Microsoft FY2026 MD&A Management Analysis Ontology
type: Ontology
description: A small bridge ontology for a management-centric analysis of Microsoft Form 10-K Item 7. It reuses schema.org for CreativeWork and PropertyValue modeling, records FASB/SEC XBRL taxonomies as the appropriate shared reporting vocabularies for financial facts, and cross-references FIBO as a broader finance-domain ontology rather than replacing SEC reporting concepts.
label: Microsoft FY2026 MD&A management analysis ontology
comment: Local terms are restricted to interpretation and presentation relationships not directly supplied by schema.org or XBRL in this generated analysis. Annotation properties used by this ontology include rdfs:label, rdfs:comment, schema:name, schema:description, schema:identifier, rdfs:seeAlso, and rdfs:isDefinedBy.
imports: schema.org
has part: Annotation property catalog for Microsoft FY2026 MD&A management analysis ontology
mentions: label
mentions: comment
mentions: see also
mentions: is defined by
mentions: name
mentions: description
mentions: identifier

Annotation property catalog for Microsoft FY2026 MD&A management analysis ontology
type: CreativeWork
description: Catalog of annotation properties used to describe the ontology and its custom terms. This resource is linked from the ontology IRI so a description of the ontology exposes the annotation-property vocabulary rather than hiding it in prose.
is part of: Microsoft FY2026 MD&A Management Analysis Ontology
about: label
about: comment
about: see also
about: is defined by
about: name
about: description
about: identifier

label
type: AnnotationProperty
comment: Human-readable label annotation used for ontology terms.
is part of: Annotation property catalog for Microsoft FY2026 MD&A management analysis ontology

comment
type: AnnotationProperty
comment: Human-readable explanatory annotation used for ontology terms.
is part of: Annotation property catalog for Microsoft FY2026 MD&A management analysis ontology

see also
type: AnnotationProperty
comment: Cross-reference annotation used to point from local ontology terms to shared vocabularies and related specifications.
is part of: Annotation property catalog for Microsoft FY2026 MD&A management analysis ontology

is defined by
type: AnnotationProperty
comment: Annotation used to connect custom ontology terms to the local ontology resource that defines them.
is part of: Annotation property catalog for Microsoft FY2026 MD&A management analysis ontology

name
type: AnnotationProperty
comment: Schema.org name annotation used for ontology, document, section, metric, and entity labels.
is part of: Annotation property catalog for Microsoft FY2026 MD&A management analysis ontology

description
type: AnnotationProperty
comment: Schema.org description annotation used for ontology, document, section, metric, and entity explanatory text.
is part of: Annotation property catalog for Microsoft FY2026 MD&A management analysis ontology

identifier
type: AnnotationProperty
comment: Schema.org identifier annotation used to state the canonical IRI for the local ontology.
is part of: Annotation property catalog for Microsoft FY2026 MD&A management analysis ontology

USD millions
type: unit
type: UnitPriceSpecification
currency: USD
unit text: USD millions
measure: USD
value: 1000000

USD per share
type: unit
type: UnitPriceSpecification
currency: USD
unit text: USD per share
measure: USD

Fiscal year 2026
type: context
start date: 2025-07-01
end date: 2026-06-30

Fiscal year 2025
type: context
start date: 2024-07-01
end date: 2025-06-30

Microsoft FY2026 Form 10-K MD&A source filing
type: Report
description: SEC EDGAR filing used as source material for a management-centric RDF and HTML analysis of Item 7, Management Discussion and Analysis of Financial Condition and Results of Operations.
date published: 2026-07-30
publisher: U.S. Securities and Exchange Commission
about: Management-centric analysis of Microsoft FY2026 MD&A

Microsoft FY2026 MD&A management-centric analysis bundle
type: CreativeWork
description: Generated RDF and HTML bundle focused on management explanation of Microsoft financial condition, results of operations, liquidity, capital allocation, segment performance, non-GAAP adjustments, and critical accounting estimates.
date created: 2026-08-05
author: this
about: Management-centric analysis of Microsoft FY2026 MD&A
has part: Overview
has part: Summary Results of Operations
has part: Segment Results of Operations
has part: Liquidity and Capital Resources
has part: Critical Accounting Estimates
has part: Statement of Management Responsibility
has part: Microsoft FY2026 MD&A -- FAQ
has part: Management analysis glossary

