This brief reports what Microsoft's 10-Q, filed 2026-04-29, states, and nothing else. Every item below is a sentence the filing contains, quoted exactly and verified character-for-character against the document fetched from EDGAR. No inference is drawn and no claim is made about what any figure means.
The figures
| Metric | Value | Period |
|---|---|---|
| Microsoft Cloud revenue | 29% | third quarter of fiscal year 2026 compared with the third quarter of fiscal year 2025 |
| Commercial remaining performance obligation | 99% | third quarter of fiscal year 2026 compared with the third quarter of fiscal year 2025 |
| Microsoft 365 Commercial cloud revenue | 19% | third quarter of fiscal year 2026 compared with the third quarter of fiscal year 2025 |
| Microsoft 365 Consumer cloud revenue | 33% | third quarter of fiscal year 2026 compared with the third quarter of fiscal year 2025 |
| LinkedIn revenue | 12% | third quarter of fiscal year 2026 compared with the third quarter of fiscal year 2025 |
| Dynamics 365 revenue | 22% | third quarter of fiscal year 2026 compared with the third quarter of fiscal year 2025 |
| Azure and other cloud services revenue | 40% | third quarter of fiscal year 2026 compared with the third quarter of fiscal year 2025 |
| Windows OEM and Devices revenue | 2% | third quarter of fiscal year 2026 compared with the third quarter of fiscal year 2025 |
| Xbox content and services revenue | 5% | third quarter of fiscal year 2026 compared with the third quarter of fiscal year 2025 |
| Search advertising (formerly Search and news advertising) revenue | 12% | third quarter of fiscal year 2026 compared with the third quarter of fiscal year 2025 |
| Cash from operations | $34.0 billion | nine months ended March 31, 2026 |
| Cash used in financing | $88 million | nine months ended March 31, 2026 |
| Cash used in investing | $42.6 billion | nine months ended March 31, 2026 |
| Share repurchases | 27 million shares and $13.3 billion | nine months ended March 31, 2026 |
| Dividends | $20.3 billion | nine months ended March 31, 2026 |
| Remaining share repurchase program authorization | $44.0 billion | March 31, 2026 |
| Unearned revenue | $24,810 million (June 30, 2026) | March 31, 2026 |
| Foreign currency – Revenue | -12938 | March 31, 2026 |
| Foreign currency – Investments | -5 | March 31, 2026 |
| Interest rate | -1230 | March 31, 2026 |
| Credit | -429 | March 31, 2026 |
| Equity | -2248 | March 31, 2026 |
| Operating income | 2% | — |
| Sales and marketing | 3% | — |
| Sales and marketing | 2% | — |
| Research and development expenses | $717 million | Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025 |
| Research and development expenses | $1.9 billion | Nine Months Ended March 31, 2026 Compared with Nine Months Ended March 31, 2025 |
| Sales and marketing expenses | $602 million | Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025 |
| Sales and marketing expenses | $746 million | Nine Months Ended March 31, 2026 Compared with Nine Months Ended March 31, 2025 |
| General and administrative expenses | $194 million | Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025 |
| General and administrative expenses | $436 million | Nine Months Ended March 31, 2026 Compared with Nine Months Ended March 31, 2025 |
| Other income (expense), net | $19 million | three months ended March 31, 2026 |
| Other income (expense), net | $5.9 billion | nine months ended March 31, 2026 |
| Other income (expense), net | $768 million | three months ended March 31, 2025 |
| Other income (expense), net | $2.7 billion | nine months ended March 31, 2025 |
| Research and development expenses | $717 million | Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025 |
| Research and development expenses | $1.9 billion | Nine Months Ended March 31, 2026 Compared with Nine Months Ended March 31, 2025 |
| Sales and marketing expenses | $602 million | Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025 |
| Sales and marketing expenses | $746 million | Nine Months Ended March 31, 2026 Compared with Nine Months Ended March 31, 2025 |
| General and administrative expenses | $194 million | Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025 |
Every figure above is quoted from the filing; the sentence it was read from appears under its beat below.
The evidence, by beat
ARR / NRR / NDR growth or dilution
Microsoft Cloud revenue increased 29% to $54.5 billion.
Commercial remaining performance obligation increased 99% to $627 billion.
Microsoft 365 Commercial cloud revenue increased 19%.
Microsoft 365 Consumer cloud revenue increased 33%.
LinkedIn revenue increased 12%.
Dynamics 365 revenue increased 22%.
Azure and other cloud services revenue increased 40%.
Windows OEM and Devices revenue decreased 2%.
Xbox content and services revenue decreased 5%.
Search advertising (formerly Search and news advertising) revenue excluding traffic acquisition costs increased 12%.
seat vs consumption / usage-based pricing mix shift
Cash from operations increased $34.0 billion to $127.5 billion for the nine months ended March 31, 2026
Cash used in financing decreased $88 million to $40.8 billion for the nine months ended March 31, 2026
Cash used in investing increased $42.6 billion to $84.7 billion for the nine months ended March 31, 2026
For the nine months ended March 31, 2026 and 2025, we repurchased 27 million shares and 23 million shares of our common stock for $13.3 billion and $9.8 billion, respectively
For the nine months ended March 31, 2026 and 2025, our Board of Directors declared dividends totaling $20.3 billion and $18.5 billion, respectively
As of March 31, 2026, $44.0 billion remained of our $60 billion share repurchase program
The following table outlines the expected future recognition of unearned revenue as of March 31, 2026: (In millions) Three Months Ending June 30, 2026 $ 24,810 September 30, 2026 13,449 December 31, 2026 9,526 March 31, 2027 3,139 Thereafter 2,753 Total $ 53,677
If our customers choose to license cloud-based versions of our products and services rather than licensing transaction-based products and services, the associated revenue will shift from being recognized at the time of the transaction to being recognized over the subscription period or upon consumption, as applicable.
