DynamicsNarrow moat

Microsoft (MSFT) — moat facet

Business applications that have grown only as fast as Microsoft itself, with Dynamics 365 growth halving in four years to 13% in June.

Dynamics is Microsoft's business-applications line, and it is small. Revenue was $9.0 billion in fiscal 2026, 2.7% of the company1, up $1.2 billion, or 15%2. Its cloud part, Dynamics 365, grew 18%, "with growth across all workloads"3.

Dynamics revenue by quarter ($B)1.85Q1'251.91Q21.93Q32.14Q42.14Q1'262.20Q22.29Q32.37Q4Microsoft 10-Qs; Q4 = fiscal year (10-K) less nine months
March grew 19%; June grew 11%, the slowest quarter of fiscal 2026.

The 10-K describes the line as Dynamics 365, a set of cloud applications across ERP, CRM, Power Apps and Power Automate, plus on-premises ERP and CRM applications4, sold for financial management, planning, customer relationships and supply chains to businesses of every size5. It is paid per user and per application. Microsoft says the revenue is driven by "the number of users licensed and applications consumed"6, by revenue per user, and by the shift from on-premises software to Dynamics 365.

The line was not reported on its own until recently. The fiscal 2022 table put it inside Other7; the fiscal 2024 10-K gave it a row, $4,687 million for fiscal 2022 on the definition used then8. The fiscal 2025 recast redefined it again: fiscal 2023 reads $5,437 million on the old basis9 and $5,796 million on the current one10, which reached $9,006 million in fiscal 202611.

Growth has been high and slowing. Dynamics 365 grew 39% in fiscal 202212, 24% in fiscal 202313, 24% in fiscal 202414, 19% in fiscal 202515 and 18% in fiscal 202616. The whole line grew 17.9%, 14.6% and 15.1% in the last three years, about 15.8% a year compounded17. There has been no down year; the weak part has been the on-premises software, which declined in fiscal 2025 as customers moved to Dynamics 36518.

The whole line grew 25% in fiscal 202219, 16% in fiscal 202320 and 19% in fiscal 202421 on the definitions used then. The 10-K now describes the product as including "agentic AI and other low code application development platforms"22, the category in which Power Apps and Power Automate sit, and Dynamics 365 also counts toward Microsoft Cloud23. Quarterly revenue rose from $1.8 billion to $2.4 billion over the eight quarters to June 202624.

Dynamics was 2.7% of Microsoft's revenue in fiscal 2023 and 2.7% in fiscal 202625: it has grown at the company's own pace, which for a line priced and described as a growth business is a modest result.

The quarters in fiscal 2026 were uneven. The line grew 15.5% in September, 15.2% in December and 18.8% in March, when Dynamics 365 grew 22%2627, then 11.1% in June28, with Dynamics 365 up 13%29. Dynamics 365's 13% in June was the lowest of any figure in its series.

Dynamics has no disclosed margin; its revenue is reported inside Productivity and Business Processes, which earned 59.9% of revenue in fiscal 202630, beside Office. It is sold by the same company, to the same customers, as the Office line beside it.

The competition is argued on Salesforce, ServiceNow and the Agent Layer, and it is the context that matters most for this line. Dynamics competes with companies for whom business applications are the whole business, and it is less than a tenth the size of Microsoft 365 Commercial. What the numbers add is that Dynamics grew faster than Microsoft 365 Commercial in fiscal 2024 and 2025 and slower in fiscal 202631, so its advantage in growth has gone.

The 10-K describes the competition in a single sentence, "cloud-based and on-premises business solution providers"32, which covers everyone from the largest application companies to the accounting package a small business already uses. What Dynamics has that most of them do not is a seat in the same agreement as Office and Azure, sold by the same account team; what it lacks is scale: the whole line is $9.0 billion across both categories.

The number to watch is Dynamics 365 growth. It has halved in four years, from 39% to 18%, and the June quarter's 13% is the lowest yet. A fiscal 2027 at or below that rate would mean the agent-driven applications Microsoft is selling are being fought for rather than won; a return above 20% would say the agents are pulling customers onto the platform.

Moat trajectory: Holding steady

Revenue grew 15% and Dynamics 365 18% in fiscal 2026, but Dynamics 365 growth has halved since fiscal 2022 and fell to 13% in June; the line has grown at the company's own pace since fiscal 2023.

The number that tests this moat
Moat Explorer calc
Dynamics revenue, June 2026 quarter
$2,374M, +11.1% year on year

Dynamics 365 grew 13% in June, the lowest in its series, after 22% in March. A fiscal 2027 at or below that rate would mean the agent layer is being fought for rather than won.