Management-centric analysis of Microsoft FY2026 MD&A
type: AnalysisNewsArticle
abstract: Management frames fiscal 2026 as cloud and AI-led growth, with expanding commercial backlog and strong operating cash flow balanced by AI infrastructure investment, datacenter commitments, tax disputes, and accounting judgment.
about: AI and cloud demand
about: Capacity investment and margin pressure
about: Commercial backlog visibility
about: Capital flexibility
about: OpenAI investment effects
about: Accounting estimates and judgment
mentions: Revenue
mentions: Operating income
mentions: Net income
mentions: Microsoft Cloud revenue
mentions: Commercial remaining performance obligation
mentions: Productivity and Business Processes
mentions: Intelligent Cloud
mentions: More Personal Computing
has part: Overview
has part: Summary Results of Operations
has part: Segment Results of Operations
has part: Liquidity and Capital Resources
has part: Critical Accounting Estimates
has part: Statement of Management Responsibility

Management analysis theme
type: Class
comment: A management-facing interpretive theme extracted from Microsoft MD&A.
subclass of: Thing

Financial metric
type: Class
comment: A reported fiscal metric or operating indicator used by management in MD&A, modeled as a specialization of schema:PropertyValue while cross-referencing XBRL reporting vocabularies for standardized financial fact definitions.
subclass of: PropertyValue

has management theme
type: Property
type: ObjectProperty
type: AsymmetricProperty
type: IrreflexiveProperty
comment: Connects a financial metric or analysis entity to a management interpretation theme. Broader schema.org properties were checked; schema:about is the closest superproperty but this term narrows the object to an explicit management-analysis theme.
sub property of: about
domain: Thing
range: Management analysis theme

Overview
type: ArticleSection
description: Microsoft describes itself as an AI-powered technology company generating revenue from cloud services, software licensing, advertising, devices, and content.
is part of: Management-centric analysis of Microsoft FY2026 MD&A

Summary Results of Operations
type: ArticleSection
description: Management highlights revenue growth, operating leverage, Microsoft Cloud growth, commercial RPO, and OpenAI-related effects on GAAP comparability.
is part of: Management-centric analysis of Microsoft FY2026 MD&A

Segment Results of Operations
type: ArticleSection
description: The three-segment view shows Productivity and Business Processes and Intelligent Cloud as growth engines, with More Personal Computing roughly flat.
is part of: Management-centric analysis of Microsoft FY2026 MD&A

Liquidity and Capital Resources
type: ArticleSection
description: Management states available liquidity and cash generation are sufficient for operations, investing, financing, capital expenditures, dividends, repurchases, and debt maturities.
is part of: Management-centric analysis of Microsoft FY2026 MD&A

Critical Accounting Estimates
type: ArticleSection
description: Management identifies the estimates and judgments that can materially affect financial condition and results.
is part of: Management-centric analysis of Microsoft FY2026 MD&A

Statement of Management Responsibility
type: ArticleSection
description: Management accepts responsibility for financial statement preparation, internal controls, estimates, and judgments.
is part of: Management-centric analysis of Microsoft FY2026 MD&A

AI and cloud demand
type: Management analysis theme
type: Thing
description: Management presents AI-powered cloud services as the main revenue growth vector, led by Microsoft Cloud, Azure, Microsoft 365 Commercial cloud, and Copilot-related monetization.
is part of: Management-centric analysis of Microsoft FY2026 MD&A

Capacity investment and margin pressure
type: Management analysis theme
type: Thing
description: Management links cloud and AI infrastructure investment, datacenter capacity, GPUs, energy, networking supplies, and AI usage to higher operating costs and lower cloud gross margin percentage.
is part of: Management-centric analysis of Microsoft FY2026 MD&A

Commercial backlog visibility
type: Management analysis theme
type: Thing
description: Commercial remaining performance obligation increased 84% to $678 billion, creating a management signal about future contracted revenue recognition.
is part of: Management-centric analysis of Microsoft FY2026 MD&A

Capital flexibility
type: Management analysis theme
type: Thing
description: Management says cash, investments, operating cash flow, and capital market access are expected to fund operations, capital expenditure, debt maturities, dividends, and repurchases.
is part of: Management-centric analysis of Microsoft FY2026 MD&A

OpenAI investment effects
type: Management analysis theme
type: Thing
description: Management separates GAAP and adjusted results because net gains and losses from OpenAI investments affected other income, net income, and EPS comparability.
is part of: Management-centric analysis of Microsoft FY2026 MD&A

Accounting estimates and judgment
type: Management analysis theme
type: Thing
description: Management identifies revenue recognition, investment measurement and impairment, goodwill, R&D costs, legal contingencies, and income taxes as critical estimate areas.
is part of: Management-centric analysis of Microsoft FY2026 MD&A

