MSFT · 10-Q · 2026Q1 · Full report

Supply Chain Constraints

MICROSOFT CORP · 2026-04-29 · Importance 10 · Surprise 6

Microsoft’s devices are primarily manufactured by third‑party contract manufacturers, and while Microsoft can typically shift vendors, some products rely on a very small number of qualified suppliers for key components. The filing warns that extended disruptions at those suppliers could impact the company’s ability to manufacture devices on time to meet consumer demand. The company also references dependencies on predictable energy and networking supplies for datacenters, linking supply constraints to both devices and cloud infrastructure buildouts. Memory pricing dynamics have influenced OEM partner behavior and inventory levels in the Windows OEM channel.

Key facts

• Some of our products contain certain components for which there are very few qualified suppliers and extended disruptions at these suppliers could impact our ability to manufacture devices on time. source