Microsoft Has $678 Billion of Revenue Already Under Contract. That's More Than 2 Years of Sales.
The software giant's contracted future revenue now exceeds two full years of sales. Here's what that buys investors.
Overview
Microsoft's (NASDAQ: MSFT) fiscal fourth-quarter report, released Wednesday afternoon, was full of big numbers. But one of them towers over the rest. Commercial remaining performance obligations came in at $678 billion, up 84% year over year.
That figure represents contracted work Microsoft has signed but not yet delivered -- revenue that customers have committed to but that hasn't reached the income statement. The revenue shows up only as Microsoft delivers the computing power and software those contracts cover, so the total speaks to how much demand exists, not when it arrives. Still, its scale is easier to appreciate with some context. Microsoft's revenue for all of fiscal 2026 (the year ended June 30) was $331.8 billion. In other words, the software giant has already booked more than two full years' worth of sales.
Details
For a company that poured $115.9 billion into capital expenditures during the fiscal year, largely on the data centers behind its cloud and AI (artificial intelligence) services, that much signed demand is arguably the most important number in the report.
Source
Originally published at www.fool.com.