Document and Entity Information - $ / shares

Entity Information [Line Items]

Document Type
Amendment Flag
Document Period End Date
Document Fiscal Year Focus
Document Fiscal Period Focus
Entity Registrant Name
Entity Central Index Key
Current Fiscal Year End Date
Entity Current Reporting Status
Entity Interactive Data Current
Entity Filer Category
Entity Small Business
Entity Emerging Growth Company
Entity Shell Company
Entity File Number
Entity Incorporation, State or Country Code
Entity Tax Identification Number
Entity Address, Address Line One
Entity Address, City or Town
Entity Address, State or Province
Entity Address, Postal Zip Code
City Area Code
Local Phone Number
Document Quarterly Report
Document Transition Report
Entity Common Stock, Shares Outstanding
Entity Common Stock, Par Value Per Share
Common Stock
Entity Information [Line Items]
Trading Symbol
Title of 12(b) Security
Security Exchange Name
3.125% Notes Due 2028
Entity Information [Line Items]
Trading Symbol
Title of 12(b) Security
Security Exchange Name
2.625% Notes Due 2033
Entity Information [Line Items]
Trading Symbol
Title of 12(b) Security
Security Exchange Name
 6 Months Ended
Dec. 31, 2024 Jan. 23, 2025

10-Q
false
Dec. 31, 2024
2025
Q2
MICROSOFT CORPORATION
0000789019
--06-30
Yes
Yes
Large Accelerated Filer
false
false
false
001-37845
WA
91-1144442
ONE MICROSOFT WAY
REDMOND
WA
98052-6399
425
882-8080
true
false
7,433,982,235
$ 0.00000625

MSFT
Common stock, $0.00000625 par value per share
NASDAQ

MSFT
3.125% Notes due 2028
NASDAQ
MSFT
2.625% Notes due 2033
NASDAQ
 3 Months Ended
INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions
Dec. 31, 2024
Revenue $ 69,632
Cost of revenue 21,799
Gross margin 47,833
Research and development 7,917
Sales and marketing 6,440
General and administrative 1,823
Operating income 31,653
Other expense, net (2,288)
Income before income taxes 29,365
Provision for income taxes 5,257
18%
Net income $ 24,108
Earnings per share:
Basic $ 3.24
Diluted $ 3.23
Weighted average shares outstanding:
Basic 7,435
Diluted 7,468
Product
Revenue $ 16,219
Cost of revenue 3,856
Service and Other 24%
Revenue 53,413
Cost of revenue $ 17,943
3 Months Ended 6 Months Ended
Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023
$ 62,020 $ 135,217 $ 118,537
19,623 41,898 35,925
42,397 93,319 82,612
7,142 15,461 13,801
6,246 12,157 11,433
1,977 3,496 3,451
27,032 62,205 53,927
(506) (2,571) (117)
26,526 59,634 53,810
4,656 10,859 9,649
18% 18% 18%
$ 21,870 $ 48,775 $ 44,161

$ 2.94 $ 6.56 $ 5.94

$ 2.93 $ 6.53 $ 5.92

7,432 7,434 7,431

7,468 7,469 7,465

$ 18,941 $ 31,491 $ 34,476

5,964 7,150 9,495
31% 23% 28%
43,079 103,726 84,061
$ 13,659 $ 34,748 $ 26,430
 3 Months Ended
COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Millions
Dec. 31, 2024 Dec. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income $ 24,108 $ 21,870
Other comprehensive income (loss), net of tax:
Net change related to derivatives 34 (3)
Net change related to investments (434) 1,331
Translation adjustments and other (1,034) 660
Other comprehensive income (loss) (1,434) 1,988
Comprehensive income $ 22,674 $ 23,858

$ 24,142 $ 21,867
23674 23201
23074 22530
22674 23858
 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023

$ 48,775 $ 44,161

24 18
680 1,071
(730) 305
(26) 1,394
$ 48,749 $ 45,555

$ 48,799 $ 44,179
49455 45232
48045 44466
48749 45555
 BALANCE SHEETS - USD ($) $ in Millions
Current assets:
Cash and cash equivalents
Short-term investments
Total cash, cash equivalents, and short-term investments
Accounts receivable, net of allowance for doubtful accounts of $662 and $830
Inventories
Other current assets
Total current assets
Property and equipment, net of accumulated depreciation of $82,820 and $76,421
Operating lease right-of-use assets
Equity and other investments
Goodwill
Intangible assets, net
Other long-term assets
Total assets
Current liabilities:
Accounts payable
Short-term debt
Current portion of long-term debt
Accrued compensation
Short-term income taxes
Short-term unearned revenue
Other current liabilities
Total current liabilities
Long-term debt
Long-term income taxes
Long-term unearned revenue
Deferred income taxes
Operating lease liabilities
Other long-term liabilities
Total liabilities
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital - shares authorized 24,000; outstanding 7,435 and 7,434
Retained earnings
Accumulated other comprehensive loss
Total stockholders’ equity
Total liabilities and stockholders’ equity
Dec. 31, 2024 Jun. 30, 2024

$ 17,482 $ 18,315
54,073 57,228
71,555 75,543
48,188 56,924
909 1,246
26,428 26,021
147,080 159,734
166,902 135,591
22,816 18,961
15,581 14,600
119,191 119,220
25,385 27,597
36,943 36,460
533,898 512,163

22,608 21,996
0 6,693
5,248 2,249
9,176 12,564
6,056 5,017
45,508 57,582
20,286 19,185
108,882 125,286
39,722 42,688
24,389 27,931
2,537 2,602
2,513 2,618
17,254 15,497
35,906 27,064
231,203 243,686

104,829 100,923
203,482 173,144
(5,616) (5,590)
302,695 268,477
$ 533,898 $ 512,163
 BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions Dec. 31, 2024 Jun. 30, 2024
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts $ 662 $ 830
Property and equipment, accumulated depreciation $ 82,820 $ 76,421
Common stock, shares authorized 24,000,000,000 24,000,000,000
Common stock, outstanding 7,435,000,000 7,434,000,000

1,000,000
9801008275
 CASH FLOWS STATEMENTS - USD ($) $ in Millions
Operations
Net income
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other
Stock-based compensation expense
Net recognized losses on investments and derivatives
Deferred income taxes
Changes in operating assets and liabilities:
Accounts receivable
Inventories
Other current assets
Other long-term assets
Accounts payable
Unearned revenue
Income taxes
Other current liabilities
Other long-term liabilities
Net cash from operations
Financing
Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net
Proceeds from issuance of debt
Repayments of debt
Common stock issued
Common stock repurchased
Common stock cash dividends paid
Other, net
Net cash from (used in) financing
Investing
Additions to property and equipment
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets
Purchases of investments
Maturities of investments
Sales of investments
Other, net
Net cash used in investing
Effect of foreign exchange rates on cash and cash equivalents
Net change in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ 24,108 $ 21,870 $ 48,775 $ 44,161

6,827 5,959 14,210 9,880

3,089 2,828 5,921 5,335
976 198 851 212
(1,158) (1,702) (2,591) (2,270)

(5,978) (2,951) 8,059 8,083

711 1,474 338 969
(353) 725 (435) (71)
(1,089) (1,427) (2,850) (3,440)
958 (2,521) 42 (1,307)
(6,338) (5,538) (11,891) (9,664)
(3,395) (1,554) (2,379) (129)
3,217 1,518 (2,262) (2,588)
716 (26) 683 265
22,291 18,853 56,471 49,436

0 (8,490) (5,746) 10,202

0 10,773 0 17,846
0 (2,916) (966) (4,416)
256 261 962 946
(4,986) (4,000) (9,093) (8,831)
(6,170) (5,574) (11,744) (10,625)
(343) (201) (1,232) (508)
(11,243) (10,147) (27,819) 4,614

(15,804) (9,735) (30,727) (19,652)

(1,405) (65,029) (3,254) (66,215)
(2,050) (4,258) (3,670) (12,718)
2,604 4,150 4,740 19,868
2,559 1,600 4,527 6,930
(16) 1,347 (929) 365
(14,112) (71,925) (29,313) (71,422)
(294) 72 (172) (27)
(3,358) (63,147) (833) (17,399)
20,840 80,452 18,315 34,704
$ 17,482 $ 17,305 $ 17,482 $ 17,305
 STOCKHOLDERS' EQUITY STATEMENTS - USD ($) $ in Millions Total
Balance, beginning of period at Jun. 30, 2023
Common stock cash dividends $ (5,574)
Balance, end of period at Sep. 30, 2023
Cash dividends declared per common share $ 0.75
Balance, beginning of period at Jun. 30, 2023
Common stock issued
Net income $ 44,161
Other comprehensive income (loss) 1,394
Common stock cash dividends (11,147)
Common stock repurchased
Stock-based compensation expense
Other, net
Balance, end of period at Dec. 31, 2023 $ 238,268
Cash dividends declared per common share $ 1.5
Balance, beginning of period at Sep. 30, 2023
Common stock issued
Net income $ 21,870
Other comprehensive income (loss) 1,988
Common stock cash dividends (5,573)
Common stock repurchased
Stock-based compensation expense
Other, net
Balance, end of period at Dec. 31, 2023 $ 238,268
Cash dividends declared per common share $ 0.75
Balance, beginning of period at Jun. 30, 2024 $ 268,477
Common stock cash dividends $ (6,170)
Balance, end of period at Sep. 30, 2024
Cash dividends declared per common share $ 0.83
Balance, beginning of period at Jun. 30, 2024 $ 268,477
Common stock issued
Net income 48,775
Other comprehensive income (loss) (26)
Common stock cash dividends (12,341)
Common stock repurchased
Stock-based compensation expense
Other, net
Balance, end of period at Dec. 31, 2024 $ 302,695
Cash dividends declared per common share $ 1.66
Balance, beginning of period at Sep. 30, 2024
Common stock issued
Net income $ 24,108
Other comprehensive income (loss) (1,434)
Common stock cash dividends (6,171)
Common stock repurchased
Stock-based compensation expense
Other, net
Balance, end of period at Dec. 31, 2024 $ 302,695
Cash dividends declared per common share $ 0.83
Common stock and paid-in capital Retained earnings Accumulated other comprehensive loss
$ 93,718 $ 118,848 $ (6,343)

95,508 132,143 (6,937)

93,718 118,848 (6,343)

946
44,161
1,394
(11,145)
(2,701) (6,127)
5,335
182
97,480 145,737 (4,949)

95,508 132,143 (6,937)

261
21,870
1,988
(5,574)
(1,300) (2,702)
2,828
183
97,480 145,737 (4,949)

100,923 173,144 (5,590)

102,976 188,929 (4,182)

100,923 173,144 (5,590)

962
48,775
26
(12,340)
(2,976) (6,097)
5,921
(1)
104,829 203,482 (5,616)

102,976 188,929 (4,182)

256
 24,108
(1,434)
(6,169)
(1,491) (3,386)
3,089
(1)
$ 104,829 $ 203,482 $ (5,616)
2.5
0
 3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions
Dec. 31, 2024 Dec. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss) $ 24,108 $ 21,870
 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023

$ 48,775 $ 44,161
 3 Months Ended
Insider Trading Arrangements
Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Modified false
Rule 10b5-1 Arrangement Modified false
 ACCOUNTING POLICIES

Accounting Policies [Abstract]

ACCOUNTING POLICIES
 6 Months Ended
Dec. 31, 2024

NOTE 1 — ACCOUNTING POLICIES Accounting Principles Our unaudited interim consolidated

financial statements and accompanying notes are prepared in accordance with accounting
principles generally accepted in the United States of America (“GAAP”). In the opinion of
management, the unaudited interim consolidated financial statements reflect all adjustments of a
normal recurring nature that are necessary for a fair presentation of the results for the interim
periods presented. Interim results are not necessarily indicative of results for a full year. The
information included in this Form 10-Q should be read in conjunction with information included in
the Microsoft Corporation fiscal year 2024 Form 10-K and Form 8-K filed with the U.S. Securities
and Exchange Commission on July 30, 2024 and December 3, 2024, respectively. Principles of
Consolidation The consolidated financial statements include the accounts of Microsoft
Corporation and its subsidiaries. Intercompany transactions and balances have been eliminated.
Recast of Certain Prior Period Information In August 2024, we announced changes to the
composition of our segments. These changes align our segments with how we currently manage
our business, most notably bringing the commercial components of Microsoft 365 together in the
Productivity and Business Processes segment. Beginning in fiscal year 2025, the information that
our chief operating decision maker is regularly provided and reviews for purposes of allocating
resources and assessing performance reflects these segment changes. Prior period segment
information has been recast to conform to the way we internally manage and monitor our
business during fiscal year 2025. These changes impacted Note 8 – Goodwill, Note 12 – Unearned
Revenue, and Note 17 – Segment Information and Geographic Data. The recast of prior period
information had no impact on our consolidated balance sheets, consolidated income statements,
or consolidated cash flows statements. Estimates and Assumptions Preparing financial statements
requires management to make estimates and assumptions that affect the reported amounts of
assets, liabilities, revenue, and expenses. Examples of estimates and assumptions include: for
revenue recognition, determining the nature and timing of satisfaction of performance
obligations, and determining the standalone selling price of performance obligations, variable
consideration, and other obligations such as product returns and refunds; loss contingencies;
product warranties; the fair value of and/or potential impairment of goodwill and intangible assets
for our reporting units; product life cycles; useful lives of our tangible and intangible assets;
allowances for doubtful accounts; the market value of, and demand for, our inventory; stock-
based compensation forfeiture rates; when technological feasibility is achieved for our products;
the potential outcome of uncertain tax positions that have been recognized in our consolidated
financial statements or tax returns; and determining the timing and amount of impairments for
investments. Actual results and outcomes may differ from management’s estimates and
assumptions due to risks and uncertainties. Financial Instruments Investments We consider all
highly liquid interest-earning investments with a maturity of three months or less at the date of
purchase to be cash equivalents. The fair values of these investments approximate their carrying
 EARNINGS PER SHARE

Earnings Per Share [Abstract]

EARNINGS PER SHARE
 6 Months Ended
Dec. 31, 2024

NOTE 2 — EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed based on the
weighted average number of shares of common stock outstanding during the period. Diluted EPS
is computed based on the weighted average number of shares of common stock plus the effect of
dilutive potential common shares outstanding during the period using the treasury stock method.
Dilutive potential common shares include outstanding stock options and stock awards. The
components of basic and diluted EPS were as follows:
(In millions, except per share amounts) Three Months Ended December 31, Six Months Ended
December 31,
2024 2023 2024 2023
Net income available for common shareholders (A) $ 24,108 $ 21,870 $ 48,775 $ 44,161
Weighted average outstanding shares of common stock (B) 7,435 7,432 7,434 7,431
Dilutive effect of stock-based awards 33 36 35 34
Common stock and common stock equivalents (C) 7,468 7,468 7,469 7,465
Earnings Per Share
Basic (A/B) $ 3.24 $ 2.94 $ 6.56 $ 5.94
Diluted (A/C) $ 3.23 $ 2.93 $ 6.53 $ 5.92
Anti-dilutive stock-based awards excluded from the calculations of diluted EPS were immaterial
during the periods presented.
 OTHER INCOME (EXPENSE), NET

Other Income and Expenses [Abstract]

OTHER INCOME (EXPENSE), NET
 6 Months Ended
Dec. 31, 2024

NOTE 3 — OTHER INCOME (EXPENSE), NET The components of other income (expense), net were
as follows:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Interest and dividends income $ 600 $ 734 $ 1,281 $ 1,900
Interest expense ( 594 ) ( 909 ) ( 1,176 ) ( 1,434 )
Net recognized gains (losses) on investments ( 860 ) 69 ( 397 ) ( 38 )
Net losses on derivatives ( 116 ) ( 267 ) ( 454 ) ( 174 )
Net gains (losses) on foreign currency remeasurements ( 153 ) 36 23 ( 65 )
Other, net ( 1,165 ) ( 169 ) ( 1,848 ) ( 306 )
Total $ ( 2,288 ) $ ( 506 ) $ ( 2,571 ) $ ( 117 )
Other, net primarily reflects net recognized losses on equity method investments, including
OpenAI. Net Recognized Gains (Losses) on Investments Net recognized gains (losses) on debt
investments were as follows:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Realized gains from sales of available-for-sale securities $ 9 $ 4 $ 17 $ 6
Realized losses from sales of available-for-sale securities ( 19 ) ( 29 ) ( 34 ) ( 54 )
Impairments and allowance for credit losses ( 14 ) 18 ( 2 ) 12
Total $ ( 24 ) $ ( 7 ) $ ( 19 ) $ ( 36 )
Net recognized gains (losses) on equity investments were as follows:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Net realized gains (losses) on investments sold $ ( 8 ) $ ( 31 ) $ 57 $ 14
Net unrealized gains on investments still held 25 286 437 163
Impairments of investments ( 853 ) ( 179 ) ( 872 ) ( 179 )
Total $ ( 836 ) $ 76 $ ( 378 ) $ ( 2 )
 INVESTMENTS