Revenue
type: Financial metric
type: PropertyValue
type: item
type: MonetaryAmount
unit text: USD millions
value: 331839
description: Growth was driven by Microsoft Cloud.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
property ID: RevenueFromContractWithCustomerExcludingAssessedTax
context ref: Fiscal year 2026
unit ref: USD millions
currency: USD
additional type: monetaryItemType
subject of: Revenue FY2025 comparison value
subject of: Revenue year-over-year change percent
is part of: Summary Results of Operations

Revenue FY2025 comparison value
type: PropertyValue
type: item
type: MonetaryAmount
value: 281724
unit text: USD millions
temporal coverage: FY2025
about: Revenue
property ID: RevenueFromContractWithCustomerExcludingAssessedTax
context ref: Fiscal year 2025
unit ref: USD millions
currency: USD
additional type: monetaryItemType
measurement technique: us-gaap-2026.xsd
is part of: Summary Results of Operations

Revenue year-over-year change percent
type: PropertyValue
value: 18
unit text: percent
about: Revenue
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Summary Results of Operations

Gross margin
type: Financial metric
type: PropertyValue
type: item
type: MonetaryAmount
unit text: USD millions
value: 225465
description: Gross margin increased with growth across all segments while gross margin percentage decreased slightly.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
property ID: GrossProfit
context ref: Fiscal year 2026
unit ref: USD millions
currency: USD
additional type: monetaryItemType
subject of: Gross margin FY2025 comparison value
subject of: Gross margin year-over-year change percent
is part of: Summary Results of Operations

Gross margin FY2025 comparison value
type: PropertyValue
type: item
type: MonetaryAmount
value: 193893
unit text: USD millions
temporal coverage: FY2025
about: Gross margin
property ID: GrossProfit
context ref: Fiscal year 2025
unit ref: USD millions
currency: USD
additional type: monetaryItemType
measurement technique: us-gaap-2026.xsd
is part of: Summary Results of Operations

Gross margin year-over-year change percent
type: PropertyValue
value: 16
unit text: percent
about: Gross margin
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Summary Results of Operations

Operating income
type: Financial metric
type: PropertyValue
type: item
type: MonetaryAmount
unit text: USD millions
value: 155237
description: Operating income grew on Productivity and Business Processes and Intelligent Cloud strength.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
property ID: OperatingIncomeLoss
context ref: Fiscal year 2026
unit ref: USD millions
currency: USD
additional type: monetaryItemType
subject of: Operating income FY2025 comparison value
subject of: Operating income year-over-year change percent
is part of: Summary Results of Operations

Operating income FY2025 comparison value
type: PropertyValue
type: item
type: MonetaryAmount
value: 128528
unit text: USD millions
temporal coverage: FY2025
about: Operating income
property ID: OperatingIncomeLoss
context ref: Fiscal year 2025
unit ref: USD millions
currency: USD
additional type: monetaryItemType
measurement technique: us-gaap-2026.xsd
is part of: Summary Results of Operations

Operating income year-over-year change percent
type: PropertyValue
value: 21
unit text: percent
about: Operating income
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Summary Results of Operations

Net income
type: Financial metric
type: PropertyValue
type: item
type: MonetaryAmount
unit text: USD millions
value: 133749
description: Net income was positively affected by OpenAI investment gains.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
property ID: NetIncomeLoss
context ref: Fiscal year 2026
unit ref: USD millions
currency: USD
additional type: monetaryItemType
subject of: Net income FY2025 comparison value
subject of: Net income year-over-year change percent
is part of: Summary Results of Operations

Net income FY2025 comparison value
type: PropertyValue
type: item
type: MonetaryAmount
value: 101832
unit text: USD millions
temporal coverage: FY2025
about: Net income
property ID: NetIncomeLoss
context ref: Fiscal year 2025
unit ref: USD millions
currency: USD
additional type: monetaryItemType
measurement technique: us-gaap-2026.xsd
is part of: Summary Results of Operations

Net income year-over-year change percent
type: PropertyValue
value: 31
unit text: percent
about: Net income
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Summary Results of Operations

Diluted earnings per share
type: Financial metric
type: PropertyValue
type: item
type: MonetaryAmount
unit text: USD per share
value: 17.95
description: EPS rose with operating growth and OpenAI-related gains.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
property ID: EarningsPerShareDiluted
context ref: Fiscal year 2026
unit ref: USD per share
currency: USD
additional type: monetaryItemType
subject of: Diluted earnings per share FY2025 comparison value
subject of: Diluted earnings per share year-over-year change percent
is part of: Summary Results of Operations

