What is Microsoft's deferred revenue?

Microsoft (MSFT) reported deferred revenue of $50.92B in Q1 2026.

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

Microsoft's deferred revenue increased by 14.1% year-over-year, from $44.64B to $50.92B.

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

Over 4 years (2021 to 2025), Microsoft's deferred revenue has grown at a 11.7% compound annual growth rate (CAGR), from $41.53B to $64.56B.

What does deferred revenue mean?

Payments received from customers for goods or services to be delivered within one year — recognized as revenue as performance obligations are satisfied.

Microsoft MSFT Deferred Revenue

Deferred Revenue at other companies

AppleAAPL

$9.33B+4.0%

Electronic ArtsEA

$2.23B+31.4%

PTCPTC

$756.69M-3.8%

AmazonAMZN

$20.89B+1.4%

SalesforceCRM

$20.36B+14.4%

FortinetFTNT

——

Other financials

Income statement

See full

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

See full

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

See full

Operating cash flow$46.7B+26.0%

CapEx$30.9B+84.4%

Free cash flow$15.8B-22.1%

Valuation

See full

Market cap$2.83T-25.4%

Enterprise value$2.93T-24.5%

P/E22.6×-14.7×

P/S8.9×-4.6×

Profitability

See full

Gross margin68.3%-0.8pp

Operating margin46.8%+1.6pp

Net margin39.3%+3.6pp

FCF margin22.9%-2.8pp

Returns & leverage

See full

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:ContractWithCustomerLiabilityCurrent.

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

Ask your AI about Microsoft's deferred revenue.

Connect your AI assistant and compare it to peers, right in your chat.

Connect your AI

Claude

Questions, answered.

What is Microsoft's deferred revenue?: Microsoft (MSFT) reported deferred revenue of $50.92B in Q1 2026.
How has Microsoft's deferred revenue changed year-over-year?: Microsoft's deferred revenue increased by 14.1% year-over-year, from $44.64B to $50.92B.
What is the long-term trend for Microsoft's deferred revenue?: Over 4 years (2021 to 2025), Microsoft's deferred revenue has grown at a 11.7% compound annual growth rate (CAGR), from $41.53B to $64.56B.
What does deferred revenue mean?: Payments received from customers for goods or services to be delivered within one year — recognized as revenue as performance obligations are satisfied.