5-year revenue CAGR
13.7%
Microsoft financials
Normalized actualsMicrosoft generated $331.8bn of revenue in fiscal 2026. Over the displayed five-year period revenue compounded at 13.7%, while the latest operating margin was 46.8% and free-cash-flow margin was 20.2%.
Operating margin
46.8%
Free-cash-flow margin
20.2%
Cash conversion
50.1%
Net debt / (net cash)
$15.6bn
How has the operating model changed over five years?
Revenue compounded at 13.7% from fiscal 2022 to 2026; the latest reported operating margin was 46.8%.
Calculation: Revenue CAGR and operating income divided by revenue.
Does accounting profit convert into cash?
Latest fiscal free cash flow was $67.0bn, equal to 20.2% of revenue and 50.1% of net income.
Calculation: Free cash flow divided by revenue and net income.
What changed in the latest reported quarter?
For the quarter ended 2026-06-30, revenue was $90.0bn, a +17.7% year-over-year change. Latest annual net debt was $15.6bn and capital expenditure was 34.9% of revenue.
Calculation: Quarterly year-over-year revenue change; debt less cash; absolute capital expenditure divided by revenue.
Annual history
Five fiscal years · reported values
| Metric · USD bn | FY 20262026-06-30 | FY 20252025-06-30 | FY 20242024-06-30 | FY 20232023-06-30 | FY 20222022-06-30 |
|---|---|---|---|---|---|
| Revenue | 331.8 | 281.7 | 245.1 | 211.9 | 198.3 |
| Operating income | 155.2 | 128.5 | 109.4 | 88.5 | 83.4 |
| Net income | 133.7 | 101.8 | 88.1 | 72.4 | 72.7 |
| Operating cash flow | 182.9 | 136.2 | 118.5 | 87.6 | 89.0 |
| Capital expenditure | -115.9 | -64.6 | -44.5 | -28.1 | -23.9 |
| Free cash flow | 67.0 | 71.6 | 74.1 | 59.5 | 65.1 |
Quarterly history
Eight fiscal quarters · reported values
| Metric · USD bn | Q42026-06-30 | Q32026-03-31 | Q22025-12-31 | Q12025-09-30 | Q42025-06-30 | Q32025-03-31 | Q22024-12-31 | Q12024-09-30 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 90.0 | 82.9 | 81.3 | 77.7 | 76.4 | 70.1 | 69.6 | 65.6 |
| Operating income | 40.6 | 38.4 | 38.3 | 38.0 | 34.3 | 32.0 | 31.7 | 30.6 |
| Net income | 35.8 | 31.8 | 38.5 | 27.7 | 27.2 | 25.8 | 24.1 | 24.7 |
| Operating cash flow | 55.4 | 46.7 | 35.8 | 45.1 | 42.6 | 37.0 | 22.3 | 34.2 |
| Capital expenditure | -35.8 | -30.9 | -29.9 | -19.4 | -17.1 | -16.7 | -15.8 | -14.9 |
| Free cash flow | 19.6 | 15.8 | 5.9 | 25.7 | 25.6 | 20.3 | 6.5 | 19.3 |
Public evidence
Primary and company-published context
E01
Microsoft Corporation 2026 Form 10-K
U.S. Securities and Exchange Commission · Jul 29, 2026 · Public document
E02
Microsoft FY26 Q4 earnings release
Microsoft Investor Relations · Jul 29, 2026 · Public document
E03
Microsoft Corporation 2025 Proxy Statement
U.S. Securities and Exchange Commission · Oct 21, 2025 · Public document
E04
The History of Microsoft — 1975
Microsoft Learn · Feb 5, 2009 · Public document
E05
Cloud services market investigation
UK Competition and Markets Authority · Jul 31, 2025 · Public document
E06
Microsoft's business software ecosystem
UK Competition and Markets Authority · May 14, 2026 · Public document
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