Microsoft (MSFT) Operating Margin (2009 - 2026)
Microsoft (MSFT) posted Operating Margin of 45.11% for Q2 2026, down 2.62% sequentially from 46.33% in Q1 2026, and up 21.0% YoY from 37.28% in Q2 2025.
Microsoft (MSFT) Operating Margin (2009 - 2026) Analysis & Trends
Microsoft has reported Operating Margin for 18 years, with the latest figure at 45.11% in Q2 2026.
- Quarterly Operating Margin rose 21.0% year-over-year to 45.11% in Q2 2026, while the trailing twelve-month figure through Jun 2026 was 46.78% (up 116.0% YoY) and the FY2026 annual result came in at 46.78%, up 116.0% from the prior year.
- Operating Margin retreated to 45.11% in Q2 2026 per MSFT's latest filing, from 46.33% in the prior quarter.
- Over five years, Operating Margin peaked at 48.87% in Q3 2025 and troughed at 38.67% in Q4 2022.
- A 5-year average of 44.27% and a median of 44.74% in 2024 frame the typical range for Operating Margin.
- The sharpest annual moves came in 2022 and 2023: Operating Margin sank 433 bps in 2022, then jumped 491 bps in 2023.
- Over 5 years, Operating Margin stood at 38.67% in 2022, then grew by 13 bps to 43.59% in 2023, then climbed by 4 bps to 45.46% in 2024, then grew by 4 bps to 47.09% in 2025, then decreased by 4 bps to 45.11% in 2026.
- According to Business Quant data, Operating Margin over the past three periods registered 45.11%, 46.33%, and 47.09% for Q2 2026, Q1 2026, and Q4 2025 respectively.
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Peer Comparison
| # | Company | Market Cap | Enterprise Value | Gross Profit (Qtr) | Operating Margin (Qtr) |
|---|---|---|---|---|---|
| 1 | Microsoft | 3,679.34 Bn | 3,546.58 Bn | 60.48 Bn | 45.11% |
| 2 | Oracle | 433.50 Bn | 402.15 Bn | - | 31.97% |
| 3 | Palantir Technologies | 418.20 Bn | 408.90 Bn | 1.64 Bn | 47.12% |
| 4 | Palo Alto Networks | 312.41 Bn | 309.30 Bn | 2.03 Bn | -6.10% |
| 5 | Fortinet | 117.38 Bn | 113.31 Bn | 1.64 Bn | 33.66% |
| 6 | Cloudflare | 101.74 Bn | 97.57 Bn | 499.52 Mn | -29.55% |
| 7 | Synopsys | 80.70 Bn | 78.49 Bn | 1.77 Bn | 8.43% |
| 8 | CoreWeave | 58.00 Bn | 52.46 Bn | 1.70 Bn | -1.90% |
| 9 | Block | 49.79 Bn | 43.33 Bn | 3.17 Bn | 6.75% |
| 10 | NetApp | 40.59 Bn | 37.00 Bn | 1.37 Bn | 27.31% |
Historic Data
Download Data| Date | Value |
|---|---|
| Jun 30, 2026 | 45.11% |
| Mar 31, 2026 | 46.33% |
| Dec 31, 2025 | 47.09% |
| Sep 30, 2025 | 48.87% |
| Jun 30, 2025 | 44.90% |
| Mar 31, 2025 | 45.67% |
| Dec 31, 2024 | 45.46% |
| Sep 30, 2024 | 46.58% |
| Jun 30, 2024 | 43.14% |
| Mar 31, 2024 | 44.59% |
| Dec 31, 2023 | 43.59% |
| Sep 30, 2023 | 47.59% |
| Jun 30, 2023 | 43.17% |
| Mar 31, 2023 | 42.29% |
| Dec 31, 2022 | 38.67% |
| Sep 30, 2022 | 42.93% |
| Jun 30, 2022 | 39.59% |
| Mar 31, 2022 | 41.26% |
| Dec 31, 2021 | 43.01% |
| Sep 30, 2021 | 44.66% |