Microsoft MSFT Service Other — Cost of Goods Sold

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FAQ

What is Microsoft's service other — cost of goods sold?

Microsoft (MSFT) reported service other — cost of goods sold of $26.59B in Q2 2026.

How has Microsoft's service other — cost of goods sold changed year-over-year?

Microsoft's service other — cost of goods sold increased by 28.4% year-over-year, from $20.7B to $26.59B.

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

Over 4 years (2022 to 2026), Microsoft's service other — cost of goods sold has grown at a 21.3% compound annual growth rate (CAGR), from $43.59B to $94.28B.

What does service other — cost of goods sold mean?

This metric represents the direct costs associated with generating revenue from Microsoft's service-based offerings and other non-product activities. It primarily includes expenses related to data center operations, such as depreciation, labor, and energy for cloud infrastructure like Azure, as well as content acquisition costs for LinkedIn and search advertising. These costs are essential for maintaining the delivery and reliability of the company's software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS) platforms.