Microsoft MSFT Gross margin
Gross margin at other companies
Other financials
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 gross margin?
- Microsoft (MSFT) reported gross margin of 68.3% in Q1 2026.
- How has Microsoft's gross margin changed year-over-year?
- Microsoft's gross margin decreased by 1.1% year-over-year, from 69.1% to 68.3%.
- What is the long-term trend for Microsoft's gross margin?
- Over 4 years (2021 to 2025), Microsoft's gross margin has grown at a 0.2% compound annual growth rate (CAGR), from 273.9% to 276.7%.
- What does gross margin mean?
- How much of every sales dollar is left after the direct cost of what was sold.
- How do you interpret gross margin?
- Higher and stable gross margins indicate pricing power and a durable cost structure. A declining trend signals input-cost pressure, pricing competition, or a shift toward lower-margin products.
- How does gross margin compare across companies?
- Highly comparable within an industry, less so across industries — software runs 70%+ while distributors run in single digits. Track the trend more than the absolute level across sectors.