Snapshot

Income statement snapshot

MICROSOFT CORPORATION's top line, gross profit, operating income, and bottom-line conversion. Values in USD millions.

Revenue

+13.7%

$331.8B

Compound growth, FY2022 to FY2026

Gross profit

+13.6%

$225.5B

Compound growth, FY2022 to FY2026

Operating Income

+16.8%

$155.2B

Compound growth, FY2022 to FY2026

Net income

+16.4%

$133.7B

Compound growth, FY2022 to FY2026

Headline results

Four lines, five fiscal years, straight from the filings.

Revenue$331,839

Gross profit$225,465

Operating Income$155,237

Net income$133,749

Filing10-K

MICROSOFT CORPORATION headline income statement
Metric	2026	2025	2024	2023	2022
Revenue	$331,839	$281,724	$245,122	$211,915	$198,270
Gross profit	$225,465	$193,893	$171,008	$146,052	$135,620
Operating Income	$155,237	$128,528	$109,433	$88,523	$83,383
Net income	$133,749	$101,832	$88,136	$72,361	$72,738
Filing	10-K	10-K	10-K	10-K	10-K

Trend

The same four lines drawn across the window.

All values shown in USD millions unless noted otherwise.

Line items

Expanded line items

The full annual income statement layer for MICROSOFT CORPORATION, from revenue down to share counts.

Statement basis

USD millions, except per-share and share-count rows.

Total revenue$331,839

Cost of revenue$106,374

Gross profit$225,465

Research & development$35,562

Selling, general & administrative$26,710

Operating expenses$70,228

Operating Income$155,237

Interest expenseN/A

Other non-operating income (expense)$4,722

Pretax income$165,934

Income tax expense (benefit)$32,185

Net income$133,749

Basic EPS$18.00

Diluted EPS$17.95

Basic average shares7,429.0M

Diluted average shares7,453.0M

Filing10-K

MICROSOFT CORPORATION expanded income statement
Line item	2026	2025	2024	2023	2022
Total revenue	$331,839	$281,724	$245,122	$211,915	$198,270
Cost of revenue	$106,374	$87,831	$74,114	$65,863	$62,650
Gross profit	$225,465	$193,893	$171,008	$146,052	$135,620
Research & development	$35,562	$32,488	$29,510	$27,195	$24,512
Selling, general & administrative	$26,710	$25,654	$24,456	$22,759	$21,825
Operating expenses	$70,228	$65,365	$61,575	$57,529	N/A
Operating Income	$155,237	$128,528	$109,433	$88,523	$83,383
Interest expense	N/A	N/A	$2,935	$1,968	$2,063
Other non-operating income (expense)	$4,722	-$4,725	-$1,319	-$223	-$32
Pretax income	$165,934	$123,627	$107,787	$89,311	$83,716
Income tax expense (benefit)	$32,185	$21,795	$19,651	$16,950	$10,978
Net income	$133,749	$101,832	$88,136	$72,361	$72,738
Basic EPS	$18.00	$13.70	$11.86	$9.72	$9.70
Diluted EPS	$17.95	$13.64	$11.80	$9.68	$9.65
Basic average shares	7,429.0M	7,433.0M	7,431.0M	7,446.0M	7,496.0M
Diluted average shares	7,453.0M	7,465.0M	7,469.0M	7,472.0M	7,540.0M
Filing	10-K	10-K	10-K	10-K	10-K

Expanded annual statement lines sourced from the SEC EDGAR database for MICROSOFT CORPORATION.

Margins

Profitability conversion

How much of MICROSOFT CORPORATION's revenue survives through gross profit, operating income, and net income.

Gross margin

-46 bps

67.9%

FY2026, versus FY2022

Operating Margin

+473 bps

46.8%

FY2026, versus FY2022

Net income margin

+362 bps

40.3%

FY2026, versus FY2022

Observation window

years

FY2022 through FY2026

Margin table

Side-by-side read of gross, operating and net margin.

Gross margin67.9%

Operating Margin46.8%

Net income margin40.3%

Filing10-K

MICROSOFT CORPORATION margins
Metric	2026	2025	2024	2023	2022
Gross margin	67.9%	68.8%	69.8%	68.9%	68.4%
Operating Margin	46.8%	45.6%	44.6%	41.8%	42.1%
Net income margin	40.3%	36.1%	36.0%	34.1%	36.7%
Filing	10-K	10-K	10-K	10-K	10-K

Margin trend

The shape of profitability across the window.

Margins are calculated from annual SEC facts using reported revenue as the denominator.

Year on year

Annual momentum

Every headline line of MICROSOFT CORPORATION's statement measured against the immediately prior period.

Revenue YoY

FY2025

+17.8%

FY2026 versus FY2025

Gross profit YoY

FY2025

+16.3%

FY2026 versus FY2025

Op. income YoY

FY2025

+20.8%

FY2026 versus FY2025

Net income YoY

FY2025

+31.3%

FY2026 versus FY2025

Year-on-year table

Contractions are tinted so slowdowns are obvious.

