Microsoft reported $683B of remaining performance obligations at 30 Sep 2026, up 72% from a year earlier and down 0% from the previous quarter. That is 2.0 years of trailing revenue already under contract. Book-to-bill last quarter: 0.99.
Net new backlog added in the latest quarter: -$1.00B.
Over the last twelve months it turned about 61% of its opening backlog into revenue (12-month conversion).
30% of the backlog is due within the next twelve months.
Customer prepayments (contract liabilities) cover 10.2% of the backlog.
Twelve-month book-to-bill: 1.82, i.e. 1.82 of new orders for every 1 of revenue recognised.
Backlog growth minus revenue growth: +54 points — orders are running ahead of revenue.
By backlog size it ranks 2nd among US filers the cockpit tracks.
Microsoft reported $683B of remaining performance obligations at 30 Sep 2026, up 72% from a year earlier and down 0% from the previous quarter. That is 2.0 years of trailing revenue already under contract. Book-to-bill last quarter: 0.99.
How fast does Microsoft's backlog turn into revenue?
Over the last twelve months Microsoft recognised revenue equal to about 61% of the backlog it started each quarter with.
Remaining performance obligations (RPO) are revenue a company has contracted but not yet recognised, as reported in its SEC filings (XBRL tag RevenueRemainingPerformanceObligation). Coverage = backlog ÷ trailing twelve-month revenue. Book-to-bill = (change in backlog + revenue) ÷ revenue. Conversion = revenue recognised ÷ the backlog at the start of each quarter, summed over four quarters. Counterparty values come from company filings and releases.