Convert the backlog

Data Desk · Live · Part 11Markets

Convert the backlog

A backlog is a promise with a conversion rate attached. Pick the rate and see how much of the book becomes a quarter's revenue for a small pipe maker, or a year's revenue for Microsoft, whose book is refreshed from its filings.

As of Jun 30, 2026 · quarterly, with each filing · published Jul 29, 2026 · read Oct 23, 2026 · derived · next release Oct 28, 2026

Live data, updated Oct 23, 2026, 5:31 p.m. ET

What the chart says. Microsoft's book of business not yet recognized stood at $684B on Jun 30, 2026; at 30% due within a year, that is $205B against $332B of revenue in the four quarters to that date. The size of the book is disclosed every quarter. The pace at which it becomes revenue is the number to watch, and it moves with the customer's own cash.

Source: Microsoft Forms 10-Q and 10-K, SEC EDGAR (XBRL company facts) (latest Jun 30, 2026, refreshed at each build); Perma-Pipe, via Schwar Capital Research, Sep 19, 2026. Implied figures are DeepStack arithmetic.

Show the data table
Perma-Pipe: conversion rateImplied from $142.3MAgainst Q3 FY2025 revenue record ($61.2M)
20%$28.5M0.47×
30%$42.7M0.70×
40%$56.9M0.93×
50%$71.2M1.16×
60%$85.4M1.40×
70%$99.6M1.63×
Microsoft: conversion rateImplied from $684BAgainst revenue, 4 quarters to Jun 30, 2026 ($332B)
20%$137B0.41×
30%$205B0.62×
40%$274B0.82×
50%$342B1.03×
60%$410B1.24×
70%$479B1.44×
Read Part 11: The Backlog Is Not the Quarter
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Millions of dollars; the mark is Q3 FY2025 revenue record

  1. Backlog, end of fiscal Q2Perma-Pipe, via Schwar Capital Research, Sep 19, 2026$142.3M
  2. Implied at 40%DeepStack arithmetic$56.9M
  3. Q3 FY2025 revenue record$61.2M

Implied at 40%$56.9M

Q3 FY2025 revenue record$61.2M

Implied against the mark0.93×

Perma-Pipe: at 40%, $142.3M of backlog, end of fiscal Q2 implies $56.9M, 93% of Q3 FY2025 revenue record ($61.2M).