---
title: "Microsoft and Alphabet: $1.2 trillion of filed backlog, one capex floor and no capex range. Twelve filed lines before the 28 October prints."
description: "Microsoft's remaining performance obligations were $684 billion at 30 June and Alphabet's revenue backlog $519.5 billion. Microsoft has filed a capex floor for one quarter, 'over $50 billion'; Alphabet has filed no capex figure for 2026 at all. Twelve lines on file before both report, each with its accession, including Microsoft's new segments and its restated outlook."
canonical: https://evidinvest.com/blog/msft-googl-q3-2026-twelve-filed-lines-before-the-prints-2026-10-26
date: "2026-10-26"
last_updated: "2026-10-26"
author: "EvidInvest Team"
publisher: "EBD Sweden AB (EvidInvest)"
tags: ["MSFT", "GOOGL", "capex", "remaining performance obligations", "backlog", "earnings preview", "10-K", "10-Q", "8-K", "SEC filings"]
---

# Microsoft and Alphabet: $1.2 trillion of filed backlog, one capex floor and no capex range. Twelve filed lines before the 28 October prints.

- Published: 2026-10-26
- Author: EvidInvest Team, EvidInvest (published by EBD Sweden AB)
- Canonical URL: https://evidinvest.com/blog/msft-googl-q3-2026-twelve-filed-lines-before-the-prints-2026-10-26
- Research, not investment advice.

> Microsoft's remaining performance obligations were $684 billion at 30 June and Alphabet's revenue backlog $519.5 billion. Microsoft has filed a capex floor for one quarter, 'over $50 billion'; Alphabet has filed no capex figure for 2026 at all. Twelve lines on file before both report, each with its accession, including Microsoft's new segments and its restated outlook.

*Every figure below was read from Microsoft's and Alphabet's own filings on sec.gov and is cited
with its accession: Microsoft's FY2026 10-K, its fourth-quarter release and its September segment
presentation, both furnished on Form 8-K; Alphabet's second-quarter 10-Q and its August notes 8-K.
Outlook figures are the companies' own and are labelled as company guidance. We show no analyst
estimates, no consensus and no share prices, because none of them is filed, and nothing from the
earnings calls, which are not filings either. Sums, ratios and implied growth rates are our
arithmetic on filed values and are marked *(Ours.)* Research, not investment advice.*

Microsoft **[$MSFT](https://evidinvest.com/financials/MSFT)** and Alphabet **[$GOOGL](https://evidinvest.com/financials/GOOGL)** are both
expected to report their September quarters on Wednesday 28 October. Neither date is in an SEC
filing. We checked EDGAR at 04:30 UTC on 26 October: Microsoft's last 8-K is the segment
presentation of 2 September (**accession `0001193125-26-380280`**), followed by its proxy statement
on 21 October; Alphabet's last 8-K is the notes closing of 10 August (**`0001193125-26-342390`**).

Put the two order books side by side. Microsoft's FY2026 10-K (**`0001193125-26-323660`**) reports
revenue allocated to remaining performance obligations of $684 billion at 30 June 2026. Alphabet's
10-Q for the same date (**`0001652044-26-000071`**) reports $519.5 billion of "revenue backlog".
*(Ours: $1,203.5 billion together.)*

Against that, the spending side is barely filed. Microsoft has put one number on paper for capital
expenditures: "over $50 billion" for the quarter ending 30 September, in the outlook table of the
September presentation. Alphabet's 10-Q says it expects "to significantly increase" its investment
in technical infrastructure in 2026, relative to 2025, and gives no figure. Neither company has
filed a range for the year.

No forecast here. Twelve lines already on file, each with the question it sets up for Wednesday.

