Gross Profit
Microsoft Gross Profit increased by 1.4% to $56.06B in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 16.4%, from $48.15B to $56.06B. Over 4 years (FY 2021 to FY 2025), Gross Profit shows an upward trend with a 13.7% CAGR. This is a positive signal — higher values indicate stronger performance for this metric.
Analysis
How to read this metric
An increase suggests improved manufacturing efficiency, favorable product mix, or higher pricing power, while a decrease may indicate rising raw material costs, supply chain inefficiencies, or competitive pricing pressure.
Detailed definition
Gross profit represents the residual earnings a company retains after deducting the direct costs associated with produci...
Peer comparison
Peers in the medical device and diagnostics sector typically maintain high gross margins due to intellectual property and specialized manufacturing, though these vary based on the specific product mix of nutritionals versus high-tech devices.
gross_profitHistorical Data
| Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $32.16B | $31.67B | $34.77B | $33.75B | $35.44B | $34.67B | $35.26B | $36.73B | $39.39B | $40.22B | $42.40B | $43.35B | $45.04B | $45.49B | $47.83B | $48.15B | $52.43B | $53.63B | $55.30B | $56.06B |
| QoQ Change | — | -1.5% | +9.8% | -2.9% | +5.0% | -2.2% | +1.7% | +4.2% | +7.3% | +2.1% | +5.4% | +2.3% | +3.9% | +1.0% | +5.2% | +0.7% | +8.9% | +2.3% | +3.1% | +1.4% |
| YoY Change | — | — | — | — | +10.2% | +9.5% | +1.4% | +8.8% | +11.2% | +16.0% | +20.2% | +18.0% | +14.3% | +13.1% | +12.8% | +11.1% | +16.4% | +17.9% | +15.6% | +16.4% |
Gross Profit at Other Companies
Frequently Asked Questions
- What is Microsoft's gross profit?
- Microsoft (MSFT) reported gross profit of $56.06B in Q1 2026.
- How has Microsoft's gross profit changed year-over-year?
- Microsoft's gross profit increased by 16.4% year-over-year, from $48.15B to $56.06B.
- What is the long-term trend for Microsoft's gross profit?
- Over 4 years (2021 to 2025), Microsoft's gross profit has grown at a 13.7% compound annual growth rate (CAGR), from $115.86B to $193.89B.
- What does gross profit mean?
- The total revenue earned from sales minus the direct costs required to manufacture and deliver those products.