Diluted earnings per share FY2025 comparison value
type: PropertyValue
type: item
type: MonetaryAmount
value: 13.64
unit text: USD per share
temporal coverage: FY2025
about: Diluted earnings per share
property ID: EarningsPerShareDiluted
context ref: Fiscal year 2025
unit ref: USD per share
currency: USD
additional type: monetaryItemType
measurement technique: us-gaap-2026.xsd
is part of: Summary Results of Operations

Diluted earnings per share year-over-year change percent
type: PropertyValue
value: 32
unit text: percent
about: Diluted earnings per share
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Summary Results of Operations

Adjusted net income
type: Financial metric
type: PropertyValue
unit text: USD millions
value: 128786
description: Non-GAAP measure excludes net gains and losses from OpenAI investments.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
subject of: Adjusted net income FY2025 comparison value
subject of: Adjusted net income year-over-year change percent
is part of: Summary Results of Operations

Adjusted net income FY2025 comparison value
type: PropertyValue
value: 105452
unit text: USD millions
temporal coverage: FY2025
about: Adjusted net income
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Summary Results of Operations

Adjusted net income year-over-year change percent
type: PropertyValue
value: 22
unit text: percent
about: Adjusted net income
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Summary Results of Operations

Microsoft Cloud revenue
type: Financial metric
type: PropertyValue
unit text: USD millions
value: 214400
description: Cloud scale remained the central growth engine.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
subject of: Microsoft Cloud revenue year-over-year change percent
is part of: Summary Results of Operations
has management theme: AI and cloud demand

Microsoft Cloud revenue year-over-year change percent
type: PropertyValue
value: 27
unit text: percent
about: Microsoft Cloud revenue
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Summary Results of Operations

Commercial remaining performance obligation
type: Financial metric
type: PropertyValue
unit text: USD millions
value: 678000
description: Contracted commercial backlog points to future revenue recognition.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
subject of: Commercial remaining performance obligation year-over-year change percent
is part of: Summary Results of Operations
has management theme: AI and cloud demand

Commercial remaining performance obligation year-over-year change percent
type: PropertyValue
value: 84
unit text: percent
about: Commercial remaining performance obligation
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Summary Results of Operations

Microsoft Cloud gross margin percentage
type: Financial metric
type: PropertyValue
unit text: percent
value: 66
description: Margin pressure reflects AI infrastructure investment and growing AI product usage.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Summary Results of Operations
has management theme: Capacity investment and margin pressure

Cash, cash equivalents, and short-term investments
type: Financial metric
type: PropertyValue
type: item
type: MonetaryAmount
unit text: USD millions
value: 76800
description: Liquidity remained large but lower year over year.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
property ID: CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
context ref: Fiscal year 2026
unit ref: USD millions
currency: USD
additional type: monetaryItemType
subject of: Cash, cash equivalents, and short-term investments FY2025 comparison value
is part of: Summary Results of Operations

Cash, cash equivalents, and short-term investments FY2025 comparison value
type: PropertyValue
type: item
type: MonetaryAmount
value: 94600
unit text: USD millions
temporal coverage: FY2025
about: Cash, cash equivalents, and short-term investments
property ID: CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
context ref: Fiscal year 2025
unit ref: USD millions
currency: USD
additional type: monetaryItemType
measurement technique: us-gaap-2026.xsd
is part of: Summary Results of Operations

Cash from operations
type: Financial metric
type: PropertyValue
type: item
type: MonetaryAmount
unit text: USD millions
value: 182900
description: Cash from operations increased by $46.8 billion.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
property ID: NetCashProvidedByUsedInOperatingActivities
context ref: Fiscal year 2026
unit ref: USD millions
currency: USD
additional type: monetaryItemType
is part of: Summary Results of Operations

Contractual obligations total
type: Financial metric
type: PropertyValue
unit text: USD millions
value: 743821
description: Obligations include debt, leases, construction, and purchase commitments.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Summary Results of Operations
has management theme: Capital flexibility

Purchase commitments
type: Financial metric
type: PropertyValue
unit text: USD millions
value: 194060
description: Purchase commitments primarily relate to datacenters.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Summary Results of Operations

Share repurchases
type: Financial metric
type: PropertyValue
type: item
type: MonetaryAmount
unit text: USD millions
value: 16700
description: Repurchases rose to $16.7 billion in fiscal 2026.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
property ID: PaymentsForRepurchaseOfCommonStock
context ref: Fiscal year 2026
unit ref: USD millions
currency: USD
additional type: monetaryItemType
subject of: Share repurchases FY2025 comparison value
is part of: Summary Results of Operations