## 1. Microsoft spent $115.9 billion on property and equipment in FY2026

From the 10-K cash flow statement (`0001193125-26-323660`): additions to property and equipment
were $115,948 million in the year to 30 June 2026, against $64,551 million a year earlier and
$44,477 million the year before that. *(Ours: up 79.6% in one year.)* Cash from operations was
$182.9 billion. *(Ours: property and equipment took 63.4% of it.)*

The June quarter alone, from the fourth-quarter release (Exhibit 99.1 to 8-K
**`0001193125-26-323632`**): $35,802 million, against $17,079 million a year earlier, on $55,441
million of cash from operations. *(Ours: up 109.6%; 64.6% of the quarter's operating cash.)*

**Check:** the September-quarter additions against $35.8 billion.

## 2. The capex floor: "over $50 billion", with a useful-life update in it

On 2 September Microsoft furnished a presentation titled "FY27 Segments and Investor Metrics"
(`0001193125-26-380280`, Exhibit 99.1, an image deck). Slide 20 sets the outlook "as provided on
July 29, 2026" next to an adjusted one. The capital-expenditures line reads "Expected to be over $50
billion including the impact of the useful life update", and the adjusted column says "No change to
outlook".

The deck does not define capital expenditures and does not describe the useful-life update. The
10-K's policy note gives servers and network equipment useful lives of "two to six years". So
whether "over $50 billion" sits on the same basis as the $35.8 billion cash line, the deck does not
say.

**Check:** the capex figure and its definition, whether the useful-life change is quantified, and
whether any sentence covers the full fiscal year.

## 3. A new segment structure, first used on Wednesday

The same 8-K: "Beginning in fiscal year 2027, the Company will manage its operations under this
updated reporting structure and report its financial performance based on two reportable segments:
(1) Agents and Infra and (2) Devices and Consumer." Three segments become two. The deck restates
FY2026 on the new basis (slide 15):

| $ million, FY2026 restated | Q1 | Q4 | Fiscal year |
|---|---|---|---|
| Agents and Infra revenue | 61,672 | 74,576 | 268,127 |
| Devices and Consumer revenue | 16,001 | 15,431 | 63,712 |
| Total revenue | 77,673 | 90,007 | 331,839 |

The totals match the 10-K's $331,839 million for the year. Restated Azure revenue was $101,938
million for FY2026 (slide 17).

**Check:** that the release uses the restated Q1 FY2026 figures as its comparison base.

## 4. Azure has a new definition

Slide 11: the Azure growth metric now excludes "GitHub cloud and other developer cloud services
revenue" and Security Copilot, which move to Microsoft 365 commercial cloud, and Healthcare and Life
Sciences cloud, which moves to a new Industry solutions metric. Restated growth was 40%, 39%, 40%
and 42% for the four FY2026 quarters, against 40%, 39%, 40% and 43% for "Azure and other cloud
services" as reported (slide 18). The Q4 release had given 43%.

The adjusted guide for the September quarter (slide 21): Azure "Growth of 44% to 45% in constant
currency, with FX expected to decrease revenue by less than 1 point."

**Check:** Azure growth in constant currency against 44–45%, on the new definition.

## 5. Microsoft's guide, restated in the new segments

Slide 20, all company guidance for the quarter ending 30 September:

| Line | As provided 29 July | Adjusted 2 September |
|---|---|---|
| Total revenue | $89.85–90.95 billion | No change |
| Agents and Infra | — | $75.15–75.75 billion |
| Devices and Consumer | — | $14.7–15.2 billion |
| Operating margin | "relatively flat year-over-year" | No change |
| Capital expenditures | "over $50 billion" | No change |

*(Ours: against the restated Q1 FY2026 figures, the ranges imply total revenue growth of 15.7% to
17.1%, Agents and Infra 21.9% to 22.8%, and Devices and Consumer −8.1% to −5.0%. Q1 FY2026 operating
margin was 48.9%, $37,961 million on $77,673 million.)*

**Check:** each segment against its range, and the operating margin against 48.9%.

## 6. $684 billion of RPO, about 30% of it within twelve months

The 10-K revenue note: "$684 billion as of June 30, 2026", of which commercial "$678 billion …
with a weighted average duration of approximately 2.3 years. We expect to recognize approximately
30% of both our total company remaining performance obligation revenue and commercial remaining
performance obligation revenue over the next 12 months". The Q4 release gives commercial RPO up 84%.
*(Ours: about $205 billion in the next twelve months.)*

The new segment metrics keep "Commercial remaining performance obligation" under Agents and Infra
(slide 12), with the same definition.

