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Microsoft MSFT Gross Profit

Gross Profit at other companies

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International Business MachinesIBM
$9.91B-0.7%
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AppleAAPL
$54.77B+25.3%
EA
EAEA
$1.76B+15.0%
PTC logo
PTCPTC
$660.69M+24.6%
Salesforce logo
SalesforceCRM
$8.56B+13.2%
Fortinet logo
FortinetFTNT
$1.64B+24.9%

Other financials

Income statement

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Revenue$90.0B+17.7%
Operating income$40.6B+18.3%
Net income$35.8B+31.3%
EPS (diluted)$4.81+31.8%

Balance sheet

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Cash & equivalents$20.9B-30.8%
Total debt$128.81B+14.8%
Total equity$442.39B+28.8%
Total assets$758.38B+22.5%

Cash flow

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Operating cash flow$55.4B+30.0%
CapEx$35.8B+110%
Free cash flow$19.6B-23.2%

Valuation

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Market cap$3.76T-3.1%
Enterprise value$3.87T-2.4%
P/E28.1×-10.0×
P/S11.3×-2.4×

Profitability

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Gross margin67.9%-0.9pp
Operating margin46.8%+1.2pp
Net margin40.3%+4.2pp
FCF margin20.2%-5.2pp

Returns & leverage

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Return on equity34%+0.8pp
Debt / equity0.3×0.0×
Current ratio1.2×-0.1×

Where this comes from

Reported directly by Microsoft in its filing.

Tagged under the XBRL concept us-gaap:GrossProfit.

The source filing: Microsoft’s 10-K, filed July 29, 2026.

Filed
Jul 29, 2026, 4:08 PM EDT
Fiscal year
FY2026
Accession
0001193125-26-323660
(In millions, except per share amounts) / Year Ended June 30,202620252024
Product12,09813,50115,272
Service and other94,27674,33058,842
Total cost of revenue106,37487,83174,114
Gross margin225,465193,893171,008
Research and development35,56232,48829,510
Sales and marketing26,71025,65424,456
General and administrative7,9567,2237,609
Operating income155,237128,528109,433

Item 8

FAQ

What is Microsoft's gross profit?
Microsoft (MSFT) reported gross profit of $60.48B in Q2 2026.
How has Microsoft's gross profit changed year-over-year?
Microsoft's gross profit increased by 15.4% year-over-year, from $52.43B to $60.48B.
What is the long-term trend for Microsoft's gross profit?
Over 4 years (2022 to 2026), Microsoft's gross profit has grown at a 13.6% compound annual growth rate (CAGR), from $135.62B to $225.47B.
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.

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