MSFT · 10-Q · 2026Q1 · Full report

Liquidity and Cash Position

MICROSOFT CORP · 2026-04-29 · Importance 49 · Surprise 6 · From source text

Microsoft reports cash, cash equivalents, and short-term investments of $78.3 billion as of March 31, 2026 and equity and other investments of $33.7 billion. Management expects existing liquidity, cash flows from operations, and access to capital markets to be sufficient to fund operating activities and cash commitments (including dividends, repurchases, debt maturities, and capex) for at least the next 12 months and the foreseeable future. Cash from operations increased to $127.5 billion for the nine months ended March 31, 2026, driven by higher customer receipts and lower cash paid for income taxes, while cash used in investing rose materially due to higher additions to property and equipment. The company notes its short-term investments are predominantly highly liquid investment-grade fixed income securities, with interest-rate and credit risk managed against fixed-income indices.

Key facts

• Equity and other investments were $33.7 billion as of March 31, 2026 and $15.4 billion as of June 30, 2025. source
• Cash, cash equivalents, and short-term investments totaled $78.3 billion as of March 31, 2026 and $94.6 billion as of June 30, 2025. source
• We expect existing cash, cash equivalents, short-term investments, cash flows from operations, and access to capital markets to be sufficient to fund our operating activities and cash commitments for at least the next 12 months and thereafter for the foreseeable future. source
• A majority of our investments are Level 1 or Level 2 and broker-priced investments are generally classified as Level 2 because broker prices are based on similar assets without significant adjustments. source

Impact estimates