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Microsoft MSFT Net margin

Net margin at other companies

International Business Machines logo
International Business MachinesIBM
15.6%+6.9pp
Apple logo
AppleAAPL
27.2%+2.9pp
Electronic Arts logo
Electronic ArtsEA
11.8%-3.2pp
PTC logo
PTCPTC
41.6%+22.8pp
Take-Two Interactive Software logo
Take-Two Interactive SoftwareTTWO
-4.5%-2.2pp
Amazon logo
AmazonAMZN
10.6%+0.5pp

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$2.81T-1.5%
Enterprise value$2.91T-0.9%
P/E22.5×-7.1×
P/S8.8×-1.7×

Profitability

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

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

Calculated from Microsoft’s reported figures.

Based on trailing twelve months.

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 net margin?
Microsoft (MSFT) reported net margin of 39.3% in Q1 2026.
How has Microsoft's net margin changed year-over-year?
Microsoft's net margin increased by 9.9% year-over-year, from 35.8% to 39.3%.
What is the long-term trend for Microsoft's net margin?
Over 4 years (2021 to 2025), Microsoft's net margin has grown at a 1.0% compound annual growth rate (CAGR), from 137.2% to 143%.
What does net margin mean?
The share of every sales dollar that becomes bottom-line profit.
How do you interpret net margin?
Higher is better, but net margin mixes operating performance with financing and tax effects and one-off items — read it alongside operating margin to separate the operating story from the rest.
How does net margin compare across companies?
Comparable across peers but sensitive to leverage and tax structure; two operationally identical firms can show different net margins purely from financing.