Microsoft Corporation (MSFT) Cash Flow Statement
Where MSFT’s cash came from and went, FY2026
June 30, 2026 · U.S. dollars- Cash from operations
- $182.94B +34.4% vs FY2025
- Capital expenditures
- $115.95B 34.9% of revenue
- Free cash flow
- $66.99B 20.2% margin
- Returned to shareholders
- $48.72B 73% of free cash flow
- Change in cash
- −$9.31B cash at year-end $20.93B
Cash from operations
$182.94B
Capital expenditures
−$115.95B
Investments (net)
−$1.95B
Acquisitions & other
−$21.60B
Dividends
−$26.45B
Share buybacks (net)
−$22.27B
Net borrowing (repayment)
−$3.00B
Shares issued
+$2.01B
Other financing
−$2.84B
Change in cash
−$9.31B
Drawn to scale: where the cash came from and how it was used. Hover for values.
MSFT operating cash flow, capex and free cash flow
Operating cash flowCapital expendituresFree cash flowFCF margin (right axis)
MSFT cash flow trends, FY2017–FY2026
| Metric | Trend | Then | Latest | Change |
|---|---|---|---|---|
| Operating cash flow | $39.51BFY2017 | $182.94BFY2026 | +18.6%/yr | |
| Capital expenditures | $8.13BFY2017 | $115.95BFY2026 | +34.4%/yr | |
| Free cash flow | $31.38BFY2017 | $66.99BFY2026 | +8.8%/yr | |
| Free cash flow margin | 32.5%FY2017 | 20.2%FY2026 | −12.3 pts | |
| Operating cash flow / net income | 1.55FY2017 | 1.37FY2026 | −0.18 | |
| Stock-based compensation | $3.27BFY2017 | $12.40BFY2026 | +16.0%/yr | |
| Dividends paid | $11.85BFY2017 | $26.45BFY2026 | +9.3%/yr | |
| Share buybacks (net) | $11.79BFY2017 | $22.27BFY2026 | +7.3%/yr | |
| Capex / revenue | 8.4%FY2017 | 34.9%FY2026 | +26.5 pts |
Change is the average annual growth (CAGR) or the difference between the first and latest year.
MSFT cash flow by activity
OperatingInvestingFinancingChange in cash
MSFT net income vs operating cash flow
Net incomeOperating cash flow
Operating cash flow above net income usually means earnings are backed by cash (depreciation and stock-based pay are non-cash expenses).
MSFT cash flow statement
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 | FY2019 | FY2018 | FY2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||
| Net income | $133.75B | $101.83B | $88.14B | $72.36B | $72.74B | $61.27B | $44.28B | $39.24B | $16.57B | $25.49B |
| Depreciation & amortization | $38.53B | $34.15B | $22.29B | $13.86B | $14.46B | $11.69B | $12.80B | $11.68B | $10.26B | $8.78B |
| Stock-based compensation | $12.40B | $11.97B | $10.73B | $9.61B | $7.50B | $6.12B | $5.29B | $4.65B | $3.94B | $3.27B |
| Change in working capital | −$4.89B | −$5.35B | $1.82B | −$2.39B | $446.0M | −$936.0M | $2.15B | $3.87B | $20.47B | $4.88B |
| Other non-cash items | $3.14B | −$6.45B | −$4.43B | −$5.86B | −$6.11B | −$1.40B | −$3.84B | −$7.25B | −$7.36B | −$2.90B |
| Cash from operating activities | $182.94B | $136.16B | $118.55B | $87.58B | $89.03B | $76.74B | $60.67B | $52.19B | $43.88B | $39.51B |
| Investing activities | ||||||||||
| Capital expenditures | −$115.95B | −$64.55B | −$44.48B | −$28.11B | −$23.89B | −$20.62B | −$15.44B | −$13.93B | −$11.63B | −$8.13B |
| Investments (net) | −$1.95B | −$4.39B | $17.94B | $10.21B | $18.44B | $2.88B | −$10.74B | −$37.65B | $6.56B | −$12.51B |
| Acquisitions & other investing | −$21.60B | −$3.66B | −$70.43B | −$4.79B | −$24.86B | −$9.83B | $13.96B | $35.81B | −$986.0M | −$26.14B |
