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%-3.1pp	275.2%-3.2pp	276.1%-2.7pp	276.7%-2.2pp	277.6%-0.4pp
Operating margin	185.4%+6.0pp	183.8%+5.0pp	182.1%+4.1pp	180.3%+3.8pp	179.3%+5.7pp
Net margin	150.2%+7.5pp	146.7%+3.3pp	143.1%-1.2pp	143%-1.0pp	142.8%+0.6pp
EBITDA margin	240.5%+22.2pp	234.4%+18.3pp	228%+14.8pp	222.6%+14.1pp	218.3%+15.3pp
Free cash flow margin	100.2%-11.0pp	103%-12.4pp	104.4%-13.9pp	106.4%-12.2pp	111.2%-5.3pp
Returns
Return on equity	133.9%-6.7pp	133.5%-12.0pp	133.4%-17.0pp	136.8%-17.1pp	140.6%-15.0pp
Return on assets	75.9%+1.2pp	74.5%-1.7pp	73%-4.4pp	73.6%-4.3pp	74.7%-2.8pp
Return on invested capital	108%-9.4pp	109.2%-11.0pp	110.5%-11.7pp	114.8%-9.8pp	117.4%-6.7pp
Efficiency
Asset turnover	2×-0.1×	2×-0.1×	2×-0.1×	2.1×-0.1×	2.1×-0.1×
Inventory turnover	342.1×+128×	322.1×+151×	288.1×+151×	255.2×+133×	214.3×+111×
Liquidity
Current ratio	5.4×+0.1×	5.5×+0.3×	5.5×+0.4×	5.4×0.0×	5.3×-0.6×
Quick ratio	5.4×+0.1×	5.5×+0.4×	5.4×+0.5×	5.3×0.0×	5.3×-0.6×
Cash ratio	0.8×+0.1×	0.9×+0.2×	0.8×+0.2×	0.8×-0.3×	0.7×-0.5×
Leverage
Debt-to-equity	1.3×-0.1×	1.3×-0.1×	1.3×0.0×	1.3×-0.1×	1.3×-0.1×
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×-0.2×	2.1×-0.2×	2.1×-0.1×	2.2×+0.5×	2.2×+0.7×
Per Share
Book value per share	$202.70+28.2%	$190.18+27.7%	$178.32+27.1%	$168.20+28.1%	$158.14+28.6%
Valuation
Market capitalization	$13.84T+11.2%	$13.88T+8.6%	$13.42T+7.8%	$12.77T+10.2%	$12.45T+15.3%
Enterprise value	$14.2T+11.3%	$14.23T+8.8%	$13.75T+8.1%	$13.09T+10.9%	$12.76T+16.2%
Price / earnings	124.6×-11.1×	131.5×-11.6×	135.1×-8.0×	133.8×-4.5×	135.7×+0.2×
Price / sales	46.4×-2.0×	48.1×-3.2×	48.3×-3.3×	47.8×-2.0×	48.4×+0.3×
Price / book	37×-5.5×	39.1×-7.1×	40.2×-7.3×	40.7×-6.3×	42.5×-4.5×
EV / EBITDA	79.5×-11.6×	84.1×-13.1×	86.8×-12.2×	88.1×-9.0×	91×-5.4×
EV / sales	47.7×-2.0×	49.3×-3.2×	49.6×-3.3×	49×-1.6×	49.6×+0.7×
Free cash flow yield	8.8%-0.4pp	8.6%-0.4pp	8.7%-0.5pp	9%-0.6pp	9.2%-0.5pp
Earnings yield	13.4%+1.5pp	12.3%+1.1pp	11.9%+0.8pp	12%+0.4pp	11.9%0.0pp
Dividend yield	2.9%0.0pp	2.8%+0.1pp	2.9%+0.1pp	2.9%0.0pp	2.9%-0.1pp
PEG ratio	6.4×-2.5×	8×+0.1×	9.7×+3.0×	9.4×+1.8×	8.9×—

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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.