What is Microsoft's retained earnings?

Microsoft (MSFT) reported retained earnings of $302.53B in Q1 2026.

How has Microsoft's retained earnings changed year-over-year?

Microsoft's retained earnings increased by 37.7% year-over-year, from $219.76B to $302.53B.

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

Over 4 years (2021 to 2025), Microsoft's retained earnings has grown at a 42.9% compound annual growth rate (CAGR), from $57.06B to $237.73B.

What does retained earnings mean?

Cumulative net income earned since inception minus all dividends paid — the total profits reinvested in the business over its lifetime.

Microsoft MSFT Retained Earnings

Retained Earnings at other companies

International Business MachinesIBM

$155.33B+3.1%

AppleAAPL

$12.36B+179%

Electronic ArtsEA

$6.61B+2.1%

PTCPTC

$2.84B+78.2%

AmazonAMZN

$280.79B+47.8%

SalesforceCRM

$23.95B+36.8%

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$2.83T-25.4%

Enterprise value$2.93T-24.5%

P/E22.6×-14.7×

P/S8.9×-4.6×

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:RetainedEarningsAccumulatedDeficit.

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 retained earnings?: Microsoft (MSFT) reported retained earnings of $302.53B in Q1 2026.
How has Microsoft's retained earnings changed year-over-year?: Microsoft's retained earnings increased by 37.7% year-over-year, from $219.76B to $302.53B.
What is the long-term trend for Microsoft's retained earnings?: Over 4 years (2021 to 2025), Microsoft's retained earnings has grown at a 42.9% compound annual growth rate (CAGR), from $57.06B to $237.73B.
What does retained earnings mean?: Cumulative net income earned since inception minus all dividends paid — the total profits reinvested in the business over its lifetime.