Stock Analysis on Net
Stock Analysis on Net

Microsoft Corp. (NASDAQ:MSFT)

$24.99

Income Statement
Quarterly Data

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.

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Microsoft Corp., consolidated income statement (quarterly data)

US$ in millions

Microsoft Excel
3 months ended: 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 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Product
Service and other
Revenue
Product
Service and other
Cost of revenue
Gross margin
Research and development
Sales and marketing
General and administrative
Operating income
Other income (expense), net
Income before income taxes
Provision for income taxes
Net income

Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).

The financial data over the analyzed quarterly periods exhibits several notable trends regarding revenue streams, cost structure, profitability, and expense management.

Revenue Trends
The total revenue demonstrates a generally upward trajectory from 33,055 million USD in September 2019 to a substantial 76,441 million USD by June 2025. This growth is driven by two main components: product revenue and service & other revenue.
Product revenue shows moderate volatility with peaks and troughs, fluctuating between approximately 13,217 million USD and 20,779 million USD but gradually declining in relative contribution over time. Service and other revenue consistently increase, doubling from about 17,287 million USD early in the period to over 59,305 million USD by the end, indicating a strategic shift or growth focus toward service-oriented income streams.
Cost of Revenue and Gross Margin
The cost of revenue increased in absolute terms, moving from around 10,406 million USD to 24,014 million USD, reflecting the higher revenue scale. Costs associated with services tend to rise more steeply than product costs.
Despite rising costs, gross margin improves markedly, expanding from 22,649 million USD to 52,427 million USD. This suggests effective cost control and increasing operational leverage, particularly benefiting from the higher-margin services segment growth.
Operating Expenses
Research and development (R&D) expenses steadily increase throughout the period, nearly doubling from approximately 4,565 million USD to 8,829 million USD, signaling continued investment in innovation and product development.
Sales and marketing expenses also rise but experience some fluctuations; overall, they increase from roughly 4,337 million USD to 7,285 million USD. This likely supports expanding market penetration, especially in service offerings.
General and administrative costs grow as well, from around 1,061 million USD up to 1,990 million USD, remaining a smaller proportion of total expenses compared to other categories, indicating stable corporate overhead.
Profitability
Operating income exhibits consistent growth, more than doubling from about 12,686 million USD to 34,323 million USD. This reflects efficient operating management combined with revenue growth and disciplined expense control.
Net income also shows an increasing trend from 10,678 million USD to 27,233 million USD, although there are some periods of volatility. The income before taxes largely follows the pattern of operating income with some fluctuations due to other income/expense items.
Other income (expense), net, fluctuates significantly with occasional negative values impacting income before taxes, particularly in later quarters, which could reflect market or investment volatility.
Tax Provision
The provision for income taxes rises consistently over the period, in line with growing income before taxes, moving from around 2,008 million USD to 5,383 million USD, reflecting increased taxable earnings.

In summary, the data reveals robust growth driven primarily by services revenue, effective cost management translating into healthy gross margin expansion, and increasing investments in R&D and marketing supporting sustained profitability improvements. Fluctuations in other income (expense) point to some external influences on pre-tax earnings but do not materially detract from the upward trajectory of net income.