Microsoft
MSFT, NASDAQ, Tech & Internet
- Prev. close
- $496.38
- Volume
- 15.7M
- Market cap
- $3.7T
- Major large cap
Why a candidate
Exp 31/100Company research
Researched 2026-08-23 16:40 KSTCapital spending, $23.9 billion four years ago, came to $115.9 billion this fiscal year.
Microsoft closed fiscal 2026 on 30 June 2026 with revenue of $331.8 billion and operating income of $155.2 billion. Cash from operations reached $182.9 billion, up 34 percent, but additions to property and equipment took $115.9 billion, leaving $67.0 billion, less than the year before. Four years earlier that capital spending line was $23.9 billion. Intelligent Cloud revenue grew 30 percent over the year while the cash going into the equipment behind it grew 80 percent.
Key figures
- Fiscal 2026 revenue
- $331.8bn
- 2026-06-30
- Operating income
- $155.2bn
- 2026-06-30
- Capital spending
- $115.9bn
- 2026-06-30
- Cash from operations
- $182.9bn
- 2026-06-30
- Cash and equivalents at year end
- $20.9bn
- 2026-06-30
$51.4 billion of the increase came in the final year
Cash spent on additions to property and equipment went from $23.9 billion in fiscal 2022 to $115.9 billion in fiscal 2026. It was $44.5 billion in 2024 and $64.6 billion in 2025, so $51.4 billion of the increase landed in the final year alone. The fourth quarter on its own carried $35.8 billion, more than double the $17.1 billion of the same quarter a year earlier. Each yearly figure here is the additions line from the cash flow statement in the company's own filings.
Additions to property and equipment by fiscal year (USD bn)
Operating cash doubled and what is left over did not move
Cash from operations climbed from $89.0 billion in fiscal 2022 to $182.9 billion in fiscal 2026. Subtract capital spending in each of those years and the remainder went from $65.1 billion to $67.0 billion. The core business roughly doubled the cash it generates in four years, and the leftover grew 3 percent. Fiscal 2024 holds the high mark at $74.1 billion, and the figure has fallen in each of the two years since. Cash and equivalents at year end also came down, from $30.2 billion to $20.9 billion. Dividends of $26.4 billion and buybacks of $22.3 billion sent $48.7 billion to shareholders in the same year.
Cash from operations less capital spending (USD bn)
Cloud drives the revenue line and the cost line
Fiscal 2026 revenue by segment was $140.0 billion for Productivity and Business Processes, $137.8 billion for Intelligent Cloud and $54.1 billion for More Personal Computing. Intelligent Cloud grew 30 percent from $106.3 billion, the fastest of the three, while its cost of revenue rose 44 percent, from $40.2 billion to $57.9 billion. Cost outpacing revenue pulled the segment operating margin from 42.0 percent to 41.3 percent. More Personal Computing came in at $54.1 billion against $54.6 billion a year earlier, and in the fourth quarter Windows OEM and devices revenue fell 7 percent while Xbox content and services fell 10 percent.
Fiscal 2026 revenue by segment (USD bn)
- Productivity and Business Processes140.0
- Intelligent Cloud137.8
- More Personal Computing54.1
The backlog on the books, and the stakes below the line
The fourth quarter release put commercial remaining performance obligation at $678 billion, 84 percent higher than a year earlier. That is revenue written into contracts but not yet recognised, and it is where the data centres now under construction are pointed. Lower down the income statement sits a different kind of number. Investments in OpenAI added $4,963 million to net income in fiscal 2026, against a $3,620 million reduction the year before, which is why the company publishes an adjusted net income figure alongside the reported one. A separate $3.2 billion gain from the investment in Anthropic landed in the fourth quarter. Two things to watch next year: how much of the backlog converts into recognised revenue, and when the capital spending curve stops steepening.
Common questions
- How much did Microsoft spend on capital investment in fiscal 2026?
- Additions to property and equipment took $115.9 billion. That is 80 percent above the $64.6 billion of fiscal 2025, and $35.8 billion of it fell in the fourth quarter alone. The fiscal year ended on 30 June 2026.
- Results improved, so why is there less cash left over?
- Capital spending grew by more than cash from operations did. Cash from operations rose $46.7 billion to $182.9 billion in fiscal 2026 while capital spending rose $51.4 billion, so the gap between the two narrowed from $71.6 billion to $67.0 billion.
- How do the three segment margins compare?
- Productivity and Business Processes runs highest at 59.9 percent, on fiscal 2026 revenue of $140.0 billion and operating income of $83.9 billion. Intelligent Cloud ran at 41.3 percent on $137.8 billion of revenue, and More Personal Computing at 26.6 percent on $54.1 billion.
Sources
- 1.Fourth quarter fiscal 2026 earnings release (Form 8-K, Exhibit 99.1) US Securities and Exchange Commission, EDGAR, as of 2026-07-29
- 2.Annual report for fiscal 2026 (Form 10-K) US Securities and Exchange Commission, EDGAR, as of 2026-07-29
- 3.Additions to property and equipment by fiscal year (XBRL company concept data) US Securities and Exchange Commission, as of 2026-07-29
- 4.Net cash from operating activities by fiscal year (XBRL company concept data) US Securities and Exchange Commission, as of 2026-07-29
Reference information compiled from public material. Not investment advice; decisions and their consequences rest with the investor.
See research on other stocks →Today's read
Microsoft scores 31 out of 100 on today's InverseOne expectation ranking, 15 of 30 in the US large-cap universe. It sits in the bottom 75% of its one-year price range, a neglected zone. Today's move of +1.32% came with money flowing in, alongside the Tech & Internet sector. Scores are estimates built from price and volume, a starting point for research rather than a trading signal.
Data basis: 2026-08-28, For reference only, not advice
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