What are Microsoft's profit margins?

Microsoft (MSFT) runs a 68.3% gross margin and a 46.8% operating margin, with a 39.3% net margin.

Where do Microsoft's ratios come from?

Every ratio is computed from Microsoft's SEC filings — trailing-twelve-month flows over period-end balances. Valuation multiples combine those fundamentals with market data, recomputed each period. Switch between quarterly, annual, and TTM, or open any ratio for its full history and peer comparisons.

Microsoft MSFT Ratios & Valuation

Income Statement Balance Sheet Cash Flow Ratios Segments

Quarterly Annual TTM

YoY QoQ

Simplified Detailed

	Q3 '26	Q2 '26	Q1 '26	Q4 '25	Q3 '25
Profitability
Gross margin	68.3%-0.3pp	68.6%-0.2pp	68.8%-0.1pp	68.8%-0.3pp	69.1%-0.3pp
Operating margin	46.8%+0.1pp	46.7%+0.4pp	46.3%+0.6pp	45.6%+0.4pp	45.2%+0.3pp
Net margin	39.3%+0.3pp	39%+3.3pp	35.7%-0.4pp	36.1%+0.4pp	35.8%+0.4pp
EBITDA margin	61.4%+0.3pp	61.1%+1.0pp	60.1%+2.1pp	58%+2.7pp	55.3%+0.6pp
Free cash flow margin	22.9%-2.4pp	25.3%-1.2pp	26.6%+1.1pp	25.4%-0.3pp	25.7%-1.1pp
Returns
Return on equity	34%-0.4pp	34.4%+2.1pp	32.2%-1.0pp	33.3%-0.3pp	33.6%-0.7pp
Return on assets	19.9%0.0pp	19.9%+1.8pp	18.1%+0.1pp	18%-0.5pp	18.5%0.0pp
Return on invested capital	26.7%+0.2pp	26.4%-0.9pp	27.3%-0.3pp	27.6%-0.2pp	27.8%+0.1pp
Efficiency
Asset turnover	0.5×0.0×	0.5×0.0×	0.5×0.0×	0.5×0.0×	0.5×0.0×
Inventory turnover	97.6×+0.1×	97.5×+30.9×	66.6×-13.8×	80.4×+2.8×	77.6×+14.1×
Liquidity
Current ratio	1.3×-0.1×	1.4×0.0×	1.4×0.0×	1.4×0.0×	1.4×0.0×
Quick ratio	1.3×-0.1×	1.4×0.0×	1.4×0.0×	1.3×0.0×	1.4×0.0×
Cash ratio	0.2×0.0×	0.2×0.0×	0.2×0.0×	0.2×0.0×	0.3×+0.1×
Leverage
Debt-to-equity	0.3×0.0×	0.3×0.0×	0.3×0.0×	0.3×0.0×	0.3×0.0×
Debt-to-assets	0.2×0.0×	0.2×0.0×	0.2×0.0×	0.2×0.0×	0.2×0.0×
Net debt / EBITDA	0.5×-0.1×	0.5×0.0×	0.5×0.0×	0.5×0.0×	0.5×-0.1×
Per Share
Book value per share	$55.66+6.2%	$52.40+7.7%	$48.63+5.7%	$46.01+6.6%	$43.14+6.4%
Valuation
Market capitalization	$2.75T-23.5%	$3.59T-6.6%	$3.85T+5.7%	$3.64T+30.5%	$2.79T-11.0%
Enterprise value	$2.84T-23.1%	$3.69T-6.3%	$3.94T+5.8%	$3.72T+29.9%	$2.87T-10.9%
Price / earnings	22×-8.2×	30.1×-6.6×	36.7×+0.9×	35.8×+6.9×	28.9×-4.9×
Price / sales	8.6×-3.1×	11.8×-1.3×	13.1×+0.2×	12.9×+2.6×	10.3×-1.6×
Price / book	6.6×-2.6×	9.2×-1.4×	10.6×0.0×	10.6×+1.9×	8.7×-1.7×
EV / EBITDA	14.5×-5.3×	19.8×-2.5×	22.3×-0.5×	22.8×+3.6×	19.2×-3.3×
EV / sales	8.9×-3.2×	12.1×-1.3×	13.4×+0.2×	13.2×+2.6×	10.6×-1.7×
Free cash flow yield	2.7%+0.5pp	2.2%+0.1pp	2%+0.1pp	2%-0.5pp	2.5%+0.3pp
Earnings yield	4.6%+1.2pp	3.3%+0.6pp	2.7%-0.1pp	2.8%-0.7pp	3.5%+0.5pp
Dividend yield	0.9%+0.2pp	0.7%+0.1pp	0.6%0.0pp	0.7%-0.2pp	0.8%+0.1pp
PEG ratio	0.7×-0.3×	1.1×-1.3×	2.3×0.0×	2.3×-0.1×	2.4×-0.4×

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Questions, answered.

What are Microsoft's profit margins?: Microsoft (MSFT) runs a 68.3% gross margin and a 46.8% operating margin, with a 39.3% net margin.
Where do Microsoft's ratios come from?: Every ratio is computed from Microsoft's SEC filings — trailing-twelve-month flows over period-end balances. Valuation multiples combine those fundamentals with market data, recomputed each period. Switch between quarterly, annual, and TTM, or open any ratio for its full history and peer comparisons.