Share repurchases FY2025 comparison value
type: PropertyValue
type: item
type: MonetaryAmount
value: 13000
unit text: USD millions
temporal coverage: FY2025
about: Share repurchases
property ID: PaymentsForRepurchaseOfCommonStock
context ref: Fiscal year 2025
unit ref: USD millions
currency: USD
additional type: monetaryItemType
measurement technique: us-gaap-2026.xsd
is part of: Summary Results of Operations

Dividends declared
type: Financial metric
type: PropertyValue
type: item
type: MonetaryAmount
unit text: USD millions
value: 27000
description: Management intends to continue dividends subject to Board declaration.
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
property ID: PaymentsOfDividends
context ref: Fiscal year 2026
unit ref: USD millions
currency: USD
additional type: monetaryItemType
subject of: Dividends declared FY2025 comparison value
is part of: Summary Results of Operations

Dividends declared FY2025 comparison value
type: PropertyValue
type: item
type: MonetaryAmount
value: 24700
unit text: USD millions
temporal coverage: FY2025
about: Dividends declared
property ID: PaymentsOfDividends
context ref: Fiscal year 2025
unit ref: USD millions
currency: USD
additional type: monetaryItemType
measurement technique: us-gaap-2026.xsd
is part of: Summary Results of Operations

Productivity and Business Processes
type: BusinessAudience
description: Microsoft 365 Commercial cloud, Microsoft 365 Consumer, LinkedIn, and Dynamics 365 drove growth.
subject of: Productivity and Business Processes revenue FY2026
subject of: Productivity and Business Processes revenue FY2025
subject of: Productivity and Business Processes revenue year-over-year change percent
subject of: Productivity and Business Processes operating income FY2026
subject of: Productivity and Business Processes operating income FY2025
subject of: Productivity and Business Processes operating income year-over-year change percent
is part of: Segment Results of Operations

Productivity and Business Processes revenue FY2026
type: PropertyValue
type: MonetaryAmount
type: item
property ID: RevenueFromContractWithCustomerExcludingAssessedTax
value: 139996
unit text: USD millions
currency: USD
unit ref: USD millions
context ref: Fiscal year 2026
additional type: monetaryItemType
temporal coverage: FY2026
about: Productivity and Business Processes
measurement technique: us-gaap-2026.xsd
is part of: Segment Results of Operations

Productivity and Business Processes revenue FY2025
type: PropertyValue
type: MonetaryAmount
type: item
property ID: RevenueFromContractWithCustomerExcludingAssessedTax
value: 120810
unit text: USD millions
currency: USD
unit ref: USD millions
context ref: Fiscal year 2025
additional type: monetaryItemType
temporal coverage: FY2025
about: Productivity and Business Processes
measurement technique: us-gaap-2026.xsd
is part of: Segment Results of Operations

Productivity and Business Processes revenue year-over-year change percent
type: PropertyValue
value: 16
unit text: percent
about: Productivity and Business Processes
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Segment Results of Operations

Productivity and Business Processes operating income FY2026
type: PropertyValue
type: MonetaryAmount
type: item
property ID: OperatingIncomeLoss
value: 83879
unit text: USD millions
currency: USD
unit ref: USD millions
context ref: Fiscal year 2026
additional type: monetaryItemType
temporal coverage: FY2026
about: Productivity and Business Processes
measurement technique: us-gaap-2026.xsd
is part of: Segment Results of Operations

Productivity and Business Processes operating income FY2025
type: PropertyValue
type: MonetaryAmount
type: item
property ID: OperatingIncomeLoss
value: 69773
unit text: USD millions
currency: USD
unit ref: USD millions
context ref: Fiscal year 2025
additional type: monetaryItemType
temporal coverage: FY2025
about: Productivity and Business Processes
measurement technique: us-gaap-2026.xsd
is part of: Segment Results of Operations

Productivity and Business Processes operating income year-over-year change percent
type: PropertyValue
value: 20
unit text: percent
about: Productivity and Business Processes
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Segment Results of Operations

Intelligent Cloud
type: BusinessAudience
description: Azure and other cloud services were the principal driver.
subject of: Intelligent Cloud revenue FY2026
subject of: Intelligent Cloud revenue FY2025
subject of: Intelligent Cloud revenue year-over-year change percent
subject of: Intelligent Cloud operating income FY2026
subject of: Intelligent Cloud operating income FY2025
subject of: Intelligent Cloud operating income year-over-year change percent
is part of: Segment Results of Operations

Intelligent Cloud revenue FY2026
type: PropertyValue
type: MonetaryAmount
type: item
property ID: RevenueFromContractWithCustomerExcludingAssessedTax
value: 137791
unit text: USD millions
currency: USD
unit ref: USD millions
context ref: Fiscal year 2026
additional type: monetaryItemType
temporal coverage: FY2026
about: Intelligent Cloud
measurement technique: us-gaap-2026.xsd
is part of: Segment Results of Operations

