Earnings quality
Compare earnings and operating cash flow for earnings quality.
Microsoft Corporation
Ticker MSFT · 🇺🇸 United States · Consolidated US GAAP · amounts in dollars
Filed 2026-07-29 · Period end 2026-06-30
Takeaway
Worth trackingSales and operating profit both moved in a healthier direction.
operating margin is 46.8%; equity ratio is 58.3%.
Sales and operating profit moved together — keep watching margins and whether the trend persists next period.
ActionWorth tracking
OP margin46.8%
Equity ratio58.3%
Last price—
Trailing P/E—
Look at next
- Compare operating cash flow to reported profit across the last two years.
- Open English IR for management commentary on outlook and capital allocation.
- Overlay peers on Compare before judging relative momentum.
About the company
MICROSOFT CORPORATION is a US-listed company with consolidated financial statements filed on SEC EDGAR.
Financial statements
Income statement
| Account | FY2025 (ended Jun 30, 2025) | FY2026 (ended Jun 30, 2026) |
|---|---|---|
| Revenue | $281.7B | $331.8B |
| Cost of sales* | $87.8B | $106.4B |
| Gross profit | $193.9B | $225.5B |
| Operating profit | $128.5B | $155.2B |
| Income tax | $21.8B | $32.2B |
| Net income | $101.8B | $133.7B |
| Basic EPS | 13.70 | 18.00 |
Balance sheet
| Account | FY2025 (ended Jun 30, 2025) | FY2026 (ended Jun 30, 2026) |
|---|---|---|
| Cash & equivalents | $30.2B | $20.9B |
| Current assets | $191.1B | $207.7B |
| Non-current assets* | $427.9B | $550.7B |
| Total assets | $619.0B | $758.4B |
| Current liabilities | $141.2B | $168.8B |
| Non-current liabilities* | $134.3B | $147.2B |
| Total liabilities | $275.5B | $316.0B |
| Stockholders’ equity | $343.5B | $442.4B |
Cash flow statement
| Account | FY2025 (ended Jun 30, 2025) | FY2026 (ended Jun 30, 2026) |
|---|---|---|
| Operating cash flow | $136.2B | $182.9B |
| Investing cash flow | -$72.6B | -$139.5B |
| Financing cash flow | -$51.7B | -$52.5B |
| Cash at end of period | $30.2B | $20.9B |
Five-year trends
Key metrics
| Metric | Trend | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|---|
| Revenue | $198.3B | $211.9B | $245.1B | $281.7B | $331.8B | |
| Operating profit | $83.4B | $88.5B | $109.4B | $128.5B | $155.2B | |
| Net income | $72.7B | $72.4B | $88.1B | $101.8B | $133.7B | |
| Total assets | $364.8B | $412.0B | $512.2B | $619.0B | $758.4B | |
| Cash & equivalents | $13.9B | $34.7B | $18.3B | $30.2B | $20.9B | |
| Stockholders’ equity | $166.5B | $206.2B | $268.5B | $343.5B | $442.4B |
How we read these numbers
From the notes
No material one-offs extracted from this filing.
Constructive
Sales and operating profit both moved in a healthier direction.
On the income statement, revenue moved from $281.7B to $331.8B (▲ +17.8%). Operating profit went from $128.5B to $155.2B (▲ +20.8%).
Operating cash flow was $182.9B (prior $136.2B), with cash on the balance sheet at $20.9B versus $30.2B.
Liquidity & leverage
Cash moved from $30.2B to $20.9B; current liabilities $168.8B.
Capital buffer
Stockholders’ equity moved from $343.5B to $442.4B.
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Source: SEC EDGAR 0001193125-26-323660
(MICROSOFT CORPORATION), period end 2026-06-30.