How it's calculated: Fourth-quarter revenue = FY2026 revenue in the Form 10-K less the nine-month figure in the Q3 FY2026 Form 10-Q; the year-earlier quarter is computed the same way from the FY2025 figures.
Source: Microsoft Form 10-K FY2026 and Form 10-Q Q3 FY2026 ↗
References
  1. ReportedRevenue was $9.0 billion in fiscal 2026, 2.7% of the company, up $1.2 billion, or 15%.
    Microsoft Form 10-K, FY2026 — Note: revenue by significant product and service offering, FY2024-FY2026 (Server products and cloud services $129,425M / $98,435M / $79,828M; Microsoft 365 Commercial $101,997M / $87,767M / $76,969M; XBOX $21,790M / $23,455M / $21,503M; LinkedIn $19,817M / $17,812M / $16,372M; Windows and Devices $17,084M / $17,314M / $17,026M; Search advertising $15,176M / $13,878M / $12,306M; Microsoft 365 Consumer $9,175M / $7,404M / $6,648M; Dynamics $9,006M / $7,827M / $6,831M; Enterprise and partner services $8,260M / $7,760M / $7,594M; Other $109M / $72M / $45M; total $331,839M); Microsoft Cloud revenue $214.4B, $168.9B and $137.7B, drawn from four of the lines; additions to property and equipment $115,948M — FY2024-FY2026 · publ. July 29, 2026 · source ↗
  2. ReportedRevenue was $9.0 billion in fiscal 2026, 2.7% of the company, up $1.2 billion, or 15%.
    Microsoft Form 10-K, FY2026 — Item 7 MD&A: segment results (Productivity and Business Processes revenue $139,996M, cost of revenue $25,017M, operating income $83,879M; Intelligent Cloud $137,791M, $57,876M, $56,972M; More Personal Computing $54,052M, $23,481M, $14,386M) and the drivers of each line: Server products and cloud services +$31.0B or 31% (Azure +41%, server products +1%); Microsoft 365 Commercial +$14.2B or 16% (cloud +17% on seats +6%, products +13%); Microsoft 365 Consumer +$1.8B or 24% (cloud +28% on subscribers +7%); LinkedIn +$2.0B or 11%; Dynamics +$1.2B or 15% (Dynamics 365 +18%); Enterprise and partner services +$500M or 6%; Windows and Devices -$230M or 1% (Windows OEM +5%); XBOX -$1.7B or 7% (content and services -5%, hardware -29%); Search advertising +$1.3B or 9% (ex-TAC +12%); the Microsoft 365 Consumer subscriber metric removed — FY2026 · publ. July 29, 2026 · source ↗
  3. ReportedIts cloud part, Dynamics 365, grew 18%, "with growth across all workloads".
    Microsoft Form 10-K, FY2026 — Item 7 MD&A: segment results (Productivity and Business Processes revenue $139,996M, cost of revenue $25,017M, operating income $83,879M; Intelligent Cloud $137,791M, $57,876M, $56,972M; More Personal Computing $54,052M, $23,481M, $14,386M) and the drivers of each line: Server products and cloud services +$31.0B or 31% (Azure +41%, server products +1%); Microsoft 365 Commercial +$14.2B or 16% (cloud +17% on seats +6%, products +13%); Microsoft 365 Consumer +$1.8B or 24% (cloud +28% on subscribers +7%); LinkedIn +$2.0B or 11%; Dynamics +$1.2B or 15% (Dynamics 365 +18%); Enterprise and partner services +$500M or 6%; Windows and Devices -$230M or 1% (Windows OEM +5%); XBOX -$1.7B or 7% (content and services -5%, hardware -29%); Search advertising +$1.3B or 9% (ex-TAC +12%); the Microsoft 365 Consumer subscriber metric removed — FY2026 · publ. July 29, 2026 · source ↗
  4. ReportedThe 10-K describes the line as Dynamics 365, a set of cloud applications across ERP, CRM, Power Apps and Power Automate, plus on-premises ERP and CRM applications, sold for financial management, planning, customer relationships and supply chains to businesses of every size.
    Microsoft Form 10-K, FY2026 — Item 1 Business: what each segment and line comprises, what drives each line's revenue (Azure consumption, per-user Microsoft 365 and Dynamics, Windows OEM licensing factors, XBOX content and subscriptions, LinkedIn's four products), the fiscal 2026 renaming of Gaming to XBOX and of Search and news advertising to Search advertising, and each line's competition — FY2026 · publ. July 29, 2026 · source ↗
  5. ReportedThe 10-K describes the line as Dynamics 365, a set of cloud applications across ERP, CRM, Power Apps and Power Automate, plus on-premises ERP and CRM applications, sold for financial management, planning, customer relationships and supply chains to businesses of every size.
