MSFT · 10-K · 2025A · Full report

Liquidity and Cash Position

MICROSOFT CORP · 2025-07-30 · Importance 71 · Surprise 48

Cash, cash equivalents and short-term investments totaled $94.6 billion as of June 30, 2025 (up from $75.5 billion as of June 30, 2024), and equity and other investments were $15.4 billion. The company states its short-term investments are predominantly highly liquid investment-grade fixed-income securities diversified among industries and issuers and that settlement risk is insignificant for these holdings. Management expects existing cash, short-term investments, cash flows from operations, and access to capital markets to be sufficient to fund operating activities, dividends, share repurchases, debt maturities, material capex and other commitments for at least the next 12 months and thereafter for the foreseeable future. The firm also discloses that cash from operations increased to $136.2 billion in fiscal 2025.

Key facts

• Cash from operations increased $17.6 billion to $136.2 billion for fiscal year 2025.
• Cash, cash equivalents, and short-term investments totaled $94.6 billion as of June 30, 2025 and $75.5 billion as of June 30, 2024.
• The eighth TCJA transition tax installment of $4.4 billion is short-term and payable in the first quarter of fiscal year 2026.
• Interest and dividends income was $2,647 million for fiscal year 2025, down from $3,157 million in fiscal year 2024.
• Equity and other investments were $15.4 billion as of June 30, 2025 and $14.6 billion as of June 30, 2024.
• Microsoft expects existing cash, cash equivalents, short-term investments, cash flows from operations, and access to capital markets to be sufficient to fund operating activities and cash commitments for at least the next 12 months and thereafter for the foreseeable future.

Impact estimates