10-K filed 2026-07-29

These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “could,” “will be,” “will continue,” “will likely result,” and similar expressions.

We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise.

AI is fundamentally transforming productivity for every individual, organization, and industry.

We offer an array of services, including cloud-based solutions that provide customers with AI, software, services, platforms, and content, and we provide solution support and consulting services.

For enterprises, digital technology empowers employees, optimizes operations, engages customers, and in some cases, changes the very core of products and services.

• Build the intelligent cloud and intelligent edge platform to provide a foundation for our customers' digital workloads, including hybrid consistency, developer productivity, data and AI capabilities, and trusted security and compliance.

Our future growth depends on our ability to transcend current product category definitions, business models, and sales motions.

More information about our progress toward these goals can be found in our annual Environmental Sustainability Report.

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.

Microsoft 365 Commercial Products and Cloud Services Microsoft 365 Commercial is an AI-powered business and productivity solutions platform that brings together Office, Windows, Microsoft 365 Copilot, and Enterprise Mobility + Security to help organizations empower their employees.

LinkedIn faces competition from online professional networks; recruiting, talent management, and human resource services companies; job boards; companies that provide learning and development products and services; online and offline outlets that generate revenue from advertisers and marketers; and online and offline outlets for companies with lead generation and customer intelligence and insights.

6 PART I Item 1 Server Products and Cloud Services Azure is a comprehensive set of cloud services that offer developers, IT professionals, and enterprises freedom to build, deploy, and manage applications on any platform or device.

This includes the server platform, database, business intelligence, storage, management and operations, virtualization, service-oriented architecture platform, security, and identity software.

Health and Life Sciences cloud services provides AI solutions to the healthcare industry.

Our Azure Security offerings include our cloud security solution and our security information and event management solution, which compete with providers in the cybersecurity and cloud security space.

We compete to provide enterprise-wide computing and point solutions with numerous commercial software vendors that offer solutions and middleware technology platforms, software applications for connectivity, security, hosting, database, and e-business servers.

Our Enterprise and partner services business competes with a wide range of companies that provide strategy and business planning, application development, and infrastructure services, including multinational consulting firms and small niche businesses focused on specific technologies.

Windows and Devices The Windows operating system is designed to deliver a more personal computing experience for users by enabling consistency of experience, applications, and information across their devices.

• Customer mix between consumer, small and medium businesses, and large enterprises.

Our devices are designed to enable people and organizations to connect to the people and content that matter most using Windows and integrated Microsoft products and services.

Our game content is developed through a collection of first-party studios creating iconic and differentiated gaming experiences.

Growth of our XBOX business is determined by the overall active user base through XBOX enabled content, availability of games, providing exclusive game content that gamers seek, the computational power and reliability of the devices used to access our content and services, and the ability to create new experiences.

In addition to first-party tools, we have several partnerships with companies through which we provide and monetize search offerings.

Many of these manufacturers are also current or potential partners and customers, including our Windows OEMs.

HUMAN CAPITAL RESOURCES As of June 30, 2026, we employed approximately 223,000 people on a full-time basis, 121,000 in the U.S.

Our total compensation offering is both highly differentiated and competitive within the market, and we also monitor pay equity across multiple dimensions.

9 PART I Item 1 OPERATIONS We have a global operations service center covering the Americas, Asia Pacific, Europe, and the Middle East that supports our business operations, including customer contract and order processing, billing, credit and collections, customer lifecycle AI and cloud operations, and vendor management and logistics.

There are few qualified suppliers for certain components of our servers and devices.

From time to time, we enter into broader cross-license agreements with other technology companies covering entire groups of patents.

While it may be necessary in the future to seek or renew licenses relating to various aspects of our products and services, we believe, based upon past experience and industry practice, such licenses generally can be obtained on commercially reasonable terms.

The indirect channel extends the reach of commercial offerings and supports customers across industries, geographies, and organization sizes.