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Microsoft MSFT Productivity And Business Processes — Operating Expenses

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Other financials

Income statement

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Revenue$82.9B+18.3%
Gross profit$56.1B+16.4%
Operating income$38.4B+20.0%
Net income$31.8B+23.1%
EPS (diluted)$4.27+23.4%

Balance sheet

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Cash & equivalents$32.1B+11.4%
Total debt$125.43B+19.4%
Total equity$414.37B+28.7%
Total assets$694.23B+23.4%

Cash flow

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Operating cash flow$46.7B+26.0%
CapEx$30.9B+84.4%
Free cash flow$15.8B-22.1%

Valuation

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Market cap$2.98T-20.4%
Enterprise value$3.07T-19.6%
P/E23.8×-12.9×
P/S9.4×-3.9×

Profitability

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Gross margin68.3%-0.8pp
Operating margin46.8%+1.6pp
Net margin39.3%+3.6pp
FCF margin22.9%-2.8pp

Returns & leverage

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Return on equity34%+0.4pp
Debt / equity0.3×0.0×
Current ratio1.3×-0.1×

Where this comes from

Reported directly by Microsoft in its filing.

Tagged under the XBRL concept us-gaap:OperatingExpenses.

The official record: Microsoft’s 10-Q, filed April 29, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Microsoft's productivity and business processes — operating expenses?
Microsoft (MSFT) reported productivity and business processes — operating expenses of $7.84B in Q1 2026.
How has Microsoft's productivity and business processes — operating expenses changed year-over-year?
Microsoft's productivity and business processes — operating expenses increased by 11.3% year-over-year, from $7.05B to $7.84B.
What is the long-term trend for Microsoft's productivity and business processes — operating expenses?
Over 2 years (2023 to 2025), Microsoft's productivity and business processes — operating expenses has grown at a 3.2% compound annual growth rate (CAGR), from $26.88B to $28.62B.
What does productivity and business processes — operating expenses mean?
This metric represents the total operating costs incurred by Microsoft's Productivity and Business Processes segment, which encompasses the Office suite, LinkedIn, and Dynamics business solutions. It includes expenses related to research and development, sales and marketing, and general administrative functions necessary to support cloud-based and on-premises productivity software. Monitoring these expenses is critical for evaluating the cost efficiency of the company's software-as-a-service (SaaS) and enterprise communication platforms.