Enterprise & partner servicesThin moat

Microsoft (MSFT) — moat facet

The line of people rather than software, shrinking as a share of Microsoft while support carries it and consulting is left to partners.

Enterprise and partner services is the line of people rather than software. Revenue was $8.26 billion in fiscal 2026, 2.5% of the company, up $500 million, or 6%, driven by growth in Enterprise Support Services1. The chart band is $8.37 billion because it also carries $109 million of revenue Microsoft reports as Other2.

Enterprise and partner services revenue by quarter ($B)1.93Q1'251.89Q21.95Q31.99Q42.02Q1'262.04Q22.09Q32.11Q4Microsoft 10-Qs; Q4 = fiscal year (10-K) less nine months
Four quarters of growth between 5% and 8%, the steadiest line and one of the slowest.

The 10-K lists four parts: Enterprise Support Services, Industry Solutions, Microsoft Partner Network and Learning Experience3. The business helps customers develop, deploy and manage Microsoft server and desktop solutions and conversational and ambient AI solutions, and trains developers and IT professionals on Microsoft products4. The growth has come from Enterprise Support Services; Industry Solutions, which the fiscal 2023 filing notes was formerly Microsoft Consulting Services5, is the consulting arm.

The line has grown slowly for as long as it has been reported. Enterprise Services was $5.5 billion in fiscal 2017 and $6.1 billion in fiscal 20196, $6.4 billion in fiscal 2020, $6.9 billion in fiscal 2021 and $7.4 billion in fiscal 2022, when it rose 7% on Enterprise Support Services7. From fiscal 2017 to fiscal 2026 it compounded at about 4.5% a year on the figures as reported at the time8.

On the current basis it was $7,900 million in fiscal 2023, $7,594 million in fiscal 2024 and $7,760 million in fiscal 20259, so it fell 3.9% in fiscal 2024, then rose 2.2% and 6.4%10; from fiscal 2023 to fiscal 2026 that is about 1.5% a year11. Fiscal 2024 was the weak year, with declines in Enterprise Support Services and Industry Solutions12. Fiscal 2023 had grown 4% on support while Industry Solutions declined13, and fiscal 2025 grew 2% on support with Industry Solutions down again14. The consulting business has been shrinking inside the line for three years while support carried it.

Two details in the description are worth noticing. The line now includes conversational AI and ambient intelligent solutions15, the kind of work Nuance did before Microsoft bought it for $18.8 billion in March 202216. And the line has shrunk as a share of Microsoft from 3.7% of revenue in fiscal 2023 to 2.5% in fiscal 202617: the company is growing around it. In dollars it moved from $1.9 billion in the September 2024 quarter to $2.1 billion in June 202618.

Fiscal 2026 was the line's best year in the current series. Quarterly growth was 4.9% in September, 7.7% in December, 7.2% in March and 6.0% in June19, with Enterprise Support Services named as the driver in each of the first three202122.

Its margin is hidden in Intelligent Cloud alongside Server products and cloud services, and the segment's 41.3% margin in fiscal 202623 is almost entirely the cloud's. Services sold by the hour carry the cost of the hours, so this is probably the least profitable line Microsoft reports, but the filings leave that an inference. It competes, the 10-K says, with multinational consulting firms and small niche businesses24.

The line was called Enterprise Services until the fiscal 2024 filing renamed it2526. Enterprise Support Services is the part that has carried it. Industry Solutions, the consulting arm, has declined in fiscal 2023, 2024 and 2025272829, and again in the September 2025 quarter30.

The line is kept for a reason that has nothing to do with its own growth. A large customer buying Azure and Microsoft 365 wants a support contract with the vendor, and the partners who install and run Microsoft software for many customers are organised through the Partner Network in this line. Shrinking Industry Solutions while support grows is consistent with Microsoft leaving the consulting work to those partners.

The warning sign would be the opposite of growth. If services revenue ever grows faster than Server products and cloud services, customers are needing more help to use the software than they did, and a year in which that happened would be the moment to ask why.

Moat trajectory: Holding steady

Revenue grew 6.4% in fiscal 2026, the best year on the current basis, on Enterprise Support Services while Industry Solutions kept declining; the line keeps shrinking as a share of Microsoft.

