Microsoft Corporation (MSFT)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 123,627,000 | 118,261,000 | 113,611,000 | 110,772,000 | 107,787,000 | 105,264,000 | 101,210,000 | 95,023,000 | 89,311,000 | 85,071,000 | 82,588,000 | 84,764,000 | 83,716,000 | 82,634,000 | 79,680,000 | 75,502,000 | 71,102,000 | 65,119,000 | 60,726,000 | 56,474,000 |
| 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 |
| Pretax margin | 43.88% | 43.80% | 43.40% | 43.58% | 43.97% | 44.49% | 44.47% | 43.53% | 42.14% | 40.98% | 40.47% | 41.74% | 42.22% | 42.91% | 43.09% | 42.84% | 42.30% | 40.71% | 39.62% | 38.39% |
June 30, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $123,627,000K ÷ $281,724,000K
= 43.88%
The analysis of Microsoft Corporation's pretax margin over the analyzed periods indicates a generally upward trend from September 2020 to June 2025. Starting at 38.39% in September 2020, the pretax margin experienced consistent growth, reaching a peak of approximately 44.49% in March 2024. Throughout this period, the margin demonstrated resilience with minor fluctuations, reflecting the company's ability to maintain or improve profitability margins despite market and economic variations.
Notably, the pretax margin exhibited a steady increase from mid-2020 through most of 2024, with intermittent minor declines. For instance, after reaching a high in March 2024, the margin slightly decreased to 43.97% in June 2024 and further to 43.58% in September 2024 before stabilizing around 43.4% at the end of 2024. Moving into 2025, the pretax margin resumed a slight upward trajectory, reaching 43.80% in March 2025 and approximately 43.88% in June 2025.
Overall, the pretax margin reflects positive profitability momentum for Microsoft, characterized by incremental improvements over the analyzed timeframe. The sustained margins above 40%, with peaks exceeding 44%, demonstrate the company's effective cost management, strong operational efficiency, and robust revenue generation capabilities in this period.
Peer comparison
Jun 30, 2025