Investments, Debt and Equity Securities [Abstract]

INVESTMENTS
 6 Months Ended
Dec. 31, 2024

NOTE 4 — INVESTMENTS Investment Components The components of investments were as

follows:
(In millions) Fair Value Level Adjusted Cost Basis Unrealized Gains Unrealized Losses Recorded
Basis Cash and Cash Equivalents Short-term Investments Equity and Other Investments
December 31, 2024
Changes in Fair Value Recorded in Other Comprehensive Income
Commercial paper Level 2 $ 3,515 $ 0 $ 0 $ 3,515 $ 3,515 $ 0 $ 0
Certificates of deposit Level 2 3,349 0 0 3,349 3,302 47 0
U.S. government securities Level 1 46,013 1 ( 2,233 ) 43,781 18 43,763 0
U.S. agency securities Level 2 11 0 0 11 0 11 0
Foreign government bonds Level 2 311 7 ( 17 ) 301 0 301 0
Mortgage- and asset-backed securities Level 2 987 5 ( 33 ) 959 0 959 0
Corporate notes and bonds Level 2 8,693 38 ( 198 ) 8,533 0 8,533 0
Corporate notes and bonds Level 3 2,376 27 ( 3 ) 2,400 0 123 2,277
Municipal securities Level 2 254 1 ( 11 ) 244 0 244 0
Municipal securities Level 3 104 0 ( 16 ) 88 0 88 0
Total debt investments $ 65,613 $ 79 $ ( 2,511 ) $ 63,181 $ 6,835 $ 54,069 $ 2,277
Changes in Fair Value Recorded in Net Income
Equity investments Level 1 $ 4,425 $ 1,000 $ 0 $ 3,425
Equity investments Other 9,879 0 0 9,879
Total equity investments $ 14,304 $ 1,000 $ 0 $ 13,304
Cash $ 9,647 $ 9,647 $ 0 $ 0
Derivatives, net (a) 4 0 4 0
Total $ 87,136 $ 17,482 $ 54,073 $ 15,581
(In millions) Fair Value Level Adjusted Cost Basis Unrealized Gains Unrealized Losses Recorded
Basis Cash and Cash Equivalents Short-term Investments Equity and Other Investments
June 30, 2024
Changes in Fair Value Recorded in Other Comprehensive Income
Commercial paper Level 2 $ 4,666 $ 0 $ 0 $ 4,666 $ 4,666 $ 0 $ 0
Certificates of deposit Level 2 1,547 0 0 1,547 1,503 44 0
U.S. government securities Level 1 49,603 4 ( 2,948 ) 46,659 14 46,645 0
U.S. agency securities Level 2 17 0 0 17 0 17 0
Foreign government bonds Level 2 319 3 ( 16 ) 306 0 306 0
Mortgage- and asset-backed securities Level 2 944 3 ( 35 ) 912 0 912 0
Corporate notes and bonds Level 2 9,106 28 ( 318 ) 8,816 0 8,816 0
Corporate notes and bonds Level 3 1,641 0 ( 1 ) 1,640 0 140 1,500
Municipal securities Level 2 262 0 ( 13 ) 249 0 249 0
 DERIVATIVES

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES
 6 Months Ended
Dec. 31, 2024

NOTE 5 — DERIVATIVES We use derivative instruments to manage risks related to foreign

currencies, interest rates, equity prices, and credit; to enhance investment returns; and to
facilitate portfolio diversification. Our objectives for holding derivatives include reducing,
eliminating, and efficiently managing the economic impact of these exposures as effectively as
possible. Our derivative programs include strategies that both qualify and do not qualify for hedge
accounting treatment. Foreign Currencies Certain forecasted transactions, assets, and liabilities
are exposed to foreign currency risk. We monitor our foreign currency exposures daily to
maximize the economic effectiveness of our foreign currency hedge positions. Foreign currency
risks related to certain Euro-denominated debt are hedged using foreign exchange forward
contracts that are designated as cash flow hedging instruments. Certain options and forwards not
designated as hedging instruments are also used to manage the variability in foreign exchange
rates on certain balance sheet amounts and to manage other foreign currency exposures. Interest
Rate Interest rate risks related to certain fixed-rate debt are hedged using interest rate swaps that
are designated as fair value hedging instruments to effectively convert the fixed interest rates to
floating interest rates. Securities held in our fixed-income portfolio are subject to different interest
rate risks based on their maturities. We manage the average maturity of our fixed-income
portfolio to achieve economic returns that correlate to certain broad-based fixed-income indices
using option, futures, and swap contracts. These contracts are not designated as hedging
instruments and are included in “Other contracts” in the tables below. Equity Securities held in
our equity investments portfolio are subject to market price risk. At times, we may hold options,
futures, and swap contracts. These contracts are not designated as hedging instruments. Credit
Our fixed-income portfolio is diversified and consists primarily of investment-grade securities. We
use credit default swap contracts to manage credit exposures relative to broad-based indices and
to facilitate portfolio diversification. These contracts are not designated as hedging instruments
and are included in “Other contracts” in the tables below. Credit-Risk-Related Contingent Features
Certain counterparty agreements for derivative instruments contain provisions that require our
issued and outstanding long-term unsecured debt to maintain an investment grade credit rating
and require us to maintain minimum liquidity of $ 1.0 billion. To the extent we fail to meet these
requirements, we will be required to post collateral, similar to the standard convention related to
over-the-counter derivatives. As of December 31 , 2024, our long-term unsecured debt rating was
AAA , and cash investments were in excess of $ 1.0 billion. As a result, no collateral was required
to be posted. The following table presents the notional amounts of our outstanding derivative
instruments measured in U.S. dollar equivalents:
(In millions) December 31, 2024 June 30, 2024
Designated as Hedging Instruments
Foreign exchange contracts purchased $ 1,492 $ 1,492
Interest rate contracts purchased 1,126 1,100
 INVENTORIES

Inventory Disclosure [Abstract]

INVENTORIES
 6 Months Ended
Dec. 31, 2024

NOTE 6 — INVENTORIES The components of inventories were as follows:

(In millions)
December 31, 2024 June 30, 2024
Raw materials $ 345 $ 394
Work in process 7 7
Finished goods 557 845
Total $ 909 $ 1,246
 BUSINESS COMBINATIONS

Business Combinations [Abstract]

BUSINESS COMBINATIONS
 6 Months Ended
Dec. 31, 2024

NOTE 7 — BUSINESS COMBINATIONS Activision Blizzard, Inc. On October 13, 2023 , we completed
our acquisition of Activision Blizzard, Inc. (“Activision Blizzard”) for a total purchase price of $ 75.4
billion, consisting primarily of cash. Activision Blizzard is a leader in game development and an
interactive entertainment content publisher. The acquisition will accelerate the growth in our
gaming business across mobile, PC, console, and cloud gaming. The financial results of Activision
Blizzard have been included in our consolidated financial statements since the date of the
acquisition. Activision Blizzard is reported as part of our More Personal Computing segment. The
allocation of the purchase price to the assets acquired and liabilities assumed was completed as of
September 30, 2024. The major classes of assets and liabilities to which we have allocated the
purchase price were as follows:
(In millions)
Cash and cash equivalents $ 12,976
Goodwill 51,001
Intangible assets 21,969
Other assets 2,503
Long-term debt ( 2,799 )
Long-term income taxes ( 1,946 )
Deferred income taxes ( 4,676 )
Other liabilities ( 3,620 )
Total purchase price $ 75,408
Goodwill was assigned to our More Personal Computing segment. The goodwill was primarily
attributed to increased synergies that are expected to be achieved from the integration of
Activision Blizzard. Substantially all of the goodwill is expected to be non-deductible for income
tax purposes. Following are the details of the purchase price allocated to the intangible assets
acquired:
(In millions, except average life) Amount Weighted Average Life
Marketing-related $ 11,619 24 years
Technology-based 9,689 4 years
Customer-related 661 4 years
Fair value of intangible assets acquired $ 21,969 15 years
Following are the supplemental consolidated financial results of Microsoft Corporation on an
unaudited pro forma basis, as if the acquisition had been consummated on July 1, 2022:
(In millions, except per share amounts) Three Months Ended December 31, Six Months Ended
December 31,
2023 2023
Revenue $ 62,297 $ 120,857
Net income 22,025 44,334
 GOODWILL

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL
 6 Months Ended
Dec. 31, 2024

NOTE 8 — GOODWILL Changes in the carrying amount of goodwill were as follows:

(In millions) June 30, 2024 Acquisitions Other December 31, 2024
Productivity and Business Processes $ 31,361 $ 0 $ ( 29 ) $ 31,332
Intelligent Cloud 25,648 0 ( 1 ) 25,647
More Personal Computing 62,211 0 1 62,212
Total $ 119,220 $ 0 $ ( 29 ) $ 119,191
We have recast certain prior period amounts to conform to the way we internally manage and
monitor our business. Refer to Note 1 – Accounting Policies for further information. The
measurement periods for the valuation of assets acquired and liabilities assumed end as soon as
information on the facts and circumstances that existed as of the acquisition dates becomes
available, but do not exceed 12 months. Adjustments in purchase price allocations may require a
change in the amounts allocated to goodwill during the periods in which the adjustments are
determined. Any change in the goodwill amounts resulting from foreign currency translations and
purchase accounting adjustments are presented as “Other” in the table above. Also included in
“Other” are business dispositions and transfers between segments due to reorganizations, as
applicable. As discussed in Note 1 – Accounting Policies, during the first quarter of fiscal year 2025
we made changes to our segments. These segment changes also resulted in changes to our
reporting units. We reallocated goodwill across impacted reporting units using a relative fair value
approach. In addition, we completed an assessment of any potential goodwill impairment for all
reporting units immediately prior to the reallocation and determined that no impairment existed.
 INTANGIBLE ASSETS

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS
 6 Months Ended
Dec. 31, 2024

NOTE 9 — INTANGIBLE ASSETS The components of intangible assets, all of which are finite-lived,
were as follows:
(In millions) Gross Accumulated Net Gross Accumulated Net Carrying Amount
December 31, 2024 June 30, 2024
Marketing-related $ 16,489 $ ( 3,499 ) $ 12,990 $ 16,500 $ ( 3,101 ) $ 13,399
Technology-based 22,481 ( 12,785 ) 9,696 21,913 ( 10,741 ) 11,172
Customer-related 6,030 ( 3,444 ) 2,586 6,038 ( 3,051 ) 2,987
Contract-based 135 ( 22 ) 113 58 ( 19 ) 39
Total $ 45,135 $ ( 19,750 ) $ 25,385 $ 44,509 $ ( 16,912 ) $ 27,597
Intangible assets amortization expense was $ 1.5 billion and $ 3.0 billion for the three and six
months ended December 31, 2024, respectively, and $ 1.3 billion and $ 2.0 billion for the three
and six months ended December 31, 2023, respectively. The following table outlines the
estimated future amortization expense related to intangible assets held as of December 31, 2024:
(In millions)
Year Ending June 30,
2025 (excluding the six months ended December 31, 2024) $ 3,075
2026 4,576
2027 2,850
2028 1,986
2029 1,804
Thereafter 11,094
Total $ 25,385
 DEBT

Debt Disclosure [Abstract]

DEBT
 6 Months Ended
Dec. 31, 2024

NOTE 10 — DEBT Short-term Debt As of December 31, 2024, we had no commercial paper issued
or outstanding. As of June 30, 2024, we had $ 6.7 billion of commercial paper issued and
outstanding, with a weighted average interest rate of 5.4 % and maturities ranging from 28 days
to 152 days. The estimated fair value of this commercial paper approximates its carrying value.
Long-term Debt The components of long-term debt were as follows:
(In millions, issuance by calendar year) Maturities (calendar year) Stated Interest Rate Effective
Interest Rate December 31, 2024 June 30, 2024
2009 issuance of $ 3.8 billion 2039 5.20 % 5.24 % $ 520 $ 520
2010 issuance of $ 4.8 billion 2040 4.50 % 4.57 % 486 486
2011 issuance of $ 2.3 billion 2041 5.30 % 5.36 % 718 718
2012 issuance of $ 2.3 billion 2042 3.50 % 3.57 % 454 454
2013 issuance of $ 5.2 billion 2043 3.75 % – 4.88 % 3.83 % – 4.92 % 314 314
2013 issuance of € 4.1 billion 2028 – 2033 2.63 % – 3.13 % 2.69 % – 3.22 % 2,382 2,465
2015 issuance of $ 23.8 billion 2025 – 2055 2.70 % – 4.75 % 2.77 % – 4.78 % 9,805 9,805
2016 issuance of $ 19.8 billion 2026 – 2056 2.40 % – 3.95 % 2.46 % – 4.03 % 7,930 7,930
2017 issuance of $ 17.1 billion 2026 – 2057 3.30 % – 4.50 % 3.38 % – 5.49 % 6,833 6,833
2020 issuance of $ 10.1 billion 2030 – 2060 1.35 % – 2.68 % 2.53 % – 5.43 % 10,111 10,111
2021 issuance of $ 8.2 billion 2052 – 2062 2.92 % – 3.04 % 2.92 % – 3.04 % 8,185 8,185
2023 issuance of $ 0.1 billion 2026 – 2050 1.35 % – 4.50 % 5.16 % – 5.49 % 56 56
2024 issuance of $ 3.3 billion 2026 – 2050 1.35 % – 4.50 % 5.16 % – 5.49 % 3,344 3,344
Total face value 51,138 51,221
Unamortized discount and issuance costs ( 1,191 ) ( 1,227 )
Hedge fair value adjustments (a) ( 57 ) ( 81 )
Premium on debt exchange ( 4,920 ) ( 4,976 )
Total debt 44,970 44,937
Current portion of long-term debt ( 5,248 ) ( 2,249 )
Long-term debt $ 39,722 $ 42,688
(a) Refer to Note 5 – Derivatives for further information on the interest rate swaps related to
fixed-rate debt. As of December 31, 2024 and June 30, 2024, the estimated fair value of long-term
debt, including the current portion, was $ 42.0 billion and $ 42.3 billion, respectively. The
estimated fair values are based on Level 2 inputs. Debt in the table above is comprised of senior
unsecured obligations and ranks equally with our other outstanding obligations. Interest is paid
semi-annually, except for the Euro-denominated debt, which is paid annually. The following table
outlines maturities of our long-term debt, including the current portion, as of December 31, 2024:
(In millions)
Year Ending June 30,
2025 (excluding the six months ended December 31, 2024) $ 2,250
 INCOME TAXES

Income Tax Disclosure [Abstract]

