Microsoft Corporation

Worth knowing

• Buybacks largely absorbed by stock pay. Stock-based pay expense $35.1B vs $57.9B spent repurchasing shares over the 3 fiscal years to FY Jun 2026. Shares outstanding changed −0.1% from June 2023 to July 2026.

  Over three fiscal years Microsoft recorded $35.1B of stock-based pay expense and spent $57.9B repurchasing shares (repurchases can include shares withheld to cover employees' taxes). The share count barely moved (−0.1%), so much of the repurchasing offset new employee shares rather than shrinking the count.Over three fiscal years Microsoft recorded $35.1B of stock-based pay expense and spent $57.9B repurchasing shares. The share count barely moved (−0.1%), so much of the repurchasing offset new employee shares rather than shrinking the count.

• Operating margin at a 6-year high. 47% in FY Jun 2026, the best of the last 6 years.

  Microsoft kept 47% of revenue as operating profit in FY Jun 2026, its highest in the 6 years of filings we have.

• Investment surge. Capital spending 35% of revenue, up from 13% in FY Jun 2023.

  Microsoft is spending 35% of revenue on facilities and equipment, up from 13% in FY Jun 2023. That weighs on free cash flow today; whether it pays off depends on the returns those investments earn.

• Annual revenue rose 5 years in a row. Fiscal-year revenue rose from $168.1B in FY Jun 2021 to $331.8B in FY Jun 2026.

  Microsoft's fiscal-year revenue rose in each of the five years to FY Jun 2026, from $168.1B to $331.8B.