Here are 1-3 brief analogies for Microsoft (MSFT):

• Microsoft is like IBM for the modern digital era, providing foundational software and cloud infrastructure that powers global businesses and individuals.
• Imagine the cloud power of Amazon Web Services (AWS), the business productivity of Google's enterprise tools, and the gaming entertainment of Sony's PlayStation, all rolled into one company. That's Microsoft.

• Windows: The widely used operating system for personal computers, tablets, and other devices.
• Microsoft 365: A subscription service providing productivity applications such as Word, Excel, PowerPoint, and cloud services like OneDrive and Teams. (Category: Productivity Software as a Service)
• Microsoft Azure: A comprehensive cloud computing service offering various infrastructure, platform, and software solutions for businesses. (Category: Cloud Computing Services)
• Xbox: A leading gaming brand that includes consoles, games, and subscription services like Xbox Game Pass for interactive entertainment. (Category: Gaming Hardware & Services)
• Surface: Microsoft's line of premium hardware products, including laptops, tablets, and all-in-one PCs.
• LinkedIn: A professional networking service enabling users to connect, share career-related content, and find jobs. (Category: Professional Networking Service)
• Dynamics 365: A suite of cloud-based enterprise resource planning (ERP) and customer relationship management (CRM) business applications. (Category: Business Application Services)
• GitHub: A web-based hosting service for software development and version control using Git, primarily for source code. (Category: Developer Services)

Microsoft (MSFT) primarily sells its products and services to other companies (B2B), although it also has a significant consumer business.

Its business-to-business customer base is incredibly broad, encompassing millions of companies across virtually every industry and of all sizes, from small and medium-sized businesses (SMBs) to large multinational corporations, governments, and educational institutions. No single customer or small group of customers accounts for a significant portion of Microsoft's overall revenue.

However, for its Windows operating system, Microsoft has direct customer relationships with Original Equipment Manufacturers (OEMs) who pre-install Windows on the personal computers and devices they manufacture. These OEMs are major direct customers for Windows licenses, and their sales collectively represent a significant channel for Microsoft's products.

Major OEM customers that purchase Windows licenses from Microsoft include:

• Dell Technologies (symbol: DELL)
• HP Inc. (symbol: HPQ)
• Lenovo Group Limited (symbol: HKG: 0992)

Beyond OEMs, Microsoft also directly serves millions of other companies globally with its cloud computing services (Azure), productivity and collaboration software (Microsoft 365 commercial), business applications (Dynamics 365), and server products.

• Intel Corporation (INTC)
• Advanced Micro Devices, Inc. (AMD)
• Qualcomm Incorporated (QCOM)
• Micron Technology, Inc. (MU)
• Samsung Electronics Co., Ltd. (005930.KS)
• Western Digital Corporation (WDC)
• Hon Hai Precision Industry Co., Ltd. (2317.TW)
• Quanta Computer Inc. (2382.TW)
• Wiwynn Corporation (6669.TW)
• Broadcom Inc. (AVGO)

Satya Nadella, Chairman and Chief Executive Officer

Satya Nadella became CEO of Microsoft in February 2014 and Chairman in 2021. He joined Microsoft in 1992. Before joining Microsoft, Nadella was a member of the technology staff at Sun Microsystems.

Amy Hood, Executive Vice President and Chief Financial Officer

Amy Hood has been the Executive Vice President and Chief Financial Officer of Microsoft since 2013, making her the first female CFO in the company's history. She joined Microsoft in 2002. Prior to Microsoft, Hood worked at Goldman Sachs in various roles, including investment banking and capital markets groups for eight years.

Brad Smith, Vice Chair and President

Brad Smith joined Microsoft in 1993 and is currently the Vice Chair and President. He leads a team of business, legal, and corporate affairs professionals and plays a key role in issues like cybersecurity, privacy, and artificial intelligence. Before joining Microsoft, Smith was an associate and then a partner at the law firm Covington and Burling. He co-founded Kids in Need of Defense (KIND) with Angelina Jolie in 2008.

Judson Althoff, Chief Executive Officer of Commercial Business

Judson Althoff joined Microsoft in March 2013 as president of Microsoft North America. He was appointed CEO of Microsoft's commercial business in October 2025, leading a new organization combining sales, marketing, and operations. Before Microsoft, he held senior sales leadership roles at Oracle Corp and EMC.

Kathleen Hogan, Executive Vice President, Office of Strategy and Transformation

Kathleen Hogan joined Microsoft in 2003. In March 2025, she transitioned to Executive Vice President, Office of Strategy and Transformation, focusing on corporate strategy and the company's transformation process. Prior to Microsoft, Hogan worked at Oracle Corporation as a software developer and manager, and then as a management consultant for McKinsey & Company.

