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Microsoft MSFT Service Other — Cost of Goods Sold

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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-22.2%

Valuation

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Market cap$2.82T-1.5%
Enterprise value$2.91T-0.9%
P/E22.5×-7.1×
P/S8.9×-1.7×

Profitability

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

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:CostOfGoodsAndServicesSold.

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 service other — cost of goods sold?
Microsoft (MSFT) reported service other — cost of goods sold of $24.1B in Q1 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 27.6% year-over-year, from $18.88B to $24.1B.
What is the long-term trend for Microsoft's service other — cost of goods sold?
Over 4 years (2021 to 2025), Microsoft's service other — cost of goods sold has grown at a 21.6% compound annual growth rate (CAGR), from $34.01B to $74.33B.
What does service other — cost of goods sold mean?
The total cost of running the data centers and providing the digital services that power Microsoft's cloud, search, and professional networking platforms.
How do you interpret service other — cost of goods sold?
An increase in this metric relative to revenue may signal rising infrastructure costs or heavy investment in AI capacity, while a decrease suggests improved operational efficiency and better utilization of data center assets.
How does service other — cost of goods sold compare across companies?
Similar to the cost of revenue for Amazon Web Services (AWS) or Google Cloud's cost of services.