Intelligent Cloud revenue FY2025
type: PropertyValue
type: MonetaryAmount
type: item
property ID: RevenueFromContractWithCustomerExcludingAssessedTax
value: 106265
unit text: USD millions
currency: USD
unit ref: USD millions
context ref: Fiscal year 2025
additional type: monetaryItemType
temporal coverage: FY2025
about: Intelligent Cloud
measurement technique: us-gaap-2026.xsd
is part of: Segment Results of Operations

Intelligent Cloud revenue year-over-year change percent
type: PropertyValue
value: 30
unit text: percent
about: Intelligent Cloud
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Segment Results of Operations

Intelligent Cloud operating income FY2026
type: PropertyValue
type: MonetaryAmount
type: item
property ID: OperatingIncomeLoss
value: 56972
unit text: USD millions
currency: USD
unit ref: USD millions
context ref: Fiscal year 2026
additional type: monetaryItemType
temporal coverage: FY2026
about: Intelligent Cloud
measurement technique: us-gaap-2026.xsd
is part of: Segment Results of Operations

Intelligent Cloud operating income FY2025
type: PropertyValue
type: MonetaryAmount
type: item
property ID: OperatingIncomeLoss
value: 44589
unit text: USD millions
currency: USD
unit ref: USD millions
context ref: Fiscal year 2025
additional type: monetaryItemType
temporal coverage: FY2025
about: Intelligent Cloud
measurement technique: us-gaap-2026.xsd
is part of: Segment Results of Operations

Intelligent Cloud operating income year-over-year change percent
type: PropertyValue
value: 28
unit text: percent
about: Intelligent Cloud
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Segment Results of Operations

More Personal Computing
type: BusinessAudience
description: XBOX weakness offset Search advertising and Windows OEM contributions.
subject of: More Personal Computing revenue FY2026
subject of: More Personal Computing revenue FY2025
subject of: More Personal Computing revenue year-over-year change percent
subject of: More Personal Computing operating income FY2026
subject of: More Personal Computing operating income FY2025
subject of: More Personal Computing operating income year-over-year change percent
is part of: Segment Results of Operations

More Personal Computing revenue FY2026
type: PropertyValue
type: MonetaryAmount
type: item
property ID: RevenueFromContractWithCustomerExcludingAssessedTax
value: 54052
unit text: USD millions
currency: USD
unit ref: USD millions
context ref: Fiscal year 2026
additional type: monetaryItemType
temporal coverage: FY2026
about: More Personal Computing
measurement technique: us-gaap-2026.xsd
is part of: Segment Results of Operations

More Personal Computing revenue FY2025
type: PropertyValue
type: MonetaryAmount
type: item
property ID: RevenueFromContractWithCustomerExcludingAssessedTax
value: 54649
unit text: USD millions
currency: USD
unit ref: USD millions
context ref: Fiscal year 2025
additional type: monetaryItemType
temporal coverage: FY2025
about: More Personal Computing
measurement technique: us-gaap-2026.xsd
is part of: Segment Results of Operations

More Personal Computing revenue year-over-year change percent
type: PropertyValue
value: -1
unit text: percent
about: More Personal Computing
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Segment Results of Operations

More Personal Computing operating income FY2026
type: PropertyValue
type: MonetaryAmount
type: item
property ID: OperatingIncomeLoss
value: 14386
unit text: USD millions
currency: USD
unit ref: USD millions
context ref: Fiscal year 2026
additional type: monetaryItemType
temporal coverage: FY2026
about: More Personal Computing
measurement technique: us-gaap-2026.xsd
is part of: Segment Results of Operations

More Personal Computing operating income FY2025
type: PropertyValue
type: MonetaryAmount
type: item
property ID: OperatingIncomeLoss
value: 14166
unit text: USD millions
currency: USD
unit ref: USD millions
context ref: Fiscal year 2025
additional type: monetaryItemType
temporal coverage: FY2025
about: More Personal Computing
measurement technique: us-gaap-2026.xsd
is part of: Segment Results of Operations

More Personal Computing operating income year-over-year change percent
type: PropertyValue
value: 2
unit text: percent
about: More Personal Computing
measurement technique: Management-centric analysis of Microsoft FY2026 MD&A
is part of: Segment Results of Operations

Competitive technology markets
type: RiskFactor
description: Software, device, AI, and cloud markets are dynamic and highly competitive.
is part of: Overview

