Microsoft Backlog: $678 Billion in Commercial Remaining Performance Obligations
Microsoft's commercial remaining performance obligations stood at $678 billion as of fiscal 2026. This figure offers significant revenue visibility, but its value depends on when the revenue is realized and which customers account for it.
The company's weighted average duration of remaining obligations was 2.3 years, with approximately 30% expected to be recognized in the following 12 months. This means that about $203.4 billion of the backlog is expected to be recognized within a year.
However, not all revenue comes from existing contracts. Microsoft's fiscal 2026 revenue was $331.8 billion, and future revenue also comes from renewals, new contracts, and usage not captured in the same snapshot.
The backlog grew 84% in fiscal 2026, but growth excluding OpenAI was only 25%. This contrast highlights a source of concentration rather than disproving demand elsewhere.