MICROSOFT CORP (MSFT) Revenue, Margins & Financial Statements
MICROSOFT CORP (MSFT) reported $331.84B in revenue over the most recent fiscal year on record, up 17.8% year over year. Growth has been stable, a +14.9% compound annual rate over the last 7 years on record. Profit is growing faster than sales, usually a sign of improving efficiency or pricing power. Operating margin is the highest of the last 8 years on record. Free cash flow ran 50% of net income in the latest year, meaningfully below reported profit, worth a closer look at working capital. The balance sheet holds $36.55B more in cash & investments than debt. Share count has been roughly stable over the past year.
MICROSOFT CORP's revenue for the fiscal year ended Jun 2026 was $331.84B, an increase of +17.8% compared to the prior year. Is growth accelerating, stable, slowing, or contracting? See the quarterly beat/miss history →
| Fiscal Year Ended | Revenue Growth |
|---|---|
| Jun 2026 | +17.8% |
| Jun 2025 | +14.9% |
| Jun 2024 | +15.7% |
| Jun 2023 | +6.9% |
| Jun 2022 | +18.0% |
| Jun 2021 | +17.5% |
| Jun 2020 | +13.6% |
"Accelerating" / "Slowing" means each of the last 3 years' growth rates moved consistently in that direction, not a subjective call.
Year-over-year growth by quarter, each quarter compared to the same quarter one year earlier, which avoids the seasonal noise of comparing sequential quarters. MICROSOFT CORP's most recent quarter grew +17.7% year-over-year, slower than the quarter before it.
| Quarter Ended | Revenue | YoY Growth |
|---|---|---|
| Jun 2026 (derived) | $90.01B | +17.7% |
| Mar 2026 | $82.89B | +18.3% |
| Dec 2025 | $81.27B | +16.7% |
| Sep 2025 | $77.67B | +18.4% |
| Jun 2025 (derived) | $76.44B | +18.1% |
| Mar 2025 | $70.07B | +13.3% |
| Dec 2024 | $69.63B | +12.3% |
| Sep 2024 | $65.58B | +16.0% |
Net income grew +31.3% year-over-year in the same quarter.
Profit is growing faster than sales, usually a sign of improving efficiency or pricing power.
Compared against 15 other Technology stocks tracked on this site, not the whole market, and small enough that this is directional context, not a definitive benchmark.
EPS +31.6% year over year. A rough breakdown of what drove it (approximate, since EPS is roughly net income divided by share count):
Accounting profit is not the same as cash in the bank. Here's how MSFT converts revenue into real cash.
Total debt has fallen for 7 straight years on record.
How MSFT deployed cash in the most recent year, across its actual cash-flow-statement uses.
Objective, rule-based checks against the figures above, not a subjective rating.
| Fiscal Year Ended | Revenue Growth | Margin Change | FCF Growth |
|---|---|---|---|
| Jun 2026 | +17.8% | +1.2pp | -6.5% |
| Jun 2025 | +14.9% | +1.0pp | -3.3% |
| Jun 2024 | +15.7% | +2.9pp | +24.5% |
| Jun 2023 | +6.9% | -0.3pp | -8.7% |
| Jun 2022 | +18.0% | +0.5pp | +16.1% |
| Jun 2021 | +17.5% | +4.6pp | +24.1% |
| Jun 2020 | +13.6% | +2.9pp | +18.2% |
Is MSFT's revenue growing?
MICROSOFT CORP's revenue growth has been stable, at +17.8% in the most recent year on record. Over the last 7 years, revenue has compounded at roughly +14.9% annually.
Is MSFT's profit growing faster than its revenue?
Profit is growing faster than sales, usually a sign of improving efficiency or pricing power.
Are MSFT's profit margins improving or declining?
Operating margin has expanded for 3 straight years on record. It is currently the highest of the last 8 years.
Is MSFT's reported profit backed by real cash?
Operating cash flow ran +137% of net income, and free cash flow ran +50% of net income, in the most recent year. Cash generation is running noticeably behind reported profit.
Does MSFT have more cash than debt?
Yes, MSFT holds $36.55B more in cash & short-term investments than its total debt.
Is MSFT diluting shareholders or buying back stock?
MSFT's share count has been roughly flat over the past year.
What are the biggest financial red flags for MSFT right now?
Gross margin has declined for 2 straight years on record. Inventory grew 48.9%, notably faster than revenue's 17.8%.
Every line item as reported, with the annual/quarterly toggle and ratio table.
| Line item | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 |
|---|---|---|---|---|---|
| Revenue | $331.84B | $281.72B | $245.12B | $211.91B | $198.27B |
| Cost of Revenue | $106.37B | $87.83B | $74.11B | $65.86B | $62.65B |
| Gross Profit | $225.47B | $193.89B | $171.01B | $146.05B | $135.62B |
| Research & Development | $35.56B | $32.49B | $29.51B | $27.20B | $24.51B |
| General & Administrative | $7.96B | $7.22B | $7.61B | $7.58B | $5.90B |
| Selling & Marketing | $26.71B | $25.65B | $24.46B | $22.76B | $21.82B |
| Total Operating Expenses | $70.23B | $65.36B | $61.58B | $57.53B | — |
| Operating Income | $155.24B | $128.53B | $109.43B | $88.52B | $83.38B |
| Nonoperating Income (Expense) | $10.70B | -$4.90B | -$1.65B | $788.00M | $333.00M |
| Interest Expense | — | — | $2.94B | $1.97B | $2.06B |
| Pretax Income | $165.93B | $123.63B | $107.79B | $89.31B | $83.72B |
| Income Tax Expense | $32.19B | $21.80B | $19.65B | $16.95B | $10.98B |
| Net Income | $133.75B | $101.83B | $88.14B | $72.36B | $72.74B |
| EPS (Basic) | $18.00 | $13.70 | $11.86 | $9.72 | $9.70 |
| EPS (Diluted) | $17.95 | $13.64 | $11.80 | $9.68 | $9.65 |
| Weighted Avg Shares (Basic) | 7.43B | 7.43B | 7.43B | 7.45B | 7.50B |
| Weighted Avg Shares (Diluted) | 7.45B | 7.46B | 7.47B | 7.47B | 7.54B |
Sourced from SEC filings (10-K / 10-Q). Figures not separately reported by the company are shown as —, not estimated. Quarterly "derived Q4" values are calculated as the full fiscal year total minus the three reported quarters.
Computed from the annual figures above, most recent first.
| Ratio | Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 67.9% | 68.8% | 69.8% | 68.9% | 68.4% | 68.9% | 67.8% | 65.9% |
| Operating Margin | 46.8% | 45.6% | 44.6% | 41.8% | 42.1% | 41.6% | 37.0% | 34.1% |
| Net Margin | 40.3% | 36.1% | 36.0% | 34.1% | 36.7% | 36.5% | 31.0% | 31.2% |
| Return on Equity | 30.2% | 29.6% | 32.8% | 35.1% | 43.7% | 43.2% | 37.4% | 38.3% |
| Current Ratio | 1.23 | 1.35 | 1.27 | 1.77 | 1.78 | 2.08 | 2.52 | 2.53 |
| Debt / Equity | 0.09 | 0.13 | 0.17 | 0.23 | 0.30 | 0.41 | 0.54 | 0.71 |
| Free Cash Flow | $66.99B | $71.61B | $74.07B | $59.48B | $65.15B | $56.12B | $45.23B | $38.26B |