Microsoft MSFT Intelligent Cloud — Cost of Goods Sold

Other segment segments

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Questions, answered.

What is Microsoft's intelligent cloud — cost of goods sold?

Microsoft (MSFT) reported intelligent cloud — cost of goods sold of $15.12B in Q1 2026.

How has Microsoft's intelligent cloud — cost of goods sold changed year-over-year?

Microsoft's intelligent cloud — cost of goods sold increased by 46.7% year-over-year, from $10.31B to $15.12B.

What is the long-term trend for Microsoft's intelligent cloud — cost of goods sold?

Over 2 years (2023 to 2025), Microsoft's intelligent cloud — cost of goods sold has grown at a 29.1% compound annual growth rate (CAGR), from $24.11B to $40.17B.

What does intelligent cloud — cost of goods sold mean?

This metric represents the direct costs associated with generating revenue within Microsoft's Intelligent Cloud segment, which includes Azure, Windows Server, SQL Server, and Enterprise Services. It primarily encompasses expenses related to data center operations, such as hardware depreciation, electricity, fiber connectivity, and labor for technical support and infrastructure maintenance. This figure is critical for determining the gross margin of the company's cloud infrastructure and server product portfolio.