938

Other current assets

48,594

25,723

Total current assets

207,710

191,131

Property and equipment, net of accumulated depreciation of $118,691 and $93,653

313,076

204,966

Operating lease right-of-use assets

24,177

24,823

Equity and other investments

36,348

15,405

Goodwill

119,651

119,509

Intangible assets, net

18,609

22,604

Other long-term assets

38,805

40,565

Total assets

$758,376

$619,003

Liabilities and stockholders' equity

Current liabilities:

Accounts payable

$42,416

$27,724

Current portion of long-term debt

9,227

2,999

Accrued compensation

14,945

13,709

Short-term income taxes

2,534

7,211

Short-term unearned revenue

72,965

64,555

Other current liabilities

26,738

25,020

Total current liabilities

168,825

141,218

Long-term debt

31,067

40,152

Long-term income taxes

28,647

25,986

Long-term unearned revenue

2,747

2,710

Deferred income taxes

3,054

2,835

Operating lease liabilities

16,532

17,437

Other long-term liabilities

65,117

45,186

Total liabilities

315,989

275,524

Commitments and contingencies

Stockholders' equity:

Common stock and paid-in capital - shares authorized 24,000; outstanding 7,427 and 7,434

117,406

109,095

Retained earnings

328,265

237,731

Accumulated other comprehensive loss

(3,284)

(3,347)

Total stockholders' equity

442,387

343,479

Total liabilities and stockholders' equity

$758,376

$619,003

CASH FLOWS STATEMENTS

(In millions) (Unaudited)

Three Months Ended

Twelve Months Ended

June 30,

2026

2025

2026

2025

Operations

Net income

$35,766

$27,233

$133,749

$101,832

Adjustments to reconcile net income to net cash from operations:

Depreciation, amortization, and other

11,022

9,317

38,534

29,433

Stock-based compensation expense

3,122

3,073

12,405

11,974

Net recognized losses (gains) on investments and derivatives

(3,743)

1,942

(11,047)

5,329

Deferred income taxes

4,650

(2,221)

14,189

(7,056)

Changes in operating assets and liabilities:

Accounts receivable

(21,084)

(16,179)

(12,737)

(10,581)

Inventories

(178)

(81)

(461)

309

Other current assets

(2,842)

(3,686)

(2,627)

(3,044)

Other long-term assets

(1,350)

418

(3,964)

(2,950)

Accounts payable

2,365

(652)

5,268

569

Unearned revenue

22,428

18,361

9,361

5,438

Income taxes

(307)

1,043

(1,875)

(38)

Other current liabilities

7,013

5,346

6,847

5,922

Other long-term liabilities

(1,421)

(1,267)

(4,707)

(975)

Net cash from operations

55,441

42,647

182,935

136,162

Financing

Repayments of debt, maturities of 90 days or less

(5,746)

Repayments of debt

(3,000)

(3,216)

Common stock issued

520

548

2,009

2,056

Common stock repurchased

(4,579)

(4,546)

(22,271)

(18,420)

Common stock cash dividends paid

(6,758)

(6,169)

(26,445)

(24,082)

Other, net

(962)

(677)

(2,839)

(2,291)

Net cash used in financing

(11,779)

(10,844)

(52,546)

(51,699)

Investing

Additions to property and equipment

(35,802)

(17,079)

(115,948)

(64,551)

Acquisition of companies, net of cash acquired and divestitures, and purchases of intangible and other assets

(452)

(1,743)

(5,978)

Purchases of investments

(18,829)

(21,631)

(58,351)

(29,775)

Maturities of investments

4,181

4,618

34,605

16,079

Sales of investments

6,487

2,621

21,798

9,309

Other, net

(10,416)

2,642

(19,861)

2,317

Net cash used in investing

(54,831)

(30,572)

(139,500)

(72,599)

Effect of foreign exchange rates on cash and cash equivalents

(1)

183

(196)

Net change in cash and cash equivalents

(11,170)

1,414

(9,307)

11,927

Cash and cash equivalents, beginning of period

32,105

28,828

30,242

18,315

Cash and cash equivalents, end of period

$20,935

$30,242

$20,935

$30,242

We have recast certain prior period amounts to conform to the current period presentation.

SEGMENT RESULTS

(In millions) (Unaudited)

Three Months Ended

Twelve Months Ended

June,

June 30,

2026

2025

2026

2025

Productivity and Business Processes

Revenue

$37,847

$33,112

$139,996

$120,810

Cost of revenue

6,989

6,042

25,017

22,422

Operating expenses

8,958

8,077

31,100

28,615

Operating income

$21,900

$18,993

$83,879

$69,773

Intelligent Cloud

Revenue

$39,306

$29,878

$137,791

$106,265

Cost of revenue

16,876

11,845

57,876

40,171

Operating expenses

6,475

5,893

22,943

21,505

Operating income

$15,955

$12,140

$56,972

$44,589

More Personal Computing

Revenue

$12,854

$13,451

$54,052

$54,649

Cost of revenue

5,660

6,127

23,481

25,238

Operating expenses

4,446

4,134

16,185

15,245

Operating income

$2,748

$3,190

$14,386

$14,166

Total

Revenue

$90,007

$76,441

$331,839

$281,724

Cost of revenue

29,525

24,014

106,374

87,831

Operating expenses

19,879

18,104

70,228

65,365

Operating income

$40,603

$34,323

$155,237

$128,528

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