Microsoft Corporation Revenue & Financials

Forget revenue for a moment. The number that defines Microsoft's financial position is $627 billion in commercial remaining performance obligation — contracted future revenue, up 99% year-over-year. That's not a pipeline estimate or a sales forecast. It's signed commitments from enterprises who've locked themselves into multi-year Microsoft deals. For context, that backlog alone is larger than the annual GDP of most countries. FY2025 (ended June 2025) delivered $281.7 billion in revenue, up 15% from $245.1 billion the prior year. Net income was $101.8 billion — a 36.1% net margin that would be remarkable for a $50 billion company, let alone one approaching $300 billion in sales. Operating cash flow exceeded $100 billion. Q3 FY2026 (March 2026) showed the growth actually accelerating at scale: $82.9 billion in revenue (up 18%), beating consensus by $1.5 billion. Net income hit $31.8 billion (up 23%), with EPS of $4.27 versus the $4.04 analysts expected. Microsoft Cloud surged 29% to $54.5 billion quarterly — annualizing to $218 billion. The margin structure is holding despite massive infrastructure investment. Gross margins sit at 68%, operating margins at 46%. The company is spending $80+ billion annually on capex (primarily AI data centers) and still expanding profitability. That's the advantage of a subscription base that renews automatically while infrastructure investments depreciate over 15-20 years. Trailing twelve-month revenue is $318.3 billion. Market cap hovers around $3.13 trillion at roughly $421 per share. Revenue per employee: $1.24 million across 228,000 people.