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