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

	TTM Q3 '26	TTM Q2 '26	TTM Q1 '26	TTM Q4 '25	TTM Q3 '25
Profitability
Gross margin	274.5%-0.8pp	275.2%-0.8pp	276.1%-0.6pp	276.7%-0.9pp	277.6%-0.8pp
Operating margin	185.4%+1.6pp	183.8%+1.7pp	182.1%+1.8pp	180.3%+1.0pp	179.3%+0.5pp
Net margin	150.2%+3.6pp	146.7%+3.6pp	143.1%+0.1pp	143%+0.2pp	142.8%-0.6pp
EBITDA margin	240.5%+6.1pp	234.4%+6.4pp	228%+5.4pp	222.6%+4.2pp	218.3%+2.2pp
Free cash flow margin	100.2%-2.8pp	103%-1.4pp	104.4%-2.0pp	106.4%-4.8pp	111.2%-4.1pp
Returns
Return on equity	133.9%+0.4pp	133.5%+0.1pp	133.4%-3.4pp	136.8%-3.9pp	140.6%-4.9pp
Return on assets	75.9%+1.5pp	74.5%+1.4pp	73%-0.6pp	73.6%-1.1pp	74.7%-1.5pp
Return on invested capital	108%-1.2pp	109.2%-1.3pp	110.5%-4.4pp	114.8%-2.6pp	117.4%-2.7pp
Efficiency
Asset turnover	2×0.0×	2×0.0×	2×0.0×	2.1×0.0×	2.1×0.0×
Inventory turnover	342.1×+20.0×	322.1×+34.1×	288.1×+32.9×	255.2×+40.9×	214.3×+43.5×
Liquidity
Current ratio	5.4×-0.1×	5.5×0.0×	5.5×+0.1×	5.4×+0.1×	5.3×+0.1×
Quick ratio	5.4×-0.1×	5.5×0.0×	5.4×+0.1×	5.3×+0.1×	5.3×+0.1×
Cash ratio	0.8×0.0×	0.9×0.0×	0.8×0.0×	0.8×+0.1×	0.7×+0.1×
Leverage
Debt-to-equity	1.3×0.0×	1.3×0.0×	1.3×0.0×	1.3×0.0×	1.3×0.0×
Debt-to-assets	0.7×0.0×	0.7×0.0×	0.7×0.0×	0.7×0.0×	0.7×0.0×
Net debt / EBITDA	2×0.0×	2.1×-0.1×	2.1×0.0×	2.2×-0.1×	2.2×0.0×
Per Share
Book value per share	$202.70+6.6%	$190.18+6.7%	$178.32+6.0%	$168.20+6.4%	$158.14+6.2%
Valuation
Market capitalization	$13.84T-0.3%	$13.88T+3.4%	$13.42T+5.1%	$12.77T+2.6%	$12.45T-2.6%
Enterprise value	$14.2T-0.2%	$14.23T+3.4%	$13.75T+5.1%	$13.09T+2.6%	$12.76T-2.5%
Price / earnings	124.6×-6.9×	131.5×-3.6×	135.1×+1.4×	133.8×-1.9×	135.7×-7.4×
Price / sales	46.4×-1.7×	48.1×-0.2×	48.3×+0.5×	47.8×-0.6×	48.4×-2.9×
Price / book	37×-2.0×	39.1×-1.2×	40.2×-0.5×	40.7×-1.8×	42.5×-3.7×
EV / EBITDA	79.5×-4.7×	84.1×-2.7×	86.8×-1.2×	88.1×-3.0×	91×-6.2×
EV / sales	47.7×-1.7×	49.3×-0.2×	49.6×+0.5×	49×-0.6×	49.6×-2.9×
Free cash flow yield	8.8%+0.2pp	8.6%-0.1pp	8.7%-0.2pp	9%-0.3pp	9.2%+0.2pp
Earnings yield	13.4%+1.1pp	12.3%+0.4pp	11.9%-0.1pp	12%+0.1pp	11.9%+0.7pp
Dividend yield	2.9%+0.1pp	2.8%0.0pp	2.9%-0.1pp	2.9%0.0pp	2.9%+0.2pp
PEG ratio	6.4×-1.6×	8×-1.7×	9.7×+0.3×	9.4×+0.6×	8.9×+0.9×

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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.