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: 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 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018
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-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), 10-K (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30).

Revenue Trends
Overall revenue demonstrated a consistent upward trend from September 30, 2018, through June 30, 2024. Revenue increased from approximately 29 billion US dollars to over 69 billion US dollars in this period. While fluctuations occurred quarterly, the long-term trajectory shows strengthening top-line growth, predominantly driven by steady increases in service and other revenues alongside fluctuating product revenues.
Product Revenue
Product revenue showed significant volatility with frequent declines and recoveries. Notably, after peaking near 20.7 billion US dollars in December 2021, product revenue trended downward in succeeding quarters, reaching lows around 13.2 billion US dollars by December 2024. This suggests challenges or shifts in the product segment, contrasting with the growing service revenues.
Service and Other Revenue
The service and other revenue component exhibited strong, consistent growth over the time frame. Beginning around 11.8 billion US dollars in late 2018, it almost quadrupled to over 54 billion US dollars by late 2024. This steady increase indicates a successful expansion or increased reliance on services contributing significantly to total revenue growth.
Cost of Revenue and Gross Margin
Costs of revenue showed parallel growth alongside revenue increases, rising from roughly 9.9 billion US dollars in September 2018 to over 21.9 billion US dollars by December 2024. Despite rising costs, gross margin also expanded from approximately 19.2 billion US dollars to about 48.1 billion US dollars, reflecting improved profitability and possibly enhanced operational efficiencies or better product mix.
Operating Expenses
Research and development expenses steadily increased from approximately 4.0 billion US dollars to over 8.1 billion US dollars, indicating consistent investment in innovation and product development. Sales and marketing expenses also showed a rising pattern, increasing from roughly 4.1 billion US dollars to above 6.2 billion US dollars, reflecting efforts to support growth and market penetration. General and administrative expenses exhibited more variability but tended upward, growing from about 1.1 billion US dollars to nearly 1.7 billion US dollars, possibly due to scaling operations.
Operating Income
Operating income generally increased, rising from nearly 10.0 billion US dollars in late 2018 to a peak of around 32.0 billion US dollars by early 2025, despite some short-term fluctuations. This rise corresponds with revenue growth and expanding gross margins, suggesting improved core business profitability.
Other Income (Expense), Net
This item showed irregular patterns with positive and negative values across periods, including significant negative values in later quarters nearing 2024 and 2025. The volatility here implies impacts from non-operating activities and financial items that affect pre-tax income unpredictably.
Income Before Taxes and Provision for Income Taxes
Income before income taxes generally followed operating income, increasing from about 10.2 billion US dollars to over 31 billion US dollars. The provision for income taxes was consistently a significant outflow, fluctuating between small negative and large negative values, indicating variability in tax expense and possibly changing tax policies or effective rates over time.
Net Income
Net income grew substantially from around 8.8 billion US dollars in late 2018 to approximately 25.8 billion US dollars by early 2025. This increase reflects the combined effects of rising revenues, expanding margins, and effective expense management despite fluctuating tax provisions and other income items.
Summary
The financial data indicate robust growth primarily driven by the service and other revenue segment, with product revenue showing volatility and decline in recent periods. Operational efficiency appears to have improved, evidenced by widening gross margins and increasing operating income. Sustained investments in research and development and sales efforts support the growth trend but come with increasing expenses. Despite some variability in non-operating income and tax expenses, net income showed a strong upward trend, signaling overall financial health and profitability growth over the reported periods.