Microsoft Corporation Due Diligence

Run due diligence on Microsoft Corporation: check incident history and compliance and get alerts when suppliers or ownership change.

United States · owned by Independent (United States) · microsoft.com · 55 vendors

Microsoft Corporation is a global technology company that develops, manufactures, licenses, supports, and sells software, consumer electronics, personal computers, and related services. Its flagship products include the Windows operating system, Microsoft 365 productivity suite, Azure cloud platform, Xbox gaming hardware and services, and the AI-powered Copilot assistant. Headquartered in Redmond, Washington, USA, Microsoft is one of the world's most valuable publicly traded companies.

Resilience scores

Disruption prediction

Microsoft Corporation's riskiest service, Microsoft Fabric: 1 critical incidents expected in the next three months.

The only Microsoft Corporation service with a critical incident of its own on record.

Forecast estimates are rounded up to whole numbers.

Partial disruption reported (its status page, as of 2026-11-09 23:55 UTC): Packages\Artifacts Availability Degradation

24 of Microsoft Corporation's 55 vendors have incident tracking.

Technology vendors

Services catalogue

200 services in catalogue across 13 categories; runs on 55 sub-vendors.

Insights

Last updated 2026-10-01 · revision 68

55 direct vendors, 332 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

6 in-scope frameworks identified; showing 3.

ISO 27001 (source) — Evidence found

Evidence: https://www.microsoft.com/en-us/trust-center/security/secure-future-initiative, https://www.microsoft.com/en-us/trust-center/compliance/compliance-overview

GDPR (source) — Evidence found

Evidence: https://www.microsoft.com/en-us/trust-center/privacy/gdpr-overview, https://www.microsoft.com/en-us/trust-center/privacy/european-data-boundary-eudb, https://www.microsoft.com/en-us/privacy

NIS2 (source) — No public evidence

Evidence: https://www.microsoft.com/en-us/trust-center/compliance/nis2-compliance, https://www.microsoft.com/en-us/trust-center/compliance/compliance-overview

Financials

Three-year financials

Financial Resilience Score: 10/10

Microsoft demonstrates exceptional financial resilience, holding one of only a handful of AAA long-term unsecured credit ratings among US corporates. The company maintains a massive cash and investment cushion of $94.6B against just $43B of long-term debt, resulting in a substantial net cash position. Operating cash flow of $136.2B in FY2025 provides immense self-funding capacity, while a 45.6% operating margin reflects best-in-class profitability. Revenue is highly diversified across segments (Productivity & Business Processes 42.9%, Intelligent Cloud 37.7%, More Personal Computing 19.4%) and geographies (51% US, 49% international), with no single customer or non-US country exceeding 10% of revenue. The $375B remaining performance obligations backlog provides strong revenue visibility, and recurring cloud revenue (Microsoft Cloud at $168.9B, 60% of total) continues to expand at 23% YoY. Key risks include heavy AI/cloud capex intensity ($64.6B in FY25, more than doubled in two years) that is compressing Microsoft Cloud gross margins to 69%, $92.7B of uncommitted future lease obligations, $13B in funding commitments to OpenAI (which produced $4.7B equity-method losses in FY25), and a $28.9B IRS transfer pricing dispute for tax years 2004-2013. Despite these, Microsoft's scale, cash generation, and diversification make its financial position virtually unmatched.

Key strengths: AAA long-term unsecured credit rating, $94.6B cash and short-term investments vs. $43B long-term debt (net cash position), $136.2B annual operating cash flow with 45.6% operating margin, Highly diversified revenue across segments, geographies, and products, $375B remaining performance obligations backlog, Microsoft Cloud at $168.9B (60% of revenue), growing 23% YoY, $37.7B in capital returns (FY25: $13B buybacks + $24.7B dividends), $57.3B buyback authorization remaining

Risk factors: AI/cloud capex intensity compressing margins (Microsoft Cloud gross margin fell to 69%), $92.7B in uncommitted future lease obligations (FY26-FY31), $32.1B construction commitments and $110B purchase commitments, $13B OpenAI funding commitments with $4.7B equity-method losses in FY25, IRS dispute seeking $28.9B in additional tax for 2004-2013 transfer pricing, ~49% international revenue exposes to FX (10% adverse move = ~$11.6B impact), Regulatory exposure: EU DMA, DSA, GDPR (LinkedIn IDPC fine appealed)

Revenue by geography

Revenue by product/service

Workforce by country

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