As of Q2'26 (2025-12-31), Microsoft reported Cash & Short-term Investments of USD 89.5B and Debt of USD 57.6B. This marks a notable increase in cash from the previous quarter, while debt continued its gradual decline. Over the period from Q3'23 to Q2'26, Microsoft's cash position exhibited significant volatility, peaking at USD 144B in Q1'24 before dropping sharply to USD 80B in Q2'24 and then fluctuating between USD 71.6B and USD 102B. Debt levels, in contrast, remained relatively stable, with a temporary rise to USD 88.4B in Q2'24 but generally trending downward from USD 60.5B to USD 57.6B by Q2'26. Overall, the company maintained a strong liquidity position with cash consistently exceeding debt, despite short-term fluctuations.