Microsoft Corp
microsoft.comWhat Do They Do?
Develops and supports software and cloud services, sells devices, and delivers online advertising to individuals, businesses, and public-sector organizations.
10-K for FY2026, filed Jul 29, 2026Founded in 1975, we develop and support software, services, devices, and solutions that deliver new value for customers and help people and…View ↗
We offer an array of services, including cloud-based solutions that provide customers with AI, software, services, platforms, and content…View ↗
Our products include operating systems, server applications, business solution applications, software development tools, desktop and server…View ↗
Distribution occurs through a combination of direct and indirect channels. Direct sales activities serve customers ranging from large…View ↗
How Do They Make Money?
Server Products and Cloud Services earns revenue from on-premises licenses when available and cloud services by subscription over contracts or as used. Microsoft 365 Commercial earns revenue from cloud subscriptions over contracts and on-premises licenses when available; search ads earn revenue when shown or after a qualifying action.
10-K for FY2026, filed Jul 29, 2026Server products and cloud services, including Azure and other cloud services, comprising cloud and AI consumption-based services, GitHub…View ↗
Microsoft 365 Commercial products and cloud services, including Microsoft 365 Commercial cloud, comprising Microsoft 365 Commercial…View ↗
Licenses for on-premises software provide the customer with a right to use the software as it exists when made available to the customer.…View ↗
Cloud services, which include software-as-a-service, infrastructure-as-a-service, and platform-as-a-service, are provided on either a…View ↗
Revenue from search advertising is recognized when the advertisement appears in the search results or when the action necessary to earn the…View ↗
-
10-K for FY2026, filed Jul 29, 2026
FY2026 revenue by product or service ↗
$331.8B
-
10-K for FY2026, filed Jul 29, 2026
$331.8B ↗
| Segment | Share | Revenue | How money arrives |
|---|---|---|---|
|
Server Products and Cloud Services
Mix
10-K for FY2026, filed Jul 29, 2026 |
39%
FY2023: 31%
|
Server Products and Cloud Services, FY2026
$129.4B Sources
|
Mix |
|
Microsoft 365 Commercial Products and Cloud Services
|
31%
FY2023: 32%
|
Microsoft 365 Commercial Products and Cloud Services, FY2026
$102B Sources
|
|
|
XBOX
|
6.6% |
XBOX, FY2026
$21.8B Sources
|
|
|
LinkedIn
|
6.0%
FY2023: 7.1%
|
LinkedIn, FY2026
$19.8B Sources
|
|
|
Windows and Devices
Sold outright
|
5.2%
FY2023: 8.1%
|
Windows and Devices, FY2026
$17.1B Sources
|
Sold outright |
|
Search advertising
Usage-based
|
4.6% |
Search advertising, FY2026
$15.2B Sources
|
Usage-based |
|
Microsoft 365 Consumer products and cloud services
Mix
|
2.8%
FY2023: 3.0%
|
Microsoft 365 Consumer products and cloud services, FY2026
$9.2B Sources
|
Mix |
|
Dynamics products and cloud services
|
2.7%
FY2023: 2.7%
|
Dynamics products and cloud services, FY2026
$9B Sources
|
|
|
Enterprise and partner services
|
2.5%
FY2023: 3.7%
|
Enterprise and partner services, FY2026
$8.3B Sources
|
|
|
Other
|
<0.1%
FY2023: 0.1%
|
Other, FY2026
$109M Sources
|
Who Are Their Customers?
Large multinational companies, public-sector organizations, and small and medium businesses buy directly; partners also sell, deploy, and manage Microsoft's products and services. Device makers license and preinstall some software, and some offerings are sold online.
10-K for FY2026, filed Jul 29, 2026
Do Revenues Turn Into Profits?
Yes. It kept 40 cents of every revenue dollar as net income in FY2026 and turned 20 cents into free cash flow.
10-K for FY2026, filed Jul 29, 2026
$155.2BView ↗
10-K for FY2026, filed Jul 29, 2026
$133.7BView ↗
10-K for FY2026, filed Jul 29, 2026
$67BView ↗
How Are They Changing?
-
Sep 2, 2026
Microsoft changes its reporting structure
Beginning with fiscal year 2027, Microsoft will report Agents and Infra and Devices and Consumer instead of its current three segments.
Sources
8-K, filed Sep 2, 2026
On September 2, 2026, Microsoft Corporation (the “Company”) posted presentation materials to its Investor Relations website titled “FY27…View ↗
Loading...
