Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Microsoft Corp., consolidated income statement

US$ in millions

12 months ended:	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018
Product	64,699)	72,732)	71,074)	68,041)	66,069)	64,497)
Service and other	147,216)	125,538)	97,014)	74,974)	59,774)	45,863)
Revenue	211,915)	198,270)	168,088)	143,015)	125,843)	110,360)
Product	(17,804)	(19,064)	(18,219)	(16,017)	(16,273)	(15,420)
Service and other	(48,059)	(43,586)	(34,013)	(30,061)	(26,637)	(22,933)
Cost of revenue	(65,863)	(62,650)	(52,232)	(46,078)	(42,910)	(38,353)
Gross margin	146,052)	135,620)	115,856)	96,937)	82,933)	72,007)
Research and development	(27,195)	(24,512)	(20,716)	(19,269)	(16,876)	(14,726)
Sales and marketing	(22,759)	(21,825)	(20,117)	(19,598)	(18,213)	(17,469)
General and administrative	(7,575)	(5,900)	(5,107)	(5,111)	(4,885)	(4,754)
Operating income	88,523)	83,383)	69,916)	52,959)	42,959)	35,058)
Interest and dividends income	2,994)	2,094)	2,131)	2,680)	2,762)	2,214)
Interest expense	(1,968)	(2,063)	(2,346)	(2,591)	(2,686)	(2,733)
Net recognized gains on investments	260)	461)	1,232)	32)	648)	2,399)
Net gains (losses) on derivatives	(456)	(52)	17)	187)	144)	(187)
Net gains (losses) on foreign currency remeasurements	181)	(75)	54)	(191)	(82)	(218)
Other, net	(223)	(32)	98)	(40)	(57)	(59)
Other income, net	788)	333)	1,186)	77)	729)	1,416)
Income before income taxes	89,311)	83,716)	71,102)	53,036)	43,688)	36,474)
Provision for income taxes	(16,950)	(10,978)	(9,831)	(8,755)	(4,448)	(19,903)
Net income	72,361)	72,738)	61,271)	44,281)	39,240)	16,571)

Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30).

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Income statement item	Description	The company
Revenue	Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.	Microsoft Corp. revenue increased from 2021 to 2022 and from 2022 to 2023.
Operating income	The net result for the period of deducting operating expenses from operating revenues.	Microsoft Corp. operating income increased from 2021 to 2022 and from 2022 to 2023.
Income before income taxes	Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.	Microsoft Corp. income before income taxes increased from 2021 to 2022 and from 2022 to 2023.
Net income	The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.	Microsoft Corp. net income increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Microsoft Corp. (NASDAQ:MSFT)

Income Statement