Microsoft Corp., balance sheet: debt

US$ in millions

	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Short-term debt	—)	—)	6,693)	—)	—)	—)
Current portion of long-term debt	9,227)	2,999)	2,249)	5,247)	2,749)	8,072)
Current finance lease liabilities	4,290)	3,172)	2,349)	1,197)	1,060)	791)
Long-term debt, excluding current portion	31,067)	40,152)	42,688)	41,990)	47,032)	50,074)
Long-term finance lease liabilities	62,304)	43,000)	24,796)	15,870)	13,842)	11,750)
Total debt and finance lease liabilities (carrying amount)	106,888)	89,323)	78,775)	64,304)	64,683)	70,687)

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).

Total debt and finance lease liabilities exhibited a U-shaped trajectory over the analyzed period. After a period of contraction between June 30, 2021, and June 30, 2023, where obligations decreased from US$ 70,687 million to US$ 64,304 million, there is a pronounced and accelerating upward trend. By June 30, 2026, total liabilities reached US$ 106,888 million, marking a significant expansion of the balance sheet's debt obligations.

Long-Term Debt Composition: Long-term debt, excluding the current portion, demonstrates a steady downward trend, declining from US$ 50,074 million in 2021 to US$ 31,067 million by 2026. This indicates a consistent reduction in traditional long-term borrowing over the six-year period.
Expansion of Finance Lease Liabilities: The primary driver of the increase in total debt is the rapid growth of finance lease liabilities. Long-term finance lease liabilities grew from US$ 11,750 million in 2021 to US$ 62,304 million in 2026. Similarly, current finance lease liabilities increased from US$ 791 million to US$ 4,290 million, signaling a strategic shift toward lease-based financing for assets.
Short-Term Debt and Current Obligations: Current liabilities show increased volatility and growth toward the end of the period. The current portion of long-term debt peaked at US$ 9,227 million in 2026. Furthermore, the appearance of short-term debt in 2024 at US$ 6,693 million suggests a change in the short-term funding strategy or a restructuring of debt maturities.

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	Jun 30, 2026
Selected Financial Data (US$ in millions)
Short-term debt	—)
Long-term debt, including current portion	36,500)
Finance lease liabilities	66,594)
Total debt and finance lease liabilities (fair value)	103,094)
Financial Ratio
Debt, fair value to carrying amount ratio	0.96

Based on: 10-K (reporting date: 2026-06-30).

Weighted average effective interest rate on debt and finance lease liabilities: 4.52%

Interest rate	Debt amount¹	Interest rate × Debt amount
5.24%	520)	27)
4.57%	486)	22)
5.36%	718)	38)
3.57%	454)	16)
4.92%	314)	15)
3.22%	2,630)	85)
4.78%	4,555)	218)
4.03%	7,930)	320)
5.49%	6,833)	375)
5.43%	10,111)	549)
3.04%	8,185)	249)
5.49%	56)	3)
5.49%	3,344)	184)
4.50%	66,594)	2,997)
Total	112,730)	5,098)
4.52%

Based on: 10-K (reporting date: 2026-06-30).

¹ US$ in millions

² Weighted-average interest rate = 100 × 5,098 ÷ 112,730 = 4.52%

Microsoft Corp. (NASDAQ:MSFT)

Analysis of Debt

Total Debt (Carrying Amount)

Total Debt (Fair Value)

Weighted-average Interest Rate on Debt