    Microsoft Form 10-K, FY2026 — Item 1 Business: what each segment and line comprises, what drives each line's revenue (Azure consumption, per-user Microsoft 365 and Dynamics, Windows OEM licensing factors, XBOX content and subscriptions, LinkedIn's four products), the fiscal 2026 renaming of Gaming to XBOX and of Search and news advertising to Search advertising, and each line's competition — FY2026 · publ. July 29, 2026 · source ↗
  6. ReportedMicrosoft says the revenue is driven by "the number of users licensed and applications consumed", by revenue per user, and by the shift from on-premises software to Dynamics 365.
    Microsoft Form 10-K, FY2026 — Item 1 Business: what each segment and line comprises, what drives each line's revenue (Azure consumption, per-user Microsoft 365 and Dynamics, Windows OEM licensing factors, XBOX content and subscriptions, LinkedIn's four products), the fiscal 2026 renaming of Gaming to XBOX and of Search and news advertising to Search advertising, and each line's competition — FY2026 · publ. July 29, 2026 · source ↗
  7. ReportedThe fiscal 2022 table put it inside Other; the fiscal 2024 10-K gave it a row, $4,687 million for fiscal 2022 on the definition used then.
    Microsoft Form 10-K, FY2022 — revenue by offering FY2020-FY2022 (Server products and cloud services $41,379M / $52,589M / $67,321M; Office products and cloud services $44,862M in FY2022; Windows $24,761M; Gaming $11,575M / $15,370M / $16,230M; LinkedIn $8,077M / $10,289M / $13,816M; Search and news advertising $8,524M / $9,267M / $11,591M; Enterprise Services $6,409M / $6,943M / $7,407M); FY2022 drivers (Azure +45%, LinkedIn +34%, Office Consumer +11% with subscribers 59.7 million, Dynamics +25% on Dynamics 365 +39%, Windows OEM +11%, search +25% and ex-TAC +27%, Surface +3%); Nuance acquired 4 March 2022 for $18.8B; ZeniMax $8.1B; Xandr acquired 6 June 2022; LinkedIn over 850 million members — FY2020-FY2022 · publ. July 28, 2022 · source ↗
  8. ReportedThe fiscal 2022 table put it inside Other; the fiscal 2024 10-K gave it a row, $4,687 million for fiscal 2022 on the definition used then.
    Microsoft Form 10-K, FY2024 — revenue by offering FY2022-FY2024 on the pre-recast basis (Server products and cloud services $79,970M in FY2023; Office products and cloud services $54,875M in FY2024; Dynamics $4,687M in FY2022 and $5,437M in FY2023); FY2024 drivers (Azure +30%, seats +7%, Office 365 Commercial +16%, Office Commercial products -16%, Office Consumer +4% with subscribers 82.5 million, LinkedIn +9% across all four lines of business, Dynamics +19%, Windows OEM +7%, Devices -15%, Gaming +39% with 44 points of net impact from Activision Blizzard, Xbox hardware -13%, search ex-TAC +12%, Enterprise and partner services -4%); Activision Blizzard acquired 13 October 2023 for $75.4B — FY2022-FY2024 · publ. July 30, 2024 · source ↗
  9. ReportedThe fiscal 2025 recast redefined it again: fiscal 2023 reads $5,437 million on the old basis and $5,796 million on the current one, which reached $9,006 million in fiscal 2026.
    Microsoft Form 10-K, FY2024 — revenue by offering FY2022-FY2024 on the pre-recast basis (Server products and cloud services $79,970M in FY2023; Office products and cloud services $54,875M in FY2024; Dynamics $4,687M in FY2022 and $5,437M in FY2023); FY2024 drivers (Azure +30%, seats +7%, Office 365 Commercial +16%, Office Commercial products -16%, Office Consumer +4% with subscribers 82.5 million, LinkedIn +9% across all four lines of business, Dynamics +19%, Windows OEM +7%, Devices -15%, Gaming +39% with 44 points of net impact from Activision Blizzard, Xbox hardware -13%, search ex-TAC +12%, Enterprise and partner services -4%); Activision Blizzard acquired 13 October 2023 for $75.4B — FY2022-FY2024 · publ. July 30, 2024 · source ↗
  10. ReportedThe fiscal 2025 recast redefined it again: fiscal 2023 reads $5,437 million on the old basis and $5,796 million on the current one, which reached $9,006 million in fiscal 2026.
    Microsoft Form 10-K, FY2025 — revenue by product and service offering on the recast basis, FY2023-FY2025 (Server products and cloud services $65,007M in FY2023; Windows and Devices $17,147M; Dynamics $5,796M; Enterprise and partner services $7,900M); the recast 'bringing the commercial components of Microsoft 365 together'; segment results FY2024-FY2025 (Intelligent Cloud revenue $87,464M and $106,265M, cost of revenue $29,611M and $40,171M, operating income $37,813M and $44,589M); FY2025 drivers (Azure +34%, server products -3%, Microsoft 365 Commercial cloud +15% on seats +6%, Office 2024, Microsoft 365 Consumer subscribers 89.0 million after the January 2025 price increase, Dynamics 365 +19%, Gaming +9% with Xbox content and services +16% and hardware -25%, search ex-TAC +20%); More Personal Computing goodwill acquired $51,235M — FY2023-FY2025 · publ. July 30, 2025 · source ↗
