StratGraph
Companies / Information Technology
MSFT

Microsoft

Microsoft sells cloud infrastructure, AI agents, productivity software, Windows, devices, gaming and search advertising, and is borrowing and spending heavily to expand AI capacity.

Systems SoftwareAnalysis updated 2026-11-13

What the filings point to next

Our analysis of the moves the company's own disclosures point to, with the signals that would confirm them.

Top strategy callHigh confidence

Keep funding the AI infrastructure build with a larger share of debt, with further bond issuance in the coming year rather than a pullback in capital spending.

Signals to watch
  • Quarterly additions to property and equipment versus cash from operations
  • Further notes issued under the existing shelf registration
  • Cash and short-term investment balance in the next 10-Q
4 more strategy calls in the full analysis
  • Push deeper into in-house chip and hardware design for its datacenters, with silicon becoming a larger share of engineering investment.
    Medium confidence
  • Position Azure as a multi-model platform, reducing visible dependence on OpenAI while keeping the investment.
    Medium confidence
  • Refresh board oversight toward finance and payments as the company takes on more debt and agent-based commerce, naming a new Audit and Finance Committee chair from recent finance-heavy appointees.
    Medium confidence
  • Run Devices and Consumer for profit and reach rather than growth, with cost actions or more third-party distribution for hardware and gaming.
    Low confidence

Relationship map

Who it buys from, sells to, partners with and competes against, as its disclosures describe it.

MSFTWindows OEMs (unnamed): Device makers that license Windows and also compete with Microsoft's own devices.Windows OEMs (unnamed)Companies where Microsoft directors are executives (unnamed): Ordinary-course buyers of software licenses; none required related-party approval.Companies where Microsoft d…Datacenter component suppliers (unnamed): Suppliers of hardware components for datacenter buildout; scale implied by investing cash flows.Datacenter component suppli…OpenAI: Investee whose results affect Microsoft's GAAP net income; excluded from non-GAAP figures.OpenAISearch monetization partners (unnamed): Companies through which Microsoft provides and monetizes search offerings.Search monetization partn…Third-party gaming device manufacturers (unnamed): Makers of new devices that run XBOX content outside Microsoft consoles.Third-party gaming device…Computer, tablet and hardware manufacturers (unnamed): Compete with Microsoft devices; many are also Windows partners and customers.Computer tablet and hardw…Online gaming ecosystems, game streaming services and console platforms (unnamed): Compete with XBOX and cloud gaming.Online gaming ecosystems …Search engines, social platforms and portals (unnamed): Compete with Bing and search advertising.Search engines social pla…

Customers Suppliers Partners (top) Competitors (bottom) · solid = disclosed, dashed = inferred · tap a highlighted company to open it

What other companies' disclosures say about it

Shares a board member with
Named as a partner by

Business at a glance

Operating-health scores describe reported fundamentals on a 0–100 scale. They are not a rating of the stock. How they work

Operating health79
Growth81
Profitability99
Cash generation59
Balance sheet84
Dilution control71
Key ratios and five-year financials
Latest quarter revenue YoY (2026-09-30)18.8%Revenue growth (FY)17.8%Revenue CAGR (3y)16.1%Gross margin67.9%Operating margin46.8%Net margin40.3%Free cash flow margin20.2%R&D / revenue10.7%Stock comp / revenue3.7%Net debt / operating cash flow0.16xCurrent ratio1.23Diluted share count change-0.2%
Fiscal year endingFY 2022-06FY 2023-06FY 2024-06FY 2025-06FY 2026-06
Revenue$198.3B$211.9B$245.1B$281.7B$331.8B
Gross profit$135.6B$146.1B$171.0B$193.9B$225.5B
Operating income$83.4B$88.5B$109.4B$128.5B$155.2B
Net income$72.7B$72.4B$88.1B$101.8B$133.7B
Operating cash flow$89.0B$87.6B$118.5B$136.2B$182.9B
Capital expenditure$23.9B$28.1B$44.5B$64.6B$115.9B
Free cash flow$65.1B$59.5B$74.1B$71.6B$67.0B
R&D$24.5B$27.2B$29.5B$32.5B$35.6B
Stock-based comp$7.5B$9.6B$10.7B$12.0B$12.4B
Buybacks$32.7B$22.2B$17.3B$18.4B$22.3B
Dividends$18.1B$19.8B$21.8B$24.1B$26.4B
Cash$13.9B$34.7B$18.3B$30.2B$20.9B
Total debt$52.5B$52.5B$53.9B$46.1B$49.5B
Equity$166.5B$206.2B$268.5B$343.5B$442.4B

Built from the company's disclosures: 10-K (2026-07-29), 8-K (2026-11-05), 8-K (2026-11-04), 8-K (2026-10-28), 8-K (2026-10-28), DEF 14A (2026-10-21).

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