What is Microsoft's operating income?

Microsoft (MSFT) reported operating income of $38.4B in Q1 2026.

How has Microsoft's operating income changed year-over-year?

Microsoft's operating income increased by 20.0% year-over-year, from $32B to $38.4B.

What is the long-term trend for Microsoft's operating income?

Over 4 years (2021 to 2025), Microsoft's operating income has grown at a 16.4% compound annual growth rate (CAGR), from $69.92B to $128.53B.

What does operating income mean?

Gross profit minus all operating expenses (SG&A, R&D, D&A). Measures the profit from core business operations before interest, taxes, and non-operating items.

Microsoft MSFT Operating Income

Operating Income at other companies

AppleAAPL

$35.89B+21.3%

Electronic ArtsEA

$564M+42.8%

PTCPTC

$295.8M+32.4%

Take-Two Interactive SoftwareTTWO

-$38.7M+70.7%

AmazonAMZN

$23.85B+29.6%

SalesforceCRM

$2.35B+20.9%

Segments

By segment

See full

Productivity And Business Processes$20.97B+20.7%

Intelligent Cloud$13.75B+24.0%

More Personal Computing$3.67B+4.1%

Other financials

Income statement

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Revenue$82.9B+18.3%

Gross profit$56.1B+16.4%

Net income$31.8B+23.1%

EPS (diluted)$4.27+23.4%

Balance sheet

See full

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

See full

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$2.62T-26.1%

Enterprise value$2.71T-25.1%

P/E20.9×-15.8×

P/S8.2×-4.9×

Profitability

See full

Gross margin68.3%-0.8pp

Operating margin46.8%+1.6pp

Net margin39.3%+3.6pp

FCF margin22.9%-2.8pp

Returns & leverage

See full

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:OperatingIncomeLoss.

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 operating income?: Microsoft (MSFT) reported operating income of $38.4B in Q1 2026.
How has Microsoft's operating income changed year-over-year?: Microsoft's operating income increased by 20.0% year-over-year, from $32B to $38.4B.
What is the long-term trend for Microsoft's operating income?: Over 4 years (2021 to 2025), Microsoft's operating income has grown at a 16.4% compound annual growth rate (CAGR), from $69.92B to $128.53B.
What does operating income mean?: Gross profit minus all operating expenses (SG&A, R&D, D&A). Measures the profit from core business operations before interest, taxes, and non-operating items.