MSFT Microsoft margins

Relative Growth: Rel. Growth: 96

Relative Strength: Rel. Strength: 60

Relative Valuation: Rel. Valuation: 44

Relative Profitability: Rel. Profitability: 96

Gross margin

67.9%

Operating margin

46.8%

EBITDA margin

62.5%

Net margin

40.3%

Based on the latest figures, Microsoft reports a gross margin of 67.9%, an operating margin of 46.8%, an EBITDA margin of 62.5%, and a net margin of 40.3%. Margin expansion was strongest in EBITDA margin, which gained by 7.3 percentage points. Gross margin had the strongest contraction, dropping by 0.9 percentage points.

MSFT margin history

Gross, operating, EBITDA and net margin trends

Over the last 3 years, Microsoft recorded average margins of 69.08% gross, 45.28% operating, 56.07% EBITDA, and 36.77% 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

Year-over-year margin changes in percentage points

From the same period last year, operating margin expanded by 1.2 percentage points, EBITDA margin by 7.3 percentage points, and net margin by 4.2 percentage points, while gross margin contracted by 0.9 percentage points.

Gross margin expansion

-0.9pp

Operating margin expansion

1.2pp

EBITDA margin expansion

7.3pp

Net margin expansion

4.2pp

MSFT Gross margin

Across the last 3 years, Microsoft had an average gross margin of 69.08%. Against its three-year average, Microsoft's gross margin is currently 67.9%, 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 67.9% at its lowest in Jun 2026.

MSFT Operating margin

Over the last 3 years, Microsoft's operating margin averaged 45.28%. The current operating margin of 46.8% is 1.5 percentage points above its three-year average. During this period, operating margin reached a high of 46.8% in Jun 2026 and a low of 43% in Sep 2023.

MSFT EBITDA margin

Over the last 3 years, the average EBITDA margin for Microsoft was 56.07%. The latest EBITDA margin for Microsoft is 62.5%, 6.4 percentage points above its three-year average. Microsoft's EBITDA margin ranged from a low of 51.3% in Sep 2023 to a high of 62.5% in Jun 2026.

MSFT Net margin

Across the last 3 years, Microsoft's net margin came to 36.77%. The current net margin stands at 40.3%, 3.5 percentage points above its three-year average. Net margin was highest at 40.3% in Jun 2026 and lowest at 35.3% in Sep 2023.

MSFT margin group comparison

Margins compared with peer-group, industry and sector averages

Microsoft's gross margin of 67.9% is above the Technology sector, the industry and its peers average. Compared to its Technology sector average of 52%, Microsoft's gross margin is 31% higher.

MSFT margin peer comparison

Compare margins with selected peers

Frequently asked questions

What is Microsoft's gross margin?

The current gross margin for MSFT is 67.9% as of Jun 30, 2026.

What is Microsoft's operating margin?

For the period ending Jun 30, 2026, MSFT recorded an operating margin of 46.8%.

What is Microsoft's EBITDA margin?

As of Jun 30, 2026, MSFT has an EBITDA margin of 62.5%.

What is Microsoft's net margin?

As of Jun 30, 2026, MSFT has a net margin of 40.3%.

What are the average margins of MSFT?

Across the last 3 years, MSFT averaged 69.1% gross, 45.3% operating, 56.1% EBITDA, and 36.8% 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, 46.8% operating in Jun 2026, 62.5% EBITDA in Jun 2026, and 40.3% net in Jun 2026.

What are the lowest historical margins of MSFT?

Microsoft's lowest recorded margins during the past 5 years were 67.9% gross in Jun 2026, 40.6% operating in Dec 2022, 48.4% EBITDA in Dec 2022, and 33% net in Dec 2022.