**Check:** commercial RPO against $678 billion, and whether the twelve-month share moves from 30%.

## 7. $329.1 billion of leases not yet commenced

From the 10-K lease note: "As of June 30, 2026, we had additional leases, primarily for
datacenters, that had not yet commenced of $329.1 billion, with some arrangements subject to certain
contractual conditions being met. These leases will commence between fiscal year 2027 and fiscal
year 2033 with lease terms of 1 year to 20 years." Total finance lease liabilities on the balance
sheet were $66,594 million.

Leases that have not commenced are in neither figure. The 10-Q for the September quarter, not the
release, is where an updated number would appear.

**Check:** the finance lease liability and the not-commenced figure in the 10-Q, when it is filed.

## 8. OpenAI: $24.1 billion of revenue, and a related party

The 10-K: "For fiscal year 2026, we recorded revenue from commercial arrangements with OpenAI,
inclusive of revenue-sharing payments, of $24.1 billion, and accounts receivable from OpenAI as of
June 30, 2026 was $6.0 billion." Microsoft's equity-method investment "represents an approximate
25% interest on an as-converted basis"; funding commitments are $13.0 billion, of which $11.9
billion was funded. *(Ours: $24.1 billion is 7.3% of FY2026 revenue of $331,839 million.)*

Two non-operating lines sit next to it. FY2026 other income included $6.5 billion of net gains
from investments in OpenAI (10-K), and the Q4 release names "a $3.2 billion gain from our investment
in Anthropic". The 29 July guide expects other income and expense of "roughly $(100) million
excluding any impact from our investments in OpenAI" (slide 20).

**Check:** other income against the $(100) million line, and whether any Anthropic or OpenAI gain
is broken out.

## 9. Alphabet: $44.9 billion of capex in Q2, $80.6 billion in the half

From the 10-Q (`0001652044-26-000071`): "Capital expenditures, which primarily reflected investments
in technical infrastructure, were $44.9 billion for the three months ended June 30, 2026." For the
half, "$39.6 billion and $80.6 billion" for 2025 and 2026. *(Ours: about $35.7 billion in the first
quarter.)* Net cash from operating activities was $84,859 million in the half against purchases of
property and equipment of $80,598 million. *(Ours: 95.0%.)* Depreciation on property and equipment
was $13.6 billion against $9.5 billion.

The only forward sentence: "In 2026, we expect to significantly increase, relative to 2025, our
investment in our technical infrastructure, including servers and network equipment and data
centers." No amount.

**Check:** the September-quarter capex against $44.9 billion, and whether the 10-Q sentence gains a
number.

## 10. $519.5 billion of backlog, with a wider definition since Q1

The 10-Q: "$519.5 billion of remaining performance obligations ("revenue backlog"), of which $513.9
billion related to Google Cloud … We expect to recognize just over 50% of the revenue backlog as
revenues over the next 24 months". The window is 24 months, not Microsoft's twelve. *(Ours: more than
$259 billion in 24 months.)* And: "In the first quarter of 2026, we elected to change our reporting
of revenue backlog to also include contracts with an original expected term of one year or less."

Google Cloud revenue was $24,768 million in the quarter, against $13,624 million; operating income
$8,814 million against $2,826 million. *(Ours: revenue up 81.8%, margin 35.6%.)* The 10-Q adds: "in
the second quarter of 2026, we began recognizing revenue from the sale of TPU systems."

**Check:** the backlog and its 24-month share, and whether TPU system sales are sized.

## 11. $85.2 billion of Alphabet leases not yet commenced

The 10-Q: "we have entered into leases, primarily related to data centers, that have not yet
commenced with future lease payments of $85.2 billion that are not yet recorded. These leases will
commence between 2026 and 2031 with non-cancelable lease terms between one and 26 years." It also
records $835 million of prepayments in the half for leases not yet commenced, "expected to be
accounted for as finance leases".

**Check:** the figure in the Q3 10-Q against $85.2 billion and Microsoft's $329.1 billion.

## 12. Alphabet raised $49.6 billion of equity and borrowed $25 billion more

The 10-Q: "In June 2026, we issued a combination of Class A stock and Class C stock and mandatory
convertible preferred stock for aggregate net proceeds of $49.6 billion, to be used for general
corporate purposes, including capital expenditures to scale AI infrastructure and global compute."
An ATM programme of up to $40.0 billion followed; "As of June 30, 2026, we have not sold any shares
under the ATM Program." The face value of long-term debt went from $49,085 million at the end of
2025 to $101,085 million at 30 June.

