What is Microsoft's pre-tax income?

Microsoft (MSFT) reported pre-tax income of $39.34B in Q1 2026.

How has Microsoft's pre-tax income changed year-over-year?

Microsoft's pre-tax income increased by 25.4% year-over-year, from $31.38B to $39.34B.

What is the long-term trend for Microsoft's pre-tax income?

Over 4 years (2021 to 2025), Microsoft's pre-tax income has grown at a 14.8% compound annual growth rate (CAGR), from $71.1B to $123.63B.

What does pre-tax income mean?

Total income from all sources — operating income plus non-operating items like interest income, investment gains, and other income — before the provision for income taxes.

Microsoft MSFT Pre-Tax Income

Pre-Tax Income at other companies

International Business MachinesIBM

$1.39B+19.8%

AppleAAPL

$35.83B+22.3%

Electronic ArtsEA

$579M+42.3%

PTCPTC

$746.8M+264%

Take-Two Interactive SoftwareTTWO

-$12.7M+99.7%

AmazonAMZN

$39.83B+83.7%

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-22.1%

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

Reported directly by Microsoft in its filing.

Tagged under the XBRL concept us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest.

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 pre-tax income?: Microsoft (MSFT) reported pre-tax income of $39.34B in Q1 2026.
How has Microsoft's pre-tax income changed year-over-year?: Microsoft's pre-tax income increased by 25.4% year-over-year, from $31.38B to $39.34B.
What is the long-term trend for Microsoft's pre-tax income?: Over 4 years (2021 to 2025), Microsoft's pre-tax income has grown at a 14.8% compound annual growth rate (CAGR), from $71.1B to $123.63B.
What does pre-tax income mean?: Total income from all sources — operating income plus non-operating items like interest income, investment gains, and other income — before the provision for income taxes.