Microsoft Corporation (MSFT) Income Statement
MSFT FY2026 at a glance
Fiscal year ended June 30, 2026 · U.S. dollarsMSFT revenue and net income
Where MSFT's revenue goes
FY2026Each bar shows an amount and its share of revenue. MSFT kept 40.3% of revenue as net income.
MSFT profit margins
MSFT growth rates
to FY2026| 1 year | 3 years | 5 years | 10 years | |
|---|---|---|---|---|
| Revenue | +17.8% | +16.1% | +14.6% | +13.8% |
| Gross profit | +16.3% | +15.6% | +14.2% | +14.5% |
| Operating income | +20.8% | +20.6% | +17.3% | +19.5% |
| Net income | +31.3% | +22.7% | +16.9% | +20.6% |
| EPS (diluted) | +31.2% | +22.7% | +17.6% | +20.6% |
1-year change and average annual growth (CAGR) over 3, 5 and 10 fiscal years. "—" when a starting value was zero or negative.
MSFT quarterly EPS vs estimates
Microsoft beat the analyst EPS estimate in 8 of the last 8 quarters. Next report: October 28, 2026 (estimate $4.71).
MSFT income statement
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | FY2020 | FY2019 | FY2018 | FY2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $331.84B | $281.72B | $245.12B | $211.91B | $198.27B | $168.09B | $143.01B | $125.84B | $110.36B | $96.57B |
| Cost of revenue | $106.37B | $87.83B | $74.11B | $65.86B | $62.65B | $52.23B | $46.08B | $42.91B | $38.35B | $34.26B |
| Gross profit | $225.47B | $193.89B | $171.01B | $146.05B | $135.62B | $115.86B | $96.94B | $82.93B | $72.01B | $62.31B |
| Research & development | $35.56B | $32.49B | $29.51B | $27.20B | $24.51B | $20.72B | $19.27B | $16.88B | $14.73B | $13.04B |
| Sales, general & admin | $34.67B | $32.88B | $32.06B | $30.33B | $27.73B | $25.22B | $24.71B | $23.10B | $22.22B | $19.94B |
| Total operating expenses | $70.23B | $65.36B | $61.58B | $57.53B | $52.24B | $45.94B | $43.98B | $39.97B | $36.95B | $32.98B |
| Operating income | $155.24B | $128.53B | $109.43B | $88.52B | $83.38B | $69.92B | $52.96B | $42.96B | $35.06B | $29.02B |
| Interest income | $3.30B | $767.0M | $3.16B | $1.04B | $2.09B | $2.13B | $2.68B | $812.0M | $1.52B | $1.18B |
| Interest expense | $3.05B | $2.38B | $2.94B | $1.97B | $2.06B | $2.35B | $2.59B | $2.69B | $2.73B | $2.22B |
| Income before taxes | $165.93B | $123.63B | $107.79B | $89.31B | $83.72B | $71.10B | $53.04B | $43.69B | $36.47B | $29.90B |
| Income taxes | $32.19B | $21.80B | $19.65B | $16.95B | $10.98B | $9.83B | $8.76B | $4.45B | $19.90B | $4.41B |
| Net income | $133.75B | $101.83B | $88.14B | $72.36B | $72.74B | $61.27B | $44.28B | $39.24B | $16.57B | $25.49B |
| EBITDA | $207.52B | $160.16B | $133.01B | $105.14B | $100.24B | $85.13B | $68.42B | $58.06B | $49.47B | $40.90B |
| EPS (diluted) | $17.89 | $13.64 | $11.81 | $9.69 | $9.64 | $7.97 | $5.75 | $4.75 | $3.88 | $3.31 |
| Gross margin | 67.9% | 68.8% | 69.8% | 68.9% | 68.4% | 68.9% | 67.8% | 65.9% | 65.2% | 64.5% |
| Operating margin | 46.8% | 45.6% | 44.6% | 41.8% | 42.1% | 41.6% | 37.0% | 34.1% | 31.8% | 30.1% |
| Net margin | 40.3% | 36.1% | 36.0% | 34.1% | 36.7% | 36.5% | 31.0% | 31.2% | 15.0% | 26.4% |
| Jun '26 | Mar '26 | Dec '25 | Sep '25 | Jun '25 | Mar '25 | Dec '24 | Sep '24 | Jun '24 | Mar '24 | Dec '23 | Sep '23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $90.01B | $82.89B | $81.27B | $77.67B | $76.44B | $70.07B | $69.63B | $65.58B | $64.73B | $61.86B | $62.02B | $56.52B |
| Cost of revenue | $29.52B | $26.83B | $25.98B | $24.04B | $24.01B | $21.92B | $21.80B | $20.10B | $19.68B | $18.50B | $19.62B | $16.30B |
| Gross profit | $60.48B | $56.06B | $55.30B | $53.63B | $52.43B | $48.15B | $47.83B | $45.49B | $45.04B | $43.35B | $42.40B | $40.22B |
| Research & development | $10.00B | $8.91B | $8.50B | $8.15B | $8.83B | $8.20B | $7.92B | $7.54B | $8.06B | $7.65B | $7.14B | $6.66B |
