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Microsoft MSFT More Personal Computing — Deferred Revenue

Other segment segments

Productivity And Business Processes
$39.9B+16.5%
Intelligent Cloud
$10.89B+6.4%

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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:ContractWithCustomerLiability.

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 more personal computing — deferred revenue?
Microsoft (MSFT) reported more personal computing — deferred revenue of $2.88B in Q1 2026.
How has Microsoft's more personal computing — deferred revenue changed year-over-year?
Microsoft's more personal computing — deferred revenue decreased by 3.7% year-over-year, from $2.99B to $2.88B.
What is the long-term trend for Microsoft's more personal computing — deferred revenue?
Over 3 years (2022 to 2025), Microsoft's more personal computing — deferred revenue has grown at a -9.5% compound annual growth rate (CAGR), from $16.23B to $12.02B.
What does more personal computing — deferred revenue mean?
This metric represents the deferred revenue or unearned income specifically associated with Microsoft's More Personal Computing segment, which includes Windows licensing, gaming (Xbox), devices (Surface), and search advertising. It reflects cash payments received from customers in advance of the company fulfilling its performance obligations, such as multi-year software support, subscription services, or hardware warranties. As the company delivers the promised goods or services over time, this liability is recognized as earned revenue on the income statement.