A 10-K is the annual report every US public company files with the Securities and Exchange Commission (SEC): the audited financial statements plus management's account of the business, its risks and its results. It is due 60 days after the fiscal year ends for the largest companies, 75 days for accelerated filers and 90 days for everyone else [2]. The fastest way to read one is in four stops: Item 1 (the business), Item 1A (risk factors), Item 7 (management's discussion and analysis) and Item 8 (the financial statements and the auditor's report). Microsoft's (MSFT) 10-K for the fiscal year ended June 30, 2026, filed July 29, 2026, shows what each part adds: revenue of $331.8 billion, up 18%, and capital spending of $115.9 billion, up from $64.6 billion [3].
What is a 10-K, and how is it different from a 10-Q?
The 10-K covers a full fiscal year and its financial statements are audited by an independent accounting firm. The 10-Q covers each of the first three quarters, its statements are reviewed but not audited, and it is shorter. There is no 10-Q for the fourth quarter: the annual report covers it.
The 10-K is also more complete. It describes the business from scratch, lists every material risk the company sees, and includes notes that a 10-Q only updates. For a company new to you, start with the 10-K; for a company you already follow, the 10-Q shows what changed. DataPorium's guide to reading a 10-Q in 20 minutes covers the quarterly report [5].
When is a 10-K due?
| Filer category (SEC definition) | Deadline after fiscal year-end | Example: fiscal year ending December 31, 2026 |
|---|---|---|
| Large accelerated filer | 60 days | March 1, 2027 |
| Accelerated filer | 75 days | March 16, 2027 |
| All other registrants | 90 days | March 31, 2027 |
Source: SEC Form 10-K General Instructions [2]. Dates are calendar counts; a deadline that falls on a weekend or holiday moves to the next business day.
Most large companies file well before the deadline. Microsoft filed 29 days after its June 30 year-end [3].
What is in each part of a 10-K?
Every 10-K follows the same numbered items, so the same information is in the same place for every company. Microsoft's fiscal 2026 report, as an example, runs to about 90 pages before the exhibits [3].
| Item | What it contains | Microsoft fiscal 2026 (pages) |
|---|---|---|
| 1. Business | Products, segments, competition, employees | 3 to 13 |
| 1A. Risk Factors | Risks management considers material | 14 to 29 |
| 1C. Cybersecurity | How cyber risk is managed and governed | 29 to 31 |
| 3. Legal Proceedings | Material lawsuits and investigations | 31 |
| 7. Management's Discussion and Analysis (MD&A) | Results explained by management, outlook, liquidity | 34 to 49 |
| 7A. Market risk | Exposure to rates, currencies, prices | 49 |
| 8. Financial Statements | Audited statements, notes, auditor's report | 50 to 90 |
| Part III (Items 10 to 14) | Directors, executive pay, ownership | Usually in the proxy statement |
Source: Microsoft Form 10-K for fiscal year 2026, table of contents [3].
Item 1: the business in the company's own words
Item 1 explains how the company makes money and how it is organized. Microsoft reports three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing [3]. It also gives head count: about 223,000 full-time employees as of June 30, 2026, of whom 121,000 were in the US [3]. The segment breakdown in Item 1 tells you which numbers to look for later in the notes; DataPorium shows Microsoft's revenue by segment by quarter on its segment page [6].
Item 1A: risk factors
Risk factors are long because companies list every risk they consider material; Microsoft's ran 16 pages in fiscal 2026 [3]. Most of the text barely changes from year to year, so the useful work is comparison. Put this year's list next to last year's and look for new headings, risks that moved up the list, and new numbers. A risk added in the year of a new product, a new law or a new lawsuit is the company telling you what changed.
How do you read MD&A, the most useful section?
Management's Discussion and Analysis is where the company explains its own numbers. It usually opens with highlights, then compares the year with the previous one segment by segment, and ends with liquidity and capital resources: cash, debt and planned spending.
Microsoft's MD&A for fiscal 2026 opens with figures that are not in the income statement at all [3]:
- Microsoft Cloud revenue rose 27% to $214.4 billion.
- Azure and other cloud services revenue rose 41%.
- Commercial remaining performance obligation, contracted revenue not yet recognized, rose 84% to $678 billion.
