--- ticker: MSFT company: Microsoft Corporation filing_type: 10-K year_current: 2026 year_prior: 2025 risks_added: 51 risks_removed: 14 risks_modified: 3 risks_unchanged: 3 source: SEC EDGAR url: https://riskdiff.com/msft/2026-vs-2025/ markdown_url: https://riskdiff.com/msft/2026-vs-2025/index.md access: public_preview generated: 2026-09-28 --- # Microsoft Corporation: 10-K Risk Factor Changes 2026 vs 2025 > Source: U.S. Securities and Exchange Commission (EDGAR) > Generated: 2026-09-28 > All data extracted directly from official filings. No hallucinated content. ## AI Risk Brief > **AI interpretation layer.** The brief below was generated by an AI model from the deterministic diff. AI never invents facts. > **Risk-related disclosures expanded substantially, with 51 additions versus 14 removals, while the listed changes mainly reflect broader business and financial sections.** - **Direction:** More concerning - **Themes:** Expanded risk disclosures --- ## Summary | Status | Count | |--------|-------| | New risks added | 51 | | Risks removed | 14 | | Risks modified | 3 | | Unchanged | 3 | --- ## Selected change This public preview includes one change. Pro access provides the complete comparison and historical data. ## New in Current Filing: Industry Trends and Opportunities Our industry is dynamic and highly competitive, with frequent changes in both technologies and business models. Each industry shift is an opportunity to conceive new products, new technologies, or new ideas that can further transform the industry and our business. At Microsoft, we push the boundaries of what is possible through a broad range of research and development activities that seek to identify and address the changing demands of customers and users, industry trends, and competitive forces. We have a long-term strategic partnership with OpenAI which was originally established in 2019. In October 2025 and April 2026, we extended this partnership and continue to build on our shared vision to advance artificial intelligence responsibly and make its benefits broadly accessible. Microsoft is a major investor in OpenAI and will continue to receive revenue-sharing payments. We hold rights to OpenAI's intellectual property, including models and infrastructure, for integration into our products. 34 34 PART IIItem 7 PART II Item 7 Economic Conditions, Challenges, and RisksThe markets for software, devices, and cloud-based services are dynamic and highly competitive. Our competitors are developing new software and devices, while also deploying competing cloud-based services for consumers and businesses. The devices and form factors customers prefer evolve rapidly, influencing how users access services in the cloud and, in some cases, the user's choice of which suite of cloud-based services to use. Aggregate demand for our software, services, and devices is also correlated to global macroeconomic and geopolitical factors, which remain dynamic. We must continue to evolve and adapt over an extended time in pace with this changing environment. The investments we are making in cloud and AI infrastructure and devices will continue to increase our operating costs and may decrease our operating margins. We continue to identify and evaluate opportunities to expand our datacenter locations and increase our server capacity to meet the evolving needs of our customers, particularly given the growing demand for AI services. Our datacenters depend on the availability of permitted and buildable land, predictable energy, networking supplies, and servers, including graphics processing units and other components. Our devices are primarily manufactured by third-party contract manufacturers. For the majority of our products, we have the ability to use other manufacturers if a current vendor becomes unavailable or unable to meet our requirements. However, some of our products contain certain components for which there are very few qualified suppliers. Extended or unforeseen disruptions, or limited availability of components from these suppliers could impact our ability to operate our datacenters and manufacture devices on time to meet consumer demand. Our success is highly dependent on our ability to attract and retain qualified employees. We hire a mix of university and industry talent worldwide. We compete for talented individuals globally by offering an exceptional working environment, broad customer reach, scale in resources, the ability to grow one's career across many different products and businesses, and competitive compensation and benefits.Our international operations provide a significant portion of our total revenue and expenses. Many of these revenue and expenses are denominated in currencies other than the U.S. dollar. As a result, changes in foreign exchange rates may significantly affect revenue and expenses. Fluctuations in the U.S. dollar relative to certain foreign currencies increased reported revenue and did not have a material impact on reported expenses from our international operations in fiscal year 2026.Further, global, regional, and local economic developments and changes in global trade policies such as restrictions on international trade, including tariffs and other controls on imports or exports, could result in increased supply chain challenges, cost volatility, and consumer and economic uncertainty which may adversely affect our results of operations.Refer to Risk Factors (Part I, Item 1A of this Form 10-K) for a discussion of these factors and other risks.SeasonalityOur revenue fluctuates quarterly and is generally higher in the fourth quarter of our fiscal year. Fourth quarter revenue is driven by a higher volume of multi-year contracts executed during the period. Reportable SegmentsWe report our financial performance based on the following three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The segment amounts included in MD&A are presented on a basis consistent with our internal management reporting.Additional information on our reportable segments is contained in Note 18 - Segment Information and Geographic Data of the Notes to Financial Statements (Part II, Item 8 of this Form 10-K). --- ## Source filings - [2026 10-K filing on SEC EDGAR](https://www.sec.gov/Archives/edgar/data/789019/000119312526323660/0001193125-26-323660-index.htm) - [2025 10-K filing on SEC EDGAR](https://www.sec.gov/Archives/edgar/data/789019/000095017025100235/0000950170-25-100235-index.htm) [View the full comparison with Pro](https://riskdiff.com/msft/2026-vs-2025/full/) *Data sourced from SEC EDGAR. Last updated 2026-09-28.*