| Cash from investing activities | −$139.50B | −$72.60B | −$96.97B | −$22.68B | −$30.31B | −$27.58B | −$12.22B | −$15.77B | −$6.06B | −$46.78B |
| Financing activities | ||||||||||
| Dividends paid | −$26.45B | −$24.08B | −$21.77B | −$19.80B | −$18.14B | −$16.52B | −$15.14B | −$13.81B | −$12.70B | −$11.85B |
| Share repurchases & issuance (net) | −$22.27B | −$18.42B | −$17.25B | −$22.25B | −$32.70B | −$27.39B | −$22.97B | −$19.54B | −$10.72B | −$11.79B |
| Net borrowing (repayment) | −$3.00B | −$3.22B | −$4.67B | −$2.75B | −$9.02B | −$3.75B | −$8.94B | −$4.00B | −$10.20B | $31.46B |
| Shares issued | $2.01B | $2.06B | $2.00B | $1.87B | $1.84B | $1.69B | $1.34B | $1.14B | $0 | $0 |
| Other financing | −$2.84B | −$8.04B | $3.94B | −$1.01B | −$863.0M | −$2.52B | −$334.0M | −$675.0M | $31.0M | $582.0M |
| Cash from financing activities | −$52.55B | −$51.70B | −$37.76B | −$43.94B | −$58.88B | −$48.49B | −$46.03B | −$36.89B | −$33.59B | $8.41B |
| Summary | ||||||||||
| Net change in cash | −$9.31B | $11.93B | −$16.39B | $20.77B | −$293.0M | $648.0M | $2.22B | −$590.0M | $4.28B | $1.15B |
| Cash at end of period | $20.93B | $30.24B | $18.32B | $34.70B | $13.93B | $14.22B | $13.58B | $11.36B | $11.95B | $7.66B |
| Free cash flow | $66.99B | $71.61B | $74.07B | $59.48B | $65.15B | $56.12B | $45.23B | $38.26B | $32.25B | $31.38B |
| Free cash flow margin | 20.2% | 25.4% | 30.2% | 28.1% | 32.9% | 33.4% | 31.6% | 30.4% | 29.2% | 32.5% |
| Capex / revenue | 34.9% | 22.9% | 18.1% | 13.3% | 12.0% | 12.3% | 10.8% | 11.1% | 10.5% | 8.4% |
| Operating cash flow / net income | 1.37 | 1.34 | 1.35 | 1.21 | 1.22 | 1.25 | 1.37 | 1.33 | 2.65 | 1.55 |
| Jun '26 | Mar '26 | Dec '25 | Sep '25 | Jun '25 | Mar '25 | Dec '24 | Sep '24 | Jun '24 | Mar '24 | Dec '23 | Sep '23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating activities | ||||||||||||
| Net income | $35.77B | $31.78B | $38.46B | $27.75B | $27.23B | $25.82B | $24.11B | $24.67B | $22.04B | $21.94B | $21.87B | $22.29B |
| Depreciation & amortization | $11.02B | $10.17B | $9.20B | $13.06B | $11.20B | $8.74B | $6.83B | $7.38B | $6.38B | $6.03B | $5.96B | $3.92B |
| Stock-based compensation | $3.12B | $3.08B | $3.22B | $2.98B | $3.07B | $2.98B | $3.09B | $2.83B | $2.70B | $2.70B | $2.83B | $2.51B |
| Change in working capital | $4.62B | $331.0M | −$9.63B | −$218.0M | $3.30B | $2.04B | −$11.55B | $856.0M | $7.18B | $2.52B | −$10.30B | $2.42B |
| Other non-cash items | $907.0M | $1.32B | −$5.49B | $1.48B | −$2.17B | −$2.54B | −$182.0M | −$1.56B | −$1.10B | −$1.27B | −$1.50B | −$554.0M |
| Cash from operating activities | $55.44B | $46.68B | $35.76B | $45.06B | $42.65B | $37.04B | $22.29B | $34.18B | $37.20B | $31.92B | $18.85B | $30.58B |
| Investing activities | ||||||||||||
| Capital expenditures | −$35.80B | −$30.88B | −$29.88B | −$19.39B | −$17.08B | −$16.75B | −$15.80B | −$14.92B | −$13.87B | −$10.95B | −$9.73B | −$9.92B |
| Investments (net) | −$8.16B | $6.33B | $8.26B | −$34.56B | −$30.57B | −$12.71B | −$14.11B | −$15.20B | −$14.85B | −$10.70B | −$71.92B | $503.0M |
| Acquisitions & other investing | −$10.87B | −$2.86B | −$1.09B | $19.39B | $17.08B | $16.75B | — | $14.92B | $13.87B | $10.95B | $9.73B | $9.92B |
| Cash from investing activities | −$54.83B | −$27.41B | −$22.70B | −$34.56B | −$30.57B | −$12.71B | — | −$15.20B | −$14.85B | −$10.70B | −$71.92B | $503.0M |
