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?

Revenue minus cost of revenue — the profit available to cover operating expenses, representing the company's pricing power and production efficiency.

Microsoft MSFT Gross Profit

Gross Profit at other companies

International Business MachinesIBM

$8.95B+11.4%

AppleAAPL

$54.78B+22.1%

Electronic ArtsEA

$1.76B+15.0%

PTCPTC

$660.69M+24.6%

Take-Two Interactive SoftwareTTWO

$938.7M+16.9%

SalesforceCRM

$8.56B+13.2%

Other financials

Income statement

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Revenue$82.9B+18.3%

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-22.1%

Valuation

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Market cap$2.62T-26.1%

Enterprise value$2.71T-25.1%

P/E20.9×-15.8×

P/S8.2×-4.9×

Profitability

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Gross margin68.3%-0.8pp

Operating margin46.8%+1.6pp

Net margin39.3%+3.6pp

FCF margin22.9%-2.8pp

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.

$82.9Btotal revenue−$26.8Btotal cost of revenue=$56.06B

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 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?: Revenue minus cost of revenue — the profit available to cover operating expenses, representing the company's pricing power and production efficiency.