The number that tests this moat
Moat Explorer calc
Enterprise and partner services revenue
$8,260M in FY2026, +6.4%

The best year on the current basis, carried by Enterprise Support Services while consulting declined. Services growing faster than the cloud line they support would be the warning sign.

How it's calculated: 8,260 / 7,760 - 1.
Source: Microsoft Form 10-K, FY2026 ↗
References
  1. ReportedRevenue was $8.26 billion in fiscal 2026, 2.5% of the company, up $500 million, or 6%, driven by growth in Enterprise Support Services.
    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 ↗
  2. ReportedThe chart band is $8.37 billion because it also carries $109 million of revenue Microsoft reports as Other.
    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 ↗
  3. ReportedThe 10-K lists four parts: Enterprise Support Services, Industry Solutions, Microsoft Partner Network and Learning Experience.
    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 ↗
  4. ReportedThe business helps customers develop, deploy and manage Microsoft server and desktop solutions and conversational and ambient AI solutions, and trains developers and IT professionals on Microsoft products.
    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 growth has come from Enterprise Support Services; Industry Solutions, which the fiscal 2023 filing notes was formerly Microsoft Consulting Services, is the consulting arm.
    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 ↗
  6. ReportedEnterprise Services was $5.5 billion in fiscal 2017 and $6.1 billion in fiscal 2019, $6.4 billion in fiscal 2020, $6.9 billion in fiscal 2021 and $7.4 billion in fiscal 2022, when it rose 7% on Enterprise Support Services.
    Microsoft Form 10-K, FY2019 — revenue by offering FY2017-FY2019 (Server products and cloud services $21,649M / $26,129M / $32,622M; Office products and cloud services $25,573M / $28,316M / $31,769M; Windows $18,593M / $19,518M / $20,395M; Gaming $9,051M / $10,353M / $11,386M; Search advertising $6,219M / $7,012M / $7,628M; LinkedIn $2,271M / $5,259M / $6,754M; Enterprise Services $5,542M / $5,846M / $6,124M); LinkedIn acquired 8 December 2016 for $27.0B; GitHub acquired 25 October 2018 for $7.5B — FY2017-FY2019 · publ. August 1, 2019 · source ↗
  7. ReportedEnterprise Services was $5.5 billion in fiscal 2017 and $6.1 billion in fiscal 2019, $6.4 billion in fiscal 2020, $6.9 billion in fiscal 2021 and $7.4 billion in fiscal 2022, when it rose 7% on Enterprise Support Services.
    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. Moat Explorer calcFrom fiscal 2017 to fiscal 2026 it compounded at about 4.5% a year on the figures as reported at the time.
    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.
  9. ReportedOn the current basis it was $7,900 million in fiscal 2023, $7,594 million in fiscal 2024 and $7,760 million in fiscal 2025, so it fell 3.9% in fiscal 2024, then rose 2.2% and 6.4%; from fiscal 2023 to fiscal 2026 that is about 1.5% a year.
    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 ↗
  10. Moat Explorer calcOn the current basis it was $7,900 million in fiscal 2023, $7,594 million in fiscal 2024 and $7,760 million in fiscal 2025, so it fell 3.9% in fiscal 2024, then rose 2.2% and 6.4%; from fiscal 2023 to fiscal 2026 that is about 1.5% a year.
    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.
  11. Moat Explorer calcOn the current basis it was $7,900 million in fiscal 2023, $7,594 million in fiscal 2024 and $7,760 million in fiscal 2025, so it fell 3.9% in fiscal 2024, then rose 2.2% and 6.4%; from fiscal 2023 to fiscal 2026 that is about 1.5% a year.
    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.
  12. ReportedFiscal 2024 was the weak year, with declines in Enterprise Support Services and Industry Solutions.
    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 ↗
  13. ReportedFiscal 2023 had grown 4% on support while Industry Solutions declined, and fiscal 2025 grew 2% on support with Industry Solutions down again.
    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. ReportedFiscal 2023 had grown 4% on support while Industry Solutions declined, and fiscal 2025 grew 2% on support with Industry Solutions down again.
    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 ↗
