10-K · July 29, 2026
Microsoft’s FY26 10-K shows a cloud-and-AI-led acceleration: revenue rose 18% to $331.839B and Intelligent Cloud grew 30%, led by 41% Azure growth. The strategic positioning centers on its broad platform ecosystem,…
Earnings analysis · 10-Q
MSFT earnings analysis
Filed October 28, 2026 · Our reading of the company's report
The latest report
The supplied 10-Q extract is concentrated on market risks, risk factors, controls, and shareholder returns and does not include the income statement, balance sheet, cash-flow statement, segment results, or MD&A…
Read full summary
The supplied 10-Q extract is concentrated on market risks, risk factors, controls, and shareholder returns and does not include the income statement, balance sheet, cash-flow statement, segment results, or MD&A financial trends needed for a complete quarterly operating assessment. Microsoft returned $10.2 billion to shareholders in the quarter, but the filing identifies significant forward risks, including a $28.9 billion IRS tax exposure and sizable foreign-exchange sensitivity. No numeric guidance was provided in the supplied filing text.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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$10.2B returned to shareholders
Microsoft returned $10.2 billion to shareholders during the first quarter of fiscal 2027 through share repurchases and dividends.
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Continued share repurchases
The company repurchased 6,488,870 shares in the quarter, with $37.705 billion remaining under the repurchase authorization as of September 30, 2026.
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Disclosure controls remain effective
Management concluded that disclosure controls and procedures were effective as of September 30, 2026, and reported no material changes to internal control over financial reporting during the quarter.
What to watch
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Large unresolved IRS tax exposure
The IRS is seeking an additional tax payment of $28.9 billion plus penalties and interest for tax years 2004 to 2013, primarily related to intercompany transfer pricing; the ultimate resolution could materially affect results.
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Material foreign-exchange sensitivity
The filing’s sensitivity analysis shows a hypothetical 10% decrease in foreign-exchange rates could reduce earnings by $14,451 million, highlighting substantial currency exposure.
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Investment portfolio market risk
A 10% decline in equity-market prices would have a modeled earnings impact of $2,806 million, while a 100-basis-point increase in U.S. Treasury rates would reduce fixed-income fair value by $1,023 million.
Management's outlook
No quantitative revenue or EPS guidance was provided in the supplied 10-Q text; forward outlook appears to have been deferred to the earnings call.
Earlier filings 4
10-Q · April 29, 2026
Microsoft's Q3 FY2026 results demonstrated robust performance with a revenue of $82.9 billion, exceeding estimates by $1.48 billion, and a diluted EPS of $4.27, surpassing the consensus estimate of $4.07. Cloud-related…
10-Q · January 28, 2026
Microsoft reported revenue of $81.273 billion in Q2 FY2026, up 17% year-over-year, with diluted EPS of $5.16, up 60% Y/Y (benefitting from net gains on OpenAI investments). Growth was led by Microsoft Cloud (revenue…
10-Q · October 29, 2025
Microsoft reported quarterly revenue of $77,673 million, up $12,088 million or 18% year-over-year, driven by strong Cloud and Microsoft 365 performance. GAAP diluted EPS was $3.72 (up 13%) and adjusted diluted EPS…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.