| Sales, general & admin | $9.88B | $8.74B | $8.52B | $7.52B | $9.28B | $7.95B | $8.26B | $7.39B | $9.06B | $8.12B | $8.22B | $6.66B |
| Total operating expenses | $19.88B | $17.66B | $17.02B | $15.67B | $18.10B | $16.15B | $16.18B | $14.93B | $17.12B | $15.77B | $15.37B | $13.32B |
| Operating income | $40.60B | $38.40B | $38.27B | $37.96B | $34.32B | $32.00B | $31.65B | $30.55B | $27.93B | $27.58B | $27.03B | $26.89B |
| Interest income | $755.0M | $730.0M | $840.0M | $976.0M | $202.0M | $597.0M | $600.0M | $681.0M | $638.0M | $619.0M | $734.0M | $1.17B |
| Interest expense | $839.0M | $778.0M | $736.0M | $698.0M | $615.0M | $594.0M | $594.0M | $582.0M | $701.0M | $800.0M | $909.0M | $525.0M |
| Income before taxes | $44.05B | $39.34B | $48.25B | $34.30B | $32.62B | $31.38B | $29.36B | $30.27B | $27.25B | $26.73B | $26.53B | $27.28B |
| Income taxes | $8.28B | $7.56B | $9.79B | $6.55B | $5.38B | $5.55B | $5.26B | $5.60B | $5.21B | $4.79B | $4.66B | $4.99B |
| Net income | $35.77B | $31.78B | $38.46B | $27.75B | $27.23B | $25.82B | $24.11B | $24.67B | $22.04B | $21.94B | $21.87B | $22.29B |
| EBITDA | $55.91B | $50.28B | $58.18B | $48.06B | $44.43B | $40.71B | $36.79B | $38.23B | $34.33B | $33.55B | $33.39B | $31.73B |
| EPS (diluted) | $4.74 | $4.27 | $5.16 | $3.72 | $3.65 | $3.46 | $3.23 | $3.30 | $2.95 | $2.94 | $2.93 | $2.99 |
| Gross margin | 67.2% | 67.6% | 68.0% | 69.0% | 68.6% | 68.7% | 68.7% | 69.4% | 69.6% | 70.1% | 68.4% | 71.2% |
| Operating margin | 45.1% | 46.3% | 47.1% | 48.9% | 44.9% | 45.7% | 45.5% | 46.6% | 43.1% | 44.6% | 43.6% | 47.6% |
| Net margin | 39.7% | 38.3% | 47.3% | 35.7% | 35.6% | 36.9% | 34.6% | 37.6% | 34.0% | 35.5% | 35.3% | 39.4% |
Quarterly columns are labeled by the month the quarter ended. Figures in U.S. dollars as reported in MSFT's financial statements (latest annual report filed July 29, 2026); data from EODHD. Sales, general & administrative expenses include sales and marketing.
MSFT financial results
In fiscal year 2026 (ended June 30, 2026), Microsoft reported revenue of $331.8 billion, up 17.8% from the year before. It had net income of $133.7 billion (up 31.3%), a net profit margin of 40.3%. Diluted earnings per share came to $17.89. Over five years revenue grew at an average rate of 14.6% a year.
See the MSFT stock overview for the latest quote and news, or the MSFT chart for price history and technical indicators.
MSFT income statement FAQ
What is Microsoft's annual revenue?
Microsoft reported total revenue of $331.8 billion for fiscal year 2026, which ended on June 30, 2026. That was up 17.8% from $281.7 billion the previous year.
Is Microsoft profitable?
Yes. Microsoft reported net income of $133.7 billion in fiscal 2026, a net profit margin of 40.3%; its operating margin was 46.8%.
What is Microsoft's gross margin?
Microsoft's gross margin was 67.9% in fiscal 2026: for every $100 of revenue, Microsoft kept $68 after the direct cost of its products and services.
How much does Microsoft spend on research and development?
Microsoft spent $35.6 billion on research and development in fiscal 2026, 10.7% of revenue.
How fast is Microsoft growing?
Revenue grew 14.6% a year on average over the last five fiscal years, from $168.1 billion to $331.8 billion.
What are Microsoft's earnings per share?
Microsoft earned $17.89 per diluted share in fiscal 2026, compared with $13.64 a year earlier.
When will Microsoft report its next earnings?
Microsoft is expected to report results for the quarter ending September 30, 2026 on October 28, 2026 after the market closes.
When does Microsoft's fiscal year end?
Microsoft's fiscal year ends in June. The latest annual report covers the year ended June 30, 2026 and was filed on July 29, 2026.