INCOME TAXES
 6 Months Ended
Dec. 31, 2024

NOTE 11 — INCOME TAXES Effective Tax Rate Our effective tax rate was 18 % for both the three
months ended December 31, 2024 and 2023, and 18 % for both the six months ended December
31, 2024 and 2023. Our effective tax rate for the three and six months ended December 31, 2024
was primarily impacted by tax benefits from tax law changes in the prior fiscal year, including the
delay of the effective date of final foreign tax credit regulations, and changes in the mix of our
earnings and tax expenses between the U.S. and foreign countries. Our effective tax rate was
lower than the U.S. federal statutory rate for the three and six months ended December 31, 2024,
primarily due to earnings taxed at lower rates in foreign jurisdictions resulting from producing and
distributing our products and services through our foreign regional operations center in Ireland.
Uncertain Tax Positions As of December 31, 2024 and June 30, 2024, unrecognized tax benefits
and other income tax liabilities were $ 25.8 billion and $ 24.9 billion, respectively, and are included
in long-term income taxes in our consolidated balance sheets. We remain under audit by the IRS
for tax years 2014 to 2017 . With respect to the audit for tax years 2004 to 2013 , on September
26, 2023, we received Notices of Proposed Adjustment (“NOPAs”) from the IRS. The primary issues
in the NOPAs relate to intercompany transfer pricing. In the NOPAs, the IRS is seeking an
additional tax payment of $ 28.9 billion plus penalties and interest. As of December 31, 2024, we
believe our allowances for income tax contingencies are adequate. We disagree with the
proposed adjustments and will vigorously contest the NOPAs through the IRS’s administrative
appeals office and, if necessary, judicial proceedings. We do not expect a final resolution of these
issues in the next 12 months. Based on the information currently available, we do not anticipate a
significant increase or decrease to our income tax contingencies for these issues within the next
12 months. We are subject to income tax in many jurisdictions outside the U.S. Our operations in
certain jurisdictions remain subject to examination for tax years 1996 to 2024 , some of which are
currently under audit by local tax authorities. The resolution of each of these audits is not
expected to be material to our consolidated financial statements.
 UNEARNED REVENUE

Revenue from Contract with Customer [Abstract]

UNEARNED REVENUE
 6 Months Ended
Dec. 31, 2024

NOTE 12 — UNEARNED REVENUE Unearned revenue by segment was as follows:

(In millions)
December 31, 2024 June 30, 2024
Productivity and Business Processes $ 33,582 $ 43,599
Intelligent Cloud 10,979 13,683
More Personal Computing 3,484 2,902
Total $ 48,045 $ 60,184
We have recast certain prior period amounts to conform to the way we internally manage and
monitor our business. Refer to Note 1 – Accounting Policies for further information. Changes in
unearned revenue were as follows:
(In millions)
Six Months Ended December 31, 2024
Balance, beginning of period $ 60,184
Deferral of revenue 74,211
Recognition of unearned revenue ( 86,350 )
Balance, end of period $ 48,045
Revenue allocated to remaining performance obligations, which includes unearned revenue and
amounts that will be invoiced and recognized as revenue in future periods, was $ 304 billion as of
December 31 , 2024, of which $ 298 billion is related to the commercial portion of revenue. We
expect to recognize approximately 40 % of our total company remaining performance obligation
revenue over the next 12 months and the remainder thereafter.
 LEASES

Leases [Abstract]
LEASES
 6 Months Ended
Dec. 31, 2024

NOTE 13 — LEASES We have operating and finance leases for datacenters, corporate offices,
research and development facilities, Microsoft Experience Centers, and certain equipment. Our
leases have remaining lease terms of less than 1 year to 20 years, some of which include options
to extend the leases for up to 5 years, and some of which include options to terminate the leases
within 1 year. The components of lease expense were as follows:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Operating lease cost $ 1,293 $ 817 $ 2,453 $ 1,591
Finance lease cost:
Amortization of right-of-use assets $ 830 $ 408 $ 1,524 $ 788
Interest on lease liabilities 337 168 611 317
Total finance lease cost $ 1,167 $ 576 $ 2,135 $ 1,105
Supplemental cash flow information related to leases was as follows:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 962 $ 803 $ 2,169 $ 1,597
Operating cash flows from finance leases 319 168 594 317
Financing cash flows from finance leases 480 288 1,282 573
Right-of-use assets obtained in exchange for lease obligations:
Operating leases 3,098 847 4,991 2,651
Finance leases 6,435 1,796 10,767 3,500
Supplemental balance sheet information related to leases was as follows:
(In millions, except lease term and discount rate)
December 31, 2024 June 30, 2024
Operating Leases
Operating lease right-of-use assets $ 22,816 $ 18,961
Other current liabilities $ 4,608 $ 3,580
Operating lease liabilities 17,254 15,497
Total operating lease liabilities $ 21,862 $ 19,077
Finance Leases
Property and equipment, at cost $ 42,539 $ 32,248
Accumulated depreciation ( 7,650 ) ( 6,386 )
Property and equipment, net $ 34,889 $ 25,862
Other current liabilities $ 2,673 $ 2,349
Other long-term liabilities 33,404 24,796
Total finance lease liabilities $ 36,077 $ 27,145
 CONTINGENCIES

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES
 6 Months Ended
Dec. 31, 2024

NOTE 14 — CONTINGENCIES U.S. Cell Phone Litigation Microsoft Mobile Oy, a subsidiary of
Microsoft, along with other handset manufacturers and network operators, is a defendant in 45
lawsuits filed in the Superior Court for the District of Columbia by individual plaintiffs who allege
that radio emissions from cellular handsets caused their brain tumors and other adverse health
effects. We assumed responsibility for these claims in our agreement to acquire Nokia’s Devices
and Services business and have been substituted for the Nokia defendants. Twelve of these cases
were consolidated for certain pre-trial proceedings; the remaining cases are stayed. In a separate
2009 decision, the Court of Appeals for the District of Columbia held that adverse health effect
claims arising from the use of cellular handsets that operate within the U.S. Federal
Communications Commission radio frequency emission guidelines (“FCC Guidelines”) are pre-
empted by federal law. The plaintiffs allege that their handsets either operated outside the FCC
Guidelines or were manufactured before the FCC Guidelines went into effect. The lawsuits also
allege an industry-wide conspiracy to manipulate the science and testing around emission
guidelines. In 2013, the defendants in the consolidated cases moved to exclude the plaintiffs’
expert evidence of general causation on the basis of flawed scientific methodologies. In 2014, the
trial court granted in part and denied in part the defendants’ motion to exclude the plaintiffs’
general causation experts. The defendants filed an interlocutory appeal to the District of Columbia
Court of Appeals challenging the standard for evaluating expert scientific evidence. In October
2016, the Court of Appeals issued its decision adopting the standard advocated by the defendants
and remanding the cases to the trial court for further proceedings under that standard. The
plaintiffs have filed supplemental expert evidence, portions of which were stricken by the court. A
hearing on general causation took place in September of 2022. In April of 2023, the court granted
defendants’ motion to strike the testimony of plaintiffs’ experts that cell phones cause brain
cancer and entered an order excluding all of plaintiffs’ experts from testifying. The parties agreed
to a stipulated dismissal of the consolidated cases to allow plaintiffs to appeal the expert
testimony order. Plaintiffs appealed the court’s order in August of 2023, and the appeal was
argued in January of 2025. A hearing on the status of the stayed cases occurred in December of
2023. In July 2024, the court entered summary judgment in nine of the stayed cases on the
grounds that plaintiffs had agreed to be bound by the general causation outcome in the
consolidated cases. Irish Data Protection Commission Matter In 2018, the Irish Data Protection
Commission (“IDPC”) began investigating a complaint against LinkedIn as to whether LinkedIn’s
targeted advertising practices violated the recently implemented European Union General Data
Protection Regulation (“GDPR”). Microsoft cooperated throughout the period of inquiry. In
October 2024, the IDPC provided LinkedIn with a final decision alleging GDPR violations and
assessing a fine. In November 2024, LinkedIn appealed the final decision to the Irish courts. Other
Contingencies We also are subject to a variety of other claims and suits that arise from time to
time in the ordinary course of our business. Although management currently believes that
STOCKHOLDERS' EQUITY

Equity [Abstract]
STOCKHOLDERS' EQUITY
 6 Months Ended
Dec. 31, 2024

NOTE 15 — STOCKHOLDERS’ EQUITY Share Repurchases On September 14, 2021, our Board of
Directors approved a share repurchase program authorizing up to $ 60.0 billion in share
repurchases. This share repurchase program commenced in November 2021, has no expiration
date, and may be terminated at any time. As of December 31, 2024, $ 4.0 billion remained of this
$ 60.0 billion share repurchase program. On September 16, 2024, our Board of Directors approved
a share repurchase program authorizing up to $ 60.0 billion in share repurchases. This share
repurchase program will commence following completion of the program approved on September
14, 2021, has no expiration date, and may be terminated at any time. We repurchased the
following shares of common stock under the share repurchase program:
(In millions) Shares Amount Shares Amount
Fiscal Year 2025 2024
First Quarter 7 $ 2,800 11 $ 3,560
Second Quarter 8 3,500 7 2,800
Total 15 $ 6,300 18 $ 6,360
All repurchases were made using cash resources. All shares repurchased were under the share
repurchase program approved on September 14, 2021. The above table excludes shares
repurchased to settle employee tax withholding related to the vesting of stock awards of $ 1.5
billion and $ 2.8 billion for the three and six months ended December 31, 2024, respectively, and $
1.2 billion and $ 2.5 billion for the three and six months ended December 31, 2023, respectively.
Dividends Our Board of Directors declared the following dividends:
Declaration Date Record Date Payment Date Dividend Per Share Amount
Fiscal Year 2025 (In millions)
September 16, 2024 November 21, 2024 December 12, 2024 $ 0.83 $ 6,170
December 3, 2024 February 20, 2025 March 13, 2025 0.83 6,171
Total $ 1.66 $ 12,341
Fiscal Year 2024
September 19, 2023 November 16, 2023 December 14, 2023 $ 0.75 $ 5,574
November 28, 2023 February 15, 2024 March 14, 2024 0.75 5,573
Total $ 1.50 $ 11,147
The dividend declared on December 3, 2024 was included in other current liabilities as of
December 31, 2024.
 ACCUMULATED OTHER COMPREHENSIVE INCOME
(LOSS)
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME
(LOSS)
 6 Months Ended
Dec. 31, 2024

NOTE 16 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table

summarizes the changes in accumulated other comprehensive income (loss) by component:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Derivatives
Balance, beginning of period $ ( 13 ) $ ( 6 ) $ ( 3 ) $ ( 27 )
Unrealized gains (losses), net of tax of $( 13 ) , $ 10 , $( 6 ), and $ 6 ( 50 ) 37 ( 21 ) 22
Reclassification adjustments for (gains) losses included in other income (expense), net 106 ( 51 )
57 ( 5 )
Tax expense (benefit) included in provision for income taxes ( 22 ) 11 ( 12 ) 1
Amounts reclassified from accumulated other comprehensive loss 84 ( 40 ) 45 ( 4 )
Net change related to derivatives, net of tax of $ 9 , $( 1 ), $ 6 , and $ 5 34 ( 3 ) 24 18
Balance, end of period $ 21 $ ( 9 ) $ 21 $ ( 9 )
Investments
Balance, beginning of period $ ( 1,511 ) $ ( 3,842 ) $ ( 2,625 ) $ ( 3,582 )
Unrealized gains (losses), net of tax of $( 121 ) , $ 352 , $ 176 , and $ 277 ( 453 ) 1,325 665 1,042
Reclassification adjustments for losses included in other income (expense), net 24 7 19 36
Tax benefit included in provision for income taxes ( 5 ) ( 1 ) ( 4 ) ( 7 )
Amounts reclassified from accumulated other comprehensive loss 19 6 15 29
Net change related to investments, net of tax of $( 116 ), $ 353 , $ 180 , and $ 284 ( 434 ) 1,331
680 1,071
Balance, end of period $ ( 1,945 ) $ ( 2,511 ) $ ( 1,945 ) $ ( 2,511 )
Translation Adjustments and Other
Balance, beginning of period $ ( 2,658 ) $ ( 3,089 ) $ ( 2,962 ) $ ( 2,734 )
Translation adjustments and other, net of tax of $ 0 , $ 0 , $ 0 , and $ 0 ( 1,034 ) 660 ( 730 ) 305
Balance, end of period $ ( 3,692 ) $ ( 2,429 ) $ ( 3,692 ) $ ( 2,429 )
Accumulated other comprehensive loss, end of period $ ( 5,616 ) $ ( 4,949 ) $ ( 5,616 ) $ ( 4,949 )
 SEGMENT INFORMATION AND GEOGRAPHIC
DATA
Segment Reporting [Abstract]
SEGMENT INFORMATION AND GEOGRAPHIC
DATA
 6 Months Ended
Dec. 31, 2024

NOTE 17 — SEGMENT INFORMATION AND GEOGRAPHIC DATA In its operation of the business,
management, including our chief operating decision maker, who is also our Chief Executive
Officer, reviews certain financial information, including segmented internal profit and loss
statements prepared on a basis not consistent with GAAP. During the periods presented, we
reported our financial performance based on the following segments: Productivity and Business
Processes, Intelligent Cloud, and More Personal Computing. We have recast certain prior period
amounts to conform to the way we internally manage and monitor our business. Refer to Note 1 –
Accounting Policies for further information. Our reportable segments are described below.
Productivity and Business Processes Our Productivity and Business Processes segment consists of
products and services in our portfolio of productivity, communication, and information services,
spanning a variety of devices and platforms. This segment primarily comprises: • Microsoft 365
Commercial products and cloud services, including Microsoft 365 Commercial cloud, comprising
Microsoft 365 Commercial, Enterprise Mobility + Security, the cloud portion of Windows
Commercial, the per-user portion of Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft
365 Security and Compliance, Microsoft Viva, and Microsoft 365 Copilot; and Microsoft 365
Commercial products, comprising Windows Commercial on-premises and Office licensed on-
premises. • Microsoft 365 Consumer products and cloud services, including Microsoft 365
Consumer subscriptions, Office licensed on-premises, and other consumer services. • LinkedIn,
including Talent Solutions, Marketing Solutions, Premium Subscriptions, and Sales Solutions. •
Dynamics products and cloud services, including Dynamics 365, comprising a set of intelligent,
cloud-based applications across ERP, CRM, Power Apps, and Power Automate; and on-premises
ERP and CRM applications. Intelligent Cloud Our Intelligent Cloud segment consists of our public,
private, and hybrid server products and cloud services that can power modern business and
developers. This segment primarily comprises: • Server products and cloud services, including
Azure and other cloud services, comprising cloud and AI consumption-based services, GitHub
cloud services, Nuance Healthcare cloud services, virtual desktop offerings, and other cloud
services; and Server products, comprising SQL Server, Windows Server, Visual Studio, System
Center, related Client Access Licenses (“CALs”), and other on-premises offerings. • Enterprise and
partner services, including Enterprise Support Services, Industry Solutions, Nuance professional
services, Microsoft Partner Network, and Learning Experience. More Personal Computing Our
More Personal Computing segment consists of products and services that put customers at the
center of the experience with our technology. This segment primarily comprises: • Windows and
Devices, including Windows, comprising Windows OEM licensing (Windows Pro and non-Pro
licenses sold through the OEM channel), Windows Internet of Things, and patent licensing; and
Devices, comprising Surface, HoloLens, and PC accessories. • Gaming, including Xbox hardware
and Xbox content and services, comprising first- and third-party content (including games and in-
game content), Xbox Game Pass and other subscriptions, Xbox Cloud Gaming, advertising, third-
 ACCOUNTING POLICIES (Policies)

Accounting Policies [Abstract]

Accounting Principles

Principles of Consolidation

Recast of Certain Prior Period Information

Estimates and Assumptions

Investments

Derivatives
Fair Value Measurements

Contract Balances and Other Receivables

Related Party Transactions

Earnings Per Share

Segment Reporting
Recent Accounting Guidance
 6 Months Ended
Dec. 31, 2024

Accounting Principles Our unaudited interim consolidated financial statements and accompanying
notes are prepared in accordance with accounting principles generally accepted in the United
States of America (“GAAP”). In the opinion of management, the unaudited interim consolidated
financial statements reflect all adjustments of a normal recurring nature that are necessary for a
fair presentation of the results for the interim periods presented. Interim results are not
necessarily indicative of results for a full year. The information included in this Form 10-Q should
be read in conjunction with information included in the Microsoft Corporation fiscal year 2024
Form 10-K and Form 8-K filed with the U.S. Securities and Exchange Commission on July 30, 2024
and December 3, 2024, respectively.

