MICROSOFT CORPORATION (MSFT) FY2026 Q2 P&L / Income Statement

Revenue by Product and Service (10 categories)

2025-10-01 to 2025-12-31

Swipe to see the full flow
MICROSOFT CORPORATION (MSFT) FY2026 Q2 P&L / Income StatementIncome statement for 2025-10-01 through 2025-12-31. View: Product and service (10 categories). Revenue uses this breakdown; costs and expenses retain the consolidated categories.SOURCESREVENUEGROSSOPERATINGPRE-TAXNETServer Products and Cloud ServicesMicrosoft 365 Commercial Products and Cloud ServicesGamingLinkedInWindows and DevicesSearch and News AdvertisingMicrosoft 365 Consumer Products and Cloud ServicesDynamics Products and Cloud ServicesEnterprise and Partner ServicesOtherRevenueGross marginCost of revenueOperating incomeOperating expenses (calculated)Research and developmentSales and marketingGeneral and administrativeOther income (expense), netIncome before income taxesNet incomeProvision for income taxesOther income (expense), netOther income(expense), net$9.97 BIncome before income taxesPretax income$48.25 BRevenueRevenue$81.27 BGross marginGross margin$55.30 BOperating incomeOperating income$38.28 BNet incomeNet income$38.46 BServer Products and Cloud ServicesServer Products and Cloud Services$30.87 BMicrosoft 365 Commercial Products and Cloud ServicesMicrosoft 365 CommercialProducts and Cloud Services$24.52 BOperating expenses (calculated)Operating expenses(calculated)$17.02 BProvision for income taxesProvision forincome taxes$9.79 BResearch and developmentResearch and development$8.50 BCost of revenueCost of revenue$25.98 BGamingGaming$5.96 BSales and marketingSales and marketing$6.58 BLinkedInLinkedIn$5.08 BGeneral and administrativeGeneral and administrative$1.93 BWindows and DevicesWindows and Devices$4.48 BSearch and News AdvertisingSearch and News Advertising$3.81 BMicrosoft 365 Consumer Products and Cloud ServicesMicrosoft 365 ConsumerProducts and Cloud Services$2.31 BDynamics Products and Cloud ServicesDynamics Productsand Cloud Services$2.20 BEnterprise and Partner ServicesEnterprise and Partner Services$2.04 BOtherOther$6.00 M
Chart details

MICROSOFT CORPORATION (MSFT) FY2026 Q2 P&L / Income Statement

Income statement for 2025-10-01 through 2025-12-31. View: Product and service (10 categories). Revenue uses this breakdown; costs and expenses retain the consolidated categories.

Revenue
81,273,000,000 US dollars
Cost of revenue
25,978,000,000 US dollars
Gross margin
55,295,000,000 US dollars
Operating expenses (calculated)
17,020,000,000 US dollars
Operating income
38,275,000,000 US dollars
Other income (expense), net
9,971,000,000 US dollars
Income before income taxes
48,246,000,000 US dollars
Provision for income taxes
9,788,000,000 US dollars
Net income
38,458,000,000 US dollars
Server Products and Cloud Services
30,865,000,000 US dollars
Microsoft 365 Commercial Products and Cloud Services
24,524,000,000 US dollars
Gaming
5,958,000,000 US dollars
LinkedIn
5,082,000,000 US dollars
Windows and Devices
4,479,000,000 US dollars
Search and News Advertising
3,812,000,000 US dollars
Microsoft 365 Consumer Products and Cloud Services
2,305,000,000 US dollars
Dynamics Products and Cloud Services
2,204,000,000 US dollars
Enterprise and Partner Services
2,038,000,000 US dollars
Other
6,000,000 US dollars
Research and development
8,504,000,000 US dollars
Sales and marketing
6,584,000,000 US dollars
General and administrative
1,932,000,000 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.
MICROSOFT CORPORATION (MSFT) FY2026 Q2 P&L / Income Statement Sankey chart, Product and service (10 categories) view
Free to share unchanged, with credit to Plicit.ai · CC BY-NC-ND 4.0Download PNG

Gross margin

68.0%

Gross profit / revenue

Operating margin

47.1%

Operating profit / revenue

Cash conversion

93.0%

Operating cash / net income, same period

Newsletter

Get the teardowns by email

Subscribe if you want the public-company teardowns in your inbox when they're released.

Product waitlist

Health Check and Teardown for your own company

A health check uncovers insights of your private books, not a public ticker. Join this list to get notified as soon as we go-live!