Total Cost of Revenue
Cost of RevenueMicrosoft Total Cost of Revenue increased by 8.0% to $25.98B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 19.2%, from $21.80B to $25.98B. Over 4 years (FY 2021 to FY 2025), Total Cost of Revenue shows an upward trend with a 13.1% CAGR. This is a positive signal — lower values indicate better performance for this metric.
Analysis
StatementIncome Statement
SectionCost of Revenue
CategoryEfficiency
SignalLower is better
VolatilityModerate
First reportedQ1 2007
Last reportedQ4 2025
How to read this metric
An increase relative to revenue suggests declining efficiency or rising input costs, whereas a decrease suggests better operational scaling.
Detailed definition
The direct costs associated with producing and delivering the goods and services sold by the company. This typically inc...
Peer comparison
Cloud-heavy companies monitor this closely as a measure of data center and infrastructure efficiency.
Metric ID:
is_total_cost_of_revenueHistorical 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 | $17.56B | $13.65B | $16.96B | $15.62B | $17.33B | $15.45B | $17.49B | $16.13B | $19.80B | $16.30B | $19.62B | $18.51B | $23.39B | $20.10B | $21.80B | $21.92B | $28.10B | $24.04B | $25.98B |
| QoQ Change | — | -22.3% | +24.3% | -7.9% | +11.0% | -10.8% | +13.2% | -7.8% | +22.7% | -17.7% | +20.4% | -5.7% | +26.4% | -14.1% | +8.5% | +0.6% | +28.2% | -14.4% | +8.0% |
| YoY Change | — | — | — | — | -1.3% | +13.2% | +3.1% | +3.3% | +14.3% | +5.5% | +12.2% | +14.7% | +18.2% | +23.3% | +11.1% | +18.4% | +20.1% | +19.6% | +19.2% |
Range$13.65B – $28.10B
CAGR+9.1%
Avg YoY Growth+13.0%
Median YoY Growth+14.3%
Business Segments
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Product Breakdown
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Total Cost of Revenue at Other Companies
Frequently Asked Questions
- What is Microsoft's total cost of revenue?
- Microsoft (MSFT) reported total cost of revenue of $25.98B in Q4 2025.
- How has Microsoft's total cost of revenue changed year-over-year?
- Microsoft's total cost of revenue increased by 19.2% year-over-year, from $21.80B to $25.98B.
- What is the long-term trend for Microsoft's total cost of revenue?
- Over 4 years (2021 to 2025), Microsoft's total cost of revenue has grown at a 13.1% compound annual growth rate (CAGR), from $61.21B to $100.04B.
- What does total cost of revenue mean?
- The direct expenses a company pays to create and deliver what it sells.