v3.26.3
SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)
12 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Revenue, Cost of Revenue, Operating Expenses, and Operating Income

Segment revenue, cost of revenue, operating expenses, and operating income were as follows during the periods presented:

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30,

 

 

2026

 

 

 

2025

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

Agents and Infra

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

268,127

 

 

$

218,783

 

 

$

186,910

 

Cost of revenue

 

 

81,417

 

 

 

61,292

 

 

 

48,104

 

Operating expenses

 

 

50,345

 

 

 

46,677

 

 

 

44,344

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

136,365

 

 

$

110,814

 

 

$

94,462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Devices and Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

63,712

 

$

62,941

 

$

58,212

 

Cost of revenue

 

24,957

26,539

 

26,010

Operating expenses

 

19,883

 

 

18,688

 

 

17,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

$

18,872

 

$

17,714

 

$

14,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

331,839

 

 

$

281,724

 

 

$

245,122

 

Cost of revenue

 

 

106,374

 

 

 

87,831

 

 

 

74,114

 

Operating expenses

 

 

70,228

 

 

 

65,365

 

 

 

61,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

$

155,237

 

 

$

128,528

 

 

$

109,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue Classified by Major Geographic Areas Revenue, classified by the major geographic areas in which our customers were located, was as follows:

 

(In millions)

 

 

 

 

 

Year Ended June 30,

2026

2025

2024

 

 

 

United States (a)

$

170,794

$

144,546

$

124,704

Other countries

161,045

137,178

120,418

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

331,839

$

281,724

$

245,122

 

 

 

 

(a)
Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impracticability of determining the geographic source of the revenue.
Revenue Classified by Significant Product and Service Offerings

Revenue, classified by significant product and service offerings, was as follows:

 

(In millions)

 

 

 

 

 

Year Ended June 30,

2026

2025

2024

 

 

 

Azure

 

$

101,938

$

72,610

$

54,070

Microsoft 365 cloud

100,299

 

84,605

73,457

Productivity and server licensing

37,285

 

35,391

 

34,976

Search and advertising

 

 

24,835

 

 

 

22,171

 

 

 

19,679

 

XBOX

 

21,790

 

 

23,455

 

21,503

Industry solutions

20,345

 

18,417

 

16,813

Windows OEM and devices

 

 

17,087

 

 

 

17,315

 

 

 

17,030

 

Frontier and support services

 

 

8,260

 

 

 

7,760

 

 

 

7,594

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

331,839

$

281,724

$

245,122

 

 

 

 

 

 

 

 

 

 

 

 

Our Microsoft Cloud revenue, which includes Azure, Microsoft 365 commercial cloud, and Industry solutions cloud, was $214.4 billion, $168.9 billion, and $137.7 billion in fiscal years 2026, 2025, and 2024, respectively.

Long-Lived Assets, Excluding Financial Instruments and Tax Assets, Classified by Location of Controlling Statutory Company

Long-lived assets, excluding financial instruments and tax assets, classified by the location of the controlling statutory company and with countries over 10% of the total shown separately, were as follows:

 

(In millions)

 

 

 

 

 

June 30,

2026

2025

2024

 

 

 

United States

$

300,354

$

230,069

$

186,106

Other countries

175,159

141,833

115,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

475,513

$

371,902

$

301,369