MSFT · 10-Q · 2026Q3 · Full report

Interest Expense Trends

MICROSOFT CORP · 2026-10-28 · Importance 28 · Surprise 30

Interest expense increased to $870 million in the three months ended September 30, 2026, from $698 million in the prior-year quarter, a 25% increase. The increase primarily reflected higher finance lease interest expense, partly offset by maturities of long-term debt. Cash used in financing increased $4.8 billion to $16.6 billion, primarily due to a $4.9 billion increase in cash used for debt repayments.

Key facts

• Microsoft's interest expense increased primarily because of higher finance lease interest expense, partly offset by maturities of long-term debt. source