Datacenter supply constraints
type: RiskFactor
description: Datacenters depend on permitted land, energy, networking supplies, servers, GPUs, and other components.
is part of: Overview

Talent competition
type: RiskFactor
description: Success depends on attracting and retaining qualified employees globally.
is part of: Overview

Currency, macroeconomic, and trade policy exposure
type: RiskFactor
description: International operations and global trade policies can affect revenue, expenses, supply chains, cost volatility, and demand.
is part of: Overview

Tax audit exposure
type: RiskFactor
description: The IRS seeks additional tax payment in NOPAs concerning intercompany transfer pricing, which Microsoft disputes.
is part of: Overview

Revenue recognition
type: DefinedTerm
description: Judgment is required for distinct performance obligations, cloud-service integration with software licenses, standalone selling price, variable consideration, and remaining performance obligations.
in defined term set: Management analysis glossary
is part of: Critical Accounting Estimates

Measurement and impairment of investment securities
type: DefinedTerm
description: Management evaluates credit losses, impairments, fair value, observable price changes, and orderly transactions.
in defined term set: Management analysis glossary
is part of: Critical Accounting Estimates

Goodwill
type: DefinedTerm
description: The impairment test requires judgment about reporting units, asset and liability assignment, and reporting-unit fair value.
in defined term set: Management analysis glossary
is part of: Critical Accounting Estimates

Research and development costs
type: DefinedTerm
description: Software development costs are expensed until technological feasibility and capitalized only after that point until release.
in defined term set: Management analysis glossary
is part of: Critical Accounting Estimates

Legal and other contingencies
type: DefinedTerm
description: Management accrues estimated losses when impairment or liability is probable and estimable.
in defined term set: Management analysis glossary
is part of: Critical Accounting Estimates

Income taxes
type: DefinedTerm
description: Deferred tax assets, liabilities, uncertain positions, and jurisdictional earnings mix require management judgment.
in defined term set: Management analysis glossary
is part of: Critical Accounting Estimates

Management analysis glossary
type: DefinedTermSet
has defined term: Revenue recognition
has defined term: Measurement and impairment of investment securities
has defined term: Goodwill
has defined term: Research and development costs
has defined term: Legal and other contingencies
has defined term: Income taxes

Satya Nadella
type: Person
job title: Chief Executive Officer
works for: Microsoft
is part of: Statement of Management Responsibility

Amy E. Hood
type: Person
job title: Executive Vice President and Chief Financial Officer
works for: Microsoft
is part of: Statement of Management Responsibility

Alice L. Jolla
type: Person
job title: Corporate Vice President and Chief Accounting Officer
works for: Microsoft
is part of: Statement of Management Responsibility

Microsoft FY2026 MD&A -- FAQ
type: FAQPage
description: Frequently asked management-analysis questions derived from Microsoft FY2026 Form 10-K Item 7 and backed by schema:Question entities in this companion RDF.
main entity: What is management's central explanation for fiscal 2026 growth?
main entity: Why did Microsoft Cloud gross margin percentage decrease?
main entity: How does management describe liquidity?
main entity: Why are OpenAI investments separated in non-GAAP measures?
main entity: Which accounting estimates require the most management judgment?
main entity: Which business lines does management identify as cloud and AI demand drivers?
main entity: What management signal comes from commercial remaining performance obligation?
main entity: Why do datacenter and AI infrastructure commitments matter to management's analysis?
main entity: How do the three reportable segments differ in management's fiscal 2026 narrative?
main entity: How does operating cash flow support management's capital allocation story?
main entity: What tax exposure does management highlight?
main entity: How does management responsibility connect to the MD&A analysis?

What is management's central explanation for fiscal 2026 growth?
type: Question
accepted answer: a-growth
parent item: Microsoft FY2026 MD&A -- FAQ
is part of: Microsoft FY2026 MD&A -- FAQ

a-growth
type: Answer
text: Management attributes growth primarily to Microsoft Cloud, with Azure, Microsoft 365 Commercial cloud, Copilot-related revenue per user, LinkedIn, Dynamics 365, and Search advertising contributing.
is part of: What is management's central explanation for fiscal 2026 growth?

Why did Microsoft Cloud gross margin percentage decrease?
type: Question
accepted answer: a-margin
parent item: Microsoft FY2026 MD&A -- FAQ
is part of: Microsoft FY2026 MD&A -- FAQ

a-margin
type: Answer
text: Management says continued investments in AI infrastructure and growing AI product usage reduced cloud gross margin percentage, partly offset by efficiency gains in Azure and Microsoft 365 Commercial cloud.
is part of: Why did Microsoft Cloud gross margin percentage decrease?

