UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2024

Microsoft Corporation
(Exact name of registrant as specified in its charter)

Item 1. Business
Microsoft develops, licenses, and supports software, services, devices, and solutions worldwide. Its Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business.

Item 1A. Risk Factors
The following risk factors could materially affect our business, financial condition, or results of operations:
- AI competition intensifying from Google and OpenAI.
- Regulatory scrutiny on acquisitions (Activision).
- Cybersecurity threats to Azure infrastructure.
- Global PC market slowdown affecting Windows revenue.
- Additional general economic risks including inflation and interest rates.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview
We are a leading global company...

Results of Operations
Total net sales were $211,915.0 million for the year ended December 31, 2024.
Net income was $72,361.0 million.
Operating income: $88,524.0 million.

Future Outlook
Management expects revenue growth of approximately 12.0% for the next fiscal year. EBITDA margins are targeted at 42.0%. We expect double-digit revenue growth driven by Azure and Cloud services.

Liquidity and Capital Resources
Cash and cash equivalents: $48,366.0 million.
Total debt was $47,204.0 million as of December 31, 2024.

Capital Structure:
Senior Notes: $40,000.0 million
Revolver Drawn: $2,204.0 million
Subordinated Debt: $5,000.0 million


The Company has the following credit facilities:
- Revolving Credit Facility: Total capacity $10,000.0 million, with $2,204.0 million drawn.
- Term Loan A: Total capacity $5,000.0 million, with $5,000.0 million drawn.


SNC Regulatory Rating: PASS.
Justification: Strong cash flow and market position.

Item 8. Financial Statements and Supplementary Data
Consolidated Balance Sheets
(In millions)
Assets
Total assets: $364,840.0

Liabilities and Stockholders’ Equity
Total liabilities: $184,256.0
Total stockholders’ equity: $180,584.0