Scope: from transaction-based to subscription or consumption-based.
competitive displacement / win-loss / platform consolidation
Foreign currency – Revenue 10% decrease in foreign exchange rates $ (12,938 ) Earnings
Foreign currency – Investments 10% decrease in foreign exchange rates (5 ) Fair Value
Interest rate 100 basis point increase in U.S. treasury interest rates (1,230 ) Fair Value
Credit 100 basis point increase in credit spreads (429 ) Fair Value
Equity 10% decrease in equity market prices (2,248 ) Earnings
There were no changes in our internal control over financial reporting during the quarter ended March 31, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
We face intense competition across all markets for our products and services, which could adversely affect our results of operations.
We derive substantial revenue from licenses of Windows operating systems on PCs.
We face significant competition from competing platforms developed for new devices and form factors such as smartphones and tablets.
Competing with operating systems licensed at low or no cost may decrease our PC operating system margins.
AI product monetisation / attach
Operating income included a favorable foreign currency impact of 2%.
Sales and marketing included an unfavorable foreign currency impact of 3%.
Sales and marketing included an unfavorable foreign currency impact of 2%.
Research and development expenses increased $717 million or 9% driven by continued investments in compute capacity, AI talent, and data to support product development across the portfolio, with headcount declining year-over-year.
Research and development expenses increased $1.9 billion or 8% driven by continued investments in compute capacity, AI talent, and data to support product development across the portfolio, as well as impairment and other related expenses in our Gaming business, with headcount declining year-over-year.
Sales and marketing expenses increased $602 million or 10% primarily driven by higher Copilot advertising expenses, with headcount declining year-over-year.
Sales and marketing expenses increased $746 million or 4% driven by higher Copilot advertising expenses, with headcount declining year-over-year.
General and administrative expenses increased $194 million or 11% primarily driven by higher legal expenses, with headcount declining year-over-year.
General and administrative expenses increased $436 million or 8% driven by higher legal expenses, with headcount declining year-over-year.
Other income (expense), net included $19 million of net losses and $5.9 billion of net gains for the three and nine months ended March 31, 2026, respectively, and $768 million and $2.7 billion of net losses for the three and nine months ended March 31, 2025, respectively, from investments in OpenAI, primarily net recognized gains (losses) on our equity method investment reflected in Other, net.
Other income (expense), net included $19 million of net losses and $5.9 billion of net gains for the three and nine months ended March 31, 2026, respectively, and $768 million and $2.7 billion of net losses for the three and nine months ended March 31, 2025, respectively, from investments in OpenAI, primarily net recognized gains (losses) on our equity method investment reflected in Other, net.
Other income (expense), net included $19 million of net losses and $5.9 billion of net gains for the three and nine months ended March 31, 2026, respectively, and $768 million and $2.7 billion of net losses for the three and nine months ended March 31, 2025, respectively, from investments in OpenAI, primarily net recognized gains (losses) on our equity method investment reflected in Other, net.
Other income (expense), net included $19 million of net losses and $5.9 billion of net gains for the three and nine months ended March 31, 2026, respectively, and $768 million and $2.7 billion of net losses for the three and nine months ended March 31, 2025, respectively, from investments in OpenAI, primarily net recognized gains (losses) on our equity method investment reflected in Other, net.
guidance raised/cut, outlook change
The filing names this beat, but no statement in it verified as a verbatim quote, so none is reported here.
cost action / restructuring / headcount
Research and development expenses increased $717 million or 9% driven by continued investments in compute capacity, AI talent, and data to support product development across the portfolio, with headcount declining year-over-year.
Research and development expenses increased $1.9 billion or 8% driven by continued investments in compute capacity, AI talent, and data to support product development across the portfolio, as well as impairment and other related expenses in our Gaming business, with headcount declining year-over-year.
Sales and marketing expenses increased $602 million or 10% primarily driven by higher Copilot advertising expenses, with headcount declining year-over-year.
Sales and marketing expenses increased $746 million or 4% driven by higher Copilot advertising expenses, with headcount declining year-over-year.
General and administrative expenses increased $194 million or 11% primarily driven by higher le
Verification ledger
- 46 statements proposed by the extractor
- 46 verified verbatim against the fetched filing (100%)
- 0 discarded — not quotable character-for-character
The verbatim check contains no model: the extractor proposes a statement, and a deterministic substring match against the fetched text decides whether it is admissible. A proposal that does not verify is dropped.
This brief publishes no inference and no synthesis. The publication's inference layer must clear a measured second-lab confirmation threshold before it may appear; it has not, so it is absent by rule rather than by omission.