How does management describe liquidity?
type: Question
accepted answer: a-liquidity
parent item: Microsoft FY2026 MD&A -- FAQ
is part of: Microsoft FY2026 MD&A -- FAQ

a-liquidity
type: Answer
text: Management expects cash, short-term investments, operating cash flow, and capital market access to fund operating, investing, and financing needs for at least the next 12 months and thereafter for the foreseeable future.
is part of: How does management describe liquidity?

Why are OpenAI investments separated in non-GAAP measures?
type: Question
accepted answer: a-openai
parent item: Microsoft FY2026 MD&A -- FAQ
is part of: Microsoft FY2026 MD&A -- FAQ

a-openai
type: Answer
text: Management excludes net gains and losses from OpenAI investments to clarify business performance trends and improve comparability with GAAP results.
is part of: Why are OpenAI investments separated in non-GAAP measures?

Which accounting estimates require the most management judgment?
type: Question
accepted answer: a-estimates
parent item: Microsoft FY2026 MD&A -- FAQ
is part of: Microsoft FY2026 MD&A -- FAQ

a-estimates
type: Answer
text: Management highlights revenue recognition, investment securities, goodwill, R&D costs, legal and other contingencies, and income taxes.
is part of: Which accounting estimates require the most management judgment?

Which business lines does management identify as cloud and AI demand drivers?
type: Question
accepted answer: a-cloud-demand
parent item: Microsoft FY2026 MD&A -- FAQ
is part of: Microsoft FY2026 MD&A -- FAQ

a-cloud-demand
type: Answer
text: Management points to Azure and other cloud services, Microsoft 365 Commercial cloud, Microsoft 365 Consumer, LinkedIn, Dynamics 365, Search advertising, and Copilot-related monetization as demand drivers.
is part of: Which business lines does management identify as cloud and AI demand drivers?

What management signal comes from commercial remaining performance obligation?
type: Question
accepted answer: a-rpo
parent item: Microsoft FY2026 MD&A -- FAQ
is part of: Microsoft FY2026 MD&A -- FAQ

a-rpo
type: Answer
text: Commercial remaining performance obligation rose to $678 billion, which management presents as contracted backlog and a visibility signal for future revenue recognition.
is part of: What management signal comes from commercial remaining performance obligation?

Why do datacenter and AI infrastructure commitments matter to management's analysis?
type: Question
accepted answer: a-capex
parent item: Microsoft FY2026 MD&A -- FAQ
is part of: Microsoft FY2026 MD&A -- FAQ

a-capex
type: Answer
text: They show that growth depends on capacity investment, including datacenters, GPUs, servers, networking, energy, construction commitments, and purchase commitments that affect margins and liquidity planning.
is part of: Why do datacenter and AI infrastructure commitments matter to management's analysis?

How do the three reportable segments differ in management's fiscal 2026 narrative?
type: Question
accepted answer: a-segments
parent item: Microsoft FY2026 MD&A -- FAQ
is part of: Microsoft FY2026 MD&A -- FAQ

a-segments
type: Answer
text: Productivity and Business Processes and Intelligent Cloud are the primary growth engines, while More Personal Computing is comparatively flat because Xbox weakness offset Search advertising and Windows OEM contributions.
is part of: How do the three reportable segments differ in management's fiscal 2026 narrative?

How does operating cash flow support management's capital allocation story?
type: Question
accepted answer: a-cash-flow
parent item: Microsoft FY2026 MD&A -- FAQ
is part of: Microsoft FY2026 MD&A -- FAQ

a-cash-flow
type: Answer
text: Cash from operations increased strongly, helping fund capital expenditure, debt maturities, dividends, share repurchases, and other operating and investing needs.
is part of: How does operating cash flow support management's capital allocation story?

What tax exposure does management highlight?
type: Question
accepted answer: a-tax
parent item: Microsoft FY2026 MD&A -- FAQ
is part of: Microsoft FY2026 MD&A -- FAQ

a-tax
type: Answer
text: Management highlights IRS Notices of Proposed Adjustment related to transfer pricing and states that Microsoft disputes the proposed additional tax payments.
is part of: What tax exposure does management highlight?

How does management responsibility connect to the MD&A analysis?
type: Question
accepted answer: a-controls
parent item: Microsoft FY2026 MD&A -- FAQ
is part of: Microsoft FY2026 MD&A -- FAQ

a-controls
type: Answer
text: The responsibility statement links management's discussion to accountability for financial statements, internal control, estimates, judgments, and fair presentation.
is part of: How does management responsibility connect to the MD&A analysis?