v3.25.4

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

6 Months Ended

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.

X

- Definition

Tabular disclosure of revenue from external customers by geographic areas attributed to the entity's country of domicile and to foreign countries from which the entity derives revenue.

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Tabular disclosure of entity-wide revenues from external customers for each product or service or each group of similar products or services if the information is not provided as part of the reportable operating segment information.

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Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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