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MSFT

MICROSOFT CORPORATION
CIK 0000789019 · EDGAR ↗
cleanelevatedtriggeredno dataplanned
10.3
composite · 2 signals · CLEAN

Every card below shows the score and the exact filing data it was computed from — no unexplained numbers. Some signals (P-02, P-03, P-08, P-09, P-10, P-11) pull live documents from SEC EDGAR the first time you view this company; a few of those (P-03, P-10, P-11) use AI to read the filing text, but every AI claim must quote the actual document verbatim or it's discarded — never a guess.

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Signals

P-03 · FY 2026-07-29 · TRIGGERED84.6

ESG disclosure gap

11 of 13 ESG claims lack quantitative support (85% gap)
Evidence — inputs and thresholds
{
  "claims": [
    {
      "claim": "Microsoft is committed to sustainability and our approach to addressing climate change starts with the sustainability of our own business.",
      "category": "environmental",
      "quote": "Microsoft is committed to sustainability and our approach to addressing climate change starts with the sustainability of our own business.",
      "quantified": false,
      "metric": null,
      "quote_verified": true
    },
    {
      "claim": "In 2020, we announced goals to become a carbon negative, water positive, and zero waste company by 2030.",
      "category": "environmental",
      "quote": "In 2020, we announced goals to become a carbon negative, water positive, and zero waste company by 2030.",
      "quantified": true,
      "metric": "carbon negative/water positive/zero waste by 2030",
      "quote_verified": true
    },
    {
      "claim": "As of June 30, 2026, we employed approximately 223,000 people on a full-time basis, 121,000 in the U.S. and 102,000 internationally.",
      "category": "social",
      "quote": "As of June 30, 2026, we employed approximately 223,000 people on a full-time basis, 121,000 in the U.S. and 102,000 internationally.",
      "quantified": true,
      "metric": "employees",
      "quote_verified": true
    },
    {
      "claim": "Certain employees are subject to collective bargaining agreements.",
      "category": "social",
      "quote": "Certain employees are subject to collective bargaining agreements.",
      "quantified": false,
      "metric": null,
      "quote_verified": true
    },
    {
      "claim": "Our total compensation offering is both highly differentiated and competitive within the market, and we also monitor pay equity across multiple dimensions.",
      "category": "social",
      "quote": "Our total compensation offering is both highly differentiated and competitive within the market, and we also monitor pay equity across multiple dimensions.",
      "quantified": false,
      "metric": "pay equity",
      "quote_verified": true
    },
    {
      "claim": "We have invested significantly in employee wellbeing and offer a differentiated benefits package which includes many physical, emotional, and financial wellness programs.",
      "category": "social",
      "quote": "We have invested significantly in employee wellbeing and offer a differentiated benefits package which includes many physical, emotional, and financial wellness programs.",
      "quantified": false,
      "metric": "employee wellbeing",
      "quote_verified": true
    },
    {
      "claim": "We also provide access to continuous learning through a wide range of internal and external content, supporting professional growth across roles and disciplines.",
      "category": "social",
      "quote": "We also provide access to continuous learning through a wide range of internal and external content, supporting professional growth across roles and disciplines.",
      "quantified": false,
      "metric": "employee learning",
      "quote_verified": true
    },
    {
      "claim": "Through our employee listening systems, we gather direct feedback from our workforce, enabling us to adapt our programs and address employee needs globally with real-time insights.",
      "category": "social",
      "quote": "Through our employee listening systems, we gather direct feedback from our workforce, enabling us to adapt our programs and address employee needs globally with real-time insights.",
      "quantified": false,
      "metric": "employee feedback",
      "quote_verified": true
    },
    {
      "claim": "Providing training on generative AI and greater access to digital learning and resources through skilling programs and initiatives, grants, and LinkedIn learning pathways.",
      "category": "social",
      "quote": "Providing training on generative AI and greater access to digital learning and resources through skilling programs and initiatives, grants, and LinkedIn learning pathways.",
      "quantified": false,
      "metric": "AI skilling programs",
      "quote_verified": true
    },
    {
      "claim": "Additionally, our culture prioritizes the security of both our customers and Microsoft, embedding this responsibility across all teams and functions.",
      "category": "governance",
      "quote": "Additionally, our culture prioritizes the security of both our customers and Microsoft, embedding this responsibility across all teams and functions.",
      "quantified": false,
      "metric": "security culture",
      "quote_verified": true
    },
    {
      "claim": "We have implemented comprehensive compliance programs across our operations to adapt to these changes and to maintain customer and regulator confidence.",
      "category": "governance",
      "quote": "We have implemented comprehensive compliance programs across our operations to adapt to these changes and to maintain customer and regulator confidence.",
      "quantified": false,
      "metric": "compliance programs",
      "quote_verified": true
    },
    {
      "claim": "We publish a variety of reports and resources related to our Corporate Responsibility programs and progress on our Reports Hub website, including the Environmental Sustainability Report, Microsoft Digital Defense Report, and Microsoft Impact Summary.",
      "category": "governance",
      "quote": "We publish a variety of reports and resources related to our Corporate Responsibility programs and progress on our Reports Hub website, www.microsoft.com/corporate-responsibility/reports-hub, including the Environmental Sustainability Report, Microsoft Digital Defense Report, and Microsoft Impact Summary.",
      "quantified": false,
      "metric": "corporate responsibility reporting",
      "quote_verified": true
    },
    {
      "claim": "At times, we make select intellectual property broadly available at no or low cost to achieve a strategic objective, such as promoting industry standards, advancing interoperability, supporting societal and/or environmental efforts, or attracting and enabling our external development community.",
      "category": "social",
      "quote": "At times, we make select intellectual property broadly available at no or low cost to achieve a strategic objective, such as promoting industry standards, advancing interoperability, supporting societal and/or environmental efforts, or attracting and enabling our external development community.",
      "quantified": false,
      "metric": "societal/environmental IP licensing",
      "quote_verified": true
    }
  ],
  "gap_ratio": 0.846,
  "quotes_discarded_unverified": 2,
  "method": "LLM extraction, every claim quote-verified against the filing"
}
P-08 · FY 2026-07-29 · TRIGGERED100.0

