Intelligent Cloud — Cost of Goods Sold
Business Segments · Cost of Goods SoldMicrosoft Intelligent Cloud — Cost of Goods Sold increased by 10.2% to $13.57B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 44.2%, from $9.41B to $13.57B. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
StatementSegment
CategoryProfitability
SignalLower is better
VolatilityModerate
First reportedQ1 2023
Last reportedQ4 2025
Rolls up toTotal Cost of Revenue
How to read this metric
An increase relative to revenue may signal rising energy costs or heavy front-loaded depreciation from AI infrastructure investments, while a decrease suggests improved operational efficiency and economies of scale.
Detailed definition
This metric represents the direct costs associated with generating revenue within Microsoft's Intelligent Cloud segment,...
Peer comparison
Similar to the cost of revenue for Amazon Web Services (AWS) or Google Cloud's cost of sales.
Metric ID:
msft_segment_intelligent_cloud_cost_of_goods_and_services_soldHistorical Data
8 periods
| Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q3 '24 | Q4 '24 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|
| Value | $6.03B | $6.03B | $6.03B | $6.03B | $8.61B | $9.41B | $12.31B | $13.57B |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | +42.9% | +9.2% | +30.9% | +10.2% |
| YoY Change | — | — | — | — | +42.9% | +56.0% | +43.0% | +44.2% |
Range$6.03B – $13.57B
CAGR+59.0%
Avg YoY Growth+46.5%
Median YoY Growth+43.6%
Current Streak7+ quarters growth
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Frequently Asked Questions
- What is Microsoft's intelligent cloud — cost of goods sold?
- Microsoft (MSFT) reported intelligent cloud — cost of goods sold of $13.57B in Q4 2025.
- How has Microsoft's intelligent cloud — cost of goods sold changed year-over-year?
- Microsoft's intelligent cloud — cost of goods sold increased by 44.2% year-over-year, from $9.41B to $13.57B.
- What does intelligent cloud — cost of goods sold mean?
- The direct costs, such as data center electricity and server hardware expenses, required to run Microsoft's cloud and server business.