Discontinued — last reported Q3 '09
Gross Profit
Operating IncomeMicrosoft Gross Profit increased by 3.1% to $55.30B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 15.6%, from $47.83B to $55.30B. Over 4 years (FY 2021 to FY 2025), Gross Profit shows an upward trend with a 13.2% CAGR. This is a positive signal — higher values indicate stronger performance for this metric.
Analysis
StatementIncome Statement
SectionOperating Income
CategoryProfitability
SignalHigher is better
VolatilityStable
First reportedQ1 2007
Last reportedQ3 2009
How to read this metric
Higher gross profit indicates a strong ability to command premium pricing and manage production costs effectively.
Detailed definition
The profit a company makes after deducting the costs directly associated with making and providing its products and serv...
Peer comparison
Software-as-a-Service (SaaS) companies generally maintain high gross margins compared to hardware-centric businesses.
Metric ID:
is_gross_profitHistorical Data
19 periods
| Q2 '21 | Q3 '21 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $37.78B | $31.67B | $34.77B | $33.75B | $36.18B | $34.67B | $35.26B | $36.73B | $45.88B | $40.22B | $42.40B | $43.35B | $49.97B | $45.49B | $47.83B | $48.15B | $60.78B | $53.63B | $55.30B |
| QoQ Change | — | -16.2% | +9.8% | -2.9% | +7.2% | -4.2% | +1.7% | +4.2% | +24.9% | -12.4% | +5.4% | +2.3% | +15.3% | -9.0% | +5.2% | +0.7% | +26.2% | -11.8% | +3.1% |
| YoY Change | — | — | — | — | -4.2% | +9.5% | +1.4% | +8.8% | +26.8% | +16.0% | +20.2% | +18.0% | +8.9% | +13.1% | +12.8% | +11.1% | +21.6% | +17.9% | +15.6% |
Range$31.67B – $60.78B
CAGR+8.8%
Avg YoY Growth+13.2%
Median YoY Growth+13.1%
Gross Profit at Other Companies
Frequently Asked Questions
- What is Microsoft's gross profit?
- Microsoft (MSFT) reported gross profit of $55.30B in Q4 2025.
- How has Microsoft's gross profit changed year-over-year?
- Microsoft's gross profit increased by 15.6% year-over-year, from $47.83B to $55.30B.
- 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 13.2% compound annual growth rate (CAGR), from $132.88B to $217.85B.
- What does gross profit mean?
- Total sales minus the direct cost of making those sales.