What is the primary revenue source for Microsoft (MSFT)?

According to the latest financial reports, the company's revenue is driven by its core business segments and operational services. You can explore the exact breakdown and proportions of each revenue stream using the interactive charts on this page.

How can I visualize and analyze MSFT's financial statements?

gkcal provides interactive Sankey diagrams and profit waterfall charts that map out Microsoft's total revenue, cost of goods sold, operating expenses, and net income, making it easy to understand their business model and cash flow at a glance.

How Microsoft Makes Money: MSFT Revenue Breakdown (2026)

Operations

Where did the money come from, and where was it spent?

Steady

Revenue and operating profit grew together, indicating healthy core operations.

Operating margin improved by 1.16 percentage points year over year.

Revenue: USD 331.84B
Largest revenue segment share (Server Products And Cloud Services): 39.00%
Cost of revenue: USD 106.37B
Research and development: USD 35.56B

View calculation evidence

YoY periods: FY 2026 compared with FY 2025

Source metrics

RevenueRevenue · RevenueFromContractWithCustomerExcludingAssessedTax
Cost of revenueCost of revenue · CostOfGoodsAndServicesSold
Largest revenue segment share (Server Products And Cloud Services)Server Products And Cloud Services · segment_value / revenue * 100
Research and developmentResearch and development · ResearchAndDevelopmentExpense
Operating marginOperating income · operating_income / revenue * 100

Assets

Where is the money tied up, and how is the company financed?

Neutral

Liabilities and shareholder equity jointly fund the asset base, with a broadly stable mix.

Property, plant and equipment: USD 313.08B
Goodwill: USD 119.65B
Accounts receivable: USD 80.88B
Total liabilities: USD 315.99B
Shareholder equity: USD 442.39B

View calculation evidence

YoY periods: FY 2026 compared with FY 2025

Source metrics

GoodwillGoodwill · Goodwill
Property, plant and equipmentProperty and equipment, net of accumulated depreciation of $118,691 and $93,653 · PropertyPlantAndEquipmentNet
Shareholder equityEquity, attributable to parent · StockholdersEquity
Total liabilitiesLiabilities · Liabilities
Accounts receivableAccounts receivable, net of allowance for doubtful accounts of $1,040 and $944 · AccountsReceivableNetCurrent

Cash

Did accounting profit ultimately turn into cash?

Steady

Operating cash flow covers accounting profit, showing good cash conversion.

Operating cash flow equals 136.77% of net income.

Free cash flow remains positive after capital expenditure.

Net income: USD 133.75B
Operating cash flow: USD 182.94B
Cash conversion: 136.77%
Free cash flow: USD 66.99B

View calculation evidence

YoY periods: FY 2026 compared with FY 2025

Source metrics

Net incomeNet income · NetIncomeLoss
Free cash flowcfo - capex
Cash conversionoperating_cash_flow / net_income * 100
Operating cash flowsum(waterfull.operating)

Shareholders

Did the money earned actually make its way back to shareholders?

Steady

Dividends and net buybacks are covered by free cash flow, so cash genuinely reached shareholders.

Cash dividends: USD 26.45B
Share repurchases: USD 22.27B
Stock issuance proceeds: USD 2.01B
Net shareholder return: USD 46.71B

View calculation evidence

YoY periods: FY 2026 compared with FY 2025

Source metrics

Cash dividendsPayments of ordinary dividends, common stock · PaymentsOfDividendsCommonStock · abs(node_value)
Net shareholder returndividends_paid + share_repurchases - stock_issuance_proceeds
Share repurchasesPayments for repurchase of common stock · PaymentsForRepurchaseOfCommonStock · abs(node_value)
Stock issuance proceedsCommon stock issued · ProceedsFromIssuanceOfCommonStock · abs(node_value)

Diluted share count is missing, so dilution cannot be assessed against buybacks.

Financial Insights

Please select a report to view

Where did the money come from, and where was it spent?

Where is the money tied up, and how is the company financed?

Did accounting profit ultimately turn into cash?

Did the money earned actually make its way back to shareholders?