MSFTMEDIUM SIGNALFINANCIAL10-K

MSFT shows exceptionally strong revenue growth of 331% alongside substantial increases in cash position and capital expenditures, indicating aggressive expansion and investment.

The dramatic revenue acceleration combined with 65% cash growth and 45% capex increase suggests Microsoft is in a significant growth phase, likely driven by AI and cloud expansion. While operating income growth of 17% is solid, it's notably lower than revenue growth, indicating potential margin compression from heavy investment spending.

Comparing 2025-07-30 vs 2024-07-30View on EDGAR →
FINANCIAL ANALYSIS

Microsoft demonstrates exceptional top-line growth with revenue surging 331% while maintaining strong operational performance with 17% operating income growth and 28% stockholders equity increase. The company is investing heavily for future growth, evidenced by 45% higher capital expenditures and 65% cash accumulation, while reducing inventory by 25% suggests improved operational efficiency. The overall financial picture signals a company in aggressive expansion mode with strong fundamentals, though investors should monitor whether the substantial investments translate to sustained profitability growth.

FINANCIAL STATEMENT CHANGES
Revenue
P&L
+330.8%
$14.5B$62.5B

Strong top-line growth of 330.8% — accelerating demand or successful expansion into new markets.

Cash & Equivalents
Balance Sheet
+65.1%
$18.3B$30.2B

Cash position surged 65.1% — strong cash generation or capital raise providing significant financial cushion.

Interest Expense
P&L
+49.1%
$2.0B$2.9B

Interest expense surged 49.1% — significant debt increase or rising rates materially impacting earnings.

Capital Expenditure
Cash Flow
+45.1%
$44.5B$64.6B

Capital expenditure jumped 45.1% — major investment cycle underway; assess returns on deployment.

Stockholders Equity
Balance Sheet
+27.9%
$268.5B$343.5B

Equity base grew 27.9% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Inventory
Balance Sheet
-24.7%
$1.2B$938.0M

Inventory reduced 24.7% — lean inventory management or demand outpacing supply.

Accounts Receivable
Balance Sheet
+22.8%
$56.9B$69.9B

Receivables grew 22.8% — monitor days sales outstanding for collection efficiency.

Total Assets
Balance Sheet
+20.9%
$512.2B$619.0B

Asset base grew 20.9% — expansion through organic growth, acquisitions, or capital deployment.

Current Assets
Balance Sheet
+19.7%
$159.7B$191.1B

Current assets grew 19.7% — improving short-term liquidity or inventory/receivables build.

Operating Income
P&L
+17.4%
$109.4B$128.5B

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

LANGUAGE CHANGES
NEW — 2025-07-30
PRIOR — 2024-07-30
ADDED
As of July 24, 2025, there were 7,433,166,379 shares of common stock outstanding.
Business 3 Information about our Executive Officers 14 Item 1A.
Controls and Procedures 89 Report of Management on Internal Control over Financial Reporting 89 Report of Independent Registered Public Accounting Firm 90 Item 9B.
B USINESS GENERAL Microsoft is a technology company committed to making digital technology and artificial intelligence ( AI ) available broadly and doing so responsibly.
Our mission is to empower every person and every organization on the planet to achieve more.
+7 more — sign up free →
REMOVED
As of July 25, 2024, there were 7,433,038,381 shares of common stock outstanding.
Business 3 Information about our Executive Officers 18 Item 1A.
Controls and Procedures 98 Report of Management on Internal Control over Financial Reporting 98 Report of Independent Registered Public Accounting Firm 99 Item 9B.
B USINESS GENERAL Embracing Our Future Microsoft is a technology company committed to making digital technology and artificial intelligence ( AI ) available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.
We create platforms and tools, powered by AI, that deliver innovative solutions that meet the evolving needs of our customers.
+7 more — sign up free →
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