Principles of Consolidation The consolidated financial statements include the accounts of

Microsoft Corporation and its subsidiaries. Intercompany transactions and balances have been
eliminated.
Recast of Certain Prior Period Information In August 2024, we announced changes to the
composition of our segments. These changes align our segments with how we currently manage
our business, most notably bringing the commercial components of Microsoft 365 together in the
Productivity and Business Processes segment. Beginning in fiscal year 2025, the information that
our chief operating decision maker is regularly provided and reviews for purposes of allocating
resources and assessing performance reflects these segment changes. Prior period segment
information has been recast to conform to the way we internally manage and monitor our
business during fiscal year 2025. These changes impacted Note 8 – Goodwill, Note 12 – Unearned
Revenue, and Note 17 – Segment Information and Geographic Data. The recast of prior period
information had no impact on our consolidated balance sheets, consolidated income statements,
or consolidated cash flows statements.

Estimates and Assumptions Preparing financial statements requires management to make

estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and
expenses. Examples of estimates and assumptions include: for revenue recognition, determining
the nature and timing of satisfaction of performance obligations, and determining the standalone
selling price of performance obligations, variable consideration, and other obligations such as
product returns and refunds; loss contingencies; product warranties; the fair value of and/or
potential impairment of goodwill and intangible assets for our reporting units; product life cycles;
useful lives of our tangible and intangible assets; allowances for doubtful accounts; the market
value of, and demand for, our inventory; stock-based compensation forfeiture rates; when
technological feasibility is achieved for our products; the potential outcome of uncertain tax
positions that have been recognized in our consolidated financial statements or tax returns; and
determining the timing and amount of impairments for investments. Actual results and outcomes
may differ from management’s estimates and assumptions due to risks and uncertainties.
Investments We consider all highly liquid interest-earning investments with a maturity of three
months or less at the date of purchase to be cash equivalents. The fair values of these investments
approximate their carrying values. In general, investments with original maturities of greater than
three months and remaining maturities of less than one year are classified as short-term
investments. Investments with maturities beyond one year may be classified as short-term based
on their highly liquid nature and because such marketable securities represent the investment of
cash that is available for current operations. Debt investments are classified as available-for-sale
and realized gains and losses are recorded using the specific identification method. Changes in fair
value, excluding credit losses and impairments, are recorded in other comprehensive income. Fair
value is calculated based on publicly available market information or other estimates determined
by management. If the cost of an investment exceeds its fair value, we evaluate, among other
factors, general market conditions, credit quality of debt instrument issuers, and the extent to
which the fair value is less than cost. To determine credit losses, we employ a systematic
methodology that considers available quantitative and qualitative evidence. In addition, we
consider specific adverse conditions related to the financial health of, and business outlook for,
the investee. If we have plans to sell the security or it is more likely than not that we will be
required to sell the security before recovery, then a decline in fair value below cost is recorded as
an impairment charge in other income (expense), net and a new cost basis in the investment is
established. If market, industry, and/or investee conditions deteriorate, we may incur future
impairments. Equity investments with readily determinable fair values are measured at fair value.
Equity investments without readily determinable fair values are measured using the equity
method or measured at cost with adjustments for observable changes in price or impairments
(referred to as the measurement alternative). We perform a qualitative assessment on a periodic
basis and recognize an impairment if there are sufficient indicators that the fair value of the
investment is less than carrying value. Changes in value are recorded in other income (expense),
net. Investments that are considered variable interest entities (“VIEs”) are evaluated to determine
whether we are the primary beneficiary of the VIE, in which case we would be required to
consolidate the entity. We evaluate whether we have (1) the power to direct the activities that
most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses
or the right to receive benefits from the VIE that could potentially be significant to the VIE. We
have determined we are not the primary beneficiary of any of our VIE investments. Therefore, our
VIE investments are not consolidated and the majority are accounted for under the equity method
of accounting. We have an investment in OpenAI Global, LLC (“OpenAI”) and have made total
funding commitments of $ 13 billion. The investment is accounted for under the equity method of
accounting.

Derivatives Derivative instruments are recognized as either assets or liabilities and measured at
fair value. The accounting for changes in the fair value of a derivative depends on the intended
use of the derivative and the resulting designation. For derivative instruments designated as fair
value hedges, gains and losses are recognized in other income (expense), net with offsetting gains
and losses on the hedged items. Gains and losses representing hedge components excluded from
the assessment of effectiveness are recognized in other income (expense), net. For derivative
instruments designated as cash flow hedges, gains and losses are initially reported as a
component of other comprehensive income and subsequently recognized in other income
(expense), net with the corresponding hedged item. Gains and losses representing hedge
components excluded from the assessment of effectiveness are recognized in other income
(expense), net. For derivative instruments that are not designated as hedges, gains and losses
from changes in fair values are primarily recognized in other income (expense), net.
Fair Value Measurements We account for certain assets and liabilities at fair value. The hierarchy
below lists three levels of fair value based on the extent to which inputs used in measuring fair
value are observable in the market. We categorize each of our fair value measurements in one of
these three levels based on the lowest level input that is significant to the fair value measurement
in its entirety. These levels are: • Level 1 – inputs are based upon unadjusted quoted prices for
identical instruments in active markets. Our Level 1 investments include U.S. government
securities, common and preferred stock, and mutual funds. Our Level 1 derivative assets and
liabilities include those actively traded on exchanges. • Level 2 – inputs are based upon quoted
prices for similar instruments in active markets, quoted prices for identical or similar instruments
in markets that are not active, and model-based valuation techniques (e.g. the Black-Scholes
model) for which all significant inputs are observable in the market or can be corroborated by
observable market data for substantially the full term of the assets or liabilities. Where applicable,
these models project future cash flows and discount the future amounts to a present value using
market-based observable inputs including interest rate curves, credit spreads, foreign exchange
rates, and forward and spot prices for currencies. Our Level 2 investments include commercial
paper, certificates of deposit, U.S. agency securities, foreign government bonds, mortgage- and
asset-backed securities, corporate notes and bonds, and municipal securities. Our Level 2
derivative assets and liabilities include certain cleared swap contracts and over-the-counter
forward, option, and swap contracts. • Level 3 – inputs are generally unobservable and typically
reflect management’s estimates of assumptions that market participants would use in pricing the
asset or liability. The fair values are therefore determined using model-based techniques,
including option pricing models and discounted cash flow models. Our Level 3 assets and liabilities
include investments in corporate notes and bonds, municipal securities, and goodwill and
intangible assets, when they are recorded at fair value due to an impairment charge.
Unobservable inputs used in the models are significant to the fair values of the assets and
liabilities. We measure equity investments without readily determinable fair values on a
nonrecurring basis. The fair values of these investments are determined based on valuation
techniques using the best information available, and may include quoted market prices, market
comparables, and discounted cash flow projections. Our other current financial assets and current
financial liabilities have fair values that approximate their carrying values.

Contract Balances and Other Receivables As of both December 31, 2024 and June 30, 2024, long-
term accounts receivable, net of allowance for doubtful accounts, was $ 4.9 billion and is included
in other long-term assets in our consolidated balance sheets. As of December 31, 2024 and June
30, 2024, other receivables related to activities to facilitate the purchase of server components
were $ 11.4 billion and $ 10.5 billion, respectively, and are included in other current assets in our
consolidated balance sheets. We record financing receivables when we offer certain customers
the option to acquire our software products and services offerings through a financing program in
a limited number of countries. As of December 31 , 2024 and June 30, 2024, our financing
receivables, net were $ 3.1 billion and $ 4.5 billion, respectively, for short-term and long-term
financing receivables, which are included in other current assets and other long-term assets in our
consolidated balance sheets. We record an allowance to cover expected losses based on troubled
accounts, historical experience, and other currently available evidence.
Related Party Transactions In March 2024, we entered into an agreement with Inflection AI, Inc.
(“Inflection”), pursuant to which we obtained a non-exclusive license to Inflection’s intellectual
property. Reid Hoffman, a member of our Board of Directors, is a co-founder of and serves on the
board of directors of Inflection. As of the date of the agreement with Inflection, Reprogrammed
Interchange LLC (“Reprogrammed”) and entities affiliated with Greylock Ventures (“Greylock”)
each held less than a 10 % equity interest in Inflection. Mr. Hoffman may be deemed to
beneficially own the shares held by Reprogrammed and Greylock by virtue of his relationship with
such entities. Mr. Hoffman did not participate in any portions of the meetings of our Board of
Directors or any committee thereof to review and approve the transaction with Inflection.

Basic earnings per share (“EPS”) is computed based on the weighted average number of shares of
common stock outstanding during the period. Diluted EPS is computed based on the weighted
average number of shares of common stock plus the effect of dilutive potential common shares
outstanding during the period using the treasury stock method. Dilutive potential common shares
include outstanding stock options and stock awards.

Revenue and costs are generally directly attributed to our segments. However, due to the
integrated structure of our business, certain revenue recognized and costs incurred by one
segment may benefit other segments. Revenue from certain contracts is allocated among the
segments based on the relative value of the underlying products and services, which can include
allocation based on actual prices charged, prices when sold separately, or estimated costs plus a
profit margin. Cost of revenue is allocated in certain cases based on a relative revenue
methodology. Operating expenses that are allocated primarily include those relating to marketing
of products and services from which multiple segments benefit and are generally allocated based
on relative gross margin. In addition, certain costs are incurred at a corporate level and allocated
to our segments. These allocated costs generally include legal, including settlements and fines,
information technology, human resources, finance, excise taxes, field selling, shared facilities
services, customer service and support, and severance incurred as part of a corporate program.
Each allocation is measured differently based on the specific facts and circumstances of the costs
being allocated and is generally based on relative gross margin or relative headcount. Assets are
not allocated to segments for internal reporting presentations. A portion of amortization and
depreciation is included with various other costs in an overhead allocation to each segment. It is
impracticable for us to separately identify the amount of amortization and depreciation by
segment that is included in the measure of segment profit or loss.
Recent Accounting Guidance Segment Reporting – Improvements to Reportable Segment
Disclosures In November 2023, the Financial Accounting Standards Board (“FASB”) issued a new
standard to improve reportable segment disclosures. The guidance expands the disclosures
required for reportable segments in our annual and interim consolidated financial statements,
primarily through enhanced disclosures about significant segment expenses. The standard will be
effective for us beginning with our annual reporting for fiscal year 2025 and interim periods
thereafter, with early adoption permitted. We are currently evaluating the impact of this standard
on our segment disclosures. Income Taxes – Improvements to Income Tax Disclosures In
December 2023, the FASB issued a new standard to improve income tax disclosures. The guidance
requires disclosure of disaggregated income taxes paid, prescribes standardized categories for the
components of the effective tax rate reconciliation, and modifies other income tax-related
disclosures. The standard will be effective for us beginning with our annual reporting for fiscal year
2026, with early adoption permitted. We are currently evaluating the impact of this standard on
our income tax disclosures. Income Statement – Disaggregation of Income Statement Expenses In
November 2024, the FASB issued a new standard to expand disclosures about income statement
expenses. The guidance requires disaggregation of certain costs and expenses included in each
relevant expense caption on our consolidated income statements in a separate note to the
financial statements at each interim and annual reporting period, including amounts of purchases
of inventory, employee compensation, depreciation, and intangible asset amortization. The
standard will be effective for us beginning with our annual reporting for fiscal year 2028 and
interim periods thereafter, with early adoption permitted. We are currently evaluating the impact
of this standard on our disclosures.
 EARNINGS PER SHARE (Tables)

Earnings Per Share [Abstract]

Basic and Diluted Earnings Per Share
 6 Months Ended
Dec. 31, 2024

The components of basic and diluted EPS were as follows:

(In millions, except per share amounts) Three Months Ended December 31, Six Months Ended
December 31,
2024 2023 2024 2023
Net income available for common shareholders (A) $ 24,108 $ 21,870 $ 48,775 $ 44,161
Weighted average outstanding shares of common stock (B) 7,435 7,432 7,434 7,431
Dilutive effect of stock-based awards 33 36 35 34
Common stock and common stock equivalents (C) 7,468 7,468 7,469 7,465
Earnings Per Share
Basic (A/B) $ 3.24 $ 2.94 $ 6.56 $ 5.94
Diluted (A/C) $ 3.23 $ 2.93 $ 6.53 $ 5.92
 OTHER INCOME (EXPENSE), NET (Tables)

Components of Other Income (Expense), Net

Debt Securities
Net Recognized Gains (Losses) on Investments

Equity Securities
Net Recognized Gains (Losses) on Investments
 6 Months Ended
Dec. 31, 2024
The components of other income (expense), net were as follows:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Interest and dividends income $ 600 $ 734 $ 1,281 $ 1,900
Interest expense ( 594 ) ( 909 ) ( 1,176 ) ( 1,434 )
Net recognized gains (losses) on investments ( 860 ) 69 ( 397 ) ( 38 )
Net losses on derivatives ( 116 ) ( 267 ) ( 454 ) ( 174 )
Net gains (losses) on foreign currency remeasurements ( 153 ) 36 23 ( 65 )
Other, net ( 1,165 ) ( 169 ) ( 1,848 ) ( 306 )
Total $ ( 2,288 ) $ ( 506 ) $ ( 2,571 ) $ ( 117 )

Net recognized gains (losses) on debt investments were as follows:

(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Realized gains from sales of available-for-sale securities $ 9 $ 4 $ 17 $ 6
Realized losses from sales of available-for-sale securities ( 19 ) ( 29 ) ( 34 ) ( 54 )
Impairments and allowance for credit losses ( 14 ) 18 ( 2 ) 12
Total $ ( 24 ) $ ( 7 ) $ ( 19 ) $ ( 36 )

Net recognized gains (losses) on equity investments were as follows:

(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Net realized gains (losses) on investments sold $ ( 8 ) $ ( 31 ) $ 57 $ 14
Net unrealized gains on investments still held 25 286 437 163
Impairments of investments ( 853 ) ( 179 ) ( 872 ) ( 179 )
Total $ ( 836 ) $ 76 $ ( 378 ) $ ( 2 )
 INVESTMENTS (Tables)

Investments, Debt and Equity Securities [Abstract]

Investment Components
Unrealized Losses on Debt Investments

Debt Investment Maturities

 6 Months Ended
Dec. 31, 2024

The components of investments were as follows:

(In millions) Fair Value Level Adjusted Cost Basis Unrealized Gains Unrealized Losses Recorded
Basis Cash and Cash Equivalents Short-term Investments Equity and Other Investments
December 31, 2024
Changes in Fair Value Recorded in Other Comprehensive Income
Commercial paper Level 2 $ 3,515 $ 0 $ 0 $ 3,515 $ 3,515 $ 0 $ 0
Certificates of deposit Level 2 3,349 0 0 3,349 3,302 47 0
U.S. government securities Level 1 46,013 1 ( 2,233 ) 43,781 18 43,763 0
U.S. agency securities Level 2 11 0 0 11 0 11 0
Foreign government bonds Level 2 311 7 ( 17 ) 301 0 301 0
Mortgage- and asset-backed securities Level 2 987 5 ( 33 ) 959 0 959 0
Corporate notes and bonds Level 2 8,693 38 ( 198 ) 8,533 0 8,533 0
Corporate notes and bonds Level 3 2,376 27 ( 3 ) 2,400 0 123 2,277
Municipal securities Level 2 254 1 ( 11 ) 244 0 244 0
Municipal securities Level 3 104 0 ( 16 ) 88 0 88 0
Total debt investments $ 65,613 $ 79 $ ( 2,511 ) $ 63,181 $ 6,835 $ 54,069 $ 2,277
Changes in Fair Value Recorded in Net Income
Equity investments Level 1 $ 4,425 $ 1,000 $ 0 $ 3,425
Equity investments Other 9,879 0 0 9,879
Total equity investments $ 14,304 $ 1,000 $ 0 $ 13,304
Cash $ 9,647 $ 9,647 $ 0 $ 0
Derivatives, net (a) 4 0 4 0
Total $ 87,136 $ 17,482 $ 54,073 $ 15,581
(In millions) Fair Value Level Adjusted Cost Basis Unrealized Gains Unrealized Losses Recorded
Basis Cash and Cash Equivalents Short-term Investments Equity and Other Investments
June 30, 2024
Changes in Fair Value Recorded in Other Comprehensive Income
Commercial paper Level 2 $ 4,666 $ 0 $ 0 $ 4,666 $ 4,666 $ 0 $ 0
Certificates of deposit Level 2 1,547 0 0 1,547 1,503 44 0
U.S. government securities Level 1 49,603 4 ( 2,948 ) 46,659 14 46,645 0
U.S. agency securities Level 2 17 0 0 17 0 17 0
Foreign government bonds Level 2 319 3 ( 16 ) 306 0 306 0
Mortgage- and asset-backed securities Level 2 944 3 ( 35 ) 912 0 912 0
Corporate notes and bonds Level 2 9,106 28 ( 318 ) 8,816 0 8,816 0
Corporate notes and bonds Level 3 1,641 0 ( 1 ) 1,640 0 140 1,500
Municipal securities Level 2 262 0 ( 13 ) 249 0 249 0
Municipal securities Level 3 104 0 ( 17 ) 87 0 87 0
Debt investments with continuous unrealized losses for less than 12 months and 12 months or
greater and their related fair values were as follows:
Less than 12 Months 12 Months or Greater Total
(In millions) Fair Value Unrealized Fair Value Unrealized Total
December 31, 2024
U.S. government and agency securities $ 871 $ ( 61 ) $ 42,775 $ ( 2,172 ) $ 43,646 $ ( 2,233 )
Foreign government bonds 99 ( 4 ) 127 ( 13 ) 226 ( 17 )
Mortgage- and asset-backed securities 277 ( 6 ) 244 ( 27 ) 521 ( 33 )
Corporate notes and bonds 1,781 ( 17 ) 4,339 ( 184 ) 6,120 ( 201 )
Municipal securities 0 0 237 ( 27 ) 237 ( 27 )
Total $ 3,028 $ ( 88 ) $ 47,722 $ ( 2,423 ) $ 50,750 $ ( 2,511 )
Less than 12 Months 12 Months or Greater Total
(In millions) Fair Value Unrealized Fair Value Unrealized Total
June 30, 2024
U.S. government and agency securities $ 529 $ ( 12 ) $ 45,821 $ ( 2,936 ) $ 46,350 $ ( 2,948 )
Foreign government bonds 79 ( 2 ) 180 ( 14 ) 259 ( 16 )
Mortgage- and asset-backed securities 201 ( 1 ) 409 ( 34 ) 610 ( 35 )
Corporate notes and bonds 1,310 ( 9 ) 5,779 ( 310 ) 7,089 ( 319 )
Municipal securities 38 ( 1 ) 243 ( 29 ) 281 ( 30 )
Total $ 2,157 $ ( 25 ) $ 52,432 $ ( 3,323 ) $ 54,589 $ ( 3,348 )

