v3.25.4

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables) | 6 Months Ended
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Dec. 31, 2025
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) |  | Three Months Ended December 31, |  |  |  | Six Months Ended December 31, |
|  |  | 2025 |  |  |  | 2024 |  |  |  | 2025 |  |  |  | 2024 |
Productivity and Business Processes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 34,116 |  |  | $ | 29,437 |  |  | $ | 67,136 |  |  | $ | 57,754 |
Cost of revenue |  |  | 6,110 |  |  |  | 5,569 |  |  |  | 11,831 |  |  |  | 10,863 |
Operating expenses |  |  | 7,407 |  |  |  | 6,983 |  |  |  | 14,299 |  |  |  | 13,490 |
Operating income |  | $ | 20,599 |  |  | $ | 16,885 |  |  | $ | 41,006 |  |  | $ | 33,401 |
Intelligent Cloud |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 32,907 |  |  | $ | 25,544 |  |  | $ | 63,804 |  |  | $ | 49,636 |
Cost of revenue |  |  | 13,566 |  |  |  | 9,405 |  |  |  | 25,880 |  |  |  | 18,019 |
Operating expenses |  |  | 5,468 |  |  |  | 5,288 |  |  |  | 10,660 |  |  |  | 10,263 |
Operating income |  | $ | 13,873 |  |  | $ | 10,851 |  |  | $ | 27,264 |  |  | $ | 21,354 |
More Personal Computing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 14,250 |  |  | $ | 14,651 |  |  | $ | 28,006 |  |  | $ | 27,827 |
Cost of revenue |  |  | 6,302 |  |  |  | 6,825 |  |  |  | 12,310 |  |  |  | 13,016 |
Operating expenses |  |  | 4,145 |  |  |  | 3,909 |  |  |  | 7,730 |  |  |  | 7,361 |
Operating income |  | $ | 3,803 |  |  | $ | 3,917 |  |  | $ | 7,966 |  |  | $ | 7,450 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 81,273 |  |  | $ | 69,632 |  |  | $ | 158,946 |  |  | $ | 135,217 |
Cost of revenue |  |  | 25,978 |  |  |  | 21,799 |  |  |  | 50,021 |  |  |  | 41,898 |
Operating expenses |  |  | 17,020 |  |  |  | 16,180 |  |  |  | 32,689 |  |  |  | 31,114 |
Operating income |  | $ | 38,275 |  |  | $ | 31,653 |  |  | $ | 76,236 |  |  | $ | 62,205 |
Revenue Classified by Major Geographic Areas | Revenue, classified by the major geographic areas in which our customers were located, was as follows:
(In millions) |  | Three Months Ended December 31, |  |  |  | Six Months Ended December 31, |
|  |  | 2025 |  |  |  | 2024 |  |  |  | 2025 |  |  |  | 2024 |
United States (a) |  | $ | 41,410 |  |  | $ | 35,537 |  |  | $ | 81,487 |  |  | $ | 69,450 |
Other countries |  |  | 39,863 |  |  |  | 34,095 |  |  |  | 77,459 |  |  |  | 65,767 |
Total |  | $ | 81,273 |  |  | $ | 69,632 |  |  | $ | 158,946 |  |  | $ | 135,217 |
(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) |  |  | Three Months Ended December 31, |  |  | Six Months Ended December 31, |
|  |  | 2025 |  |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Server products and cloud services |  | $ | 30,865 |  |  | $ | 23,641 |  |  | $ | 59,737 |  |  | $ | 45,796 |
Microsoft 365 Commercial products and cloud services |  |  | 24,524 |  |  |  | 21,117 |  |  |  | 48,490 |  |  |  | 41,566 |
Gaming |  |  | 5,958 |  |  |  | 6,581 |  |  |  | 11,466 |  |  |  | 12,202 |
LinkedIn |  |  | 5,082 |  |  |  | 4,587 |  |  |  | 9,796 |  |  |  | 8,879 |
Windows and Devices |  |  | 4,479 |  |  |  | 4,512 |  |  |  | 9,030 |  |  |  | 8,841 |
Search and news advertising |  |  | 3,812 |  |  |  | 3,558 |  |  |  | 7,509 |  |  |  | 6,783 |
Microsoft 365 Consumer products and cloud services |  |  | 2,305 |  |  |  | 1,821 |  |  |  | 4,509 |  |  |  | 3,548 |
Dynamics products and cloud services |  |  | 2,204 |  |  |  | 1,913 |  |  |  | 4,340 |  |  |  | 3,762 |
Enterprise and partner services |  |  | 2,038 |  |  |  | 1,892 |  |  |  | 4,060 |  |  |  | 3,820 |
Other |  |  | 6 |  |  |  | 10 |  |  |  | 9 |  |  |  | 20 |
Total |  | $ | 81,273 |  |  | $ | 69,632 |  |  | $ | 158,946 |  |  | $ | 135,217 |
Our Microsoft Cloud revenue, which includes Microsoft 365 Commercial cloud, Azure and other cloud services, the commercial portion of LinkedIn, and Dynamics 365, was $51.5 billion and $100.6 billion for the three and six months ended December 31, 2025, respectively, and $40.9 billion and $79.8 billion for the three and six months ended December 31, 2024, respectively. These amounts are included in Server products and cloud services, Microsoft 365 Commercial products and cloud services, LinkedIn, and Dynamics products and cloud services in the table above.

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