Microsoft Corporation (MSFT)

Operating profit margin

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Operating income	US$ in thousands	128,528,000	109,433,000	88,523,000	83,383,000	69,916,000
Revenue	US$ in thousands	281,724,000	245,122,000	211,915,000	198,270,000	168,088,000
Operating profit margin		45.62%	44.64%	41.77%	42.06%	41.59%

June 30, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $128,528,000K ÷ $281,724,000K
= 45.62%

The operating profit margin of Microsoft Corporation has demonstrated a generally upward trend over the period from June 30, 2021, to June 30, 2025. Specifically, the margin was recorded at 41.59% as of June 30, 2021, increasing slightly to 42.06% by June 30, 2022. This marginal increase indicates a modest improvement in operational efficiency or profitability during this period. The margin then slightly declined to 41.77% as of June 30, 2023, reflecting a minor reduction in operating profitability relative to revenue. However, subsequent periods see a more notable increase, with the margin rising to 44.64% on June 30, 2024, and further improving to 45.62% by June 30, 2025. This overall upward trajectory suggests that Microsoft has been effectively managing its operational costs relative to revenues and enhancing profitability margins over this four-year span. The trend implies a sustained improvement in operational efficiency, possibly driven by strategic initiatives, product mix, or cost management strategies that have positively impacted the company's operating profit margin.