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.

Paying user area

Try for free

Microsoft Corp. pages available for free this week:

The data is hidden behind: . Unhide it.

Get access

This is a one-time payment. There is no automatic renewal.

We accept:

Visa Mastercard American Express Maestro Discover JCB PayPal Google Pay
Visa Secure Mastercard Identity Check American Express SafeKey

Microsoft Corp., consolidated income statement (quarterly data)

US$ in millions

Microsoft Excel
3 months ended: Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 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-Q (reporting date: 2026-03-31), 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 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).

Total revenue exhibits a consistent long-term growth trajectory, increasing from 33,055 million USD in September 2019 to 82,886 million USD by March 2026. This growth is primarily driven by a fundamental shift in the revenue mix, where service-based income has replaced product sales as the dominant growth engine.

Revenue Stream Dynamics
Product revenue has remained relatively stagnant over the analyzed period, fluctuating between approximately 13,000 million USD and 20,000 million USD per quarter, ending at 15,089 million USD in March 2026. In contrast, Service and other revenue has demonstrated aggressive expansion, rising from 17,287 million USD in September 2019 to 67,797 million USD by March 2026. This indicates a strategic transition toward recurring service models.
Gross Profitability and Margin Trends
Gross margin has expanded in absolute terms from 22,649 million USD to 56,058 million USD. The growth in gross margin closely tracks the increase in service revenue, suggesting that the service-led model maintains strong profitability. Cost of revenue has increased in alignment with total revenue, though it has not offset the gains in gross profit.
Operating Expense Analysis
Operating expenses show a disciplined upward trend. Research and development costs grew from 4,565 million USD to 8,915 million USD, reflecting sustained investment in innovation. Sales and marketing expenses remained more volatile, generally ranging between 4,000 million USD and 7,000 million USD. General and administrative costs increased moderately from 1,061 million USD to 1,931 million USD. The fact that operating income grew more rapidly than these combined expenses indicates significant operating leverage.
Operating Income Performance
Operating income has grown substantially, starting at 12,686 million USD in September 2019 and reaching 38,398 million USD by March 2026. This steady climb reflects the company's ability to scale its operations while managing the growth of its cost base efficiently.
Net Income and Non-Operating Impact
Net income followed a general upward trend from 10,678 million USD to 31,778 million USD. However, volatility is observed in the "Other income (expense), net" line item, most notably in December 2025, where a spike of 9,971 million USD contributed to a peak quarterly net income of 38,458 million USD. Excluding these non-operating anomalies, the core net profitability remains robust and aligned with operating income growth.