MSFT · 10-K · 2025A · Full report
Unearned Revenue and Backlog
MICROSOFT CORP · 2025-07-30 · Importance 56 · Surprise 24
Microsoft’s unearned revenue (backlog) totaled $67,265 million as of June 30, 2025, with sizable near-term recognition amounts—$25,191 million expected in the quarter ending September 30, 2025 and $19,733 million in the December quarter. Unearned revenue is concentrated in volume licensing programs (including cloud services and Software Assurance) and multi‑year agreements invoiced up front and recognized ratably. Management highlights that adoption of cloud‑based licensing shifts revenue recognition from point‑in‑time to ratable/subscription patterns, affecting timing and visibility of recognized revenue. The disclosed schedule provides a clear view into contracted, billable future revenue and timing of revenue recognition tied to customer licensing choices.
Key facts
- Unearned revenue expected to be recognized in the three months ending September 30, 2025 is $25,191 million; December 31, 2025 is $19,733 million; March 31, 2026 is $13,742 million; June 30, 2026 is $5,889 million; and thereafter $2,710 million, totaling $67,265 million as of June 30, 2025.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | committed | +19.5% | Unearned revenue expected to be recognized in the three months ending September 30, 2025 is $25,191 million; December 31, 2025 is $19,733… |
| revenue | positive | committed | +0.8% | Unearned revenue expected to be recognized in the three months ending September 30, 2025 is $25,191 million; December 31, 2025 is $19,733… |