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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's Gross Margin history spans 17 years, with the latest figure at 68.04% for Q4 2025.

  • For Q4 2025, Gross Margin fell 66.0% year-over-year to 68.04%; the TTM value through Dec 2025 reached 68.59%, down 82.0%, while the annual FY2025 figure was 68.82%, 94.0% down from the prior year.
  • Gross Margin for Q4 2025 was 68.04% at Microsoft, down from 69.05% in the prior quarter.
  • Across five years, Gross Margin topped out at 71.16% in Q3 2023 and bottomed at 66.85% in Q4 2022.
  • The 5-year median for Gross Margin is 68.88% (2025), against an average of 68.97%.
  • The largest annual shift saw Gross Margin skyrocketed 213bps in 2021 before it plummeted -180bps in 2024.
  • A 5-year view of Gross Margin shows it stood at 67.21% in 2021, then decreased by -1bps to 66.85% in 2022, then grew by 2bps to 68.36% in 2023, then rose by 0bps to 68.69% in 2024, then decreased by -1bps to 68.04% in 2025.
  • Per Business Quant, the three most recent readings for MSFT's Gross Margin are 68.04% (Q4 2025), 69.05% (Q3 2025), and 68.58% (Q2 2025).