Microsoft Corporation (MSFT)
Gross profit margin
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 193,893,000 | 171,008,000 | 146,052,000 | 135,620,000 | 115,856,000 |
| Revenue | US$ in thousands | 281,724,000 | 245,122,000 | 211,915,000 | 198,270,000 | 168,088,000 |
| Gross profit margin | 68.82% | 69.76% | 68.92% | 68.40% | 68.93% |
June 30, 2025 calculation
Gross profit margin = Gross profit ÷ Revenue
= $193,893,000K ÷ $281,724,000K
= 68.82%
The gross profit margin of Microsoft Corporation demonstrates a generally stable trend over the specified period, with minor fluctuations observed from June 30, 2021, to June 30, 2025. The margin began at 68.93% in 2021, experienced a slight decline to 68.40% in 2022, and then rebounded to nearly the same level at 68.92% in 2023. This indicates that the company's ability to generate gross profit relative to its revenue remained consistent during this interval, with only negligible variations.
In the subsequent years, a gradual increase is noted, culminating at 69.76% in 2024. This upward movement signifies an improvement in gross profitability, possibly reflecting enhanced operational efficiency, better management of cost of goods sold, or shifts in product and service mix that favor higher-margin offerings. However, this rise is modest, and the margin slightly decreases again to 68.82% in 2025, suggesting a stabilization around the mid to high 68% range.
Overall, the gross profit margin portrays a pattern of resilience and slight upward momentum, maintaining a high level typical of technology firms with recurring revenue streams and scalable digital offerings. Minor year-over-year fluctuations suggest effective cost control and sustained revenue quality, with a notable peak in 2024 that could be attributed to strategic operational improvements or changes in revenue composition.
Peer comparison
Jun 30, 2025