MSFT · MICROSOFT CORP
10-Q filed 2026-04-29 period 2026-03-31
91 Strong
confidence high · source filing on SEC.gov ↗
- Microsoft Cloud revenue increased 29% year-over-year to $54.5 billion, driven by 40% growth in Azure and other cloud services.
- Commercial remaining performance obligation (RPO) surged 99% to $627 billion, indicating massive long-term contract commitments.
- Capital expenditures (additions to property and equipment) escalated dramatically to $30.9 billion for the quarter to support AI and cloud infrastructure.
Filing Health Score pillars
Profitability 25%
92
Citing the MD&A Summary Results of Operations, revenue grew 18% to $82,886 million and operating income grew 20% to $38,398 million for the three months ended March 31, 2026, demonstrating strong profitability and positive operating leverage despite slight gross margin pressure from AI investments.
Balance sheet 20%
95
Citing the Balance Sheets and Note 3, total cash and short-term investments of $78,272 million comfortably exceed total debt of $40,262 million, while diluted shares outstanding decreased from 7,461 million to 7,445 million year-over-year.
Cash generation 20%
88
Citing the Cash Flows Statements, operating cash flow for the nine months ended March 31, 2026 was $127,494 million (well above net income of $97,983 million), though free cash flow was tempered by high capex intensity of $80,146 million.
Risk flags 20%
85
Citing Note 1 (Income Taxes) and Risk Factors, Microsoft faces a significant IRS tax dispute seeking an additional $28.9 billion for tax years 2004-2013, alongside ongoing cybersecurity threats and high operational risks related to AI deployment.
Mgmt signal 15%
94
Citing MD&A Overview, management signals exceptional commercial momentum with Microsoft Cloud revenue up 29% to $54.5 billion and Commercial RPO up 99% to $627 billion, driven by strong demand for Azure and AI services.
Key metrics (Three Months Ended March 31, 2026)
revenue: $82,886 million
cash and equivalents: $32,105 million
total debt: $40,262 million
shares outstanding: 7,429 million
net income: $31,778 million
period: Three Months Ended March 31, 2026
operating cash flow: $46,679 million
Gemma triage notes (pre-analysis, second opinion)
None for this filing.Automated research summaries derived from SEC filings. Not investment advice.