MSFT · 10-Q · 2026Q3 · Full report
Remaining Performance Obligations
MICROSOFT CORP · 2026-10-28 · Importance 81 · Surprise 64 · No source text
Commercial remaining performance obligation increased 73% year over year to $677 billion in the first quarter of fiscal 2027. It includes commercial revenue allocated to remaining obligations across Azure, Microsoft 365 commercial cloud, Server products, Microsoft 365 commercial products, Industry solutions, and Frontier and support services. Separately, unearned revenue totaled $69.563 billion at September 30, 2026, with $30.299 billion expected to be recognized in the quarter ending December 31, 2026.
Key facts
- Microsoft expected to recognize $30.299 billion of unearned revenue in the three months ending December 31, 2026. source
- Microsoft expected to recognize $22.202 billion of unearned revenue in the three months ending March 31, 2027. source
- Microsoft expected to recognize $12.098 billion of unearned revenue in the three months ending June 30, 2027. source
- Microsoft expected to recognize $2.697 billion of unearned revenue thereafter, for total expected recognition of $69.563 billion as of September 30, 2026. source
- Microsoft expected to recognize $2.267 billion of unearned revenue in the three months ending September 30, 2027. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | committed | +52.4% | Microsoft expected to recognize $2.697 billion of unearned revenue thereafter, for total expected recognition of $69.563 billion as of… |