Revenue growth+17.8%

Gross profit growth+16.3%

Operating Income Growth+20.8%

Net income growth+31.3%

Filing10-K

MICROSOFT CORPORATION year-on-year change
Metric	2026	2025	2024	2023	2022
Revenue growth	+17.8%	+14.9%	+15.7%	+6.9%	N/A
Gross profit growth	+16.3%	+13.4%	+17.1%	+7.7%	N/A
Operating Income Growth	+20.8%	+17.4%	+23.6%	+6.2%	N/A
Net income growth	+31.3%	+15.5%	+21.8%	-0.5%	N/A
Filing	10-K	10-K	10-K	10-K	10-K

Momentum

Whether the business is accelerating or rolling over.

Year-on-year change compares each annual period against the immediately prior year inside the selected window.

Compound growth

Through-cycle growth

Compounded annual growth from FY2022 to FY2026, which filters out one-year noise.

Revenue CAGR

4yr

+13.7%

FY2022 to FY2026

Gross profit CAGR

4yr

+13.6%

FY2022 to FY2026

Op. income CAGR

4yr

+16.8%

FY2022 to FY2026

Net income CAGR

4yr

+16.4%

FY2022 to FY2026

Compound rates use the first and last reported year in the window, so a gap in either endpoint suppresses the figure.

Snapshot

Income statement snapshot

MICROSOFT CORPORATION's top line, gross profit, operating income, and bottom-line conversion. Values in USD millions.

Revenue

+13.7%

$331.8B

Compound growth, FY2022 to FY2026

Gross profit

+13.6%

$225.5B

Compound growth, FY2022 to FY2026

Operating Income

+16.8%

$155.2B

Compound growth, FY2022 to FY2026

Net income

+16.4%

$133.7B

Compound growth, FY2022 to FY2026

Headline results

Four lines, five fiscal years, straight from the filings.

Revenue$331,839

Gross profit$225,465

Operating Income$155,237

Net income$133,749

Filing10-K

MICROSOFT CORPORATION headline income statement
Metric	2026	2025	2024	2023	2022
Revenue	$331,839	$281,724	$245,122	$211,915	$198,270
Gross profit	$225,465	$193,893	$171,008	$146,052	$135,620
Operating Income	$155,237	$128,528	$109,433	$88,523	$83,383
Net income	$133,749	$101,832	$88,136	$72,361	$72,738
Filing	10-K	10-K	10-K	10-K	10-K

Trend

The same four lines drawn across the window.

All values shown in USD millions unless noted otherwise.

Line items

Expanded line items

The full annual income statement layer for MICROSOFT CORPORATION, from revenue down to share counts.

Statement basis

USD millions, except per-share and share-count rows.

Total revenue$331,839

Cost of revenue$106,374

Gross profit$225,465

Research & development$35,562

Selling, general & administrative$26,710

Operating expenses$70,228

Operating Income$155,237

Interest expenseN/A

Other non-operating income (expense)$4,722

Pretax income$165,934

Income tax expense (benefit)$32,185

Net income$133,749

Basic EPS$18.00

Diluted EPS$17.95

Basic average shares7,429.0M

Diluted average shares7,453.0M

Filing10-K

MICROSOFT CORPORATION expanded income statement
Line item	2026	2025	2024	2023	2022
Total revenue	$331,839	$281,724	$245,122	$211,915	$198,270
Cost of revenue	$106,374	$87,831	$74,114	$65,863	$62,650
Gross profit	$225,465	$193,893	$171,008	$146,052	$135,620
Research & development	$35,562	$32,488	$29,510	$27,195	$24,512
Selling, general & administrative	$26,710	$25,654	$24,456	$22,759	$21,825
Operating expenses	$70,228	$65,365	$61,575	$57,529	N/A
Operating Income	$155,237	$128,528	$109,433	$88,523	$83,383
Interest expense	N/A	N/A	$2,935	$1,968	$2,063
Other non-operating income (expense)	$4,722	-$4,725	-$1,319	-$223	-$32
Pretax income	$165,934	$123,627	$107,787	$89,311	$83,716
Income tax expense (benefit)	$32,185	$21,795	$19,651	$16,950	$10,978
Net income	$133,749	$101,832	$88,136	$72,361	$72,738
Basic EPS	$18.00	$13.70	$11.86	$9.72	$9.70
Diluted EPS	$17.95	$13.64	$11.80	$9.68	$9.65
Basic average shares	7,429.0M	7,433.0M	7,431.0M	7,446.0M	7,496.0M
Diluted average shares	7,453.0M	7,465.0M	7,469.0M	7,472.0M	7,540.0M
Filing	10-K	10-K	10-K	10-K	10-K

Expanded annual statement lines sourced from the SEC EDGAR database for MICROSOFT CORPORATION.

