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Asset Utilization RatioAssets AverageDebt RatioDebt to EquityEBIT MarginEBITDA MarginEBT MarginEnterprise ValueEquity AverageEquity RatioFCF MarginFCF Payout RatioGross MarginInterest Coverage RatioInventory AverageInvested CapitalNet MarginOperating MarginReturn on AssetsReturn on Capital EmployedReturn on EquityReturn on Invested CapitalReturn on SalesTimes Interest Earned

Microsoft (MSFT) Gross Margin (2016 - 2025)

Microsoft (MSFT) has disclosed Gross Margin for 17 consecutive years, with 68.04% as the latest value for Q4 2025.

  • Quarterly Gross Margin fell 66.0% to 68.04% in Q4 2025 from the year-ago period, while the trailing twelve-month figure was 68.59% through Dec 2025, down 82.0% year-over-year, with the annual reading at 68.82% for FY2025, 94.0% down from the prior year.
  • Gross Margin hit 68.04% in Q4 2025 for Microsoft, down from 69.05% in the prior quarter.
  • In the past five years, Gross Margin ranged from a high of 71.16% in Q3 2023 to a low of 66.85% in Q4 2022.
  • Historically, Gross Margin has averaged 68.97% across 5 years, with a median of 68.88% in 2025.
  • Biggest five-year swings in Gross Margin: surged 213bps in 2021 and later tumbled -180bps in 2024.
  • Year by year, Gross Margin stood at 67.21% in 2021, then fell by -1bps to 66.85% in 2022, then increased by 2bps to 68.36% in 2023, then grew by 0bps to 68.69% in 2024, then fell by -1bps to 68.04% in 2025.
  • Business Quant data shows Gross Margin for MSFT at 68.04% in Q4 2025, 69.05% in Q3 2025, and 68.58% in Q2 2025.