Pre-Tax Income
Income Before TaxMicrosoft Pre-Tax Income increased by 40.7% to $48.25B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 64.3%, from $29.37B to $48.25B. Over 4 years (FY 2021 to FY 2025), Pre-Tax Income shows an upward trend with a 17.7% CAGR. This is a positive signal — higher values indicate stronger performance for this metric.
Analysis
StatementIncome Statement
SectionIncome Before Tax
CategoryProfitability
SignalHigher is better
VolatilityModerate
First reportedQ1 2007
Last reportedQ4 2025
How to read this metric
This represents the total pool of earnings available to be split between the government and shareholders.
Detailed definition
A company's total earnings including both operating and non-operating items, before the provision for income taxes is ap...
Peer comparison
Used to calculate the effective tax rate when compared to the final tax expense.
Metric ID:
is_income_before_taxHistorical Data
19 periods
| Q2 '21 | Q3 '21 | Q4 '21 | Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $25.80B | $20.52B | $22.52B | $20.19B | $21.72B | $21.57B | $20.34B | $22.67B | $31.14B | $27.28B | $26.53B | $26.73B | $32.91B | $30.27B | $29.37B | $31.38B | $51.17B | $34.30B | $48.25B |
| QoQ Change | — | -20.5% | +9.7% | -10.3% | +7.6% | -0.7% | -5.7% | +11.5% | +37.3% | -12.4% | -2.8% | +0.8% | +23.1% | -8.0% | -3.0% | +6.9% | +63.1% | -33.0% | +40.7% |
| YoY Change | — | — | — | — | -15.8% | +5.1% | -9.7% | +12.3% | +43.3% | +26.5% | +30.4% | +17.9% | +5.7% | +10.9% | +10.7% | +17.4% | +55.5% | +13.3% | +64.3% |
Range$20.19B – $51.17B
CAGR+14.9%
Avg YoY Growth+19.2%
Median YoY Growth+13.3%
Pre-Tax Income at Other Companies
Frequently Asked Questions
- What is Microsoft's pre-tax income?
- Microsoft (MSFT) reported pre-tax income of $48.25B in Q4 2025.
- How has Microsoft's pre-tax income changed year-over-year?
- Microsoft's pre-tax income increased by 64.3% year-over-year, from $29.37B to $48.25B.
- 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 17.7% compound annual growth rate (CAGR), from $86.08B to $165.09B.
- What does pre-tax income mean?
- Total profit before the government takes its share in taxes.