Microsoft R&D increased by 4.8% to $8.92B in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 8.7%, from $8.20B to $8.92B. Over 4 years (FY 2021 to FY 2025), R&D shows an upward trend with a 11.9% CAGR.
Analysis
StatementIncome Statement
SectionOperating Expenses
CategoryGrowth
SignalContext dependent
VolatilityModerate
First reportedQ1 2014
Last reportedQ3 2026Apr 29, 2026
How to read this metric
Higher spending signals a commitment to innovation and future product launches, whereas significant cuts may indicate a shift toward short-term profitability.
Detailed definition
Research and development expenses represent the costs incurred to discover new products, improve existing technologies,...
Peer comparison
Highly comparable across pharmaceutical and medical device peers, where R&D intensity is a key metric for long-term valuation.
Metric ID:
research_and_developmentHistorical Data
20 periods
| 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 | $5.69B | $5.60B | $5.76B | $6.31B | $6.85B | $6.63B | $6.84B | $6.98B | $6.74B | $6.66B | $7.14B | $7.65B | $8.06B | $7.54B | $7.92B | $8.20B | $8.83B | $8.15B | $8.50B | $8.92B |
| QoQ Change | — | -1.5% | +2.8% | +9.5% | +8.6% | -3.2% | +3.3% | +2.0% | -3.5% | -1.2% | +7.3% | +7.2% | +5.3% | -6.4% | +4.9% | +3.5% | +7.7% | -7.7% | +4.4% | +4.8% |
| YoY Change | — | — | — | — | +20.4% | +18.4% | +18.9% | +10.8% | -1.6% | +0.5% | +4.4% | +9.6% | +19.5% | +13.3% | +10.9% | +7.1% | +9.6% | +8.0% | +7.4% | +8.7% |
Range$5.60B – $8.92B
CAGR+9.9%
Avg YoY Growth+10.4%
Median YoY Growth+9.6%
Current Streak2 quarters growth
R&D at Other Companies
Frequently Asked Questions
- What is Microsoft's r&d?
- Microsoft (MSFT) reported r&d of $8.92B in Q1 2026.
- How has Microsoft's r&d changed year-over-year?
- Microsoft's r&d increased by 8.7% year-over-year, from $8.20B to $8.92B.
- What is the long-term trend for Microsoft's r&d?
- Over 4 years (2021 to 2025), Microsoft's r&d has grown at a 11.9% compound annual growth rate (CAGR), from $20.72B to $32.49B.
- What does r&d mean?
- The money spent on creating new products or improving existing ones to drive future growth.