MSFT · 10-K · 2026A · Full report

OpenAI Investment Gains

MICROSOFT CORP · 2026-07-29 · Importance 55 · Surprise 82

Net gains from investments in OpenAI contributed $6.5 billion to other income in fiscal 2026, compared with $4.8 billion of net losses in fiscal 2025. The fiscal 2026 gains primarily related to a dilution gain from the OpenAI Recapitalization. OpenAI investment gains increased fiscal 2026 net income by $5.0 billion and diluted EPS by $0.67. Excluding OpenAI investment gains, adjusted net income increased 22% to $128.786 billion, compared with GAAP net income growth of 31% to $133.749 billion.

Key facts

• Adjusted net income (non-GAAP) was $128,786 million in fiscal year 2026 compared with $105,452 million in fiscal year 2025, a 22% increase. source
• Current year net income and diluted EPS were positively impacted by net gains from investments in OpenAI that increased net income by $5.0 billion and diluted EPS by $0.67. source
• Other income (expense), net included $6.5 billion of net gains from investments in OpenAI for fiscal year 2026 and $4.8 billion of net losses for fiscal year 2025. source
• Prior year net income and diluted EPS were negatively impacted by net losses from investments in OpenAI that decreased net income by $3.6 billion and diluted EPS by $0.49. source
• Other income (expense), net totaled $10,697 million in fiscal year 2026 compared with $(4,901) million in fiscal year 2025. source