  11. ReportedThe fiscal 2025 recast redefined it again: fiscal 2023 reads $5,437 million on the old basis and $5,796 million on the current one, which reached $9,006 million in fiscal 2026.
    Microsoft Form 10-K, FY2026 — Note: revenue by significant product and service offering, FY2024-FY2026 (Server products and cloud services $129,425M / $98,435M / $79,828M; Microsoft 365 Commercial $101,997M / $87,767M / $76,969M; XBOX $21,790M / $23,455M / $21,503M; LinkedIn $19,817M / $17,812M / $16,372M; Windows and Devices $17,084M / $17,314M / $17,026M; Search advertising $15,176M / $13,878M / $12,306M; Microsoft 365 Consumer $9,175M / $7,404M / $6,648M; Dynamics $9,006M / $7,827M / $6,831M; Enterprise and partner services $8,260M / $7,760M / $7,594M; Other $109M / $72M / $45M; total $331,839M); Microsoft Cloud revenue $214.4B, $168.9B and $137.7B, drawn from four of the lines; additions to property and equipment $115,948M — FY2024-FY2026 · publ. July 29, 2026 · source ↗
  12. ReportedDynamics 365 grew 39% in fiscal 2022, 24% in fiscal 2023, 24% in fiscal 2024, 19% in fiscal 2025 and 18% in fiscal 2026.
    Microsoft Form 10-K, FY2022 — revenue by offering FY2020-FY2022 (Server products and cloud services $41,379M / $52,589M / $67,321M; Office products and cloud services $44,862M in FY2022; Windows $24,761M; Gaming $11,575M / $15,370M / $16,230M; LinkedIn $8,077M / $10,289M / $13,816M; Search and news advertising $8,524M / $9,267M / $11,591M; Enterprise Services $6,409M / $6,943M / $7,407M); FY2022 drivers (Azure +45%, LinkedIn +34%, Office Consumer +11% with subscribers 59.7 million, Dynamics +25% on Dynamics 365 +39%, Windows OEM +11%, search +25% and ex-TAC +27%, Surface +3%); Nuance acquired 4 March 2022 for $18.8B; ZeniMax $8.1B; Xandr acquired 6 June 2022; LinkedIn over 850 million members — FY2020-FY2022 · publ. July 28, 2022 · source ↗
  13. ReportedDynamics 365 grew 39% in fiscal 2022, 24% in fiscal 2023, 24% in fiscal 2024, 19% in fiscal 2025 and 18% in fiscal 2026.
    Microsoft Form 10-K, FY2023 — FY2023 drivers (Azure +29%, server products -1%, Office 365 Commercial +13% on seats +11%, Office Commercial products -21%, Office Consumer +2% with subscribers 67.0 million, LinkedIn +10% on Talent Solutions and over 950 million members, Dynamics +16% on Dynamics 365 +24%, Windows OEM -25% and Devices -24% on elevated channel inventory, Gaming -5%, search +5% and ex-TAC +11% helped by Xandr, Enterprise Services +4% with Industry Solutions formerly Microsoft Consulting Services) — FY2023 · publ. July 27, 2023 · source ↗
  14. ReportedDynamics 365 grew 39% in fiscal 2022, 24% in fiscal 2023, 24% in fiscal 2024, 19% in fiscal 2025 and 18% in fiscal 2026.
    Microsoft Form 10-K, FY2024 — revenue by offering FY2022-FY2024 on the pre-recast basis (Server products and cloud services $79,970M in FY2023; Office products and cloud services $54,875M in FY2024; Dynamics $4,687M in FY2022 and $5,437M in FY2023); FY2024 drivers (Azure +30%, seats +7%, Office 365 Commercial +16%, Office Commercial products -16%, Office Consumer +4% with subscribers 82.5 million, LinkedIn +9% across all four lines of business, Dynamics +19%, Windows OEM +7%, Devices -15%, Gaming +39% with 44 points of net impact from Activision Blizzard, Xbox hardware -13%, search ex-TAC +12%, Enterprise and partner services -4%); Activision Blizzard acquired 13 October 2023 for $75.4B — FY2022-FY2024 · publ. July 30, 2024 · source ↗
  15. ReportedDynamics 365 grew 39% in fiscal 2022, 24% in fiscal 2023, 24% in fiscal 2024, 19% in fiscal 2025 and 18% in fiscal 2026.
