MSFT · 10-K · 2026A · Full report
Commercial Remaining Performance Obligations
MICROSOFT CORP · 2026-07-29 · Importance 81 · Surprise 64 · Contradicted
Commercial remaining performance obligation increased 84% to $678 billion in fiscal 2026, providing a material contracted-revenue indicator. Unearned revenue totaled $75.712 billion at June 30, 2026, including $28.589 billion expected to be recognized in the quarter ending September 30, 2026. Additional expected recognition totaled $22.556 billion through December 31, 2026, $15.457 billion through March 31, 2027, and $6.363 billion through June 30, 2027. The filing states that cloud-based licensing shifts revenue recognition from the transaction date to the subscription period or consumption period.
Key facts
- Commercial remaining performance obligation increased 84% to $678 billion. source
- The expected future recognition of unearned revenue as of June 30, 2026: $28,589 million for three months ending Sept 30, 2026; $22,556 million for Dec 31, 2026; $15,457 million for Mar 31, 2027; $6,363 million for June 30, 2027; $2,747 million thereafter; total $75,712 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | committed | +79.3% | Commercial remaining performance obligation increased 84% to $678 billion. |
| revenue | positive | committed | +18.7% | The expected future recognition of unearned revenue as of June 30, 2026: $28,589 million for three months ending Sept 30, 2026; $22,556… |
| revenue | positive | committed | +0.7% | The expected future recognition of unearned revenue as of June 30, 2026: $28,589 million for three months ending Sept 30, 2026; $22,556… |