SuperworthMicrosoft profit margin MSFT
Gross, operating and net profit as a share of revenue over the last twelve months, from 1998.
- Net margin, 12 months
- 40.3%
- Operating margin, 12 months
- 46.8%
- Net margin on a year earlier
- +4.2 pts
- Peer median
- 35.3%
Over the twelve months to Jun 30, 2026, Microsoft kept 40.3% of its revenue as net profit, with an operating margin of 46.8% and a gross margin of 67.9%.
Five years earlier its net margin was 36.5%.
The median for 8 technology stocks of a similar size is 35.3%.
Profit margin over time
Fiscal year by fiscal year
| Fiscal year | Net margin | Operating margin | Gross margin |
|---|---|---|---|
| FY2026 | 40.3% | 46.8% | 67.9% |
| FY2025 | 36.1% | 45.6% | 68.8% |
| FY2024 | 36.0% | 44.6% | 69.8% |
| FY2023 | 34.1% | 41.8% | 68.9% |
| FY2022 | 36.7% | 42.1% | 68.4% |
| FY2021 | 36.5% | 41.6% | 68.9% |
| FY2020 | 31.0% | 37.0% | 67.8% |
| FY2019 | 31.2% | 34.1% | 65.9% |
| FY2018 | 15.0% | 31.8% | 65.2% |
| FY2017 | 26.4% | 30.1% | 64.5% |
| FY2016 | 19.7% | 23.7% | 61.6% |
| FY2015 | 13.0% | 19.4% | 64.7% |
| FY2014 | 25.4% | 32.0% | 68.8% |
| FY2013 | 28.1% | 34.4% | 74.0% |
| FY2012 | 23.0% | 29.5% | 76.2% |
Quarter by quarter
| Quarter | Ended | Net margin, 12 months | Change on a year | Operating margin |
|---|---|---|---|---|
| Q4 FY26 | 40.3% | +4.2 pts | 46.8% | |
| Q3 FY26 | 39.3% | +3.6 pts | 46.8% | |
| Q2 FY26 | 39.0% | +3.6 pts | 46.7% | |
| Q1 FY26 | 35.7% | +0.1 pts | 46.3% | |
| Q4 FY25 | 36.1% | +0.2 pts | 45.6% | |
| Q3 FY25 | 35.8% | −0.6 pts | 45.2% | |
| Q2 FY25 | 35.4% | −0.8 pts | 45.0% | |
| Q1 FY25 | 35.6% | +0.3 pts | 44.5% | |
| Q4 FY24 | 36.0% | +1.8 pts | 44.6% | |
| Q3 FY24 | 36.4% | +3.2 pts | 44.7% | |
| Q2 FY24 | 36.3% | +3.2 pts | 44.2% | |
| Q1 FY24 | 35.3% | +0.9 pts | 43.0% |
Against its peers
Companies in Technology nearest Microsoft's size, closest first, today.
| Company | Profit margin |
|---|---|
| MSFTMicrosoft | 40.3% |
| AAPLApple | 27.6% |
| NVDANVIDIA | 63.7% |
| AVGOBroadcom | 42.9% |
| MUMicron Technology | 63.8% |
| AMDAdvanced Micro Devices | 15.6% |
| PLTRPalantir Technologies | 49.0% |
| INTCIntel | −19.8% |
| CSCOCisco Systems | 21.0% |
| Peer median | 35.3% |
Where Microsoft ranks
What the profit margin tells you
Profit as a share of revenue at three levels: gross (after making the product), operating (after running the business) and net (after everything, including tax and interest).
Compare within an industry. 10% is superb for a retailer and poor for a software company.
More on Microsoft
Valuation data, not investment advice. Prices as of . Reported figures come from the company's filings with the SEC.