United States

Other countries

Total Revenue

930953f5104c15d976346dd745381314c822b004d45d29292044df9ba8f536eb

2b387a32f2e93254de7c88bd0d561bb0010c468e41de586dbd92491bb6f22de3

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

9bfc73b3e0720a48d04ac9fa31ce15e849155b33daf1088a82f4ef0ba9b9c460

7ebb5ebfb56167d99ef6cce115b8ec26148c93215b01268ab04d7b3c6cac7459

82ff5bf9bcdcc00043273c0cc99c35d72eb47c3a14b6db63ece8b357f7ceb8f0

Microsoft 365 Commercial seat growth (percentage)

Microsoft 365 Consumer subscriber growth (percentage)

Number of Microsoft 365 Consumer subscribers (millions)

ce800f91b92e20dc2ec0405971f83a791db5f8e0924f0cb1c86e76366935938d

Net income (USD, millions)

Depreciation, amortization, and other (USD, millions)

Stock-based compensation expense (USD, millions)

Net recognized losses on investments and derivatives (USD, millions)

Net cash from operations (USD, millions)

Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net (USD, millions)

Proceeds from issuance of debt (USD, millions)

Repayments of debt (USD, millions)

Common stock issued (USD, millions)

Common stock repurchased (USD, millions)

Common stock cash dividends paid (USD, millions)

Other, net (USD, millions)

Net cash from (used in) financing (USD, millions)

Additions to property and equipment (USD, millions)

Acquisition of companies, net of cash acquired, and purchases of intangible and other assets (USD, millions)

Purchases of investments (USD, millions)

Maturities of investments (USD, millions)

Sales of investments (USD, millions)

Net cash used in investing (USD, millions)

Effect of foreign exchange rates on cash and cash equivalents (USD, millions)

Net change in cash and cash equivalents (USD, millions)

Deferred income taxes (USD, millions)

Cash and cash equivalents, beginning of period (USD, millions)

Cash and cash equivalents, end of period (USD, millions)

ca22118f0cd65e673420698aea2e3cc20c78df7e783769c42ddd63ab87648f3a

186ce8a44b9883b7be5e28865ae16399d9c6f6042db84c0319051177e0f0f8a1

The **operating cash flow** jumped in FY 2024 because there was a **significant increase in cash received from customers**, which contributed to a rise of **$31.0 billion** in net cash from operations to **$118.5 billion**.  **[0000950170-24-087843_msft-20240630.htm:85]** 

Why did operating cash flow jump in FY 2024?

Microsoft’s surge in capital expenditures in Q1 2025 was primarily driven by **increased investments in cloud and AI infrastructure**—with a significant allocation toward long-lived assets and servers to meet growing demand—as well as an aggressive **datacenter expansion** effort underscored by a monumental construction commitment. This surge was further supported by a **22% year-over-year increase in Microsoft Cloud revenue** (up to **$38.9 billion**), indicating rising customer demand that necessitated these additional expenditures.  **[MSFT_3404745_7]** **[0000950170-24-132722_msft-ex99_1.htm:46]** **[0000950170-24-118967_msft-20240930.htm:25]** 

What drove the surge in capital expenditures in Q1 2025?

In **Q1 2025**, the change was primarily driven by two key factors: first, **gains on equity investments** shifted from previously being losses, and second, there was a notable **increase in losses on derivatives**, particularly from equity derivatives compared to previous gains. These factors combined to result in the spike in investment-related losses.  **[0000950170-24-118967_msft-20240930.htm:31]** 

What caused the spike in investment-related losses in Q1 2025?

2832af4d445f61a7748673e453ca746cc272022d0a232c8d82b9dde30225c687

Microsoft's cash and cash equivalents dropped to **$19,634 million** in Q3 2024 primarily because of significant cash used in investing and financing activities. Specifically, there was a **substantial increase of $66.5 billion** in cash used for acquisitions and purchases of intangible and other assets, as well as major cash outflows from financing activities such as dividends and share repurchases. Even though operating activities generated **$81.4 billion** in cash, these strong inflows were not enough to offset the heavy outflows, thus resulting in a notable decrease in cash and cash equivalents.  **[0000950170-24-048288_msft-20240331.htm:39]** **[0000950170-24-048268_msft-ex99_1.htm:6]** 

Why did cash and cash equivalents drop to 19,634 in Q3 2024?

In Q1 2025, **Microsoft's short-term debt decreased from $6,693 million as of June 30, 2024, to $0 as of September 30, 2024**; however, the documents do not provide specific reasons for this elimination of debt.  **[0000950170-24-118955_msft-ex99_1.htm:5]** 

What caused short-term debt to be completely eliminated by Q1 2025?

The increase to **5,248 million** in Q2 2025 was driven primarily by the reclassification of long-term debt that is maturing within the next 12 months. This reclassification recognized additional debt obligations—specifically, about **2,250 million**—that are due within the fiscal year, causing the significant rise in the current portion of long-term debt.  **[0000950170-25-010484_msft-ex99_1.htm:5]** **[0000950170-25-010491_msft-20241231.htm:3]** **[0000950170-25-010491_msft-20241231.htm:17]** 

What drove the current portion of long-term debt to rise to 5,248 in Q2 2025?

Microsoft's **total cash, cash equivalents, and short-term investments nearly halved** by FY 2024 primarily due to **increased cash used in investing activities** and **changes in financing activities**. Specifically, there was a **significant increase in cash spent on acquisitions and asset purchases**—notably the Activision Blizzard acquisition—which drove cash used for investing up sharply. At the same time, **net cash from financing activities declined** due to reduced stock repurchases and shifts in how debt and dividends were managed, while the increased operating cash flow did not fully offset these outflows.  **[0000950170-24-087843_msft-20240630.htm:93]** **[0000950170-24-087835_msft-ex99_1.htm:6]** **[0000950170-24-087843_msft-20240630.htm:85]** **[0000950170-24-087843_msft-20240630.htm:94]** 

Microsoft Corp (MSFT)

Financials