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Microsoft Corporation (MSFT) Gross Margin: 68.31%

Is Microsoft Corporation’s gross margin high or low?

Microsoft Corporation's gross margin of 68.31% is in line with its 5-year average of 68.77%, near the low end of its 5-year range (67.78%–69.76%).

The gross margin for Microsoft Corporation (MSFT) is 68.31% as of Wednesday, June 10, 2026. It is below its 12-month average by 1.41% (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

68.31%

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

-1.41%

CURRENT VS 3Y AVG

-0.96%

CURRENT VS 5Y AVG

-0.67%

CURRENT VS 10Y AVG

+1.95%

CURRENT VS 15Y AVG

-1.87%

CURRENT VS 20Y AVG

-5.65%

MSFT Competitors' Gross Margin

NAMEMARKET CAPGROSS MARGINTTM3Y5Y
Microsoft Corporation (MSFT)$2.98T68.31%69.29%68.97%68.77%
Apple Inc. (AAPL)$4.32T47.86%46.56%45.75%44.47%
Alphabet Inc. (GOOGL)$4.31T60.37%58.94%57.47%56.73%
Amazon.com, Inc. (AMZN)$2.57T50.60%49.57%47.48%45.25%
Oracle Corporation (ORCL)$586.87B66.44%70.96%73.46%75.69%
Salesforce, Inc. (CRM)$141.00B77.64%77.44%75.93%75.27%

Gross Margin Analysis

Gross Margin

68.3%

(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 68.31%.
Is Microsoft Corporation's gross margin high or low?
Microsoft Corporation's gross margin of 68.31% is in line with its 5-year average of 68.77%, near the low end 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%

About Microsoft Corporation

Microsoft Corporation is a prominent global technology firm that invents, markets, and provides ongoing assistance for a diverse range of software, digital services, computing devices, and comprehensive solutions. Its operations are organized into three primary divisions: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment delivers crucial tools for both enterprises and individual users. This includes the extensive Office suite (comprising Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business), along with popular consumer offerings like Skype, Outlook.com, OneDrive, and LinkedIn. It also features Dynamics 365, a suite of integrated cloud and on-premises business applications tailored for organizations. The Intelligent Cloud division focuses on sophisticated infrastructure and platform services. Here, Microsoft licenses key products such as SQL Server, Windows Servers, Visual Studio, System Center, and associated Client Access Licenses. It also includes GitHub, a leading platform for developer collaboration and code hosting; Nuance, offering advanced AI solutions for healthcare and businesses; and Azure, its expansive cloud computing platform. This segment further encompasses enterprise support, Microsoft consulting services, and Nuance professional services, assisting clients with the development, deployment, and management of Microsoft's server and desktop technologies, alongside offering product training and certification. Finally, the More Personal Computing segment covers a broad spectrum of consumer and commercial computing experiences. It generates revenue through Windows operating system licensing, including agreements with original equipment manufacturers (OEMs), non-volume licensing, and various Windows Commercial offerings (such as volume licensing and cloud services), as well as patent licensing and Windows Internet of Things (IoT). This division also supplies its own hardware, including Surface devices, PC accessories, and gaming/entertainment consoles. Its Gaming portfolio features Xbox hardware, content, and subscription services, in addition to video games and royalties from third-party titles. Furthermore, it manages search services like Bing and Microsoft's advertising platforms. Microsoft distributes its extensive product line via numerous channels, including original equipment manufacturers, wholesale distributors, and various resellers, complementing direct sales through digital marketplaces, its own online storefronts, and physical retail outlets. The company, established in 1975, maintains its headquarters in Redmond, Washington.

Redmond, WA
228,000 employees
Technology / Software - Infrastructure
Sector
Technology
Industry
Software - Infrastructure
CEO
Satya Nadella