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