FFilingSight

Microsoft Corp. (MSFT) 10-K Red Flags

Risk signals extracted deterministically from Microsoft Corp.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.

Detected red flags (17)

  • Material weakness in internal controls: The term "material weakness" appears in 18 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
  • NEW: Restatement of financial statements in latest filing: The term "restate" "financial statements" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 19 filing(s).
  • Operating cash flow exceeds net income: OCF is 1.21x net income, indicating high earnings quality — cash conversion is strong and accruals are not inflating reported profits.
  • Deferred revenue growing — future revenue visibility: Deferred revenue grew +18.3% to $27.47B, providing forward revenue visibility. This is a positive leading indicator for subscription or contract-based businesses.
  • NEW: Restructuring: Restructuring appears in recent filings but not in the prior 24-month period. Monitor for materiality.
  • NEW: Off-balance sheet arrangements: Off-balance sheet arrangements appears in recent filings but not in the prior 24-month period. Monitor for materiality.
  • Endogenous analysis: Strong cash conversion (OCF > NI) combined with growing deferred revenue provides high forward visibility. The business model appears to generate sustainable, recurring cash flows — a positive structural indicator.
  • 5 new XBRL disclosure(s) in latest filing — expanding reporting scope.
  • 20 disclosure(s) dropped from prior year — reduced reporting granularity.
  • 3 new risk-language term(s) detected in filing text: Restatement of financial statements, Restructuring, Off-balance sheet arrangements.
  • Ongoing high-severity risk language: Material weakness in internal controls.
  • Market cap $2.90T at $390.49 per share.
  • Trailing P/E 40.34, P/S 210.78, P/B 7.00.
  • Price $390.49 — downtrend (below 200-DMA); 1-month momentum negative.
  • RSI(14) 50.06.
  • Material weakness in internal controls: The term "material weakness" appears in 18 recent filing(s) (vs 2 in the prior period). This risk language is ongoing.
  • NEW: Restatement of financial statements in latest filing: The term "restate" "financial statements" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 19 filing(s).

Filings & ownership

  • Latest quarterly report (10-Q) filed Apr 29, 2026.
  • 5 recent 8-K material-event filings in the index.
  • Recent insider Form 4s: 0 buy vs 0 sell transactions.
  • ~10,000+ recent 13F-HR filings reference Microsoft Corp.; broad institutional reporting.
  • Recent filers include Axiom Investment Management LLC, Axiom Investment Management LLC, Axiom Investment Management LLC.
  • 1 recent 13D activist/beneficial-ownership filings — potential catalyst.
  • 19 recent 13G passive institutional ownership notices.

Full MSFT analyst report

Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.

View full report →

Not investment advice. FilingSight is an automated analytical research tool, not a registered investment advisor. Ratings and scores are quantitative analytical classifications, not buy or sell recommendations. Nothing here is personalized to your circumstances. Investing involves risk of loss — consult a licensed professional. See full disclosures.