# MICROSOFT CORPORATION (MSFT) FY2026 Q1 P&L / Income Statement

- Company: MICROSOFT CORPORATION (MSFT)
- Period: 2025-07-01 to 2025-09-30
- Filing: Q1 FY2026 10-Q, filed 2025-10-29, accession number 0001193125-25-256321
- Page: https://plicit.ai/financials/msft/fy2026-q1-income-statement
- Chart image: https://plicit.ai/charts/msft-fy2026-q1-income-statement-sankey.png

## Chart details: Revenue by Product and Service (10 categories)

Income statement for 2025-07-01 through 2025-09-30. View: Product and service (10 categories). Revenue uses this breakdown; costs and expenses retain the consolidated categories.

- **Revenue**: 77,673,000,000 US dollars
- **Cost of revenue**: 24,043,000,000 US dollars
- **Gross margin**: 53,630,000,000 US dollars
- **Operating expenses (calculated)**: 15,669,000,000 US dollars
- **Operating income**: 37,961,000,000 US dollars
- **Other expense, net**: negative 3,660,000,000 US dollars
- **Income before income taxes**: 34,301,000,000 US dollars
- **Provision for income taxes**: 6,554,000,000 US dollars
- **Net income**: 27,747,000,000 US dollars
- **Server Products and Cloud Services**: 28,872,000,000 US dollars
- **Microsoft 365 Commercial Products and Cloud Services**: 23,966,000,000 US dollars
- **Gaming**: 5,508,000,000 US dollars
- **LinkedIn**: 4,714,000,000 US dollars
- **Windows and Devices**: 4,551,000,000 US dollars
- **Search and News Advertising**: 3,697,000,000 US dollars
- **Microsoft 365 Consumer Products and Cloud Services**: 2,204,000,000 US dollars
- **Dynamics Products and Cloud Services**: 2,136,000,000 US dollars
- **Enterprise and Partner Services**: 2,022,000,000 US dollars
- **Other**: 3,000,000 US dollars
- **Research and development**: 8,146,000,000 US dollars
- **Sales and marketing**: 5,717,000,000 US dollars
- **General and administrative**: 1,806,000,000 US dollars

### Chart connections

- Revenue less cost of revenue equals gross profit; gross profit less operating expenses equals operating income.
- Operating income plus other income or expense equals income before tax. Income before tax less income tax expense or benefit equals net income.

## Chart details: Revenue by Business Segment

- Page: https://plicit.ai/financials/msft/fy2026-q1-income-statement/revenue-by-business-segment
- Chart image: https://plicit.ai/charts/msft-fy2026-q1-revenue-by-business-segment-sankey.png

Income statement for 2025-07-01 through 2025-09-30. View: Business segment. Revenue and costs use their disclosed categories.

- **Revenue**: 77,673,000,000 US dollars
- **Cost of revenue**: 24,043,000,000 US dollars
- **Gross margin**: 53,630,000,000 US dollars
- **Operating expenses (calculated)**: 15,669,000,000 US dollars
- **Operating income**: 37,961,000,000 US dollars
- **Other expense, net**: negative 3,660,000,000 US dollars
- **Income before income taxes**: 34,301,000,000 US dollars
- **Provision for income taxes**: 6,554,000,000 US dollars
- **Net income**: 27,747,000,000 US dollars
- **Productivity and Business Processes revenue**: 33,020,000,000 US dollars
- **Intelligent Cloud revenue**: 30,897,000,000 US dollars
- **More Personal Computing revenue**: 13,756,000,000 US dollars
- **Productivity and Business Processes cost of revenue**: 5,721,000,000 US dollars
- **Intelligent Cloud cost of revenue**: 12,314,000,000 US dollars
- **More Personal Computing cost of revenue**: 6,008,000,000 US dollars
- **Research and development**: 8,146,000,000 US dollars
- **Sales and marketing**: 5,717,000,000 US dollars
- **General and administrative**: 1,806,000,000 US dollars

### Chart connections

- Revenue less cost of revenue equals gross profit; gross profit less operating expenses equals operating income.
- Operating income plus other income or expense equals income before tax. Income before tax less income tax expense or benefit equals net income.

## Chart details: Revenue by Product and Service (2 categories)

- Page: https://plicit.ai/financials/msft/fy2026-q1-income-statement/revenue-by-product-and-service-2-categories
- Chart image: https://plicit.ai/charts/msft-fy2026-q1-revenue-by-product-and-service-2-categories-sankey.png

Income statement for 2025-07-01 through 2025-09-30. View: Product and service (2 categories). Revenue and costs use their disclosed categories.

- **Revenue**: 77,673,000,000 US dollars
- **Cost of revenue**: 24,043,000,000 US dollars
- **Gross margin**: 53,630,000,000 US dollars
- **Operating expenses (calculated)**: 15,669,000,000 US dollars
- **Operating income**: 37,961,000,000 US dollars
- **Other expense, net**: negative 3,660,000,000 US dollars
- **Income before income taxes**: 34,301,000,000 US dollars
- **Provision for income taxes**: 6,554,000,000 US dollars
- **Net income**: 27,747,000,000 US dollars
- **Product revenue**: 15,922,000,000 US dollars
- **Service and Other revenue**: 61,751,000,000 US dollars
- **Product cost of revenue**: 2,922,000,000 US dollars
- **Service and Other cost of revenue**: 21,121,000,000 US dollars
- **Research and development**: 8,146,000,000 US dollars
- **Sales and marketing**: 5,717,000,000 US dollars
- **General and administrative**: 1,806,000,000 US dollars

### Chart connections

- Revenue less cost of revenue equals gross profit; gross profit less operating expenses equals operating income.
- Operating income plus other income or expense equals income before tax. Income before tax less income tax expense or benefit equals net income.

## Chart details: Revenue by Geography

- Page: https://plicit.ai/financials/msft/fy2026-q1-income-statement/revenue-by-geography
- Chart image: https://plicit.ai/charts/msft-fy2026-q1-revenue-by-geography-sankey.png

Income statement for 2025-07-01 through 2025-09-30. View: Geography. Revenue uses this breakdown; costs and expenses retain the consolidated categories.

- **Revenue**: 77,673,000,000 US dollars
- **Cost of revenue**: 24,043,000,000 US dollars
- **Gross margin**: 53,630,000,000 US dollars
- **Operating expenses (calculated)**: 15,669,000,000 US dollars
- **Operating income**: 37,961,000,000 US dollars
- **Other expense, net**: negative 3,660,000,000 US dollars
- **Income before income taxes**: 34,301,000,000 US dollars
- **Provision for income taxes**: 6,554,000,000 US dollars
- **Net income**: 27,747,000,000 US dollars
- **UNITED STATES**: 40,077,000,000 US dollars
- **Other Countries**: 37,596,000,000 US dollars
- **Research and development**: 8,146,000,000 US dollars
- **Sales and marketing**: 5,717,000,000 US dollars
- **General and administrative**: 1,806,000,000 US dollars

### Chart connections

- Revenue less cost of revenue equals gross profit; gross profit less operating expenses equals operating income.
- Operating income plus other income or expense equals income before tax. Income before tax less income tax expense or benefit equals net income.