Microsoft (MSFT) Gross Margin (2009 - 2026)
Microsoft (MSFT) posted Gross Margin of 67.2% for Q2 2026, down 0.64% sequentially from 67.63% in Q1 2026, and down 139.0% YoY from 172.3% in Q2 2025.
Microsoft (MSFT) Gross Margin (2009 - 2026) Analysis & Trends
Microsoft has reported Gross Margin for 18 years, with the latest figure at 67.2% in Q2 2026.
- Quarterly Gross Margin fell 139.0% year-over-year to 67.2% in Q2 2026, while the trailing twelve-month figure through Jun 2026 was 67.94% (down 88.0% YoY) and the FY2026 annual result came in at 67.94%, down 88.0% from the prior year.
- Gross Margin fell to 67.2% in Q2 2026 per MSFT's latest filing, from 67.63% in the prior quarter.
- Over five years, Gross Margin peaked at 71.16% in Q3 2023 and troughed at 66.85% in Q4 2022.
- A 5-year average of 68.82% and a median of 68.71% in 2024 frame the typical range for Gross Margin.
- The sharpest annual moves came in 2023 and 2024: Gross Margin surged 198 bps in 2023, then tumbled 180 bps in 2024.
- Over 5 years, Gross Margin stood at 66.85% in 2022, then increased by 2 bps to 68.36% in 2023, then grew by 0 bps to 68.69% in 2024, then slipped by 1 bps to 68.04% in 2025, then dropped by 1 bps to 67.2% in 2026.
- According to Business Quant data, Gross Margin over the past three periods registered 67.2%, 67.63%, and 68.04% for Q2 2026, Q1 2026, and Q4 2025 respectively.
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Peer Comparison
| # | Company | Market Cap | Enterprise Value | Gross Profit (Qtr) | Gross Margin (Qtr) |
|---|---|---|---|---|---|
| 1 | Microsoft | 3,679.34 Bn | 3,546.58 Bn | 60.48 Bn | 67.20% |
| 2 | Oracle | 433.50 Bn | 402.15 Bn | - | - |
| 3 | Palantir Technologies | 418.20 Bn | 408.90 Bn | 1.64 Bn | 84.66% |
| 4 | Palo Alto Networks | 312.41 Bn | 309.30 Bn | 2.03 Bn | 67.55% |
| 5 | Fortinet | 117.38 Bn | 113.31 Bn | 1.64 Bn | 80.24% |
| 6 | Cloudflare | 101.74 Bn | 97.57 Bn | 499.52 Mn | 71.76% |
| 7 | Synopsys | 80.70 Bn | 78.49 Bn | 1.77 Bn | 73.54% |
| 8 | CoreWeave | 58.00 Bn | 52.46 Bn | 1.70 Bn | 65.86% |
| 9 | Block | 49.79 Bn | 43.33 Bn | 3.17 Bn | 47.84% |
| 10 | NetApp | 40.59 Bn | 37.00 Bn | 1.37 Bn | 70.07% |
Historic Data
Download Data| Date | Value |
|---|---|
| Jun 30, 2026 | 67.20% |
| Mar 31, 2026 | 67.63% |
| Dec 31, 2025 | 68.04% |
| Sep 30, 2025 | 69.05% |
| Jun 30, 2025 | 68.58% |
| Mar 31, 2025 | 68.72% |
| Dec 31, 2024 | 68.69% |
| Sep 30, 2024 | 69.35% |
| Jun 30, 2024 | 69.59% |
| Mar 31, 2024 | 70.08% |
| Dec 31, 2023 | 68.36% |
| Sep 30, 2023 | 71.16% |
| Jun 30, 2023 | 70.11% |
| Mar 31, 2023 | 69.49% |
| Dec 31, 2022 | 66.85% |
| Sep 30, 2022 | 69.17% |
| Jun 30, 2022 | 68.32% |
| Mar 31, 2022 | 68.37% |
| Dec 31, 2021 | 67.21% |
| Sep 30, 2021 | 69.89% |