Stock Analysis on Net
Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

Income Statement
Quarterly Data

Beginner level

The income statement presents information on the financial results of a company’s 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 (quarterly data)

US$ in millions

Microsoft Excel LibreOffice Calc
3 months ended: Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
Product 18,147  15,871  18,255  15,768  17,103  15,448  16,219  17,299  17,159  15,114  17,926  14,298  13,769  13,391  16,537  13,493  13,988  14,321  17,974  15,219  22,180  21,729  26,470  23,201 
Service and other 19,886  19,150  18,651  17,287  16,614  15,123  16,252  11,785  12,926  11,705  10,992  10,240  9,548  8,699  7,553  6,960  6,626  6,210  5,822  5,160  —  —  —  — 
Revenue 38,033  35,021  36,906  33,055  33,717  30,571  32,471  29,084  30,085  26,819  28,918  24,538  23,317  22,090  24,090  20,453  20,614  20,531  23,796  20,379  22,180  21,729  26,470  23,201 
Product (4,370) (3,376) (4,966) (3,305) (3,298) (3,441) (5,885) (3,649) (3,517) (3,425) (5,498) (2,980) (3,141) (3,075) (5,378) (3,581) (3,776) (3,801) (6,268) (4,035) (7,468) (7,161) (10,136) (8,273)
Service and other (7,969) (7,599) (7,392) (7,101) (7,114) (6,729) (6,538) (6,256) (6,225) (5,844) (5,566) (5,298) (5,315) (4,985) (4,523) (4,263) (4,203) (3,921) (3,604) (3,172) —  —  —  — 
Cost of revenue (12,339) (10,975) (12,358) (10,406) (10,412) (10,170) (12,423) (9,905) (9,742) (9,269) (11,064) (8,278) (8,456) (8,060) (9,901) (7,844) (7,979) (7,722) (9,872) (7,207) (7,468) (7,161) (10,136) (8,273)
Gross margin 25,694  24,046  24,548  22,649  23,305  20,401  20,048  19,179  20,343  17,550  17,854  16,260  14,861  14,030  14,189  12,609  12,635  12,809  13,924  13,172  14,712  14,568  16,334  14,928 
Research and development (5,214) (4,887) (4,603) (4,565) (4,513) (4,316) (4,070) (3,977) (3,933) (3,715) (3,504) (3,574) (3,514) (3,355) (3,062) (3,106) (3,146) (2,980) (2,900) (2,962) (3,094) (2,984) (2,903) (3,065)
Sales and marketing (5,417) (4,911) (4,933) (4,337) (4,962) (4,565) (4,588) (4,098) (4,760) (4,335) (4,562) (3,812) (4,356) (3,879) (4,071) (3,233) (3,998) (3,406) (3,960) (3,333) (3,961) (3,709) (4,315) (3,728)
General and administrative (1,656) (1,273) (1,121) (1,061) (1,425) (1,179) (1,132) (1,149) (1,271) (1,208) (1,109) (1,166) (1,355) (1,202) (879) (1,045) (1,301) (1,140) (1,038) (1,084) (1,272) (1,091) (1,097) (1,151)
Goodwill impairment —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  (5,100) —  —  — 
Impairment and restructuring —  —  —  —  —  —  —  —  —  —  —  —  (306) —  —  —  (1,110) —  —  —  (3,338) (190) (243) (1,140)
Operating income 13,407  12,975  13,891  12,686  12,405  10,341  10,258  9,955  10,379  8,292  8,679  7,708  5,330  5,594  6,177  5,225  3,080  5,283  6,026  5,793  (2,053) 6,594  7,776  5,844 
Other income (expense), net 15  (132) 194  —  191  145  127  266  301  349  490  276  215  322  186  100  267  (247) (171) (280) 297  (77) 74  52 
Income before income taxes 13,422  12,843  14,085  12,686  12,596  10,486  10,385  10,221  10,680  8,641  9,169  7,984  5,545  5,916  6,363  5,325  3,347  5,036  5,855  5,513  (1,756) 6,517  7,850  5,896 
Provision for income taxes (2,220) (2,091) (2,436) (2,008) 591  (1,677) (1,965) (1,397) (1,807) (1,217) (15,471) (1,408) 968  (1,115) (1,163) (635) (225) (1,280) (837) (611) (1,439) (1,532) (1,987) (1,356)
Net income (loss) 11,202  10,752  11,649  10,678  13,187  8,809  8,420  8,824  8,873  7,424  (6,302) 6,576  6,513  4,801  5,200  4,690  3,122  3,756  5,018  4,902  (3,195) 4,985  5,863  4,540 

Based on: 10-K (filing date: 2020-07-31), 10-Q (filing date: 2020-04-29), 10-Q (filing date: 2020-01-29), 10-Q (filing date: 2019-10-23), 10-K (filing date: 2019-08-01), 10-Q (filing date: 2019-04-24), 10-Q (filing date: 2019-01-30), 10-Q (filing date: 2018-10-24), 10-K (filing date: 2018-08-03), 10-Q (filing date: 2018-04-26), 10-Q (filing date: 2018-01-31), 10-Q (filing date: 2017-10-26), 10-K (filing date: 2017-08-02), 10-Q (filing date: 2017-04-27), 10-Q (filing date: 2017-01-26), 10-Q (filing date: 2016-10-20), 10-K (filing date: 2016-07-28), 10-Q (filing date: 2016-04-21), 10-Q (filing date: 2016-01-28), 10-Q (filing date: 2015-10-22), 10-K (filing date: 2015-07-31), 10-Q (filing date: 2015-04-23), 10-Q (filing date: 2015-01-26), 10-Q (filing date: 2014-10-23).

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.’s revenue decreased from Q2 2020 to Q3 2020 but then increased from Q3 2020 to Q4 2020 exceeding Q2 2020 level.
Operating income The net result for the period of deducting operating expenses from operating revenues. Microsoft Corp.’s operating income decreased from Q2 2020 to Q3 2020 but then slightly increased from Q3 2020 to Q4 2020.
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.’s income before income taxes decreased from Q2 2020 to Q3 2020 but then slightly increased from Q3 2020 to Q4 2020.
Net income (loss) The portion of profit or loss for the period, net of income taxes, which is attributable to the parent. Microsoft Corp.’s net income (loss) decreased from Q2 2020 to Q3 2020 but then increased from Q3 2020 to Q4 2020 not reaching Q2 2020 level.