    Microsoft Form 10-K, FY2025 — revenue by product and service offering on the recast basis, FY2023-FY2025 (Server products and cloud services $65,007M in FY2023; Windows and Devices $17,147M; Dynamics $5,796M; Enterprise and partner services $7,900M); the recast 'bringing the commercial components of Microsoft 365 together'; segment results FY2024-FY2025 (Intelligent Cloud revenue $87,464M and $106,265M, cost of revenue $29,611M and $40,171M, operating income $37,813M and $44,589M); FY2025 drivers (Azure +34%, server products -3%, Microsoft 365 Commercial cloud +15% on seats +6%, Office 2024, Microsoft 365 Consumer subscribers 89.0 million after the January 2025 price increase, Dynamics 365 +19%, Gaming +9% with Xbox content and services +16% and hardware -25%, search ex-TAC +20%); More Personal Computing goodwill acquired $51,235M — FY2023-FY2025 · publ. July 30, 2025 · source ↗
  16. ReportedDynamics 365 grew 39% in fiscal 2022, 24% in fiscal 2023, 24% in fiscal 2024, 19% in fiscal 2025 and 18% in fiscal 2026.
    Microsoft Form 10-K, FY2026 — Item 7 MD&A: segment results (Productivity and Business Processes revenue $139,996M, cost of revenue $25,017M, operating income $83,879M; Intelligent Cloud $137,791M, $57,876M, $56,972M; More Personal Computing $54,052M, $23,481M, $14,386M) and the drivers of each line: Server products and cloud services +$31.0B or 31% (Azure +41%, server products +1%); Microsoft 365 Commercial +$14.2B or 16% (cloud +17% on seats +6%, products +13%); Microsoft 365 Consumer +$1.8B or 24% (cloud +28% on subscribers +7%); LinkedIn +$2.0B or 11%; Dynamics +$1.2B or 15% (Dynamics 365 +18%); Enterprise and partner services +$500M or 6%; Windows and Devices -$230M or 1% (Windows OEM +5%); XBOX -$1.7B or 7% (content and services -5%, hardware -29%); Search advertising +$1.3B or 9% (ex-TAC +12%); the Microsoft 365 Consumer subscriber metric removed — FY2026 · publ. July 29, 2026 · source ↗
  17. Moat Explorer calcThe whole line grew 17.9%, 14.6% and 15.1% in the last three years, about 15.8% a year compounded.
    Moat Explorer calculation from Microsoft Forms 10-K (FY2017-FY2026) and 10-Q (FY2025-FY2026): growth = year / prior year - 1 on the revenue-by-offering tables; compound rates = (end / start)^(1/years) - 1; quarterly revenue for the fourth quarter = fiscal-year revenue less the nine-month figure in the third-quarter 10-Q; segment margins = segment operating income / segment revenue and gross margin = (segment revenue - cost of revenue) / segment revenue (Intelligent Cloud $57,853M / $87,464M = 66.1% in FY2024, $66,094M / $106,265M = 62.2% in FY2025, $79,915M / $137,791M = 58.0% in FY2026); share of FY2026 growth = line increase / total increase of $50,115M (Server products and cloud services $30,990M plus Microsoft 365 Commercial $14,230M = 90.2%); shares of revenue = line / total — FY2017-FY2026 · publ. 2026 · source ↗
    Method: Moat Explorer calculation from the revenue-by-offering tables and segment results in Microsoft's Forms 10-K and 10-Q; see the source line for the method.
  18. ReportedThere has been no down year; the weak part has been the on-premises software, which declined in fiscal 2025 as customers moved to Dynamics 365.
    Microsoft Form 10-K, FY2025 — revenue by product and service offering on the recast basis, FY2023-FY2025 (Server products and cloud services $65,007M in FY2023; Windows and Devices $17,147M; Dynamics $5,796M; Enterprise and partner services $7,900M); the recast 'bringing the commercial components of Microsoft 365 together'; segment results FY2024-FY2025 (Intelligent Cloud revenue $87,464M and $106,265M, cost of revenue $29,611M and $40,171M, operating income $37,813M and $44,589M); FY2025 drivers (Azure +34%, server products -3%, Microsoft 365 Commercial cloud +15% on seats +6%, Office 2024, Microsoft 365 Consumer subscribers 89.0 million after the January 2025 price increase, Dynamics 365 +19%, Gaming +9% with Xbox content and services +16% and hardware -25%, search ex-TAC +20%); More Personal Computing goodwill acquired $51,235M — FY2023-FY2025 · publ. July 30, 2025 · source ↗
  19. ReportedThe whole line grew 25% in fiscal 2022, 16% in fiscal 2023 and 19% in fiscal 2024 on the definitions used then.
    Microsoft Form 10-K, FY2022 — revenue by offering FY2020-FY2022 (Server products and cloud services $41,379M / $52,589M / $67,321M; Office products and cloud services $44,862M in FY2022; Windows $24,761M; Gaming $11,575M / $15,370M / $16,230M; LinkedIn $8,077M / $10,289M / $13,816M; Search and news advertising $8,524M / $9,267M / $11,591M; Enterprise Services $6,409M / $6,943M / $7,407M); FY2022 drivers (Azure +45%, LinkedIn +34%, Office Consumer +11% with subscribers 59.7 million, Dynamics +25% on Dynamics 365 +39%, Windows OEM +11%, search +25% and ex-TAC +27%, Surface +3%); Nuance acquired 4 March 2022 for $18.8B; ZeniMax $8.1B; Xandr acquired 6 June 2022; LinkedIn over 850 million members — FY2020-FY2022 · publ. July 28, 2022 · source ↗
