Operating Profit Margin
since 2005
Calculation
Microsoft Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2026 | 46.78% | = | 100 | × | 155,237) | ÷ | 331,839) |
| Jun 30, 2025 | 45.62% | = | 100 | × | 128,528) | ÷ | 281,724) |
| Jun 30, 2024 | 44.64% | = | 100 | × | 109,433) | ÷ | 245,122) |
| Jun 30, 2023 | 41.77% | = | 100 | × | 88,523) | ÷ | 211,915) |
| Jun 30, 2022 | 42.06% | = | 100 | × | 83,383) | ÷ | 198,270) |
| Jun 30, 2021 | 41.59% | = | 100 | × | 69,916) | ÷ | 168,088) |
| Jun 30, 2020 | 37.03% | = | 100 | × | 52,959) | ÷ | 143,015) |
| Jun 30, 2019 | 34.14% | = | 100 | × | 42,959) | ÷ | 125,843) |
| Jun 30, 2018 | 31.77% | = | 100 | × | 35,058) | ÷ | 110,360) |
| Jun 30, 2017 | 24.82% | = | 100 | × | 22,326) | ÷ | 89,950) |
| Jun 30, 2016 | 23.65% | = | 100 | × | 20,182) | ÷ | 85,320) |
| Jun 30, 2015 | 19.41% | = | 100 | × | 18,161) | ÷ | 93,580) |
| Jun 30, 2014 | 31.97% | = | 100 | × | 27,759) | ÷ | 86,833) |
| Jun 30, 2013 | 34.38% | = | 100 | × | 26,764) | ÷ | 77,849) |
| Jun 30, 2012 | 29.52% | = | 100 | × | 21,763) | ÷ | 73,723) |
| Jun 30, 2011 | 38.83% | = | 100 | × | 27,161) | ÷ | 69,943) |
| Jun 30, 2010 | 38.57% | = | 100 | × | 24,098) | ÷ | 62,484) |
| Jun 30, 2009 | 34.85% | = | 100 | × | 20,363) | ÷ | 58,437) |
| Jun 30, 2008 | 37.23% | = | 100 | × | 22,492) | ÷ | 60,420) |
| Jun 30, 2007 | 36.23% | = | 100 | × | 18,524) | ÷ | 51,122) |
| Jun 30, 2006 | 37.20% | = | 100 | × | 16,472) | ÷ | 44,282) |
| Jun 30, 2005 | 36.60% | = | 100 | × | 14,561) | ÷ | 39,788) |
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$ in millions
The operational performance from 2005 to 2026 is characterized by a significant transition in profitability and scale. After an initial period of stability, the operating profit margin experienced a sharp contraction before entering a phase of aggressive expansion, culminating in record-high efficiency levels by 2026.
- Initial Stability Phase (2005–2011)
- During this period, operating profit margins remained consistently high and relatively stable, fluctuating within a narrow range between 34.85% and 38.83%. Operating income and revenue grew in tandem, with operating income increasing from 14,561 million to 27,161 million.
- Profitability Contraction (2012–2016)
- A pronounced downward trend in profitability is observed starting in 2012, with the operating profit margin reaching a period low of 19.41% in 2015. This decline occurred despite a general increase in revenue, suggesting a substantial rise in operating expenses or a strategic shift in the cost structure during these years.
- Recovery and Margin Expansion (2017–2026)
- A sustained and accelerating recovery began in 2017. The operating profit margin climbed steadily from 24.82% in 2016 to 46.78% by 2026. This expansion indicates a high degree of operating leverage, where operating income growth significantly outpaced revenue growth.
- Long-term Scaling Trends
- Revenue exhibits a continuous upward trajectory, growing from 39,788 million in 2005 to 331,839 million by 2026. The most significant acceleration in operating income occurs post-2017, rising from 22,326 million in 2017 to 155,237 million in 2026, reflecting a fundamental improvement in the company's ability to convert sales into operating profit.
