Income StatementBalance SheetCash FlowSegments
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Microsoft Business Segments

Business, geographic, and product segment breakdowns

Microsoft generates $318.27B in annual revenue across 3 key segments: Intelligent Cloud ($49.0B), More Personal Computing ($11.0B), and Productivity And Business Processes ($176.55B). The company-wide operating margin is 46.8%. Based on the Q1 2026 filing.

Intelligent Cloud (TTM)$49.0BMore Personal Computing (TTM)$11.0BProductivity And Business Processes (TTM)$176.55B
Latest FilingQ1 2026
Report Date2026-04-29
Market Cap$3.11T
P/E Ratio24.83
ROE34.01%

Products & Services

Revenue

SegmentQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Server Products And Cloud Services$23.6B$24.8B$27.9B$28.9B$30.9B$32.6B
Microsoft 365 Commercial Products And Cloud Services$21.1B$21.9B$24.3B$24.0B$24.5B$25.6B
Gaming$6.6B$5.7B$5.5B$5.5B$6.0B$5.3B
Linked In Corporation$4.6B$4.3B$4.6B$4.7B$5.1B$4.8B
Windows And Devices$4.5B$4.1B$4.3B$4.6B$4.5B$4.0B
Search Advertising—$3.5B———$3.8B
Microsoft 365 Consumer Products And Cloud Services$1.8B$1.8B$2.0B$2.2B$2.3B$2.3B
Dynamics Products And Cloud Services$1.9B$1.9B$2.1B$2.1B$2.2B$2.3B
Enterprise And Partner Services$1.9B$1.9B$2.0B$2.0B$2.0B$2.1B
Other Products And Services$10.0M$46.0M$6.0M$3.0M$6.0M$3.0M

Cost of Goods Sold

SegmentQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Service Other$17.9B$18.9B$20.7B$21.1B$22.5B$24.1B
Product$3.9B$3.0B$3.3B$2.9B$3.5B$2.7B

Geographic

Revenue

SegmentQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
US$35.5B$36.1B$39.0B$40.1B$41.4B$42.3B
Non Us$34.1B$34.0B$37.4B$37.6B$39.9B$40.6B

Non-Current Assets

SegmentQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Other Countries——$141.8B———
US——$230.1B———

Business Segments

Deferred Revenue

SegmentQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Productivity And Business Processes$33.6B$34.2B$50.6B$46.4B$39.7B$39.9B
Intelligent Cloud$11.0B$10.2B$14.0B$12.7B$11.4B$10.9B
More Personal Computing$3.5B$3.0B$2.7B$2.5B$2.9B$2.9B

Cost of Goods Sold

SegmentQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Intelligent Cloud$9.4B$10.3B$11.8B$12.3B$13.6B$15.1B
Productivity And Business Processes$5.6B$5.5B$6.0B$5.7B$6.1B$6.2B
More Personal Computing$6.8B$6.1B$6.1B$6.0B$6.3B$5.5B

Goodwill

SegmentQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
More Personal Computing$62.2B$62.3B$62.4B$62.4B$62.4B$62.4B
Productivity And Business Processes$31.3B$31.4B$31.5B$31.5B$31.5B$31.6B
Intelligent Cloud$25.6B$25.7B$25.7B$25.7B$25.7B$25.7B

Goodwill Acquired

SegmentQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Productivity And Business Processes$0.0$0.0$0.0$0.0$26.0M$41.0M
Intelligent Cloud$0.0$0.0$0.0$0.0$36.0M—
More Personal Computing$0.0$0.0$0.0$0.0$5.0M—

Goodwill Changes

SegmentQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
More Personal Computing—$81.0M$70.0M-$6.0M$25.0M-$26.0M
Productivity And Business Processes-$73.0M$49.0M$76.0M$1.0M$20.0M$20.0M
Intelligent Cloud-$23.0M$8.0M$34.0M-$7.0M$13.0M$4.0M

Operating Expenses

SegmentQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Productivity And Business Processes$7.0B$7.0B$8.1B$6.9B$7.4B$7.8B
Intelligent Cloud$5.3B$5.3B$5.9B$5.2B$5.5B$5.8B
More Personal Computing$3.9B$3.8B$4.1B$3.6B$4.1B$4.0B

Operating Income

SegmentQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Productivity And Business Processes$16.9B$17.4B$19.0B$20.4B$20.6B$21.0B
Intelligent Cloud$10.9B$11.1B$12.1B$13.4B$13.9B$13.8B
More Personal Computing$3.9B$3.5B$3.2B$4.2B$3.8B$3.7B

Revenue

SegmentQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Productivity And Business Processes$29.4B$29.9B$33.1B$33.0B$34.1B$35.0B
Intelligent Cloud$25.5B$26.8B$29.9B$30.9B$32.9B$34.7B
More Personal Computing$14.7B$13.4B$13.5B$13.8B$14.3B$13.2B