MSFT
Microsoft margins
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- Technology
- NASDAQ: MSFT
- Margins
Based on the latest figures, Microsoft reports a gross margin of 67.7%, an operating margin of 47.1%, an EBITDA margin of 64.4%, and a net margin of 41.2%. Margin expansion was strongest in EBITDA margin, which gained by 9.6 percentage points. Gross margin had the strongest contraction, dropping by 1.1 percentage points.
MSFT margin history
Over the last 3 years, Microsoft recorded average margins of 68.94% gross, 45.63% operating, 56.76% EBITDA, and 37.26% net. Microsoft's current performance shows that operating, EBITDA, and net margins are above their three-year averages and gross margin is below its three-year average.
MSFT margin expansion
From the same period last year, operating margin expanded by 0.8 percentage points, EBITDA margin by 9.6 percentage points, and net margin by 5.5 percentage points, while gross margin contracted by 1.1 percentage points.
MSFT Gross margin
Across the last 3 years, Microsoft had an average gross margin of 68.94%. Against its three-year average, Microsoft's gross margin is currently 67.7%, 1.2 percentage points below its three-year average. Looking back over the last 3 years, Microsoft's gross margin reached 69.9% at its highest point in Mar 2024 and 67.7% at its lowest in Sep 2026.
MSFT Operating margin
Over the last 3 years, Microsoft's operating margin averaged 45.63%. The current operating margin of 47.1% is 1.5 percentage points above its three-year average. During this period, operating margin reached a high of 47.1% in Sep 2026 and a low of 44.2% in Dec 2023.
MSFT EBITDA margin
Over the last 3 years, the average EBITDA margin for Microsoft was 56.76%. The latest EBITDA margin for Microsoft is 64.4%, 7.6 percentage points above its three-year average. Microsoft's EBITDA margin ranged from a low of 53.1% in Dec 2023 to a high of 64.4% in Sep 2026.
MSFT Net margin
Across the last 3 years, Microsoft's net margin came to 37.26%. The current net margin stands at 41.2%, 3.9 percentage points above its three-year average. Net margin was highest at 41.2% in Sep 2026 and lowest at 35.4% in Dec 2024.
MSFT margin group comparison
Microsoft's gross margin of 67.7% is above the Technology sector, the industry and its peers average. Compared to its Technology sector average of 52.5%, Microsoft's gross margin is 29% higher.
MSFT margin peer comparison
Frequently asked questions
What is Microsoft's gross margin?
The current gross margin for MSFT is 67.7% as of Sep 30, 2026.
What is Microsoft's operating margin?
For the period ending Sep 30, 2026, MSFT recorded an operating margin of 47.1%.
What is Microsoft's EBITDA margin?
As of Sep 30, 2026, MSFT has an EBITDA margin of 64.4%.
What is Microsoft's net margin?
As of Sep 30, 2026, MSFT has a net margin of 41.2%.
What are the average margins of MSFT?
Across the last 3 years, MSFT averaged 68.9% gross, 45.6% operating, 56.8% EBITDA, and 37.3% net.
What are the highest historical margins of MSFT?
In the last 5 years, the highest margins reported by MSFT were 69.9% gross in Mar 2024, 47.1% operating in Sep 2026, 64.4% EBITDA in Sep 2026, and 41.2% net in Sep 2026.
What are the lowest historical margins of MSFT?
Microsoft's lowest recorded margins during the past 5 years were 67.7% gross in Sep 2026, 40.6% operating in Dec 2022, 48.4% EBITDA in Dec 2022, and 33% net in Dec 2022.