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Comparison to Competitors
Microsoft Corp., operating profit margin, long-term trends, comparison to competitors
| Microsoft Corp. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | Intuit Inc. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jun 30, 2026 | 46.78% | — | — | — | — | -6.10% | — | — | 30.59% | — | — | 20.06% | — | — | 7.55% |
| Jun 30, 2025 | 45.62% | 14.68% | 36.63% | 75.75% | 28.17% | -3.05% | -1.29% | 26.14% | 30.80% | 31.59% | 13.48% | 19.01% | 13.74% | 12.97% | 4.91% |
| Jun 30, 2024 | 44.64% | 14.79% | 31.35% | 39.78% | 29.10% | -0.07% | 2.02% | 22.29% | 28.99% | 10.83% | 8.52% | 14.38% | 12.42% | 22.13% | 2.52% |
| Jun 30, 2023 | 41.77% | 13.74% | 34.26% | 19.74% | 30.59% | -8.48% | -1.57% | 21.86% | 26.21% | 5.39% | 5.62% | 3.29% | 8.49% | 21.72% | -3.57% |
| Jun 30, 2022 | 42.06% | 15.21% | 34.64% | -1.70% | 30.15% | -9.82% | -3.50% | 20.20% | 25.74% | -8.46% | -3.43% | 2.07% | 4.90% | 22.87% | -2.27% |
| Jun 30, 2021 | 41.59% | 15.08% | 36.76% | 5.37% | 26.07% | -10.58% | -1.86% | 25.95% | 37.58% | -26.66% | -7.15% | 2.14% | 4.36% | 17.48% | -5.76% |
| Jun 30, 2020 | 37.03% | 14.69% | 32.93% | — | 24.06% | -30.34% | -2.28% | 28.34% | 35.57% | -107.41% | -5.25% | 1.74% | 4.40% | 16.83% | -13.85% |
| Jun 30, 2019 | 34.14% | 14.59% | 29.25% | — | 21.05% | — | -5.55% | 27.33% | 34.26% | — | -1.87% | 4.03% | 1.22% | 15.48% | -16.42% |
| Jun 30, 2018 | 31.77% | 14.04% | 31.45% | — | 18.53% | — | — | 25.10% | 34.34% | — | -5.68% | 2.25% | -1.63% | 11.54% | -14.15% |
| Jun 30, 2017 | 24.82% | 12.60% | 29.69% | — | 16.67% | — | — | 26.95% | 33.69% | — | -10.21% | 0.77% | -5.25% | 12.76% | -24.00% |
| Jun 30, 2016 | 23.65% | 13.82% | 25.51% | — | 13.49% | — | — | 26.46% | 34.02% | — | -13.79% | 1.72% | -30.41% | 13.10% | -22.77% |
| Jun 30, 2015 | 19.41% | 13.48% | 18.83% | — | 16.77% | — | — | 17.60% | 36.29% | — | -14.39% | -2.71% | -16.55% | 11.88% | -27.38% |
| Jun 30, 2014 | 31.97% | 13.49% | 9.95% | — | 13.07% | — | — | 29.16% | 38.56% | — | -36.00% | -7.03% | -22.24% | 12.09% | -32.69% |
| Jun 30, 2013 | 34.38% | 14.27% | 10.42% | — | 12.94% | — | — | 29.56% | 39.49% | — | -4.70% | -3.63% | -15.61% | 12.56% | -43.07% |
| Jun 30, 2012 | 29.52% | 13.00% | 26.80% | — | 15.96% | — | — | 28.35% | 36.92% | — | 1.53% | -1.55% | -15.42% | 10.82% | — |
| Jun 30, 2011 | 38.83% | 12.69% | 26.07% | — | 10.47% | — | — | 26.15% | 33.78% | — | — | 5.88% | — | 13.86% | — |
| Jun 30, 2010 | 38.57% | 12.62% | 26.13% | — | -3.09% | — | — | 24.98% | 33.79% | — | — | 8.83% | — | 13.33% | — |
| Jun 30, 2009 | 34.85% | 11.41% | 23.44% | — | -14.50% | — | — | 21.43% | 35.79% | — | — | 5.92% | — | 15.31% | — |
| Jun 30, 2008 | 37.23% | 11.90% | 28.72% | — | -151.48% | — | — | 21.19% | 34.97% | — | — | 2.71% | — | 16.39% | — |
| Jun 30, 2007 | 36.23% | 11.62% | 27.16% | — | 19.68% | — | — | 23.85% | 33.20% | — | — | -0.72% | — | 9.74% | — |
| Jun 30, 2006 | 37.20% | 10.10% | 21.41% | — | 15.14% | — | — | 23.89% | 32.93% | — | — | 6.49% | — | 2.69% | — |
| Jun 30, 2005 | 36.60% | 12.35% | 37.05% | — | 8.94% | — | — | 25.72% | 34.09% | — | — | 3.70% | — | -5.34% | — |
Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 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), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).