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Microsoft MSFT Intelligent Cloud — Operating Expenses

Other segment segments

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$4.01B+6.9%

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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$2.98T-20.4%
Enterprise value$3.07T-19.6%
P/E23.8×-12.9×
P/S9.4×-3.9×

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:OperatingExpenses.

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 intelligent cloud — operating expenses?
Microsoft (MSFT) reported intelligent cloud — operating expenses of $5.81B in Q1 2026.
How has Microsoft's intelligent cloud — operating expenses changed year-over-year?
Microsoft's intelligent cloud — operating expenses increased by 8.6% year-over-year, from $5.35B to $5.81B.
What is the long-term trend for Microsoft's intelligent cloud — operating expenses?
Over 2 years (2023 to 2025), Microsoft's intelligent cloud — operating expenses has grown at a 2.6% compound annual growth rate (CAGR), from $20.42B to $21.51B.
What does intelligent cloud — operating expenses mean?
This metric represents the total operating expenses incurred by Microsoft's Intelligent Cloud segment, encompassing research and development, sales and marketing, and general and administrative costs. It reflects the overhead required to support public, private, and hybrid server products and cloud services, including Azure, SQL Server, and Windows Server. This figure is critical for evaluating the operational efficiency and scalability of the company's infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) offerings.