What is Microsoft's goodwill?

Microsoft (MSFT) reported goodwill of $119.66B in Q1 2026.

How has Microsoft's goodwill changed year-over-year?

Microsoft's goodwill increased by 0.3% year-over-year, from $119.33B to $119.66B.

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

Over 4 years (2021 to 2025), Microsoft's goodwill has grown at a 24.5% compound annual growth rate (CAGR), from $49.71B to $119.51B.

What does goodwill mean?

The excess of acquisition cost over the fair value of net identifiable assets acquired — representing brand value, customer relationships, and synergies from past M&A.

Microsoft MSFT Goodwill

Goodwill at other companies

International Business MachinesIBM

$74.71B+13.1%

Electronic ArtsEA

$5.39B+0.2%

PTCPTC

$3.4B-1.2%

Take-Two Interactive SoftwareTTWO

$1.06B+0.4%

AmazonAMZN

$23.45B+1.6%

SalesforceCRM

$59.29B+15.6%

Segments

By segment

See full

More Personal Computing$62.36B+0.1%

Productivity And Business Processes$31.57B+0.6%

Intelligent Cloud$25.74B+0.3%

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$2.94T-21.2%

Enterprise value$3.03T-20.4%

P/E23.5×-13.1×

P/S9.2×-4.0×

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:Goodwill.

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 goodwill?: Microsoft (MSFT) reported goodwill of $119.66B in Q1 2026.
How has Microsoft's goodwill changed year-over-year?: Microsoft's goodwill increased by 0.3% year-over-year, from $119.33B to $119.66B.
What is the long-term trend for Microsoft's goodwill?: Over 4 years (2021 to 2025), Microsoft's goodwill has grown at a 24.5% compound annual growth rate (CAGR), from $49.71B to $119.51B.
What does goodwill mean?: The excess of acquisition cost over the fair value of net identifiable assets acquired — representing brand value, customer relationships, and synergies from past M&A.