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%-0.8pp	68.6%-0.8pp	68.8%-0.6pp	68.8%-0.9pp	69.1%-0.8pp
Operating margin	46.8%+1.6pp	46.7%+1.7pp	46.3%+1.8pp	45.6%+1.0pp	45.2%+0.5pp
Net margin	39.3%+3.6pp	39%+3.6pp	35.7%+0.1pp	36.1%+0.2pp	35.8%-0.6pp
EBITDA margin	61.4%+6.1pp	61.1%+6.4pp	60.1%+5.4pp	58%+4.2pp	55.3%+2.2pp
Free cash flow margin	22.9%-2.8pp	25.3%-1.4pp	26.6%-2.0pp	25.4%-4.8pp	25.7%-4.1pp
Returns
Return on equity	34%+0.4pp	34.4%+0.1pp	32.2%-3.4pp	33.3%-3.9pp	33.6%-4.9pp
Return on assets	19.9%+1.5pp	19.9%+1.4pp	18.1%-0.6pp	18%-1.1pp	18.5%-1.5pp
Return on invested capital	26.7%-1.2pp	26.4%-1.3pp	27.3%-4.4pp	27.6%-2.6pp	27.8%-2.7pp
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×+20.0×	97.5×+34.1×	66.6×+32.9×	80.4×+40.9×	77.6×+43.5×
Liquidity
Current ratio	1.3×-0.1×	1.4×0.0×	1.4×+0.1×	1.4×+0.1×	1.4×+0.1×
Quick ratio	1.3×-0.1×	1.4×0.0×	1.4×+0.1×	1.3×+0.1×	1.4×+0.1×
Cash ratio	0.2×0.0×	0.2×0.0×	0.2×0.0×	0.2×+0.1×	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	0.5×0.0×	0.5×-0.1×	0.5×0.0×	0.5×-0.1×	0.5×0.0×
Per Share
Book value per share	$55.66+29.0%	$52.40+29.3%	$48.63+26.3%	$46.01+28.0%	$43.14+27.3%
Valuation
Market capitalization	$2.75T-1.5%	$3.59T+14.7%	$3.85T+20.4%	$3.64T+9.6%	$2.79T-10.7%
Enterprise value	$2.84T-0.9%	$3.69T+14.7%	$3.94T+20.4%	$3.72T+9.7%	$2.87T-10.2%
Price / earnings	22×-6.9×	30.1×-3.6×	36.7×+1.4×	35.8×-1.9×	28.9×-7.4×
Price / sales	8.6×-1.7×	11.8×-0.2×	13.1×+0.5×	12.9×-0.6×	10.3×-2.9×
Price / book	6.6×-2.0×	9.2×-1.2×	10.6×-0.5×	10.6×-1.8×	8.7×-3.7×
EV / EBITDA	14.5×-4.7×	19.8×-2.7×	22.3×-1.2×	22.8×-3.0×	19.2×-6.2×
EV / sales	8.9×-1.7×	12.1×-0.2×	13.4×+0.5×	13.2×-0.6×	10.6×-2.9×
Free cash flow yield	2.7%+0.2pp	2.2%-0.1pp	2%-0.2pp	2%-0.3pp	2.5%+0.2pp
Earnings yield	4.6%+1.1pp	3.3%+0.4pp	2.7%-0.1pp	2.8%+0.1pp	3.5%+0.7pp
Dividend yield	0.9%+0.1pp	0.7%0.0pp	0.6%-0.1pp	0.7%0.0pp	0.8%+0.2pp
PEG ratio	0.7×-1.6×	1.1×-1.7×	2.3×+0.3×	2.3×+0.6×	2.4×+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.