MSFT · News · 20261014N
Depreciable Life Accounting Change
MICROSOFT CORP · 2026-10-14 · Importance 72 · Surprise 100 · In source text
Microsoft reportedly changed its estimated useful life for data centers and office buildings from 15 years to 25 years at the start of fiscal 2027. The 10-year extension represents a 66.7% increase in the depreciation period and would reduce annual depreciation expense for affected assets, absent changes in asset balances or residual values. The report did not quantify the resulting depreciation, operating-income, or cash-tax impact.
Key facts
- At the start of fiscal 2027, Microsoft changed its accounting assumption and now assumes its data centers and office buildings last 25 years instead of 15. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | committed | — | At the start of fiscal 2027, Microsoft changed its accounting assumption and now assumes its data centers and office buildings last 25… |
| net_income | positive | committed | — | At the start of fiscal 2027, Microsoft changed its accounting assumption and now assumes its data centers and office buildings last 25… |
| assets | positive | committed | — | At the start of fiscal 2027, Microsoft changed its accounting assumption and now assumes its data centers and office buildings last 25… |