Gross Margin snapshot
Microsoft Corporation's gross margin was 68.8% in FY2025, compared with 69.8% in FY2024. On a trailing-twelve-month basis it was 68.3% as of Q3 FY26. Gross margin is gross profit divided by revenue — the share of sales left after the direct cost of producing goods or services. It shows how much a company keeps from each dollar of sales before operating expenses.
Gross Margin (latest FY)
68.8%
Gross Margin (TTM)
68.3%
Operating margin (latest FY)
45.6%
Net margin (latest FY)
36.1%
Microsoft Corporation Gross Margin
Gross profit ÷ revenue
Gross Margin vs. related metrics
Microsoft Corporation Gross Margin — by fiscal year
| Fiscal year | Gross margin | Operating margin | Net margin |
|---|---|---|---|
| FY2025 | 68.8% | 45.6% | 36.1% |
| FY2024 | 69.8% | 44.6% | 36.0% |
| FY2023 | 68.9% | 41.8% | 34.1% |
| FY2022 | 68.4% | 42.1% | 36.7% |
| FY2021 | 68.9% | 41.6% | 36.5% |
| FY2020 | 67.8% | 37.0% | 31.0% |
| FY2019 | 65.9% | 34.1% | 31.2% |
| FY2018 | 65.2% | 31.8% | 15.0% |
| FY2017 | 64.5% | 30.1% | 26.4% |
| FY2016 | 64.0% | 28.6% | 22.5% |
| FY2015 | 64.7% | 19.4% | 13.0% |
| FY2014 | 68.8% | 32.0% | 25.4% |
| FY2013 | 73.8% | 34.4% | 28.1% |
| FY2012 | 76.2% | 29.5% | 23.0% |
| FY2011 | 77.7% | 38.8% | 33.1% |
| FY2010 | 80.2% | 38.6% | 30.0% |
| FY2009 | 79.2% | 34.8% | 24.9% |
| FY2008 | 80.8% | 36.9% | 29.3% |
| FY2007 | — | — | — |
By quarter (trailing-twelve-month basis)
| Quarter | Gross margin | Operating margin | Net margin |
|---|---|---|---|
| Q3 FY26 | 68.3% | 46.8% | 39.3% |
| Q2 FY26 | 68.6% | 46.7% | 39.0% |
| Q1 FY26 | 68.8% | 46.3% | 35.7% |
| Q4 FY25 | 68.8% | 45.6% | 36.1% |
| Q3 FY25 | 69.1% | 45.2% | 35.8% |
| Q2 FY25 | 69.4% | 45.0% | 35.4% |
| Q1 FY25 | 69.3% | 44.5% | 35.6% |
| Q4 FY24 | 69.8% | 44.6% | 36.0% |
| Q3 FY24 | 69.9% | 44.7% | 36.4% |
| Q2 FY24 | 69.7% | 44.2% | 36.3% |
| Q1 FY24 | 69.4% | 43.0% | 35.3% |
| Q4 FY23 | 68.9% | 41.8% | 34.1% |
Figures normalized from SEC filings. See the full Microsoft Corporation ratios & metrics.