  15. ReportedThe line now includes conversational AI and ambient intelligent solutions, the kind of work Nuance did before Microsoft bought it for $18.8 billion in March 2022.
    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 ↗
  16. ReportedThe line now includes conversational AI and ambient intelligent solutions, the kind of work Nuance did before Microsoft bought it for $18.8 billion in March 2022.
    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 ↗
  17. Moat Explorer calcAnd the line has shrunk as a share of Microsoft from 3.7% of revenue in fiscal 2023 to 2.5% in fiscal 2026: the company is growing around it.
    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. Moat Explorer calcIn dollars it moved from $1.9 billion in the September 2024 quarter to $2.1 billion in 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.
  19. Moat Explorer calcQuarterly growth was 4.9% in September, 7.7% in December, 7.2% in March and 6.0% in June, with Enterprise Support Services named as the driver in each of the first three.
    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.
  20. ReportedQuarterly growth was 4.9% in September, 7.7% in December, 7.2% in March and 6.0% in June, with Enterprise Support Services named as the driver in each of the first three.
    Microsoft Form 10-Q, quarter ended 30 September 2025 — revenue by offering for the quarter and a year earlier, and the drivers (Azure +40%, Windows Server 2025, Windows OEM +18% ahead of Windows 10 end of support, Xbox hardware -29%, LinkedIn +10% on Marketing Solutions, search ex-TAC +16%, Microsoft 365 Commercial products +17% on Office 2024, Industry Solutions decline) — Q1 FY2026 · publ. October 29, 2025 · source ↗
  21. ReportedQuarterly growth was 4.9% in September, 7.7% in December, 7.2% in March and 6.0% in June, with Enterprise Support Services named as the driver in each of the first three.
    Microsoft Form 10-Q, quarter ended 31 December 2025 — revenue by offering for the quarter, six months and a year earlier, and the drivers (Azure +39%, SQL Server 2025, Windows OEM +5% with continued benefit from Windows 10 end of support, Xbox hardware -32%, LinkedIn +11% on Marketing Solutions, search ex-TAC +10%, impairment charges in Gaming) — Q2 FY2026 · publ. January 28, 2026 · source ↗
  22. ReportedQuarterly growth was 4.9% in September, 7.7% in December, 7.2% in March and 6.0% in June, with Enterprise Support Services named as the driver in each of the first three.
    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 ↗
  23. Moat Explorer calcIts margin is hidden in Intelligent Cloud alongside Server products and cloud services, and the segment's 41.3% margin in fiscal 2026 is almost entirely the cloud's.
    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.
  24. ReportedIt competes, the 10-K says, with multinational consulting firms and small niche businesses.
    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 ↗
  25. ReportedThe line was called Enterprise Services until the fiscal 2024 filing renamed it.
    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 ↗
  26. ReportedThe line was called Enterprise Services until the fiscal 2024 filing renamed it.
    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 ↗
  27. ReportedIndustry Solutions, the consulting arm, has declined in fiscal 2023, 2024 and 2025, and again in the September 2025 quarter.
    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 ↗
  28. ReportedIndustry Solutions, the consulting arm, has declined in fiscal 2023, 2024 and 2025, and again in the September 2025 quarter.
    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 ↗
  29. ReportedIndustry Solutions, the consulting arm, has declined in fiscal 2023, 2024 and 2025, and again in the September 2025 quarter.
    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 ↗
  30. ReportedIndustry Solutions, the consulting arm, has declined in fiscal 2023, 2024 and 2025, and again in the September 2025 quarter.
    Microsoft Form 10-Q, quarter ended 30 September 2025 — revenue by offering for the quarter and a year earlier, and the drivers (Azure +40%, Windows Server 2025, Windows OEM +18% ahead of Windows 10 end of support, Xbox hardware -29%, LinkedIn +10% on Marketing Solutions, search ex-TAC +16%, Microsoft 365 Commercial products +17% on Office 2024, Industry Solutions decline) — Q1 FY2026 · publ. October 29, 2025 · source ↗
Sources
Generated September 22, 2026