What is Microsoft's deferred taxes?

Microsoft (MSFT) reported deferred taxes of $2.6B in Q1 2026.

How has Microsoft's deferred taxes changed year-over-year?

Microsoft's deferred taxes increased by 216.0% year-over-year, from -$2.24B to $2.6B.

What is the long-term trend for Microsoft's deferred taxes?

Over 3 years (2022 to 2025), Microsoft's deferred taxes has grown at a 5.6% compound annual growth rate (CAGR), from -$5.99B to -$7.06B.

What does deferred taxes mean?

Non-cash deferred tax expense or benefit representing the change in deferred tax assets/liabilities during the period.

Microsoft MSFT Deferred Taxes

Deferred Taxes at other companies

International Business MachinesIBM

-$239.25M+58.9%

PTCPTC

-$6.57M+32.7%

AmazonAMZN

$12.8B+2,424%

Palo Alto Networks, Inc.PANW

$24M+119%

OracleORCL

-$622M-15.2%

BoxBOX

$7.49M+196%

Other financials

Income statement

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Revenue$82.9B+18.3%

Gross profit$56.1B+16.4%

Operating income$38.4B+20.0%

Net income$31.8B+23.1%

EPS (diluted)$4.27+23.4%

Balance sheet

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Cash & equivalents$32.1B+11.4%

Total debt$125.43B+19.4%

Total equity$414.37B+28.7%

Total assets$694.23B+23.4%

Cash flow

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Operating cash flow$46.7B+26.0%

CapEx$30.9B+84.4%

Free cash flow$15.8B-22.1%

Valuation

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Market cap$2.77T-24.3%

Enterprise value$2.86T-23.4%

P/E22.1×-13.8×

P/S8.7×-4.3×

Profitability

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Gross margin68.3%-0.8pp

Operating margin46.8%+1.6pp

Net margin39.3%+3.6pp

FCF margin22.9%-2.8pp

Returns & leverage

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Return on equity34%+0.4pp

Debt / equity0.3×0.0×

Current ratio1.3×-0.1×

Where this comes from

Reported directly by Microsoft in its filing.

Tagged under the XBRL concept us-gaap:DeferredIncomeTaxesAndTaxCredits.

The official record: Microsoft’s 10-Q, filed April 29, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Microsoft's deferred taxes?: Microsoft (MSFT) reported deferred taxes of $2.6B in Q1 2026.
How has Microsoft's deferred taxes changed year-over-year?: Microsoft's deferred taxes increased by 216.0% year-over-year, from -$2.24B to $2.6B.
What is the long-term trend for Microsoft's deferred taxes?: Over 3 years (2022 to 2025), Microsoft's deferred taxes has grown at a 5.6% compound annual growth rate (CAGR), from -$5.99B to -$7.06B.
What does deferred taxes mean?: Non-cash deferred tax expense or benefit representing the change in deferred tax assets/liabilities during the period.