| Financing activities | ||||||||||||
| Dividends paid | −$6.76B | −$6.76B | −$6.76B | −$6.17B | −$6.17B | −$6.17B | −$6.17B | −$5.57B | −$5.57B | −$5.57B | −$5.57B | −$5.05B |
| Share repurchases & issuance (net) | −$4.58B | −$4.63B | −$7.42B | −$5.65B | −$4.55B | −$4.78B | −$4.99B | −$4.11B | −$4.21B | −$4.21B | −$4.00B | −$4.83B |
| Net borrowing (repayment) | $0 | $0 | −$3.00B | $0 | $0 | −$2.25B | $0 | −$6.71B | $14.01B | −$11.59B | −$633.0M | $24.27B |
| Shares issued | $520.0M | $541.0M | $259.0M | $689.0M | $548.0M | $546.0M | $256.0M | $706.0M | $534.0M | $522.0M | $261.0M | $685.0M |
| Other financing | −$962.0M | −$509.0M | −$699.0M | −$669.0M | −$677.0M | −$382.0M | −$343.0M | −$889.0M | −$28.32B | $2.04B | −$201.0M | −$307.0M |
| Cash from financing activities | −$11.78B | −$11.35B | −$17.62B | −$11.80B | −$10.84B | −$13.04B | −$11.24B | −$16.58B | −$23.56B | −$18.81B | −$10.15B | $14.76B |
| Summary | ||||||||||||
| Net change in cash | −$11.17B | $7.81B | −$4.55B | −$1.39B | $1.41B | $11.35B | −$3.36B | $2.52B | −$1.32B | $2.33B | −$63.15B | $45.75B |
| Cash at end of period | $20.93B | $32.10B | $24.30B | $28.85B | $30.24B | $28.83B | $17.48B | $20.84B | $18.32B | $19.63B | $17.30B | $80.45B |
| Free cash flow | $19.64B | $15.80B | $5.88B | $25.66B | $25.57B | $20.30B | $6.49B | $19.26B | $23.32B | $20.96B | $9.12B | $20.67B |
| Free cash flow margin | 21.8% | 19.1% | 7.2% | 33.0% | 33.4% | 29.0% | 9.3% | 29.4% | 36.0% | 33.9% | 14.7% | 36.6% |
| Capex / revenue | 39.8% | 37.3% | 36.8% | 25.0% | 22.3% | 23.9% | 22.7% | 22.8% | 21.4% | 17.7% | 15.7% | 17.5% |
| Operating cash flow / net income | 1.55 | 1.47 | 0.93 | 1.62 | 1.57 | 1.43 | 0.92 | 1.39 | 1.69 | 1.45 | 0.86 | 1.37 |
Negative numbers are cash paid out. Quarterly columns are labeled by the month the quarter ended. Figures in U.S. dollars as reported; data from EODHD.
MSFT cash generation
In fiscal 2026 (ended June 30, 2026), Microsoft generated $182.9 billion of cash from operations (up 34.4%) and spent $115.9 billion on capital expenditures, leaving free cash flow of $67.0 billion, 20.2% of revenue. It returned $48.7 billion to shareholders through dividends ($26.4 billion) and net share buybacks ($22.3 billion). Cash and equivalents fell by $9.3 billion over the year.
Related: MSFT income statement, MSFT balance sheet, MSFT dividend history. See the MSFT stock overview for the latest quote and news.
MSFT cash flow FAQ
What is Microsoft's free cash flow?
Microsoft's free cash flow was $67.0 billion in fiscal 2026: $182.9 billion of operating cash flow minus $115.9 billion of capital expenditures It was $71.6 billion a year earlier..
How much cash does Microsoft generate from operations?
Microsoft generated $182.9 billion of cash from operating activities in fiscal 2026, 1.37 times its net income of $133.7 billion.
How much does Microsoft spend on capital expenditures?
Microsoft spent $115.9 billion on capital expenditures in fiscal 2026, 34.9% of revenue, compared with $64.6 billion the year before.
How much stock does Microsoft buy back?
Microsoft spent $22.3 billion on net share repurchases in fiscal 2026.
How much does Microsoft pay in dividends?
Microsoft paid $26.4 billion in dividends in fiscal 2026, 39.5% of free cash flow.