  20. ReportedThe whole line grew 25% in fiscal 2022, 16% in fiscal 2023 and 19% in fiscal 2024 on the definitions used then.
    Microsoft Form 10-K, FY2023 — FY2023 drivers (Azure +29%, server products -1%, Office 365 Commercial +13% on seats +11%, Office Commercial products -21%, Office Consumer +2% with subscribers 67.0 million, LinkedIn +10% on Talent Solutions and over 950 million members, Dynamics +16% on Dynamics 365 +24%, Windows OEM -25% and Devices -24% on elevated channel inventory, Gaming -5%, search +5% and ex-TAC +11% helped by Xandr, Enterprise Services +4% with Industry Solutions formerly Microsoft Consulting Services) — FY2023 · publ. July 27, 2023 · source ↗
  21. ReportedThe whole line grew 25% in fiscal 2022, 16% in fiscal 2023 and 19% in fiscal 2024 on the definitions used then.
    Microsoft Form 10-K, FY2024 — revenue by offering FY2022-FY2024 on the pre-recast basis (Server products and cloud services $79,970M in FY2023; Office products and cloud services $54,875M in FY2024; Dynamics $4,687M in FY2022 and $5,437M in FY2023); FY2024 drivers (Azure +30%, seats +7%, Office 365 Commercial +16%, Office Commercial products -16%, Office Consumer +4% with subscribers 82.5 million, LinkedIn +9% across all four lines of business, Dynamics +19%, Windows OEM +7%, Devices -15%, Gaming +39% with 44 points of net impact from Activision Blizzard, Xbox hardware -13%, search ex-TAC +12%, Enterprise and partner services -4%); Activision Blizzard acquired 13 October 2023 for $75.4B — FY2022-FY2024 · publ. July 30, 2024 · source ↗
  22. ReportedThe 10-K now describes the product as including "agentic AI and other low code application development platforms", the category in which Power Apps and Power Automate sit, and Dynamics 365 also counts toward Microsoft Cloud.
    Microsoft Form 10-K, FY2026 — Item 1 Business: what each segment and line comprises, what drives each line's revenue (Azure consumption, per-user Microsoft 365 and Dynamics, Windows OEM licensing factors, XBOX content and subscriptions, LinkedIn's four products), the fiscal 2026 renaming of Gaming to XBOX and of Search and news advertising to Search advertising, and each line's competition — FY2026 · publ. July 29, 2026 · source ↗
  23. ReportedThe 10-K now describes the product as including "agentic AI and other low code application development platforms", the category in which Power Apps and Power Automate sit, and Dynamics 365 also counts toward Microsoft Cloud.
    Microsoft Form 10-K, FY2026 — Note: revenue by significant product and service offering, FY2024-FY2026 (Server products and cloud services $129,425M / $98,435M / $79,828M; Microsoft 365 Commercial $101,997M / $87,767M / $76,969M; XBOX $21,790M / $23,455M / $21,503M; LinkedIn $19,817M / $17,812M / $16,372M; Windows and Devices $17,084M / $17,314M / $17,026M; Search advertising $15,176M / $13,878M / $12,306M; Microsoft 365 Consumer $9,175M / $7,404M / $6,648M; Dynamics $9,006M / $7,827M / $6,831M; Enterprise and partner services $8,260M / $7,760M / $7,594M; Other $109M / $72M / $45M; total $331,839M); Microsoft Cloud revenue $214.4B, $168.9B and $137.7B, drawn from four of the lines; additions to property and equipment $115,948M — FY2024-FY2026 · publ. July 29, 2026 · source ↗
  24. Moat Explorer calcQuarterly revenue rose from $1.8 billion to $2.4 billion over the eight quarters to June 2026.
    Moat Explorer calculation from Microsoft Forms 10-K (FY2017-FY2026) and 10-Q (FY2025-FY2026): growth = year / prior year - 1 on the revenue-by-offering tables; compound rates = (end / start)^(1/years) - 1; quarterly revenue for the fourth quarter = fiscal-year revenue less the nine-month figure in the third-quarter 10-Q; segment margins = segment operating income / segment revenue and gross margin = (segment revenue - cost of revenue) / segment revenue (Intelligent Cloud $57,853M / $87,464M = 66.1% in FY2024, $66,094M / $106,265M = 62.2% in FY2025, $79,915M / $137,791M = 58.0% in FY2026); share of FY2026 growth = line increase / total increase of $50,115M (Server products and cloud services $30,990M plus Microsoft 365 Commercial $14,230M = 90.2%); shares of revenue = line / total — FY2017-FY2026 · publ. 2026 · source ↗
