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Microsoft MSFT EBITDA margin

EBITDA margin at other companies

International Business Machines logo
International Business MachinesIBM
25.6%+6.0pp
Apple logo
AppleAAPL
35.4%+0.8pp
Electronic Arts logo
Electronic ArtsEA
19.7%-5.4pp
PTC logo
PTCPTC
42.1%+10.8pp
Take-Two Interactive Software logo
Take-Two Interactive SoftwareTTWO
17.7%+10.1pp
Amazon logo
AmazonAMZN
19.6%0.0pp

Other financials

Income statement

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Revenue$82.9B+18.3%
Gross profit$56.1B+16.4%
Operating income$38.4B+20.0%
Net income$31.8B+23.1%
EPS (diluted)$4.27+23.4%

Balance sheet

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Cash & equivalents$32.1B+11.4%
Total debt$125.43B+19.4%
Total equity$414.37B+28.7%
Total assets$694.23B+23.4%

Cash flow

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Operating cash flow$46.7B+26.0%
CapEx$30.9B+84.4%
Free cash flow$15.8B-22.2%

Valuation

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Market cap$2.81T-1.5%
Enterprise value$2.91T-0.9%
P/E22.5×-7.1×
P/S8.8×-1.7×

Profitability

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Gross margin68.3%-0.8pp
Operating margin46.8%+1.6pp
Net margin39.3%+3.6pp

Returns & leverage

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Return on equity34%+0.4pp
Debt / equity0.3×0.0×
Current ratio1.3×-0.1×

Where this comes from

Calculated from Microsoft’s reported figures.

Based on trailing twelve months.

The official record: Microsoft’s 10-Q, filed April 29, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Microsoft's EBITDA margin?
Microsoft (MSFT) reported EBITDA margin of 61.4% in Q1 2026.
How has Microsoft's EBITDA margin changed year-over-year?
Microsoft's EBITDA margin increased by 11.0% year-over-year, from 55.3% to 61.4%.
What is the long-term trend for Microsoft's EBITDA margin?
Over 4 years (2021 to 2025), Microsoft's EBITDA margin has grown at a 4.1% compound annual growth rate (CAGR), from 189.8% to 222.6%.
What does EBITDA margin mean?
Operating cash profitability per sales dollar, before interest, taxes, and non-cash charges.
How do you interpret EBITDA margin?
Useful for comparing operating profitability across firms with different depreciation policies and leverage. High EBITDA margin alongside heavy capex can still mean weak free cash flow — pair it with FCF margin.
How does EBITDA margin compare across companies?
Widely used to compare capital-intensive businesses on a like-for-like basis. Less meaningful for banks and insurers.