Microsoft Corporation (MSFT)

Net profit margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	101,832,000	88,136,000	72,361,000	72,738,000	61,271,000
Revenue	US$ in thousands	281,724,000	245,122,000	211,915,000	198,270,000	168,088,000
Net profit margin		36.15%	35.96%	34.15%	36.69%	36.45%

June 30, 2025 calculation

Net profit margin = Net income ÷ Revenue
= $101,832,000K ÷ $281,724,000K
= 36.15%

The net profit margin of Microsoft Corporation has exhibited slight fluctuations over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the net profit margin stood at 36.45%, reflecting a robust profitability level. This margin experienced a marginal increase the following year, reaching 36.69% on June 30, 2022, indicating a slight improvement in profitability relative to revenue.

However, by June 30, 2023, the net profit margin declined to 34.15%. This reduction could suggest increased expenses, investment costs, or other factors impacting net income relative to revenue. Despite this decline, the margin demonstrated resilience and improved thereafter, climbing back to 35.96% on June 30, 2024, nearly matching the previous year's performance.

By June 30, 2025, the net profit margin slightly increased again to 36.15%, bringing it close to the levels observed in 2021 and 2022. The overall trend indicates that while there was a dip in profitability in 2023, Microsoft managed to recover and sustain high profitability margins in subsequent years. The margins suggest that the company continues to maintain a strong ability to convert revenue into profit, with fluctuations likely driven by temporary operational factors, market conditions, or strategic investments during this period.