    Method: Moat Explorer calculation from the revenue-by-offering tables and segment results in Microsoft's Forms 10-K and 10-Q; see the source line for the method.
  25. Moat Explorer calcDynamics was 2.7% of Microsoft's revenue in fiscal 2023 and 2.7% in fiscal 2026: it has grown at the company's own pace, which for a line priced and described as a growth business is a modest result.
    Moat Explorer calculation from Microsoft Forms 10-K (FY2017-FY2026) and 10-Q (FY2025-FY2026): growth = year / prior year - 1 on the revenue-by-offering tables; compound rates = (end / start)^(1/years) - 1; quarterly revenue for the fourth quarter = fiscal-year revenue less the nine-month figure in the third-quarter 10-Q; segment margins = segment operating income / segment revenue and gross margin = (segment revenue - cost of revenue) / segment revenue (Intelligent Cloud $57,853M / $87,464M = 66.1% in FY2024, $66,094M / $106,265M = 62.2% in FY2025, $79,915M / $137,791M = 58.0% in FY2026); share of FY2026 growth = line increase / total increase of $50,115M (Server products and cloud services $30,990M plus Microsoft 365 Commercial $14,230M = 90.2%); shares of revenue = line / total — FY2017-FY2026 · publ. 2026 · source ↗
    Method: Moat Explorer calculation from the revenue-by-offering tables and segment results in Microsoft's Forms 10-K and 10-Q; see the source line for the method.
  26. Moat Explorer calcThe line grew 15.5% in September, 15.2% in December and 18.8% in March, when Dynamics 365 grew 22%, then 11.1% in June, with Dynamics 365 up 13%.
    Moat Explorer calculation from Microsoft Forms 10-K (FY2017-FY2026) and 10-Q (FY2025-FY2026): growth = year / prior year - 1 on the revenue-by-offering tables; compound rates = (end / start)^(1/years) - 1; quarterly revenue for the fourth quarter = fiscal-year revenue less the nine-month figure in the third-quarter 10-Q; segment margins = segment operating income / segment revenue and gross margin = (segment revenue - cost of revenue) / segment revenue (Intelligent Cloud $57,853M / $87,464M = 66.1% in FY2024, $66,094M / $106,265M = 62.2% in FY2025, $79,915M / $137,791M = 58.0% in FY2026); share of FY2026 growth = line increase / total increase of $50,115M (Server products and cloud services $30,990M plus Microsoft 365 Commercial $14,230M = 90.2%); shares of revenue = line / total — FY2017-FY2026 · publ. 2026 · source ↗
    Method: Moat Explorer calculation from the revenue-by-offering tables and segment results in Microsoft's Forms 10-K and 10-Q; see the source line for the method.
  27. ReportedThe line grew 15.5% in September, 15.2% in December and 18.8% in March, when Dynamics 365 grew 22%, then 11.1% in June, with Dynamics 365 up 13%.
    Microsoft Form 10-Q, quarter ended 31 March 2026 — revenue by offering for the quarter, nine months and a year earlier, and the drivers (Azure +40%, Microsoft 365 Commercial cloud +19% and products +1%, Microsoft 365 Consumer cloud +33%, LinkedIn +12% across all lines, Dynamics 365 +22%, OEMs building inventory on rising memory prices, Xbox hardware -33%, search ex-TAC +12%) — Q3 FY2026 · publ. April 29, 2026 · source ↗
  28. Moat Explorer calcThe line grew 15.5% in September, 15.2% in December and 18.8% in March, when Dynamics 365 grew 22%, then 11.1% in June, with Dynamics 365 up 13%.
    Moat Explorer calculation from Microsoft Forms 10-K (FY2017-FY2026) and 10-Q (FY2025-FY2026): growth = year / prior year - 1 on the revenue-by-offering tables; compound rates = (end / start)^(1/years) - 1; quarterly revenue for the fourth quarter = fiscal-year revenue less the nine-month figure in the third-quarter 10-Q; segment margins = segment operating income / segment revenue and gross margin = (segment revenue - cost of revenue) / segment revenue (Intelligent Cloud $57,853M / $87,464M = 66.1% in FY2024, $66,094M / $106,265M = 62.2% in FY2025, $79,915M / $137,791M = 58.0% in FY2026); share of FY2026 growth = line increase / total increase of $50,115M (Server products and cloud services $30,990M plus Microsoft 365 Commercial $14,230M = 90.2%); shares of revenue = line / total — FY2017-FY2026 · publ. 2026 · source ↗
