Microsoft put $35.8bn into property and equipment in one quarter, more than twice a year ago, and reported a commercial backlog of $678bn
Microsoft's capital spending has more than doubled in a year.
Additions to property and equipment took $35,802m in the three months to 30 June, against $17,079m in the same quarter of 2025. Across the fiscal year the figure was $115,948m against $64,551m. Net cash from operations was $55,441m in the quarter and $182,935m for the year, against $42,647m and $136,162m. Property and equipment on the balance sheet stood at $313,076m against $204,966m. Accumulated depreciation reached $118,691m.
Set against that spending is a number the release gives one clause to. Commercial remaining performance obligation, which is contracted revenue Microsoft has not yet recognised, increased 84 percent to $678 billion. That is more than twice the $331,839m of revenue the company recorded across the whole fiscal year.
Microsoft Cloud revenue was $59.3bn in the quarter, up 27 percent, and Azure and other cloud services revenue rose 43 percent. Satya Nadella, quoted in the release, said Azure revenue "surpassed $100 billion for the first time" during the year and that Microsoft 365 Copilot "reached over 30 million paid seats". Amy Hood, the chief financial officer, is quoted on the Microsoft Cloud figure.
Three segments, one of them shrinking
Productivity and Business Processes revenue was $37.8bn, up 14 percent. Intelligent Cloud was $39.3bn, up 32 percent. More Personal Computing was $12.9bn, down 4 percent, and down 5 percent in constant currency. Inside that segment, Windows OEM and Devices revenue fell 7 percent and XBOX content and services revenue fell 10 percent, while search advertising revenue excluding traffic acquisition costs rose 10 percent. The XBOX line is the one that also appears in the discrete items paragraph, where the release records impairment charges in that business.
One figure in the release does not reconcile to the statements behind it, and the release does not explain the difference. The Business Highlights section states that Microsoft returned $10.2bn to shareholders in the form of dividends and share repurchases in the fourth quarter. The cash flow statement for the same three months records $6,758m of dividends paid and $4,579m of common stock repurchased, which comes to $11,337m of cash out. For the full year the cash flow statement records $26,445m of dividends and $22,271m of repurchases.
Total assets were $758,376m at 30 June, against $619,003m a year earlier. Accounts payable were $42,416m against $27,724m.
