Microsoft R&D increased by 4.4% to $8.50B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 7.4%, from $7.92B to $8.50B. Over 4 years (FY 2021 to FY 2025), R&D shows an upward trend with a 10.0% CAGR.
Analysis
StatementIncome Statement
SectionOperating Expenses
CategoryGrowth
SignalContext dependent
VolatilityStable
First reportedQ1 2007
Last reportedQ3 2025
How to read this metric
High spending signals a focus on long-term innovation, though it reduces current-period net income.
Detailed definition
Expenses related to the innovation, design, and improvement of products and services. In the technology sector, this rep...
Peer comparison
Big Tech firms often reinvest a significant percentage of revenue into R&D to maintain market leadership.
Metric ID:
is_research_and_developmentHistorical 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 | $6.15B | $5.60B | $5.76B | $6.31B | $7.17B | $6.63B | $6.84B | $6.98B | $6.82B | $6.66B | $7.14B | $7.65B | $7.81B | $7.54B | $7.92B | $8.20B | $8.45B | $8.15B | $8.50B |
| QoQ Change | — | -9.0% | +2.8% | +9.5% | +13.6% | -7.5% | +3.3% | +2.0% | -2.4% | -2.3% | +7.3% | +7.2% | +2.0% | -3.4% | +4.9% | +3.5% | +3.1% | -3.6% | +4.4% |
| YoY Change | — | — | — | — | +16.5% | +18.4% | +18.9% | +10.8% | -4.9% | +0.5% | +4.4% | +9.6% | +14.5% | +13.3% | +10.9% | +7.1% | +8.2% | +8.0% | +7.4% |
Range$5.60B – $8.50B
CAGR+7.5%
Avg YoY Growth+9.6%
Median YoY Growth+9.6%
R&D at Other Companies
Frequently Asked Questions
- What is Microsoft's r&d?
- Microsoft (MSFT) reported r&d of $8.50B in Q4 2025.
- How has Microsoft's r&d changed year-over-year?
- Microsoft's r&d increased by 7.4% year-over-year, from $7.92B to $8.50B.
- What is the long-term trend for Microsoft's r&d?
- Over 4 years (2021 to 2025), Microsoft's r&d has grown at a 10.0% compound annual growth rate (CAGR), from $22.71B to $33.30B.
- What does r&d mean?
- Money spent on developing new products and improving existing ones.