MSFT · 10-K · 2026A · Full report

Liquidity and Cash Position

MICROSOFT CORP · 2026-07-29 · Importance 54 · Surprise 40 · In source text

Cash, cash equivalents, and short-term investments declined to $76.8 billion at June 30, 2026, from $94.6 billion at June 30, 2025. Cash from operations increased $46.8 billion to $182.9 billion, primarily because of higher customer collections and lower income-tax payments, partly offset by higher supplier payments. Cash used in investing increased $66.9 billion to $139.5 billion, driven by $51.4 billion of additional property-and-equipment spending and $22.2 billion of additional component purchases. Microsoft stated that cash, investments, operating cash flow, and capital-market access are expected to fund commitments for at least the next 12 months and thereafter for the foreseeable future.

Key facts

• Contractual obligations as of June 30, 2026 total $743,821 million, comprised of long-term debt principal payments $46,136 million, interest payments $25,553 million, construction commitments $34,566 million, operating and finance leases including imputed interest $443,506 million, and purchase commitments $194,060 million. source
• Equity and other investments were $36.3 billion as of June 30, 2026 and $15.4 billion as of June 30, 2025. source
• Cash, cash equivalents, and short-term investments totaled $76.8 billion as of June 30, 2026 and $94.6 billion as of June 30, 2025. source
• Cash from operations increased $46.8 billion to $182.9 billion for fiscal year 2026. source
• We expect 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. source
• Interest and dividends income was $3,301 million for the year ended June 30, 2026; interest expense was $(3,051) million; net recognized gains on investments were $4,385 million; net gains on derivatives were $1,867 million; Other, net was $4,722 million; total other income (expense), net was $10,697 million. source
• Satya Nadella is Chief Executive Officer. source
• Amy E. Hood is Executive Vice President and Chief Financial Officer. source

Impact estimates