Debt Investment Maturities The following table outlines maturities of our debt investments as of
December 31, 2024:
(In millions) Adjusted Cost Basis Estimated Fair Value
December 31, 2024
Due in one year or less $ 22,927 $ 22,788
Due after one year through five years 33,344 31,774
Due after five years through 10 years 7,934 7,325
Due after 10 years 1,408 1,294
Total $ 65,613 $ 63,181
 DERIVATIVES (Tables)

Notional Amounts of Outstanding Derivative Instruments Measured in U.S. Dollar Equivalents

Fair Values of Derivative Instruments

Gains (Losses) on Derivative Instruments

Cash Flow Hedges | Other Comprehensive Income (Loss)
Gains (Losses) on Derivative Instruments
 6 Months Ended
Dec. 31, 2024
The following table presents the notional amounts of our outstanding derivative instruments
measured in U.S. dollar equivalents:
(In millions) December 31, 2024 June 30, 2024
Designated as Hedging Instruments
Foreign exchange contracts purchased $ 1,492 $ 1,492
Interest rate contracts purchased 1,126 1,100
Not Designated as Hedging Instruments
Foreign exchange contracts purchased 7,791 7,167
Foreign exchange contracts sold 30,921 31,793
Equity contracts purchased 5,198 4,016
Equity contracts sold 2,170 2,165
Other contracts purchased 2,636 2,113
Other contracts sold 1,162 811
The following table presents our derivative instruments:
(In millions) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities
December 31, 2024 June 30, 2024
Designated as Hedging Instruments
Foreign exchange contracts $ 9 $ ( 88 ) $ 24 $ ( 76 )
Interest rate contracts 17 0 19 0
Not Designated as Hedging Instruments
Foreign exchange contracts 835 ( 325 ) 213 ( 230 )
Equity contracts 19 ( 1,018 ) 63 ( 491 )
Other contracts 4 ( 21 ) 12 ( 3 )
Gross amounts of derivatives 884 ( 1,452 ) 331 ( 800 )
Gross amounts of derivatives offset in the balance sheets ( 301 ) 303 ( 151 ) 152
Cash collateral received 0 ( 156 ) 0 ( 104 )
Net amounts of derivatives $ 583 $ ( 1,305 ) $ 180 $ ( 752 )
Reported as
Short-term investments $ 4 $ 0 $ 12 $ 0
Other current assets 561 0 149 0
Other long-term assets 18 0 19 0
Other current liabilities 0 ( 764 ) 0 ( 401 )
Other long-term liabilities 0 ( 541 ) 0 ( 351 )
Total $ 583 $ ( 1,305 ) $ 180 $ ( 752 )
The following table presents the fair value of our derivatives instruments on a gross basis:
(In millions) Level 1 Level 2 Level 3 Total
December 31, 2024
Derivative assets $ 0 $ 878 $ 6 $ 884
Derivative liabilities 0 ( 1,427 ) ( 25 ) ( 1,452 )
June 30, 2024
Derivative assets 0 327 4 331
Derivative liabilities ( 1 ) ( 799 ) 0 ( 800 )

Gains (losses) on derivative instruments recognized in other income (expense), net were as
follows:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Designated as Fair Value Hedging Instruments
Interest rate contracts
Derivatives $ ( 18 ) $ 22 $ 2 $ 6
Hedged items 8 ( 34 ) ( 24 ) ( 31 )
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Amount reclassified from accumulated other comprehensive loss ( 106 ) 51 ( 57 ) 5
Not Designated as Hedging Instruments
Foreign exchange contracts 1,138 ( 334 ) 755 ( 128 )
Equity contracts ( 111 ) ( 287 ) ( 459 ) ( 174 )
Other contracts ( 26 ) 36 ( 2 ) 3
Gains (losses), net of tax, on derivative instruments recognized in our consolidated comprehensive
income statements were as follows:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Designated as Cash Flow Hedging Instruments
Foreign exchange contracts
Included in effectiveness assessment $ ( 50 ) $ 37 $ ( 21 ) $ 22
 INVENTORIES (Tables)

Inventory Disclosure [Abstract]

Components of Inventories
 6 Months Ended
Dec. 31, 2024

The components of inventories were as follows:

(In millions)
December 31, 2024 June 30, 2024
Raw materials $ 345 $ 394
Work in process 7 7
Finished goods 557 845
Total $ 909 $ 1,246
 BUSINESS COMBINATIONS (Tables) - Activision Blizzard, Inc.

Major Classes of Assets and Liabilities Allocated Purchase Price

Acquired Intangible Assets

Supplemental Consolidated Financial Results on Unaudited Pro Forma Basis

 6 Months Ended
Dec. 31, 2024
The major classes of assets and liabilities to which we have allocated the purchase price were as
follows:
(In millions)
Cash and cash equivalents $ 12,976
Goodwill 51,001
Intangible assets 21,969
Other assets 2,503
Long-term debt ( 2,799 )
Long-term income taxes ( 1,946 )
Deferred income taxes ( 4,676 )
Other liabilities ( 3,620 )
Total purchase price $ 75,408

Following are the details of the purchase price allocated to the intangible assets acquired:
(In millions, except average life) Amount Weighted Average Life
Marketing-related $ 11,619 24 years
Technology-based 9,689 4 years
Customer-related 661 4 years
Fair value of intangible assets acquired $ 21,969 15 years

Following are the supplemental consolidated financial results of Microsoft Corporation on an

unaudited pro forma basis, as if the acquisition had been consummated on July 1, 2022:
(In millions, except per share amounts) Three Months Ended December 31, Six Months Ended
December 31,
2023 2023
Revenue $ 62,297 $ 120,857
Net income 22,025 44,334
Diluted earnings per share 2.95 5.94
 GOODWILL (Tables)

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying Amount of Goodwill
 6 Months Ended
Dec. 31, 2024

Changes in the carrying amount of goodwill were as follows:

(In millions) June 30, 2024 Acquisitions Other December 31, 2024
Productivity and Business Processes $ 31,361 $ 0 $ ( 29 ) $ 31,332
Intelligent Cloud 25,648 0 ( 1 ) 25,647
More Personal Computing 62,211 0 1 62,212
Total $ 119,220 $ 0 $ ( 29 ) $ 119,191
 INTANGIBLE ASSETS (Tables)

Goodwill and Intangible Assets Disclosure [Abstract]

Finite-Lived Intangible Assets

Estimated Future Amortization Expense Related to Intangible Assets

 6 Months Ended
Dec. 31, 2024

The components of intangible assets, all of which are finite-lived, were as follows:
(In millions) Gross Accumulated Net Gross Accumulated Net Carrying Amount
December 31, 2024 June 30, 2024
Marketing-related $ 16,489 $ ( 3,499 ) $ 12,990 $ 16,500 $ ( 3,101 ) $ 13,399
Technology-based 22,481 ( 12,785 ) 9,696 21,913 ( 10,741 ) 11,172
Customer-related 6,030 ( 3,444 ) 2,586 6,038 ( 3,051 ) 2,987
Contract-based 135 ( 22 ) 113 58 ( 19 ) 39
Total $ 45,135 $ ( 19,750 ) $ 25,385 $ 44,509 $ ( 16,912 ) $ 27,597

The following table outlines the estimated future amortization expense related to intangible
assets held as of December 31, 2024:
(In millions)
Year Ending June 30,
2025 (excluding the six months ended December 31, 2024) $ 3,075
2026 4,576
2027 2,850
2028 1,986
2029 1,804
Thereafter 11,094
Total $ 25,385
 DEBT (Tables)

Debt Disclosure [Abstract]

Components of Long-term Debt

Maturities of Long-term Debt Including Current Portion

 6 Months Ended
Dec. 31, 2024

The components of long-term debt were as follows:

(In millions, issuance by calendar year) Maturities (calendar year) Stated Interest Rate Effective
Interest Rate December 31, 2024 June 30, 2024
2009 issuance of $ 3.8 billion 2039 5.20 % 5.24 % $ 520 $ 520
2010 issuance of $ 4.8 billion 2040 4.50 % 4.57 % 486 486
2011 issuance of $ 2.3 billion 2041 5.30 % 5.36 % 718 718
2012 issuance of $ 2.3 billion 2042 3.50 % 3.57 % 454 454
2013 issuance of $ 5.2 billion 2043 3.75 % – 4.88 % 3.83 % – 4.92 % 314 314
2013 issuance of € 4.1 billion 2028 – 2033 2.63 % – 3.13 % 2.69 % – 3.22 % 2,382 2,465
2015 issuance of $ 23.8 billion 2025 – 2055 2.70 % – 4.75 % 2.77 % – 4.78 % 9,805 9,805
2016 issuance of $ 19.8 billion 2026 – 2056 2.40 % – 3.95 % 2.46 % – 4.03 % 7,930 7,930
2017 issuance of $ 17.1 billion 2026 – 2057 3.30 % – 4.50 % 3.38 % – 5.49 % 6,833 6,833
2020 issuance of $ 10.1 billion 2030 – 2060 1.35 % – 2.68 % 2.53 % – 5.43 % 10,111 10,111
2021 issuance of $ 8.2 billion 2052 – 2062 2.92 % – 3.04 % 2.92 % – 3.04 % 8,185 8,185
2023 issuance of $ 0.1 billion 2026 – 2050 1.35 % – 4.50 % 5.16 % – 5.49 % 56 56
2024 issuance of $ 3.3 billion 2026 – 2050 1.35 % – 4.50 % 5.16 % – 5.49 % 3,344 3,344
Total face value 51,138 51,221
Unamortized discount and issuance costs ( 1,191 ) ( 1,227 )
Hedge fair value adjustments (a) ( 57 ) ( 81 )
Premium on debt exchange ( 4,920 ) ( 4,976 )
Total debt 44,970 44,937
Current portion of long-term debt ( 5,248 ) ( 2,249 )
Long-term debt $ 39,722 $ 42,688
(a) Refer to Note 5 – Derivatives for further information on the interest rate swaps related to
fixed-rate debt.

The following table outlines maturities of our long-term debt, including the current portion, as of
December 31, 2024:
(In millions)
Year Ending June 30,
2025 (excluding the six months ended December 31, 2024) $ 2,250
2026 3,000
2027 9,250
2028 0
2029 1,812
Thereafter 34,826
Total $ 51,138
 UNEARNED REVENUE (Tables)

Revenue from Contract with Customer [Abstract]

Unearned Revenue by Segment

Changes in Unearned Revenue

 6 Months Ended
Dec. 31, 2024

Unearned revenue by segment was as follows:

(In millions)
December 31, 2024 June 30, 2024
Productivity and Business Processes $ 33,582 $ 43,599
Intelligent Cloud 10,979 13,683
More Personal Computing 3,484 2,902
Total $ 48,045 $ 60,184

Changes in unearned revenue were as follows:

(In millions)
Six Months Ended December 31, 2024
Balance, beginning of period $ 60,184
Deferral of revenue 74,211
Recognition of unearned revenue ( 86,350 )
Balance, end of period $ 48,045
 LEASES (Tables)

Leases [Abstract]
Components of Lease Expense

Supplemental Cash Flow Information Related to Leases

Supplemental Balance Sheet Information Related to Leases

Maturities of Lease Liabilities

 6 Months Ended
Dec. 31, 2024

The components of lease expense were as follows:

(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Operating lease cost $ 1,293 $ 817 $ 2,453 $ 1,591
Finance lease cost:
Amortization of right-of-use assets $ 830 $ 408 $ 1,524 $ 788
Interest on lease liabilities 337 168 611 317
Total finance lease cost $ 1,167 $ 576 $ 2,135 $ 1,105

Supplemental cash flow information related to leases was as follows:

(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $ 962 $ 803 $ 2,169 $ 1,597
Operating cash flows from finance leases 319 168 594 317
Financing cash flows from finance leases 480 288 1,282 573
Right-of-use assets obtained in exchange for lease obligations:
Operating leases 3,098 847 4,991 2,651
Finance leases 6,435 1,796 10,767 3,500
Supplemental balance sheet information related to leases was as follows:
(In millions, except lease term and discount rate)
December 31, 2024 June 30, 2024
Operating Leases
Operating lease right-of-use assets $ 22,816 $ 18,961
Other current liabilities $ 4,608 $ 3,580
Operating lease liabilities 17,254 15,497
Total operating lease liabilities $ 21,862 $ 19,077
Finance Leases
Property and equipment, at cost $ 42,539 $ 32,248
Accumulated depreciation ( 7,650 ) ( 6,386 )
Property and equipment, net $ 34,889 $ 25,862
Other current liabilities $ 2,673 $ 2,349
Other long-term liabilities 33,404 24,796
Total finance lease liabilities $ 36,077 $ 27,145
Weighted Average Remaining Lease Term
Operating leases 7 years 7 years
Finance leases 12 years 12 years
Weighted Average Discount Rate
Operating leases 3.4 % 3.3 %
Finance leases 4.0 % 3.9 %

The following table outlines maturities of our lease liabilities as of December 31, 2024:
(In millions)
Year Ending June 30, Operating Leases Finance Leases
2025 (excluding the six months ended December 31, 2024) $ 2,726 $ 1,979
2026 4,920 4,149
2027 4,063 4,180
2028 3,025 4,175
2029 2,203 3,528
Thereafter 7,433 28,350
Total lease payments 24,370 46,361
Less imputed interest ( 2,508 ) ( 10,284 )
Total $ 21,862 $ 36,077
 STOCKHOLDERS' EQUITY (Tables)

Equity [Abstract]
Share Repurchases

Dividends Declared
 6 Months Ended
Dec. 31, 2024

We repurchased the following shares of common stock under the share repurchase program:
(In millions) Shares Amount Shares Amount
Fiscal Year 2025 2024
First Quarter 7 $ 2,800 11 $ 3,560
Second Quarter 8 3,500 7 2,800
Total 15 $ 6,300 18 $ 6,360

Our Board of Directors declared the following dividends:

