Microsoft Corporation (MSFT)
Pretax margin
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 123,627,000 | 107,787,000 | 89,311,000 | 83,716,000 | 71,102,000 |
| Revenue | US$ in thousands | 281,724,000 | 245,122,000 | 211,915,000 | 198,270,000 | 168,088,000 |
| Pretax margin | 43.88% | 43.97% | 42.14% | 42.22% | 42.30% |
June 30, 2025 calculation
Pretax margin = EBT ÷ Revenue
= $123,627,000K ÷ $281,724,000K
= 43.88%
The analysis of Microsoft Corporation’s pretax margin over the specified period reveals a generally stable profitability metric, with subtle fluctuations that offer insights into the company’s operational efficiency and financial performance.
From June 30, 2021, to June 30, 2023, the pretax margin remained remarkably consistent, with values of 42.30%, 42.22%, and 42.14%, respectively. These figures indicate a tight range of about 0.16 percentage points, suggesting that Microsoft's operational profitability has been steady during this period, with no significant shifts in cost management or revenue strategies impacting pretax earnings relative to total revenue.
Starting from June 30, 2024, there is a noticeable increase to 43.97%, representing a rise of approximately 1.83 percentage points compared to the prior year. This upward movement might reflect improved operational efficiencies, better cost controls, or strategic revenue enhancements that have positively impacted pretax profitability.
The trend continues into June 30, 2025, with the margin marginally increasing to 43.88%. Although this represents a slight decrease of about 0.09 percentage points from the previous year, the margin remains higher than historical levels observed between 2021 and 2023, consolidating the notion of a modest but consistent improvement in profit margins.
Overall, despite minor fluctuations, the pretax margin of Microsoft has demonstrated resilience and a gradual upward trend in recent years, potentially reflecting advancements in operational performance, efficiency gains, or strategic shifts that have enhanced profitability before taxes.
Peer comparison
Jun 30, 2025