Margins

Profitability conversion

How much of MICROSOFT CORPORATION's revenue survives through gross profit, operating income, and net income.

Gross margin

-46 bps

67.9%

FY2026, versus FY2022

Operating Margin

+473 bps

46.8%

FY2026, versus FY2022

Net income margin

+362 bps

40.3%

FY2026, versus FY2022

Observation window

years

FY2022 through FY2026

Margin table

Side-by-side read of gross, operating and net margin.

Gross margin67.9%

Operating Margin46.8%

Net income margin40.3%

Filing10-K

MICROSOFT CORPORATION margins
Metric	2026	2025	2024	2023	2022
Gross margin	67.9%	68.8%	69.8%	68.9%	68.4%
Operating Margin	46.8%	45.6%	44.6%	41.8%	42.1%
Net income margin	40.3%	36.1%	36.0%	34.1%	36.7%
Filing	10-K	10-K	10-K	10-K	10-K

Margin trend

The shape of profitability across the window.

Margins are calculated from annual SEC facts using reported revenue as the denominator.

Year on year

Annual momentum

Every headline line of MICROSOFT CORPORATION's statement measured against the immediately prior period.

Revenue YoY

FY2025

+17.8%

FY2026 versus FY2025

Gross profit YoY

FY2025

+16.3%

FY2026 versus FY2025

Op. income YoY

FY2025

+20.8%

FY2026 versus FY2025

Net income YoY

FY2025

+31.3%

FY2026 versus FY2025

Year-on-year table

Contractions are tinted so slowdowns are obvious.

Revenue growth+17.8%

Gross profit growth+16.3%

Operating Income Growth+20.8%

Net income growth+31.3%

Filing10-K

MICROSOFT CORPORATION year-on-year change
Metric	2026	2025	2024	2023	2022
Revenue growth	+17.8%	+14.9%	+15.7%	+6.9%	N/A
Gross profit growth	+16.3%	+13.4%	+17.1%	+7.7%	N/A
Operating Income Growth	+20.8%	+17.4%	+23.6%	+6.2%	N/A
Net income growth	+31.3%	+15.5%	+21.8%	-0.5%	N/A
Filing	10-K	10-K	10-K	10-K	10-K

Momentum

Whether the business is accelerating or rolling over.

Year-on-year change compares each annual period against the immediately prior year inside the selected window.

Compound growth

Through-cycle growth

Compounded annual growth from FY2022 to FY2026, which filters out one-year noise.

Revenue CAGR

4yr

+13.7%

FY2022 to FY2026

Gross profit CAGR

4yr

+13.6%

FY2022 to FY2026

Op. income CAGR

4yr

+16.8%

FY2022 to FY2026

Net income CAGR

4yr

+16.4%

FY2022 to FY2026

Compound rates use the first and last reported year in the window, so a gap in either endpoint suppresses the figure.

Commentary

Commentary on MICROSOFT CORPORATION performance

A written read of the filing-backed figures above. The statement itself remains the source of truth.

Snapshot Aug 1, 2026

This explanation uses an earlier data snapshot or evidence version. Compare its generation date with the current filing figures.

Over the past five years, Microsoft has demonstrated steady, robust growth across all major income statement metrics. Revenue increased from USD 198,270 million in 2022 to USD 331,839 million in 2026, reflecting an overall upward trend with annual growth rates ranging roughly between 7% and 18%. Gross profit followed a similar trajectory, rising from USD 135,620 million to USD 225,465 million, which suggests that the company has maintained healthy margins amid expanding sales. Operating income improved significantly over the period—from USD 83,383 million in 2022 to USD 155,237 million in 2026—mirroring revenue growth and indicating operational efficiency. Net income also climbed from USD 72,738 million to USD 133,749 million, reinforcing Microsoft’s ability to convert revenue into bottom-line profit. Throughout this period, Microsoft did not experience any extreme year-over-year swings exceeding 20%, which speaks to the steady and resilient nature of its operational performance. The lower growth rate in 2023, followed by stronger gains in subsequent years, may point to normal market fluctuations or a brief period of cautious investment before accelerating performance in later years. In the context of the technology and cloud computing industry—a sector known for rapid change yet demanding solid execution—Microsoft’s consistent performance across revenue, gross profit, operating income, and net income underscores strong financial health. Overall, the data-driven trends reflect a sustainable business model, with stable earnings growth backed by effective operational leverage and solid profitability, positioning the company well for future challenges and opportunities.

This analysis is for informational purposes only and does not constitute financial advice or a recommendation for any investment decision. Please consult a qualified financial professional for personalised guidance.

MICROSOFT CORP

MSFT Income Statement

MICROSOFT CORP

MSFT Income Statement

Income statement snapshot

Expanded line items

Profitability conversion

Annual momentum

Through-cycle growth

Income statement snapshot

Expanded line items

Profitability conversion

Annual momentum

Through-cycle growth

Commentary on MICROSOFT CORPORATION performance

Commentary on MICROSOFT CORPORATION performance