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Microsoft Corporation (MSFT) Gross Margin: 68.82%

Is Microsoft Corporation’s gross margin high or low?

Microsoft Corporation's gross margin of 68.82% is in line with its 5-year average of 68.77%, around the middle of its 5-year range (67.78%–69.76%).

The gross margin for Microsoft Corporation (MSFT) is 68.82% as of Tuesday, June 9, 2026. It is below its 12-month average by 0.68% (69.29%).

MSFT Gross Margin Chart

MSFT Gross Margin
68.82%-1.35% 1Y
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MSFT Average Gross Margin Chart

MSFT Current vs Average Gross Margin Chart

MSFT Gross Margin Metrics

GROSS MARGIN

68.82%

GROSS MARGIN AVG TTM

69.29%

GROSS MARGIN AVG 3Y

68.97%

GROSS MARGIN AVG 5Y

68.77%

GROSS MARGIN AVG 10Y

67.00%

GROSS MARGIN AVG 15Y

69.61%

GROSS MARGIN AVG 20Y

72.40%

CURRENT VS TTM AVG

-0.68%

CURRENT VS 3Y AVG

-0.22%

CURRENT VS 5Y AVG

+0.08%

CURRENT VS 10Y AVG

+2.71%

CURRENT VS 15Y AVG

-1.13%

CURRENT VS 20Y AVG

-4.94%

MSFT Competitors' Gross Margin

NAMEMARKET CAPGROSS MARGINTTM3Y5Y
Microsoft Corporation (MSFT)68.82%69.29%68.97%68.77%
Apple Inc. (AAPL)$4.27T46.91%46.56%45.75%44.47%
Alphabet Inc. (GOOGL)$4.41T59.67%58.94%57.47%56.73%
Amazon.com, Inc. (AMZN)$2.63T50.29%49.57%47.48%45.25%
Oracle Corporation (ORCL)$591.83B70.51%70.96%73.46%75.69%
Salesforce, Inc. (CRM)$143.61B77.68%77.44%75.93%75.27%

Gross Margin Analysis

Gross Margin

68.8%

(Revenue - COGS) / Revenue

Microsoft Corporation Gross Margin Formula & Definition

Gross Margin = Gross Profit / Revenue

Gross margin is the percentage of revenue remaining after the cost of goods sold, reflecting core product profitability.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

Microsoft Corporation Gross Margin FAQ

What is the gross margin for Microsoft Corporation (MSFT)?
The gross margin for MSFT stock is 68.82%.
Is Microsoft Corporation's gross margin high or low?
Microsoft Corporation's gross margin of 68.82% is in line with its 5-year average of 68.77%, around the middle of its 5-year range (67.78%–69.76%).
What is the TTM average gross margin for Microsoft Corporation (MSFT)?
The TTM average gross margin for MSFT stock is 69.29%.
What is the 3Y average gross margin for Microsoft Corporation (MSFT)?
The 3Y average gross margin for MSFT stock is 68.97%.
What is the 5Y average gross margin for Microsoft Corporation (MSFT)?
The 5Y average gross margin for MSFT stock is 68.77%.
What is the 10Y average gross margin for Microsoft Corporation (MSFT)?
The 10Y average gross margin for MSFT stock is 67.00%.
What is the 15Y average gross margin for Microsoft Corporation (MSFT)?
The 15Y average gross margin for MSFT stock is 69.61%.
What is the 20Y average gross margin for Microsoft Corporation (MSFT)?
The 20Y average gross margin for MSFT stock is 72.40%.

Microsoft Corporation Gross Margin History

DATEGROSS MARGIN
2025-06-3068.82%
2024-06-3069.76%
2023-06-3068.92%
2022-06-3068.40%
2021-06-3068.93%
2020-06-3067.78%
2019-06-3065.90%
2018-06-3065.25%
2017-06-3064.52%
2016-06-3064.04%
2015-06-3064.70%
2014-06-3068.82%
2013-06-3073.81%
2012-06-3076.22%
2011-06-3077.73%
2010-06-3080.16%
2009-06-3079.20%
2008-06-3080.80%
2007-06-3079.08%
2006-06-3082.72%
2005-06-3084.84%
2004-06-3081.77%
2003-06-3081.18%
2002-06-3081.70%
2001-06-3086.34%
2000-06-3086.92%
1999-06-3090.86%
1998-06-3090.59%
1997-06-3086.49%
1996-06-3091.83%