Declaration Date Record Date Payment Date Dividend Per Share Amount
Fiscal Year 2025 (In millions)
September 16, 2024 November 21, 2024 December 12, 2024 $ 0.83 $ 6,170
December 3, 2024 February 20, 2025 March 13, 2025 0.83 6,171
Total $ 1.66 $ 12,341
Fiscal Year 2024
September 19, 2023 November 16, 2023 December 14, 2023 $ 0.75 $ 5,574
November 28, 2023 February 15, 2024 March 14, 2024 0.75 5,573
Total $ 1.50 $ 11,147
 ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

Equity [Abstract]
Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component
 6 Months Ended
Dec. 31, 2024

The following table summarizes the changes in accumulated other comprehensive income (loss)
by component:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Derivatives
Balance, beginning of period $ ( 13 ) $ ( 6 ) $ ( 3 ) $ ( 27 )
Unrealized gains (losses), net of tax of $( 13 ) , $ 10 , $( 6 ), and $ 6 ( 50 ) 37 ( 21 ) 22
Reclassification adjustments for (gains) losses included in other income (expense), net 106 ( 51 )
57 ( 5 )
Tax expense (benefit) included in provision for income taxes ( 22 ) 11 ( 12 ) 1
Amounts reclassified from accumulated other comprehensive loss 84 ( 40 ) 45 ( 4 )
Net change related to derivatives, net of tax of $ 9 , $( 1 ), $ 6 , and $ 5 34 ( 3 ) 24 18
Balance, end of period $ 21 $ ( 9 ) $ 21 $ ( 9 )
Investments
Balance, beginning of period $ ( 1,511 ) $ ( 3,842 ) $ ( 2,625 ) $ ( 3,582 )
Unrealized gains (losses), net of tax of $( 121 ) , $ 352 , $ 176 , and $ 277 ( 453 ) 1,325 665 1,042
Reclassification adjustments for losses included in other income (expense), net 24 7 19 36
Tax benefit included in provision for income taxes ( 5 ) ( 1 ) ( 4 ) ( 7 )
Amounts reclassified from accumulated other comprehensive loss 19 6 15 29
Net change related to investments, net of tax of $( 116 ), $ 353 , $ 180 , and $ 284 ( 434 ) 1,331
680 1,071
Balance, end of period $ ( 1,945 ) $ ( 2,511 ) $ ( 1,945 ) $ ( 2,511 )
Translation Adjustments and Other
Balance, beginning of period $ ( 2,658 ) $ ( 3,089 ) $ ( 2,962 ) $ ( 2,734 )
Translation adjustments and other, net of tax of $ 0 , $ 0 , $ 0 , and $ 0 ( 1,034 ) 660 ( 730 ) 305
Balance, end of period $ ( 3,692 ) $ ( 2,429 ) $ ( 3,692 ) $ ( 2,429 )
Accumulated other comprehensive loss, end of period $ ( 5,616 ) $ ( 4,949 ) $ ( 5,616 ) $ ( 4,949 )
 SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)

Segment Reporting [Abstract]

Segment Revenue

Segment Operating Income (Loss)

Revenue Classified by Major Geographic Areas

Revenue Classified by Significant Product and Service Offerings
 6 Months Ended
Dec. 31, 2024

Segment revenue and operating income were as follows during the periods presented:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Revenue
Productivity and Business Processes $ 29,437 $ 25,854 $ 57,754 $ 51,080
Intelligent Cloud 25,544 21,525 49,636 41,538
More Personal Computing 14,651 14,641 27,827 25,919
Total $ 69,632 $ 62,020 $ 135,217 $ 118,537
Operating Income
Productivity and Business Processes $ 16,885 $ 14,515 $ 33,401 $ 28,812
Intelligent Cloud 10,851 9,555 21,354 18,463
More Personal Computing 3,917 2,962 7,450 6,652
Total $ 31,653 $ 27,032 $ 62,205 $ 53,927

Segment revenue and operating income were as follows during the periods presented:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Revenue
Productivity and Business Processes $ 29,437 $ 25,854 $ 57,754 $ 51,080
Intelligent Cloud 25,544 21,525 49,636 41,538
More Personal Computing 14,651 14,641 27,827 25,919
Total $ 69,632 $ 62,020 $ 135,217 $ 118,537
Operating Income
Productivity and Business Processes $ 16,885 $ 14,515 $ 33,401 $ 28,812
Intelligent Cloud 10,851 9,555 21,354 18,463
More Personal Computing 3,917 2,962 7,450 6,652
Total $ 31,653 $ 27,032 $ 62,205 $ 53,927

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,
2024 2023 2024 2023
United States (a) $ 35,537 $ 32,295 $ 69,450 $ 61,107
Other countries 34,095 29,725 65,767 57,430
Total $ 69,632 $ 62,020 $ 135,217 $ 118,537
(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, was as follows:
(In millions) Three Months Ended December 31, Six Months Ended December 31,
2024 2023 2024 2023
Server products and cloud services $ 23,641 $ 19,597 $ 45,796 $ 37,659
Microsoft 365 Commercial products and cloud services 21,117 18,321 41,566 36,365
Gaming 6,581 7,111 12,202 11,030
LinkedIn 4,587 4,195 8,879 8,108
Windows and Devices 4,512 4,363 8,841 8,703
Search and news advertising 3,558 3,168 6,783 6,186
Enterprise and partner services 1,892 1,917 3,820 3,861
Dynamics products and cloud services 1,913 1,659 3,762 3,285
Microsoft 365 Consumer products and cloud services 1,821 1,679 3,548 3,322
Other 10 10 20 18
Total $ 69,632 $ 62,020 $ 135,217 $ 118,537
Our Microsoft Cloud revenue, which includes Microsoft 365 Commercial cloud, Azure and other
cloud services, the commercial portion of LinkedIn, and Dynamics 365, was $ 40.9 billion and $
79.8 billion for the three and six months ended December 31, 2024, respectively, and $ 33.7 billion
and $ 65.6 billion for the three and six months ended December 31, 2023, respectively. These
amounts are included in Microsoft 365 Commercial products and cloud services, Server products
and cloud services, LinkedIn, and Dynamics products and cloud services in the table above.
 Accounting Policies - Additional Information (Detail) - USD ($) $ in Billions
Significant Accounting Policies [Line Items]
Long-term accounts receivable, net of allowance for doubtful accounts
Other receivables related to purchase of components
Financing receivables, net
OpenAI Global, LLC
Significant Accounting Policies [Line Items]
Total funding commitments
Maximum | Reprogrammed Interchange LLC | Inflection AI, Inc
Significant Accounting Policies [Line Items]
Equity interest percentage
Maximum | Greylock Ventures | Inflection AI, Inc
Significant Accounting Policies [Line Items]
Equity interest percentage
Dec. 31, 2024 Jun. 30, 2024

$ 4.9 $ 4.9
11.4 10.5
3.1 $ 4.5

$ 13

10%

10%
Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in
Millions
Earning Per Share Basic And Diluted [Abstract]
Net income available for common shareholders (A)
Weighted average outstanding shares of common stock (B)
Dilutive effect of stock-based awards
Common stock and common stock equivalents (C)
Earnings Per Share
Basic (A/B)
Diluted (A/C)
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ 24,108 $ 21,870 $ 48,775 $ 44,161

7,435 7,432 7,434 7,431
33 36 35 34
7,468 7,468 7,469 7,465

$ 3.24 $ 2.94 $ 6.56 $ 5.94

$ 3.23 $ 2.93 $ 6.53 $ 5.92
 3 Months Ended
Components of Other Income (Expense), Net (Detail) - USD ($) $ in Millions
Dec. 31, 2024
Other Income and Expenses [Abstract]
Interest and dividends income $ 600
Interest expense (594)
Net recognized gains (losses) on investments (860)
Net losses on derivatives (116)
Net gains (losses) on foreign currency remeasurements (153)
Other, net (1,165)
Total $ (2,288)
3 Months Ended 6 Months Ended
Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ 734 $ 1,281 $ 1,900

(909) (1,176) (1,434)
69 (397) (38)
(267) (454) (174)
36 23 (65)
(169) (1,848) (306)
$ (506) $ (2,571) $ (117)
 Net Recognized Gains (Losses) on Debt Investments (Detail) - USD ($) $ in Millions
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At
Cost Income Statement Reported Amounts Summary [Line Items]
Realized gains from sales of available-for-sale securities
Realized losses from sales of available-for-sale securities
Total
Debt Securities
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At
Cost Income Statement Reported Amounts Summary [Line Items]
Impairments and allowance for credit losses
Total
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$9 $4 $ 17 $6
(19) (29) (34) (54)
(860) 69 (397) (38)

(14) 18 (2) 12
$ (24) $ (7) $ (19) $ (36)
 Net Recognized Gains (Losses) on Equity Investments (Detail) - USD ($) $ in Millions
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At
Cost Income Statement Reported Amounts Summary [Line Items]
Net realized gains (losses) on investments sold
Net unrealized gains on investments still held
Total
Equity Securities
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At
Cost Income Statement Reported Amounts Summary [Line Items]
Impairments of investments
Total
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ (8) $ (31) $ 57 $ 14
25 286 437 163
(860) 69 (397) (38)

(853) (179) (872) (179)

$ (836) $ 76 $ (378) $ (2)
 Investment Components (Detail) - USD ($) $ in Millions
Cash Cash Equivalents And Investments [Line Items]
Debt investments, Adjusted Cost Basis
Debt investments, Recorded Basis
Derivative, net
Cash and cash equivalents
Short-term Investments
Equity and other investments
Cash, cash equivalents, and investments
Equity Securities
Cash Cash Equivalents And Investments [Line Items]
Equity investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Equity Securities | Other
Cash Cash Equivalents And Investments [Line Items]
Equity investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Equity Securities | Level 1
Cash Cash Equivalents And Investments [Line Items]
Equity investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Cash
Cash Cash Equivalents And Investments [Line Items]
Cash
Cash and cash equivalents
Short-term Investments
Equity and other investments
Derivatives, net
Cash Cash Equivalents And Investments [Line Items]
Derivative, net
Cash and cash equivalents
Short-term Investments
Equity and other investments
Debt Securities
Cash Cash Equivalents And Investments [Line Items]
Debt investments, Adjusted Cost Basis
Debt investments, Unrealized Gains
Debt investments, Unrealized Losses
Debt investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Debt Securities | Commercial Paper | Level 2
Cash Cash Equivalents And Investments [Line Items]
Debt investments, Adjusted Cost Basis
Debt investments, Unrealized Gains
Debt investments, Unrealized Losses
Debt investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Debt Securities | Certificates of deposit | Level 2
Cash Cash Equivalents And Investments [Line Items]
Debt investments, Adjusted Cost Basis
Debt investments, Unrealized Gains
Debt investments, Unrealized Losses
Debt investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Debt Securities | U.S. government securities | Level 1
Cash Cash Equivalents And Investments [Line Items]
Debt investments, Adjusted Cost Basis
Debt investments, Unrealized Gains
Debt investments, Unrealized Losses
Debt investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Debt Securities | U.S. agency securities | Level 2
Cash Cash Equivalents And Investments [Line Items]
Debt investments, Adjusted Cost Basis
Debt investments, Unrealized Gains
Debt investments, Unrealized Losses
Debt investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Debt Securities | Foreign government bonds | Level 2
Cash Cash Equivalents And Investments [Line Items]
Debt investments, Adjusted Cost Basis
Debt investments, Unrealized Gains
Debt investments, Unrealized Losses
Debt investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Debt Securities | Mortgage- and asset-backed securities | Level 2
Cash Cash Equivalents And Investments [Line Items]
Debt investments, Adjusted Cost Basis
Debt investments, Unrealized Gains
Debt investments, Unrealized Losses
Debt investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Debt Securities | Corporate notes and bonds | Level 2
Cash Cash Equivalents And Investments [Line Items]
Debt investments, Adjusted Cost Basis
Debt investments, Unrealized Gains
Debt investments, Unrealized Losses
Debt investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Debt Securities | Corporate notes and bonds | Level 3
Cash Cash Equivalents And Investments [Line Items]
Debt investments, Adjusted Cost Basis
Debt investments, Unrealized Gains
Debt investments, Unrealized Losses
Debt investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Debt Securities | Municipal securities | Level 2
Cash Cash Equivalents And Investments [Line Items]
Debt investments, Adjusted Cost Basis
Debt investments, Unrealized Gains
Debt investments, Unrealized Losses
Debt investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments
Debt Securities | Municipal securities | Level 3
Cash Cash Equivalents And Investments [Line Items]
Debt investments, Adjusted Cost Basis
Debt investments, Unrealized Gains
Debt investments, Unrealized Losses
Debt investments, Recorded Basis
Cash and cash equivalents
Short-term Investments
Equity and other investments

[1] Refer to Note 5 – Derivatives for further information on the fair value of our derivative instruments.
 Dec. 31, 2024 Jun. 30, 2024

$ 65,613
63,181
583 $ 180
17,482 18,315
54,073 57,228
15,581 14,600
87,136 90,143

14,304 13,661
1,000 561
0 0
13,304 13,100

9,879 10,114
0 0
0 0
9,879 10,114

4,425 3,547
1,000 561
0 0
3,425 2,986

9,647 11,571
9,647 11,571
0 0
0 0

[1] 4 12
[1] 0 0
[1] 4 12
[1] 0 0
65,613 68,209
79 38
(2,511) (3,348)
63,181 64,899
6,835 6,183
54,069 57,216
2,277 1,500

3,515 4,666
0 0
0 0
3,515 4,666
3,515 4,666
0 0
0 0

3,349 1,547
0 0
0 0
3,349 1,547
3,302 1,503
47 44
0 0

46,013 49,603
1 4
(2,233) (2,948)
43,781 46,659
18 14
43,763 46,645
0 0

11 17
0 0
0 0
11 17
0 0
 11 17
0 0

311 319
7 3
(17) (16)
301 306
0 0
301 306
0 0

987 944
5 3
(33) (35)
959 912
0 0
959 912
0 0

8,693 9,106
38 28
(198) (318)
8,533 8,816
0 0
8,533 8,816
0 0

2,376 1,641
27 0
(3) (1)
2,400 1,640
0 0
123 140
2,277 1,500

254 262
 1 0
(11) (13)
244 249
0 0
244 249
0 0

104 104
0 0
(16) (17)
88 87
0 0
88 87
$0 $0

tive instruments.
 Investments - Additional Information (Detail) - USD ($) $ in Billions
Investments, Debt and Equity Securities [Abstract]
Equity investments without readily determinable fair values measured at cost with adjustments
for observable changes in price or impairments
Equity investments measured using equity method
Dec. 31, 2024 Jun. 30, 2024

$ 2.9 $ 3.9

$ 6.8 $6
 Unrealized Losses on Debt Investments (Detail) - USD ($) $ in Millions Dec. 31, 2024
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value $ 3,028
Less than 12 Months - Unrealized Losses (88)
12 Months or Greater - Fair Value 47,722
12 Months or Greater - Unrealized Losses (2,423)
Total Fair Value 50,750
Total Unrealized Losses (2,511)
U.S. government and agency securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value 871
Less than 12 Months - Unrealized Losses (61)
12 Months or Greater - Fair Value 42,775
12 Months or Greater - Unrealized Losses (2,172)
Total Fair Value 43,646
Total Unrealized Losses (2,233)
Foreign government bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value 99
Less than 12 Months - Unrealized Losses (4)
12 Months or Greater - Fair Value 127
12 Months or Greater - Unrealized Losses (13)
Total Fair Value 226
Total Unrealized Losses (17)
Mortgage- and asset-backed securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value 277
Less than 12 Months - Unrealized Losses (6)
12 Months or Greater - Fair Value 244
12 Months or Greater - Unrealized Losses (27)
Total Fair Value 521
Total Unrealized Losses (33)
Corporate notes and bonds
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value 1,781
Less than 12 Months - Unrealized Losses (17)
12 Months or Greater - Fair Value 4,339
12 Months or Greater - Unrealized Losses (184)
Total Fair Value 6,120
Total Unrealized Losses (201)
Municipal securities
Unrealized Losses on Investments [Line Items]
Less than 12 Months - Fair Value 0
Less than 12 Months - Unrealized Losses 0
12 Months or Greater - Fair Value 237
12 Months or Greater - Unrealized Losses (27)
Total Fair Value 237
Total Unrealized Losses $ (27)
Jun. 30, 2024

