Cursor vs Microsoft: Revenue, Profit and Business Model
Cursor reported $4B of revenue in FY2026 and — of net income. Microsoft reported $331.8B of revenue in FY2026 and $133.7B of net income.
Latest financial snapshot
Financial summary
Cursor
Cursor never published audited financials as a private company, so its numbers come from company statements and reporting. Annualized revenue reached about $100 million in January 2025, $500 million by June 2025, more than $1 billion by November 2025, $2 billion in February 2026, $3 billion in late April 2026 and more than $4 billion in early June 2026 (Forbes). The company said enterprise revenue tripled in Q1 2026 versus Q4 2025. Funding rounds included an $8 million seed (2023), a $60 million Series A at $400 million (2024), a $900 million Series C at $9.9 billion (June 2025) and a $2.3 billion Series D at $29.3 billion (November 2025). SpaceX's $60 billion all-stock price converted Anysphere shares into 389,289,254 SpaceX Class A shares. Profitability has not been disclosed.
Microsoft
Microsoft's FY2026 revenue rose 17.8% to $331.8 billion, operating income rose 21% to $155.2 billion, and GAAP net income rose 31% to $133.7 billion. Fourth-quarter revenue was $90.0 billion (up 18%) with net income of $35.8 billion, helped by a $3.2 billion gain on its Anthropic investment. Microsoft Cloud revenue reached $59.3 billion in Q4, up 27%. The main pressure point is capital intensity: AI data center spending has pushed free cash flow growth well below earnings growth.
Revenue and profit by year
Cursor
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $4B | — | 0.0% | +300.0% | Source |
| FY2025 | $1B | — | 0.0% | — | Source |
Microsoft
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $331.8B | $133.7B | 40.3% | +17.8% | Source |
| FY2025 | $281.7B | $101.8B | 36.1% | +14.9% | Source |
| FY2024 | $245.1B | $88.1B | 36.0% | +15.7% | Source |
| FY2023 | $211.9B | $72.4B | 34.1% | +6.9% | Source |
| FY2022 | $198.3B | $72.7B | 36.7% | +18.0% | Source |
| FY2021 | $168.1B | $61.3B | 36.5% | +17.5% | Source |
| FY2020 | $143B | $44.3B | 31.0% | +13.6% | Source |
| FY2019 | $125.8B | $39.2B | 31.2% | +14.0% | Source |
| FY2018 | $110.4B | $16.6B | 15.0% | +14.3% | Source |
| FY2017 | $96.6B | $25.5B | 26.4% | — | Source |
Where the revenue comes from
Cursor
- Business and enterprise subscriptions
~75% (mid-2026, company-stated)
Per-seat Teams and Enterprise contracts plus usage above included allowances.
- Individual subscriptions and usage~25%
Pro and higher individual tiers, plus pay-as-you-go model usage beyond plan limits.
Microsoft
- Productivity And Business ProcessesMajor
Office, Microsoft 365, LinkedIn, Dynamics, and related cloud services.
- Intelligent CloudMajor
Azure, server products, enterprise services, and cloud infrastructure.
- More Personal ComputingMajor
Windows, devices, gaming, search, and advertising.
- AI Services And CopilotsGrowth
AI features and model-powered services embedded across Azure, Microsoft 365, GitHub, security, and developer tools.
Business model and strategy
Cursor
How it makes money
Cursor makes money from subscriptions. A free Hobby tier lets developers try the editor and agent with limited usage. Paid individual plans (Pro at $20 a month, with higher-usage tiers above it) include a monthly allowance of frontier-model usage, and heavy users pay for extra usage at model API rates.
Growth strategy
Cursor grew bottom-up: developers adopted it on their own, then companies bought team licenses. It now focuses on enterprise sales, with business customers making up about three-quarters of revenue by mid-2026. Product expansion moved from the editor into background and cloud agents, a command-line agent, web and mobile access, Bugbot code review and the Graphite code-review platform it acquired in December 2025.
Competitive advantage
Cursor owns the whole editor rather than running as a plugin, so it can design agent workflows, inline diffs, Tab predictions and codebase indexing into the product directly. It has trained its own models (Cursor Tab and the Composer family) for the high-frequency parts of coding, which lowers cost and latency.
Microsoft
How it makes money
Microsoft reports three segments. Intelligent Cloud covers Azure, SQL Server, Windows Server, GitHub, Nuance, and enterprise services; server products and cloud services alone brought in $129.4 billion in FY2026, and Azure passed $100 billion in annual revenue for the first time.
Growth strategy
Microsoft's growth plan centers on AI capacity and AI subscriptions. It is spending heavily on data centers and chips to meet Azure demand that management says remains capacity constrained, and it is selling Microsoft 365 Copilot as a paid add-on, which passed 30 million paid seats by the end of FY2026.
Competitive advantage
Microsoft's main advantage is distribution inside enterprises. Identity (Entra), email and documents (Microsoft 365), collaboration (Teams), developer tools (GitHub, Visual Studio), and cloud infrastructure (Azure) are often bought together, which raises switching costs and lets Microsoft attach new products such as Copilot to existing contracts.
Questions about Cursor vs Microsoft
Which company has higher revenue — Anysphere Inc. (Cursor) or Microsoft Corporation?
Anysphere Inc. (Cursor) reported $4.0B (FY2026), while Microsoft Corporation reported $331.8B (FY2026). By last reported revenue, Microsoft Corporation is the larger business, with Anysphere Inc. (Cursor) reporting a smaller revenue base.
What is the market cap of Anysphere Inc. (Cursor) vs Microsoft Corporation?
Microsoft Corporation has a market capitalisation of $3.83T. A public market cap figure for Anysphere Inc. (Cursor) was not available (it may be privately held).
Which is more financially efficient — Anysphere Inc. (Cursor) or Microsoft Corporation?
Anysphere Inc. (Cursor) generates $13.33M / employee in revenue per employee, while Microsoft Corporation generates $1.49M / employee. Anysphere Inc. (Cursor) shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Anysphere Inc. (Cursor) and Microsoft Corporation make money?
Anysphere Inc. (Cursor) and Microsoft Corporation generate revenue in fundamentally different ways. Anysphere Inc. (Cursor): Cursor makes money from subscriptions. Microsoft Corporation: Microsoft reports three segments.
Is Anysphere Inc. (Cursor) bigger than Microsoft Corporation?
By last reported revenue, Microsoft Corporation ($331.8B (FY2026)) is the larger company compared to Anysphere Inc. (Cursor) ($4.0B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Cursor vs Microsoft overview