Then the 8-K of 10 August (`0001193125-26-342390`): $25 billion of US-dollar senior notes in ten
tranches, two floating-rate and eight fixed, with coupons from 4.500% (due 2028) to 6.500% (due
2066). *(Ours: the tranches sum to $25.0 billion.)*

**Check:** debt at 30 September, ATM sales and the preferred dividend line.

## What to read first on Wednesday

Microsoft: the capital-expenditures line, and whether it is defined and covers more than one
quarter. Then the two segments against the 2 September ranges, and Azure growth on the new
definition. Alphabet: whether capex gets a number for 2026, then the backlog with its 24-month
share. Both: the lease notes, but those come with the 10-Qs, not the releases.

Our [RPO explainer](https://evidinvest.com/blog/rpo-deferred-revenue-backlog-three-numbers-that-are-not-revenue-2026-10-25)
covers why a 24-month slice and a twelve-month slice are not one comparison. The July reads are
here for
[Microsoft](https://evidinvest.com/blog/msft-q4-fy2026-earnings-results-azure-100b-rpo-678b-2026-07-29) and
[Alphabet](https://evidinvest.com/blog/googl-q2-2026-earnings-results-cloud-equity-raise-2026-07-22). For a capex
range that was filed, and narrowed, see our
[Meta read-back](https://evidinvest.com/blog/meta-q3-2026-capex-cloud-commitments-read-back-2026-10-22).

## Run it yourself

Open [/filings/MSFT](https://evidinvest.com/filings/MSFT), find the 8-K of 2 September and go to slide 20: that is the
whole guide in one table. Then the 10-K, Note 13 on leases, for the $329.1 billion sentence. On
[/filings/GOOGL](https://evidinvest.com/filings/GOOGL), the Q2 10-Q's "Revenue Backlog" paragraph and its "Capital
Expenditures and Leases" section sit a few pages apart.

Write down what you expect before Wednesday. Our [Thesis Monitor](https://evidinvest.com/thesis-monitor) reads each new
filing against what you wrote — capex over $50 billion, Azure at 44–45%, backlog at $519.5 billion
— and tells you which of them moved. If you work inside an agent, the same filings are on the
[EvidInvest MCP server](https://evidinvest.com/developers). It is free to start, credit packs from $10, and there is no
subscription.

$1.2 trillion of backlog is on file. What it costs to deliver is the line still missing.

*Sources. Microsoft Corporation FY2026 Form 10-K: accession `0001193125-26-323660`
([sec.gov](https://www.sec.gov/Archives/edgar/data/789019/000119312526323660/msft-20260630.htm)).
Form 8-K of 29 July 2026, Exhibit 99.1 (fourth-quarter release): `0001193125-26-323632`
([sec.gov](https://www.sec.gov/Archives/edgar/data/789019/000119312526323632/msft-ex99_1.htm)).
Form 8-K of 2 September 2026, Exhibit 99.1 ("FY27 Segments and Investor Metrics", image slides):
`0001193125-26-380280`
([sec.gov](https://www.sec.gov/Archives/edgar/data/789019/000119312526380280/d291965dex991.htm)).
Alphabet Inc. Form 10-Q for the quarter ended 30 June 2026: `0001652044-26-000071`
([sec.gov](https://www.sec.gov/Archives/edgar/data/1652044/000165204426000071/goog-20260630.htm)).
Form 8-K of 10 August 2026 (senior notes): `0001193125-26-342390`
([sec.gov](https://www.sec.gov/Archives/edgar/data/1652044/000119312526342390/d171253d8k.htm)).
EDGAR was checked at 04:30 UTC on 26 October 2026; no newer 8-K, 10-Q or 10-K had been filed by
either company. The report dates are not in a filing. No analyst estimate, consensus figure, share
price, price target or call remark appears on this page. Sums, ratios, slices and implied growth
rates are arithmetic on those filed values, labelled as ours where they appear.
Research, not investment advice.*

---

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