$ 2,157
(25)
52,432
(3,323)
54,589
(3,348)

529
(12)
45,821
(2,936)
46,350
(2,948)

79
(2)
180
(14)
259
(16)

201
(1)
409
(34)
610
(35)

1,310
(9)
5,779
(310)
7,089
(319)
 38
(1)
243
(29)
281
$ (30)
 Debt Investment Maturities (Detail) $ in Millions Dec. 31, 2024 USD ($)
Adjusted Cost Basis
Due in one year or less $ 22,927
Due after one year through five years 33,344
Due after five years through 10 years 7,934
Due after 10 years 1,408
Debt investments, Adjusted Cost Basis 65,613
Estimated Fair Value
Due in one year or less 22,788
Due after one year through five years 31,774
Due after five years through 10 years 7,325
Due after 10 years 1,294
Total $ 63,181
 Derivatives - Additional Information (Detail) - USD ($)

Derivative [Line Items]

Minimum required liquidity under certain counterparty agreements
Minimum liquidity for the period as defined by certain counterparty agreements
Gross amounts of derivative assets, elected to offset
Gross amounts of derivative liabilities, elected to offset
Senior Unsecured Obligations
Derivative [Line Items]
Debt instrument credit rating
6 Months Ended
Dec. 31, 2024 Jun. 30, 2024

$ 1,000,000,000
1,000,000,000
858,000,000 $ 304,000,000
$ 1,400,000,000 $ 800,000,000

AAA
 Notional Amounts of Outstanding Derivative Instruments Measured in U.S. Dollar Equivalents
(Detail) - USD ($) $ in Millions
Designated as Hedging Instruments | Foreign Exchange Contracts | Derivatives Purchased
Derivative [Line Items]
Notional amounts
Designated as Hedging Instruments | Interest Rate Contracts | Derivatives Purchased
Derivative [Line Items]
Notional amounts
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Derivatives Purchased
Derivative [Line Items]
Notional amounts
Not Designated as Hedging Instruments | Foreign Exchange Contracts | Derivatives Sold
Derivative [Line Items]
Notional amounts
Not Designated as Hedging Instruments | Equity Contracts | Derivatives Purchased
Derivative [Line Items]
Notional amounts
Not Designated as Hedging Instruments | Equity Contracts | Derivatives Sold
Derivative [Line Items]
Notional amounts
Not Designated as Hedging Instruments | Other Contracts | Derivatives Purchased
Derivative [Line Items]
Notional amounts
Not Designated as Hedging Instruments | Other Contracts | Derivatives Sold
Derivative [Line Items]
Notional amounts
Dec. 31, 2024 Jun. 30, 2024

$ 1,492 $ 1,492

1,126 1,100

7,791 7,167

30,921 31,793

5,198 4,016

2,170 2,165

2,636 2,113

$ 1,162 $ 811
 Fair Values of Derivative Instruments (Detail) - USD ($) $ in Millions
Derivatives Fair Value [Line Items]
Derivative Assets
Gross amounts of derivatives offset in the balance sheets, assets
Cash collateral received, assets
Net amounts of derivatives, assets
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration]
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration]
Derivative Liabilities
Gross amounts of derivatives offset in the balance sheets, liabilities
Cash collateral received, liabilities
Net amounts of derivatives, liabilities
Derivative Liability, Statement of Financial Position [Extensible Enumeration]
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]
Derivative Asset Statement of Financial Position [Extensible Enumeration not Disclosed Flag]
Derivative Liability Statement of Financial Position [Extensible Enumeration not Disclosed Flag]
Level 1
Derivatives Fair Value [Line Items]
Derivative Assets
Derivative Liabilities
Level 2
Derivatives Fair Value [Line Items]
Derivative Assets
Derivative Liabilities
Level 3
Derivatives Fair Value [Line Items]
Derivative Assets
Derivative Liabilities
Designated as Hedging Instruments | Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets
Derivative Liabilities
Designated as Hedging Instruments | Interest Rate Contracts
Derivatives Fair Value [Line Items]
Derivative Assets
Derivative Liabilities
Not Designated as Hedging Instruments | Foreign Exchange Contracts
Derivatives Fair Value [Line Items]
Derivative Assets
Derivative Liabilities
Not Designated as Hedging Instruments | Equity Contracts
Derivatives Fair Value [Line Items]
Derivative Assets
Derivative Liabilities
Not Designated as Hedging Instruments | Other Contracts
Derivatives Fair Value [Line Items]
Derivative Assets
Derivative Liabilities
Short-term Investments
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets
Other Current Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets
Other Long-term Assets
Derivatives Fair Value [Line Items]
Net amounts of derivatives, assets
Other Current Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities
Other Long-term Liabilities
Derivatives Fair Value [Line Items]
Net amounts of derivatives, liabilities
 Dec. 31, 2024 Jun. 30, 2024

$ 884 $ 331
(301) (151)
0 0
$ 583 $ 180
Other current assets Other current assets
Other long-term assets Other long-term assets
$ (1,452) $ (800)
303 152
(156) (104)
$ (1,305) $ (752)
Other current liabilities Other current liabilities
Other long-term liabilities Other long-term liabilities
Net amounts of derivatives, assets Net amounts of derivatives, assets
Net amounts of derivatives, liabilities Net amounts of derivatives, liabilities

$0 $0
0 (1)

878 327
(1,427) (799)

6 4
(25) 0

9 24
(88) (76)

17 19
0 0

835 213
(325) (230)
 19 63
(1,018) (491)

4 12
(21) (3)

4 12

561 149

18 19

(764) (401)

$ (541) $ (351)
 Gains (Losses) on Derivative Instruments Recognized in Other Income (Expense), Net (Detail) -
Other Income (Expense), Net - USD ($) $ in Millions
Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges
Equity Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges
Other Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gains (Losses) on Derivatives Not Designated as Hedges
Fair Value Hedges | Interest Rate Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Derivatives
Hedged items
Cash Flow Hedges | Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Amount reclassified from accumulated other comprehensive loss
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ 1,138 $ (334) $ 755 $ (128)

(111) (287) (459) (174)

(26) 36 (2) 3

(18) 22 2 6
8 (34) (24) (31)

$ (106) $ 51 $ (57) $5
Gains (Losses), Net of Tax, on Derivative Instruments Recognized in Consolidated Comprehensive
Income Statements (Detail) - USD ($) $ in Millions
Cash Flow Hedges | Foreign Exchange Contracts
Derivative Instruments, Gain (Loss) [Line Items]
Included in effectiveness assessment
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ (50) $ 37 $ (21) $ 22
 Components of Inventories (Detail) - USD ($) $ in Millions Dec. 31, 2024 Jun. 30, 2024
Inventory Disclosure [Abstract]
Raw materials $ 345 $ 394
Work in process 7 7
Finished goods 557 845
Total $ 909 $ 1,246
 Business Combinations - Additional Information (Detail) - Activision Blizzard, Inc. $ in Billions
Business Acquisition [Line Items]
Total consideration transferred
Acquisition date
 Oct. 13, 2023 USD ($)

$ 75.4
Oct. 13, 2023
 Major Classes of Assets and Liabilities Allocated Purchase Price (Detail) - USD ($) $ in Millions
Business Acquisition [Line Items]
Goodwill
Activision Blizzard, Inc.
Business Acquisition [Line Items]
Cash and cash equivalents
Goodwill
Intangible assets
Other assets
Long-term debt
Long-term income taxes
Deferred income taxes
Other liabilities
Total purchase price
Dec. 31, 2024 Jun. 30, 2024 Oct. 13, 2023

$ 119,191 $ 119,220

$ 12,976
51,001
21,969
2,503
(2,799)
(1,946)
(4,676)
(3,620)
$ 75,408
 Acquired Intangible Assets (Detail) - Activision Blizzard, Inc. $ in Millions
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired
Weighted Average Life
Marketing-related
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired
Weighted Average Life
Technology-based
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired
Weighted Average Life
Customer-related
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of intangible assets acquired
Weighted Average Life
 Oct. 13, 2023 USD ($)

$ 21,969
15 years

$ 11,619
24 years

$ 9,689
4 years

$ 661
4 years
Supplemental Consolidated Financial Results on Unaudited Pro Forma Basis (Detail) - Activision
Blizzard, Inc. - USD ($) $ / shares in Units, $ in Millions
Business Acquisition [Line Items]
Revenue
Net income
Diluted earnings per share
3 Months Ended 6 Months Ended
Dec. 31, 2023 Dec. 31, 2023

$ 62,297 $ 120,857
$ 22,025 $ 44,334
$ 2.95 $ 5.94
 6 Months Ended
Carrying Amount of Goodwill (Detail) $ in Millions
Dec. 31, 2024 USD ($)
Goodwill [Line Items]
Beginning Balance $ 119,220
Acquisitions 0
Other (29)
Ending Balance 119,191
Productivity and Business Processes
Goodwill [Line Items]
Beginning Balance 31,361
Acquisitions 0
Other (29)
Ending Balance 31,332
Intelligent Cloud
Goodwill [Line Items]
Beginning Balance 25,648
Acquisitions 0
Other (1)
Ending Balance 25,647
More Personal Computing
Goodwill [Line Items]
Beginning Balance 62,211
Acquisitions 0
Other 1
Ending Balance $ 62,212
 6 Months Ended
Goodwill - Additional Information (Detail)
Dec. 31, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill impairment charge $0
 Finite-Lived Intangible Assets (Detail) - USD ($) $ in Millions Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount $ 45,135
Accumulated Amortization (19,750)
Net Carrying Amount 25,385
Marketing-related
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount 16,489
Accumulated Amortization (3,499)
Net Carrying Amount 12,990
Technology-based
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount 22,481
Accumulated Amortization (12,785)
Net Carrying Amount 9,696
Customer-related
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount 6,030
Accumulated Amortization (3,444)
Net Carrying Amount 2,586
Contract-based
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount 135
Accumulated Amortization (22)
Net Carrying Amount $ 113
Jun. 30, 2024

$ 44,509
(16,912)
27,597

16,500
(3,101)
13,399

21,913
(10,741)
11,172

6,038
(3,051)
2,987

58
(19)
$ 39
 Intangible Assets - Additional Information (Detail) - USD ($) $ in Billions
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets amortization expense
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ 1.5 $ 1.3 $3 $2
 Estimated Future Amortization Expense Related to Intangible Assets (Detail) - USD ($) $ in
Millions
Goodwill and Intangible Assets Disclosure [Abstract]
Year Ending June 30, 2025 (excluding the six months ended December 31, 2024)
Year Ending June 30, 2026
Year Ending June 30, 2027
Year Ending June 30, 2028
Year Ending June 30, 2029
Thereafter
Net Carrying Amount
Dec. 31, 2024 Jun. 30, 2024

$ 3,075
4,576
2,850
1,986
1,804
11,094
$ 25,385 $ 27,597
 Components of Long-term Debt (Detail) - USD ($) $ in Millions

Debt Instrument [Line Items]

Total face value
Unamortized discount and issuance costs
Hedge fair value adjustments
Premium on debt exchange
Total debt
Current portion of long-term debt
Long-term debt
2009 Issuance of $3.8 billion
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
Total face value
2010 Issuance of $4.8 billion
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
Total face value
2011 Issuance of $2.3 billion
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
Total face value
2012 Issuance of $2.3 billion
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
Total face value
2013 Issuance of $5.2 billion
Debt Instrument [Line Items]
Maturities (calendar year)
Total face value
2013 Issuance of $5.2 billion | Minimum
Debt Instrument [Line Items]
Stated Interest Rate
Effective Interest Rate
2013 Issuance of $5.2 billion | Maximum
Debt Instrument [Line Items]
Stated Interest Rate
Effective Interest Rate
2013 Issuance of €4.1 billion
Debt Instrument [Line Items]
Total face value
2013 Issuance of €4.1 billion | Minimum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2013 Issuance of €4.1 billion | Maximum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2015 Issuance of $23.8 billion
Debt Instrument [Line Items]
Total face value
2015 Issuance of $23.8 billion | Minimum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2015 Issuance of $23.8 billion | Maximum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2016 Issuance of $19.8 billion
Debt Instrument [Line Items]
Total face value
2016 Issuance of $19.8 billion | Minimum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2016 Issuance of $19.8 billion | Maximum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2017 Issuance of $17.1 billion
Debt Instrument [Line Items]
Total face value
2017 Issuance of $17.1 billion | Minimum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2017 Issuance of $17.1 billion | Maximum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2020 Issuance of $10.1 billion
Debt Instrument [Line Items]
Total face value
2020 Issuance of $10.1 billion | Minimum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2020 Issuance of $10.1 billion | Maximum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2021 issuance of $8.2 billion
Debt Instrument [Line Items]
Total face value
2021 issuance of $8.2 billion | Minimum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2021 issuance of $8.2 billion | Maximum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2023 issuance of $0.1 billion
Debt Instrument [Line Items]
Total face value
2023 issuance of $0.1 billion | Minimum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2023 issuance of $0.1 billion | Maximum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2024 issuance of $3.3 billion
Debt Instrument [Line Items]
Total face value
2024 issuance of $3.3 billion | Minimum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate
2024 issuance of $3.3 billion | Maximum
Debt Instrument [Line Items]
Maturities (calendar year)
Stated Interest Rate
Effective Interest Rate

[1] Refer to Note 5 – Derivatives for further information on the interest rate swaps related to fixed-rate debt.
 6 Months Ended
ns
Dec. 31, 2024 Jun. 30, 2024

$ 51,138 $ 51,221
(1,191) (1,227)
[1] (57) (81)
(4,920) (4,976)
44,970 44,937
(5,248) (2,249)
$ 39,722 42,688

2039
5.20%
5.24%
$ 520 520

2040
4.50%
4.57%
$ 486 486

2041
5.30%
5.36%
$ 718 718

2042
3.50%
3.57%
$ 454 454

2043
$ 314 314

3.75%
 3.83%

4.88%
4.92%

$ 2,382 2,465

2028
2.63%
2.69%

2033
3.13%
3.22%

$ 9,805 9,805

2025
2.70%
2.77%

2055
4.75%
4.78%

$ 7,930 7,930

2026
2.40%
2.46%
2056
3.95%
4.03%

$ 6,833 6,833

2026
3.30%
3.38%

2057
4.50%
5.49%

$ 10,111 10,111

2030
1.35%
2.53%

2060
2.68%
5.43%

$ 8,185 8,185

2052
2.92%
2.92%

2062
3.04%
 3.04%

$ 56 56

2026
1.35%
5.16%

2050
4.50%
5.49%

$ 3,344 $ 3,344

2026
1.35%
5.16%

2050
4.50%
5.49%

ted to fixed-rate debt.