Remaining performance obligation (RPO) is a backlog: revenue customers have committed to that will be recognized in future periods. A backlog growing much faster than revenue, as here, signals contracted growth ahead, but also the spending needed to deliver it.
Look for non-GAAP adjustments
MD&A often reconciles reported numbers to "adjusted" ones. Microsoft's net income rose 31% to $133.7 billion, or $17.95 per diluted share, but that included net gains from its investments in OpenAI; excluding them, adjusted net income rose 22% to $128.8 billion, or $17.28 per share [3]. Both numbers are correct; they answer different questions. The reported number includes everything that happened; the adjusted one is closer to what the operating business earned.
What should you check in the financial statements?
Item 8 contains the income statement, balance sheet, cash flow statement and the notes. Three checks catch most surprises:
- Cash flow versus profit: compare cash from operations with net income, and look at capital spending. Microsoft's additions to property and equipment were $115.9 billion in fiscal 2026, against $64.6 billion a year earlier and $44.5 billion in fiscal 2024 [3]. Spending that rises much faster than revenue (18% in fiscal 2026) shows where the company is placing its bets.
- The notes: revenue recognition, debt, leases, income taxes and segment information. The notes explain how numbers were measured and what obligations sit outside the main statements.
- The auditor's report: look for the opinion (an unqualified "clean" opinion is normal), any going-concern warning, and the critical audit matters.
Critical audit matters
Critical audit matters (CAMs) are the areas the auditor found most difficult, subjective or complex, described in the auditor's report. They have been required for large accelerated filers for fiscal years ending on or after June 30, 2019, and for most other companies from fiscal years ending on or after December 15, 2020 [4]. Deloitte & Touche, Microsoft's auditor, listed two for fiscal 2026: revenue recognition and uncertain tax positions [3]. CAMs do not mean something is wrong; they point to where management's judgment matters most.
Read a 10-K in four stops: what the business is (Item 1), what could go wrong (Item 1A), how management explains the year (Item 7) and what the audited numbers and the auditor say (Item 8).
A 20-minute reading plan
- Minutes 1 to 3: the cover page and table of contents; note the fiscal year-end, the filer category and the shares outstanding (7.43 billion for Microsoft as of July 23, 2026) [3].
- Minutes 3 to 6: Item 1, for segments and how the company makes money.
- Minutes 6 to 12: MD&A highlights, segment results and liquidity.
- Minutes 12 to 16: the three statements; compare operating cash flow, net income and capital spending.
- Minutes 16 to 18: the auditor's report and critical audit matters.
- Minutes 18 to 20: risk factors, comparing headings with last year's report.
Every 10-K is free on the SEC's EDGAR system. DataPorium's company pages, such as Microsoft's, link the filings and show the statements as tables across years [1].
Frequently asked questions
What is the difference between a 10-K and an annual report?
The 10-K is the formal filing with the SEC, with a fixed structure of numbered items and audited statements. The glossy "annual report to shareholders" is a separate document that often wraps the 10-K with a letter and design. The 10-K is due 60 to 90 days after the fiscal year ends, depending on company size [2].
Which section of a 10-K should I read first?
Management's Discussion and Analysis (Item 7), because it explains the year's numbers in the company's words. Microsoft's ran from page 34 to page 49 in its fiscal 2026 10-K [3].
Is a 10-K audited?
Yes, the financial statements in Item 8 are audited by an independent public accounting firm, whose report includes its opinion and, for most companies, critical audit matters [3][4]. Quarterly 10-Q statements are reviewed, not audited.
Where can I find a company's 10-K?
On the SEC's EDGAR website and on the company's investor relations site, usually within 60 days of year-end for large companies. Microsoft filed its fiscal 2026 report on July 29, 2026 [3].
Sources & References
- [1] DataPorium Microsoft (MSFT) stock page (financial statements and SEC filings)
- [2] U.S. Securities and Exchange Commission, Form 10-K General Instructions (accessed October 13, 2026)
- [3] Microsoft Corporation, Form 10-K for the fiscal year ended June 30, 2026 (filed July 29, 2026)
- [4] U.S. Securities and Exchange Commission, Release No. 34-81916, Order Granting Approval of Proposed Rules on the Auditor's Report (October 23, 2017)
- [5] DataPorium Articles, How to Read a 10-Q in 20 Minutes
- [6] DataPorium Microsoft (MSFT) revenue by segment