Microsoft (MSFT) participates in several large addressable markets with its main products and services. Below is an overview of the market sizes for these key offerings:

• Cloud Computing (Microsoft Azure): The global cloud computing market was estimated at $752.44 billion in 2024 and is projected to reach $2,390.18 billion by 2030, growing at a CAGR of 20.4% from 2025 to 2030. Microsoft Azure held a 24% share of the global cloud computing market in Q1 2024. Microsoft's Intelligent Cloud segment, which includes Azure and other cloud services, generated $96.2 billion in revenue in 2023. The global Azure Managed Service market is projected to reach $13.2 billion by 2031.
• Productivity Software (Microsoft 365): In the global market for cloud-based productivity suites, Microsoft 365 controls an estimated 30% market share. Over 3.7 million companies globally use Microsoft 365. In the United States alone, 1 million businesses are active Microsoft 365 users. The global Office 365 management software market size was $12.51 billion in 2024 and is expected to reach $26.98 billion by 2031.
• Operating Systems (Windows): Windows is the most popular desktop operating system in the world, holding a 72% market share as of October 2025. As of October 2025, Windows 11 holds 55.18% of the market share among Windows versions worldwide, while Windows 10 has 41.71%.
• Gaming (Xbox): The global Xbox gaming console market was valued at $5.53 billion in 2024 and is estimated to reach $10.08 billion by 2033. Xbox holds a 31% share of the global console market as of Q1 2025. The global market for Xbox games was valued at $856 million in 2024 and is projected to reach $1.24 billion by 2031.
• Business Applications (Microsoft Dynamics 365): The global Microsoft Dynamics market size was $10.2 billion in 2024 and is expected to grow to $17.33 billion by 2029. The global Microsoft Dynamics 365 Consulting Service market size was valued at $3.53 billion in 2025 and is expected to reach $12.9 billion by 2035.

Expected Drivers of Future Revenue Growth for Microsoft (MSFT) over the Next 2-3 Years

1. AI-Powered Cloud Services and Azure Expansion: Microsoft's Azure cloud platform is a primary driver of future revenue growth, fueled significantly by the escalating demand for artificial intelligence (AI) services. The company's substantial investments in AI infrastructure, including data centers and advanced computing capabilities, and its strategic partnership with OpenAI, position Azure as a leading platform for AI-powered cloud solutions. Azure reported 33% revenue growth in Q1 2025 and 40% growth in Q1 2026 for Azure and other cloud services. This focus aims to attract new customers and increase consumption among existing clients, including a large percentage of Fortune 500 companies utilizing Azure.
2. Monetization and Integration of Microsoft Copilot and AI Products: Microsoft is heavily investing in AI technologies, with over $20 billion allocated to AI initiatives, including an $11.8 billion investment in OpenAI. The company expects AI to be its fastest division to reach a $10 billion revenue run rate. Key to this strategy is the widespread integration and monetization of Copilot across its product ecosystem, including Microsoft 365 and GitHub. Copilot is rapidly gaining adoption, with 90% of Fortune 500 companies reportedly using Microsoft 365 Copilot and GitHub Copilot exceeding 26 million users worldwide. This integration aims to enhance productivity, drive efficiencies for customers, and create new revenue streams.
3. Growth in Gaming through Content and Subscription Services: The acquisition of Activision Blizzard has significantly bolstered Microsoft Gaming, contributing to a lift in the Personal Computing division and expanding its player base. Microsoft's gaming strategy emphasizes a shift towards a subscription-based model with Xbox Game Pass and a platform-agnostic approach, making games available across consoles, PCs, mobile devices, and cloud gaming. The introduction of new tiered pricing for Game Pass, coupled with major content releases like Call of Duty, is designed to attract more subscribers and improve profitability.
4. Continued Strength and Upselling in Microsoft 365 Commercial and Business Applications: Microsoft 365 Commercial cloud revenue continues to demonstrate robust growth (e.g., 17% increase in Q1 FY26). The company is focused on upselling customers to higher-value versions, such as those including advanced telephony features and Copilot for Microsoft 365 (E5 plans). Additionally, segments like Dynamics 365 and LinkedIn continue to contribute to revenue growth, with LinkedIn showing consistent increases in revenue. These areas represent ongoing opportunities to deepen customer relationships and increase average revenue per user.

Share Repurchases

• A $60 billion share repurchase program was approved on September 14, 2021, and completed in April 2025.
• On September 16, 2024, Microsoft's Board of Directors approved a new $60 billion share repurchase program, which commenced in April 2025.
• Microsoft repurchased $13.0 billion in common stock during fiscal year 2025 and $12.0 billion in fiscal year 2024.

Share Issuance

• Microsoft's issuance of common stock averaged $1.892 billion annually from fiscal years 2021 to 2025.
• The issuance of common stock peaked at $2.056 billion in fiscal year 2025.
• As of June 30, 2025, 62 million shares of common stock were reserved for future issuance through the Employee Stock Purchase Plan (ESPP).

Outbound Investments

• Microsoft acquired Activision Blizzard for $68.7 billion in 2023, enhancing its gaming content for Xbox Game Pass.
• In 2020, Microsoft acquired ZeniMax Media (Bethesda) for $7.5 billion, adding major gaming franchises to its portfolio.
• In April 2025, Microsoft invested $1.5 billion in G42, a leading AI and cloud computing company in Abu Dhabi, including a $1 billion fund for AI skills development.

Capital Expenditures

• Microsoft's capital expenditures have increased significantly, rising from $17.6 billion in 2020 to $64.551 billion in fiscal year 2025.
• Capital expenditures for the first quarter of fiscal year 2026 (ending September 30, 2025) reached $34.9 billion, driven by data center expansion and AI infrastructure.
• The company expects capital expenditures to be around $80 billion for fiscal year 2025, primarily focused on building out AI-enabled data centers to support AI models and cloud-based applications, with a forecast of $90.502 billion for the next fiscal year.