Insider timing

3 8-K event(s) preceded by clustered Form 4 activity within 14 days
Evidence — inputs and thresholds
{
  "clusters": [
    {
      "event_8k": "2026-06-05",
      "form4_count": 3,
      "form4_dates": [
        "2026-06-01",
        "2026-06-02"
      ]
    },
    {
      "event_8k": "2025-12-08",
      "form4_count": 15,
      "form4_dates": [
        "2025-12-02",
        "2025-12-03",
        "2025-12-05"
      ]
    },
    {
      "event_8k": "2025-09-30",
      "form4_count": 6,
      "form4_dates": [
        "2025-09-17"
      ]
    }
  ],
  "form4_total_1y": 130,
  "events_8k_1y": 8,
  "window_days": 14,
  "note": "Timing pattern only — direction (buy/sell) requires parsing each Form 4 XML; treat as a read-the-filings triage flag, not an accusation."
}
P-02 · FY 2026-07-29 · CLEAN0.0

Jurisdiction exposure

No watchlist-jurisdiction subsidiaries in EX-21
Evidence — inputs and thresholds
{
  "exhibit": "msft-ex21.htm",
  "filing_date": "2026-07-29",
  "watchlist": [
    "China",
    "Russia",
    "Belarus",
    "Iran",
    "North Korea"
  ],
  "watchlist_mentions": {},
  "all_jurisdiction_mentions": {
    "Ireland": 7,
    "United States": 4
  },
  "note": "Mention-count proxy from EX-21; ownership %, revenue share and supply relationships require the LLM enrichment phase."
}
P-05 · FY 2026-06-30 · CLEAN10.3

Tax arbitrage

ETR 19.4% — within normal range of statutory
trend: flat
Trend
Source: 10-K on SEC.gov (filed 2026-07-29)
Evidence — inputs and thresholds
{
  "etr_by_year": {
    "2026-06-30": 0.194,
    "2025-06-30": 0.1763,
    "2024-06-30": 0.1823
  },
  "statutory_rate": 0.21,
  "gap_by_year": {
    "2026-06-30": 0.016,
    "2025-06-30": 0.0337,
    "2024-06-30": 0.0277
  },
  "note": "Low ETR can be fully legitimate; this flags persistence + magnitude for review.",
  "stale": false,
  "latest_filing_period": "2026-06-30",
  "source": {
    "url": "https://www.sec.gov/Archives/edgar/data/789019/000119312526323660/0001193125-26-323660-index.htm",
    "form": "10-K",
    "filed": "2026-07-29"
  }
}
P-09 · FY 2026-07-29 · CLEAN9.4

Narrative divergence

Filing language stable vs prior 10-K
Evidence — inputs and thresholds
{
  "current": {
    "filed": "2026-07-29",
    "tokens": 45192,
    "uncertainty_per_1k": 16.29,
    "negative_per_1k": 7.39,
    "litigious_per_1k": 1.77
  },
  "prior": {
    "filed": "2025-07-30",
    "tokens": 43909,
    "uncertainty_per_1k": 15.1,
    "negative_per_1k": 7.04,
    "litigious_per_1k": 1.59
  },
  "ratios": {
    "uncertainty": 1.079,
    "negative": 1.05
  },
  "method": "Loughran-McDonald dictionary densities (lite subset unless full CSV present)"
}
P-10 · FY 2026-07-29 · CLEAN0.0

M&A pre-signal

No M&A pre-signals detected
Evidence — inputs and thresholds
{
  "sc13d_filings": [],
  "ai_signals": [],
  "quotes_discarded_unverified": 0,
  "ai_status": "ok",
  "method": "Deterministic 13D count + LLM language read (quote-verified)"
}
P-11 · FY 2026-07-29 · CLEAN0.0

Stranded assets

No carbon-exposed asset language detected
Evidence — inputs and thresholds
{
  "exposures": [],
  "ppe_share_of_assets": null,
  "quotes_discarded_unverified": 0
}
P-13 · FY 2024-06-30 · CLEAN0.0

Zombie / distress

[FY2024 data, stale — no more recent EBIT figure in XBRL] Interest coverage 37.29x — servicing debt from operations
trend: flat
Trend
Source: 10-K on SEC.gov (filed 2025-07-30)
Evidence — inputs and thresholds
{
  "icr_by_year": {
    "2026-06-30": null,
    "2025-06-30": null,
    "2024-06-30": 37.286,
    "2023-06-30": 44.981
  },
  "consecutive_years_below_1": 0,
  "altman_z_double_prime": 4.136,
  "definitions": {
    "zombie": "ICR<1 for 3+ consecutive FYs (BIS 2018)",
    "z_distress": "<1.1 distress, 1.1-2.6 gray, >2.6 safe"
  },
  "inputs": {
    "ebit_t": 109433000000,
    "interest_expense_t": 2935000000
  },
  "stale": true,
  "latest_filing_period": "2026-06-30",
  "source": {
    "url": "https://www.sec.gov/Archives/edgar/data/789019/000095017025100235/0000950170-25-100235-index.htm",
    "form": "10-K",
    "filed": "2025-07-30"
  }
}