Microsoft Corporation (MSFT)

Gross profit margin

Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Gross profit (ttm) US$ in thousands 193,893,000 186,509,000 181,715,000 176,279,000 171,008,000 165,359,000 158,735,000 151,597,000 146,052,000 142,094,000 139,110,000 138,619,000 135,620,000 132,345,000 127,261,000 121,375,000 115,856,000 109,389,000 104,774,000 100,440,000
Revenue (ttm) US$ in thousands 281,724,000 270,010,000 261,802,000 254,190,000 245,122,000 236,584,000 227,583,000 218,310,000 211,915,000 207,591,000 204,094,000 203,075,000 198,270,000 192,557,000 184,903,000 176,251,000 168,088,000 159,969,000 153,284,000 147,114,000
Gross profit margin 68.82% 69.07% 69.41% 69.35% 69.76% 69.89% 69.75% 69.44% 68.92% 68.45% 68.16% 68.26% 68.40% 68.73% 68.83% 68.86% 68.93% 68.38% 68.35% 68.27%

June 30, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $193,893,000K ÷ $281,724,000K
= 68.82%

The gross profit margin of Microsoft Corporation demonstrates a consistent and stable trend over the analyzed period from September 30, 2020, to June 30, 2025. Initially, the gross profit margin was approximately 68.27% in September 2020, exhibiting minor fluctuations with slight increases and decreases in subsequent quarters. Overall, this metric experienced a gradual upward trajectory, reaching around 69.89% by March 31, 2024.

The highest recorded gross profit margin within the period was approximately 69.89% in March 2024. After this peak, a slight decrease is observed, with the margin decreasing to approximately 69.07% by March 31, 2025. Throughout the timeframe, the margins primarily fluctuate within a narrow band of about 0.5 percentage points, indicating a high level of consistency and stability in gross profit generation.

This stability suggests that Microsoft has maintained a relatively steady cost structure in relation to its sales, with efficient management of cost of goods sold relative to revenue. The marginal upward trend towards the mid-2024 period reflects maintained or slightly improved profitability on gross basis, while the slight decline in the subsequent quarters indicates minor variations likely attributable to changes in sales mix, input costs, or operational efficiencies.

Overall, the gross profit margin analysis indicates that Microsoft has sustained a robust and consistent profitability profile in its core operations, with only minor fluctuations over the analyzed period, underscoring effective cost control and a resilient revenue model.


See also:

Microsoft Corporation Gross Profit Margin (Quarterly Data)