    Method: Moat Explorer calculation from the revenue-by-offering tables and segment results in Microsoft's Forms 10-K and 10-Q; see the source line for the method.
  29. ReportedThe line grew 15.5% in September, 15.2% in December and 18.8% in March, when Dynamics 365 grew 22%, then 11.1% in June, with Dynamics 365 up 13%.
    Microsoft, Q4 FY2026 earnings release (Form 8-K, Exhibit 99.1) — quarter ended June 30, 2026: revenue $90,007M (+18%); operating income $40,603M (+18%); net income $35,766M GAAP and $35,286M non-GAAP; diluted EPS $4.81 and $4.74; Microsoft Cloud revenue $59.3B (+27%); commercial remaining performance obligation +84% to $678B; Azure and other cloud services +43%; Productivity and Business Processes $37,847M (+14%); Intelligent Cloud $39,306M (+32%); More Personal Computing $12,854M (-4%); Windows OEM and Devices -7%; XBOX content and services -10%; a $3.2B gain on the investment in Anthropic and lower-than-expected Voluntary Retirement Program expenses contributing $0.27 of EPS against guidance; Azure revenue surpassed $100 billion for the first time and Microsoft 365 Copilot reached over 30 million paid seats; $10.2B returned to shareholders — Q4 FY2026 (quarter ended June 30, 2026) · publ. July 29, 2026 · source ↗
  30. Moat Explorer calcDynamics has no disclosed margin; its revenue is reported inside Productivity and Business Processes, which earned 59.9% of revenue in fiscal 2026, beside Office.
    Moat Explorer calculation from Microsoft Forms 10-K (FY2017-FY2026) and 10-Q (FY2025-FY2026): growth = year / prior year - 1 on the revenue-by-offering tables; compound rates = (end / start)^(1/years) - 1; quarterly revenue for the fourth quarter = fiscal-year revenue less the nine-month figure in the third-quarter 10-Q; segment margins = segment operating income / segment revenue and gross margin = (segment revenue - cost of revenue) / segment revenue (Intelligent Cloud $57,853M / $87,464M = 66.1% in FY2024, $66,094M / $106,265M = 62.2% in FY2025, $79,915M / $137,791M = 58.0% in FY2026); share of FY2026 growth = line increase / total increase of $50,115M (Server products and cloud services $30,990M plus Microsoft 365 Commercial $14,230M = 90.2%); shares of revenue = line / total — FY2017-FY2026 · publ. 2026 · source ↗
    Method: Moat Explorer calculation from the revenue-by-offering tables and segment results in Microsoft's Forms 10-K and 10-Q; see the source line for the method.
  31. Moat Explorer calcWhat the numbers add is that Dynamics grew faster than Microsoft 365 Commercial in fiscal 2024 and 2025 and slower in fiscal 2026, so its advantage in growth has gone.
    Moat Explorer calculation from Microsoft Forms 10-K (FY2017-FY2026) and 10-Q (FY2025-FY2026): growth = year / prior year - 1 on the revenue-by-offering tables; compound rates = (end / start)^(1/years) - 1; quarterly revenue for the fourth quarter = fiscal-year revenue less the nine-month figure in the third-quarter 10-Q; segment margins = segment operating income / segment revenue and gross margin = (segment revenue - cost of revenue) / segment revenue (Intelligent Cloud $57,853M / $87,464M = 66.1% in FY2024, $66,094M / $106,265M = 62.2% in FY2025, $79,915M / $137,791M = 58.0% in FY2026); share of FY2026 growth = line increase / total increase of $50,115M (Server products and cloud services $30,990M plus Microsoft 365 Commercial $14,230M = 90.2%); shares of revenue = line / total — FY2017-FY2026 · publ. 2026 · source ↗
    Method: Moat Explorer calculation from the revenue-by-offering tables and segment results in Microsoft's Forms 10-K and 10-Q; see the source line for the method.
  32. ReportedThe 10-K describes the competition in a single sentence, "cloud-based and on-premises business solution providers", which covers everyone from the largest application companies to the accounting package a small business already uses.
    Microsoft Form 10-K, FY2026 — Item 1 Business: what each segment and line comprises, what drives each line's revenue (Azure consumption, per-user Microsoft 365 and Dynamics, Windows OEM licensing factors, XBOX content and subscriptions, LinkedIn's four products), the fiscal 2026 renaming of Gaming to XBOX and of Search and news advertising to Search advertising, and each line's competition — FY2026 · publ. July 29, 2026 · source ↗
Sources
Generated September 22, 2026