 Components of Long-term Debt (Parenthetical) (Detail) - 6 months ended Dec. 31, 2024 € in
Billions, $ in Billions
2009 Issuance of $3.8 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value
2010 Issuance of $4.8 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value
2011 Issuance of $2.3 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value
2012 Issuance of $2.3 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value
2013 Issuance of $5.2 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value
2013 Issuance of €4.1 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value | €
2015 Issuance of $23.8 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value
2016 Issuance of $19.8 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value
2017 Issuance of $17.1 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value
2020 Issuance of $10.1 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value
2021 issuance of $8.2 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value
2023 issuance of $0.1 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value
2024 issuance of $3.3 billion
Debt Instrument [Line Items]
Debt, issuance date
Debt, face value
 USD ($) EUR (€)

2009
$ 3.8

2010
$ 4.8

2011
$ 2.3

2012
$ 2.3

2013
$ 5.2

2013
€ 4.1

2015
$ 23.8

2016
$ 19.8

2017
$ 17.1

2020
 $ 10.1

2021
$ 8.2

2023
$ 0.1

2024
$ 3.3
 12 Months Ended
Debt - Additional Information (Detail) - USD ($) $ in Millions
Jun. 30, 2024
Debt Instrument [Line Items]
Long-term debt fair value $ 42,300
Short-term debt $ 6,693
Commercial Paper
Debt Instrument [Line Items]
Short term debt, weighted average interest rate 5.40%
Commercial Paper | Maximum
Debt Instrument [Line Items]
Short term borrowings maturity 152 days
Commercial Paper | Minimum
Debt Instrument [Line Items]
Short term borrowings maturity 28 days
Dec. 31, 2024

$ 42,000
$0
 Maturities of Long-term Debt Including Current Portion (Detail) - USD ($) $ in Millions
Debt Disclosure [Abstract]
Year Ending June 30, 2025 (excluding the six months ended December 31, 2024)
Year Ending June 30, 2026
Year Ending June 30, 2027
Year Ending June 30, 2028
Year Ending June 30, 2029
Thereafter
Total
Dec. 31, 2024 Jun. 30, 2024

$ 2,250
3,000
9,250
0
1,812
34,826
$ 51,138 $ 51,221
 3 Months Ended
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions
Dec. 31, 2024
Income Taxes [Line Items]
Effective tax rate 18%
Long-term income taxes $ 24,389
Unrecognized Tax Benefits and Other Income Tax Liabilities
Income Taxes [Line Items]
Long-term income taxes $ 25,800
3 Months Ended 6 Months Ended
Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023 Jun. 30, 2024

18% 18% 18%

$ 24,389 $ 27,931

$ 25,800 $ 24,900
 Income Taxes - Additional Information Regarding Examinations (Detail) - USD ($) $ in Billions

Foreign Country
Income Tax Examination [Line Items]
Tax years subject to examination

Internal Revenue Service (IRS)

Income Tax Examination [Line Items]
Tax years under audit
Settlement payments including tax and interest
Tax years subject to examination
 Sep. 26, 2023

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
$ 28.9
 6 Months Ended
Dec. 31, 2024

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

2014 2015 2016 2017

 Unearned Revenue by Segment (Detail) - USD ($) $ in Millions Dec. 31, 2024 Jun. 30, 2024
Contract With Customer Liability [Line Items]
Unearned revenue $ 48,045 $ 60,184
Productivity and Business Processes
Contract With Customer Liability [Line Items]
Unearned revenue 33,582 43,599
Intelligent Cloud
Contract With Customer Liability [Line Items]
Unearned revenue 10,979 13,683
More Personal Computing
Contract With Customer Liability [Line Items]
Unearned revenue $ 3,484 $ 2,902
 6 Months Ended
Changes in Unearned Revenue (Detail) $ in Millions
Dec. 31, 2024 USD ($)
Revenue from Contract with Customer [Abstract]
Balance, beginning of period $ 60,184
Deferral of revenue 74,211
Recognition of unearned revenue (86,350)
Balance, end of period $ 48,045
 Unearned Revenue - Additional Information (Detail) $ in Billions Dec. 31, 2024 USD ($)
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations $ 304
Commercial Customers
Contract With Customer Liability [Line Items]
Revenue allocated to remaining performance obligations $ 298
 Unearned Revenue - Remaining Performance Obligation - Additional Information (Detail) -
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-
01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Revenue allocated to remaining performance obligations, percentage of revenue expected to be
recognized
Revenue allocated to remaining performance obligations, expected timing of satisfaction
 Dec. 31, 2024

40%

12 months
 Leases - Additional Information (Detail) $ in Billions

Operating Lease
Lessee, Lease, Description [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced
Finance Lease
Lessee, Lease, Description [Line Items]
Additional leases, primarily for datacenters, that have not yet commenced
Minimum
Lessee, Lease, Description [Line Items]
Operating and Finance leases, remaining lease terms
Additional operating leases that have not yet commenced, lease terms
Additional finance leases that have not yet commenced, lease terms
Maximum
Lessee, Lease, Description [Line Items]
Operating and Finance leases, remaining lease terms
Operating leases, options to extend leases term
Finance leases, options to extend leases term
Operating and Finance leases, options to terminate leases term
Additional operating leases that have not yet commenced, lease terms
Additional finance leases that have not yet commenced, lease terms
 6 Months Ended
Dec. 31, 2024 USD ($)

$6

$ 99.4

1 year
1 year
1 year

20 years
5 years
5 years
1 year
25 years
25 years
 3 Months Ended
Components of Lease Expense (Detail) - USD ($) $ in Millions
Dec. 31, 2024 Dec. 31, 2023
Leases [Abstract]
Operating lease cost $ 1,293 $ 817
Finance lease cost:
Amortization of right-of-use assets 830 408
Interest on lease liabilities 337 168
Total finance lease cost $ 1,167 $ 576
 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023

$ 2,453 $ 1,591

1,524 788
611 317
$ 2,135 $ 1,105
 Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Millions
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
Operating cash flows from finance leases
Financing cash flows from finance leases
Right-of-use assets obtained in exchange for lease obligations:
Operating leases
Finance leases
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ 962 $ 803 $ 2,169 $ 1,597

319 168 594 317
480 288 1,282 573

3,098 847 4,991 2,651

$ 6,435 $ 1,796 $ 10,767 $ 3,500
 Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Millions
Operating Leases
Operating lease right-of-use assets
Total operating lease liabilities
Finance Leases
Accumulated depreciation
Property and equipment, net
Total finance lease liabilities
Weighted Average Remaining Lease Term
Operating leases
Finance leases
Weighted Average Discount Rate
Operating leases
Finance leases
Finance Lease
Finance Leases
Property and equipment, at cost
Accumulated depreciation
Property and equipment, net
Other Current Liabilities
Operating Leases
Total operating lease liabilities
Finance Leases
Total finance lease liabilities
Operating Lease Liabilities
Operating Leases
Total operating lease liabilities
Other Long-term Liabilities
Finance Leases
Total finance lease liabilities
 Dec. 31, 2024 Jun. 30, 2024

$ 22,816 $ 18,961
21,862 19,077

(82,820) (76,421)
166,902 135,591
$ 36,077 $ 27,145

7 years 7 years
12 years 12 years

3.40% 3.30%
4% 3.90%

$ 42,539 $ 32,248
(7,650) (6,386)
34,889 25,862

4,608 3,580

2,673 2,349

17,254 15,497

$ 33,404 $ 24,796
 Maturities of Lease Liabilities (Detail) - USD ($) $ in Millions
Leases [Abstract]
Operating Leases, Year Ending June 30, 2025 (excluding the six months ended December 31, 2024)
Operating Leases, Year Ending June 30, 2026
Operating Leases, Year Ending June 30, 2027
Operating Leases, Year Ending June 30, 2028
Operating Leases, Year Ending June 30, 2029
Operating Leases, Thereafter
Operating Leases, Total lease payments
Operating Leases, Less imputed interest
Operating Leases
Finance Leases, Year Ending June 30, 2025 (excluding the six months ended December 31, 2024)
Finance Leases, Year Ending June 30, 2026
Finance Leases, Year Ending June 30, 2027
Finance Leases, Year Ending June 30, 2028
Finance Leases, Year Ending June 30, 2029
Finance Leases, Thereafter
Finance Leases, Total lease payments
Finance Leases, Less imputed interest
Finance Leases
Dec. 31, 2024 Jun. 30, 2024

$ 2,726
4,920
4,063
3,025
2,203
7,433
24,370
(2,508)
21,862 $ 19,077
1,979
4,149
4,180
4,175
3,528
28,350
46,361
(10,284)
$ 36,077 $ 27,145
 Contingencies - Additional Information (Detail) $ in Millions
Commitments and Contingencies Disclosure [Abstract]
Accrual for disclosed loss contingencies, current, ending balance
Amount not accrued for estimated maximum losses for disclosed loss contingencies
Dec. 31, 2024 USD ($)

$ 510
$ 800
 Stockholders' Equity - Additional Information (Detail) - USD ($)
Share Repurchase Program [Line Items]
Amount of shares repurchased to settle employee tax withholding related to vesting of stock
awards
Share Repurchase Program 2021
Share Repurchase Program [Line Items]
Amount available for repurchase under the share repurchase program approved by the company's
Board of Directors
Unused amount of share repurchase program
Share Repurchase Program 2024
Share Repurchase Program [Line Items]
Amount available for repurchase under the share repurchase program approved by the company's
Board of Directors
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023 Sep. 16, 2024

$ 1,500,000,000 $ 1,200,000,000 $ 2,800,000,000 $ 2,500,000,000

$ 4,000,000,000 $ 4,000,000,000

$ 60,000,000,000
 Sep. 14, 2021

$ 60,000,000,000
 Share Repurchases (Detail) - Share Repurchase Program 2021 - USD ($) $ in Millions
Share Repurchase Program [Line Items]
Shares of common stock repurchased
Value of common stock repurchased
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Sep. 30, 2024 Dec. 31, 2023 Sep. 30, 2023 Dec. 31, 2024 Dec. 31, 2023

8,000,000 7,000,000 7,000,000 11,000,000 15,000,000 18,000,000

$ 3,500 $ 2,800 $ 2,800 $ 3,560 $ 6,300 $ 6,360
 3 Mo
Dividends Declared (Detail) - USD ($) $ / shares in Units, $ in Millions
Dec. 31, 2024
Dividends Payable [Line Items]
Dividend Per Share $ 0.83
Amount $ 6,171
O2025Q1 Dividends
Dividends Payable [Line Items]
Declaration Date
Record Date
Payment Date
O2025Q2 Dividends
Dividends Payable [Line Items]
Declaration Date Dec. 03, 2024
Record Date Feb. 20, 2025
Payment Date Mar. 13, 2025
O2024Q1 Dividends
Dividends Payable [Line Items]
Declaration Date
Record Date
Payment Date
O2024Q2 Dividends
Dividends Payable [Line Items]
Declaration Date
Record Date
Payment Date
 3 Months Ended 6 Months Ended
Sep. 30, 2024 Dec. 31, 2023 Sep. 30, 2023 Dec. 31, 2024 Dec. 31, 2023

$ 0.83 $ 0.75 $ 0.75 $ 1.66 $ 1.5

$ 6,170 $ 5,573 $ 5,574 $ 12,341 $ 11,147

Sep. 16, 2024

Nov. 21, 2024
Dec. 12, 2024

Sep. 19, 2023

Nov. 16, 2023
Dec. 14, 2023

Nov. 28, 2023

Feb. 15, 2024
Mar. 14, 2024
 Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component
(Detail) - USD ($) $ in Millions
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period
Other comprehensive income (loss)
Balance, end of period
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period
Unrealized gains (losses), net of tax
Tax expense (benefit) included in provision for income taxes
Amounts reclassified from accumulated other comprehensive loss
Other comprehensive income (loss)
Balance, end of period
Derivatives | Other Income (Expense), Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses included in other income (expense), net
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period
Unrealized gains (losses), net of tax
Tax expense (benefit) included in provision for income taxes
Amounts reclassified from accumulated other comprehensive loss
Other comprehensive income (loss)
Balance, end of period
Investments | Other Income (Expense), Net
Accumulated Other Comprehensive Income (Loss) [Line Items]
Reclassification adjustments for (gains) losses included in other income (expense), net
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period
Other comprehensive income (loss)
Balance, end of period
Accumulated other comprehensive loss
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance, beginning of period
Other comprehensive income (loss)
Balance, end of period
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ 268,477
$ (1,434) $ 1,988 (26) $ 1,394
302,695 238,268 302,695 238,268

(13) (6) (3) (27)

(50) 37 (21) 22
(22) 11 (12) 1
84 (40) 45 (4)
34 (3) 24 18
21 (9) 21 (9)

106 (51) 57 (5)

(1,511) (3,842) (2,625) (3,582)

(453) 1,325 665 1,042
(5) (1) (4) (7)
19 6 15 29
(434) 1,331 680 1,071
(1,945) (2,511) (1,945) (2,511)

24 7 19 36

(2,658) (3,089) (2,962) (2,734)

(1,034) 660 (730) 305
(3,692) (2,429) (3,692) (2,429)

(4,182) (6,937) (5,590) (6,343)

(1,434) 1,988 26 1,394
$ (5,616) $ (4,949) $ (5,616) $ (4,949)
 Summary of Changes in Accumulated Other Comprehensive Income (Loss) by Component
(Parenthetical) (Detail) - USD ($) $ in Millions
Derivatives
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), net of tax
Net change related to other comprehensive income (loss), tax
Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Unrealized gains (losses), net of tax
Net change related to other comprehensive income (loss), tax
Translation adjustments and other
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net change related to other comprehensive income (loss), tax
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ (13) $ 10 $ (6) $6
9 (1) 6 5

(121) 352 176 277

(116) 353 180 284

$0 $0 $0 $0
 3 Months Ended
Segment Revenue (Detail) - USD ($) $ in Millions
Dec. 31, 2024 Dec. 31, 2023
Segment Reporting Information [Line Items]
Revenue $ 69,632 $ 62,020
Productivity and Business Processes
Segment Reporting Information [Line Items]
Revenue 29,437 25,854
Intelligent Cloud
Segment Reporting Information [Line Items]
Revenue 25,544 21,525
More Personal Computing
Segment Reporting Information [Line Items]
Revenue $ 14,651 $ 14,641
 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023

$ 135,217 $ 118,537

57,754 51,080

49,636 41,538

$ 27,827 $ 25,919
 3 Months Ended
Operating Income (Loss) by Segment (Detail) - USD ($) $ in Millions
Dec. 31, 2024
Segment Reporting Information [Line Items]
Operating Income (Loss) $ 31,653
Productivity and Business Processes
Segment Reporting Information [Line Items]
Operating Income (Loss) 16,885
Intelligent Cloud
Segment Reporting Information [Line Items]
Operating Income (Loss) 10,851
More Personal Computing
Segment Reporting Information [Line Items]
Operating Income (Loss) $ 3,917
3 Months Ended 6 Months Ended
Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ 27,032 $ 62,205 $ 53,927

14,515 33,401 28,812

9,555 21,354 18,463

$ 2,962 $ 7,450 $ 6,652

 Segment Information and Geographic Data - Additional Information (Detail)

Segment Reporting [Abstract]

Sales to an individual customer
 6 Months Ended
Dec. 31, 2024

No sales to an individual customer or country other than the United States accounted for more
than 10% of revenue for the three or six months ended December 31, 2024 or 2023.
 Revenue Classified by Major Geographic Areas (Detail) - USD ($) $ in Millions
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue
Other Countries
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue

[1] Includes billings to OEMs and certain multinational organizations because of the nature of these businesses and the impra
source of the revenue.
 3 Months Ended 6 Months Ended
n Millions
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ 69,632 $ 62,020 $ 135,217 $ 118,537

[1] 35,537 32,295 69,450 61,107

$ 34,095 $ 29,725 $ 65,767 $ 57,430

ture of these businesses and the impracticability of determining the geographic

 Revenue Classified by Significant Product and Service Offerings (Detail) - USD ($) $ in Millions
Revenue from External Customer [Line Items]
Revenue
Server Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue
Microsoft 365 Commercial Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue
Gaming
Revenue from External Customer [Line Items]
Revenue
LinkedIn
Revenue from External Customer [Line Items]
Revenue
Windows and Devices
Revenue from External Customer [Line Items]
Revenue
Search and News Advertising
Revenue from External Customer [Line Items]
Revenue
Enterprise and Partner Services
Revenue from External Customer [Line Items]
Revenue
Dynamics Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue
Microsoft 365 Consumer Products and Cloud Services
Revenue from External Customer [Line Items]
Revenue
Other
Revenue from External Customer [Line Items]
Revenue
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ 69,632 $ 62,020 $ 135,217 $ 118,537

23,641 19,597 45,796 37,659

21,117 18,321 41,566 36,365

6,581 7,111 12,202 11,030

4,587 4,195 8,879 8,108

4,512 4,363 8,841 8,703

3,558 3,168 6,783 6,186

1,892 1,917 3,820 3,861

1,913 1,659 3,762 3,285

1,821 1,679 3,548 3,322

$ 10 $ 10 $ 20 $ 18
 Revenue Classified by Significant Product and Service Offerings (Parenthetical) (Detail) - USD ($)
$ in Millions
Revenue from External Customer [Line Items]
Revenue
Microsoft Cloud
Revenue from External Customer [Line Items]
Revenue
 3 Months Ended 6 Months Ended
Dec. 31, 2024 Dec. 31, 2023 Dec. 31, 2024 Dec. 31, 2023

$ 69,632 $ 62,020 $ 135,217 $ 118,537

$ 40,900 $ 33,700 $ 79,800 $ 65,600