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Microsoft's gross profit for the
three
months ended in Mar. 2026 was CHF44,134 Mil. Microsoft's gross profit for the trailing twelve months (TTM) ended in Mar. 2026 was CHF173,528 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Microsoft's gross profit for the
three
months ended in Mar. 2026 was CHF44,134 Mil. Microsoft's Revenue for the
three
months ended in Mar. 2026 was CHF65,256 Mil. Therefore, Microsoft's Gross Margin % for the quarter that ended in Mar. 2026 was 67.63%.
Microsoft had a gross margin of 67.63% for the quarter that ended in Mar. 2026 => Durable competitive advantage
During the past 13 years, the highestGross Margin % of Microsoft was 69.76%. The lowest was 64.04%. And the median was 68.09%.
Microsoft (XSWX:MSFT) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Microsoft had a gross margin of 67.63% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Microsoft Gross Profit Related Terms
Microsoft Gross Profit Historical Data
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The historical data trend for Microsoft's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:MSFT vs ORCL, PLTR, PANW: Gross Profit Comparison
For the Software - Infrastructure subindustry, Microsoft's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Microsoft Gross Profit vs Software Industry
For the Software industry and Technology sector, Microsoft's Gross Profit distribution charts can be found below:
* The bar in red indicates where Microsoft's Gross Profit falls into.
Gross Profit for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF173,528 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Microsoft (XSWX:MSFT) has a Gross Profit of CHF173,528 Mil as of Mar. 2026. Gross Profit equals net sales less total cost of goods sold. View historical data on Microsoft and its competitors.
Is Microsoft's Gross Profit too high?
Microsoft's current Gross Profit is CHF173,528 Mil. Overall, Microsoft has a GF Score™ of 95/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Microsoft's Gross Profit compare to ORCL and PLTR?
Microsoft's Gross Profit of CHF173,528 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Profit for a Software company?
A good Gross Profit depends on the Software industry context. However, Gross Profit should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Profit mean?
A high Gross Profit can signal that a stock is expensive relative to its fundamentals. Gross Profit equals net sales less total cost of goods sold. View historical data on Microsoft and its competitors. Microsoft's current Gross Profit is CHF173,528 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microsoft stock overvalued right now?
Based on GuruFocus' analysis, Microsoft (XSWX:MSFT) is currently considered Significantly Undervalued. The stock's GF Value™ is CHF467.97, compared to a current price of CHF319.90 — trading 31.6% below its estimated fair value. The current Gross Profit is CHF173,528 Mil. Microsoft's overall GF Score™ is 95/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Profit calculated?
Gross Profit is calculated from a company's financial statements. For Microsoft (XSWX:MSFT), the current Gross Profit is CHF173,528 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Microsoft (XSWX:MSFT) Overvalued in 2026?
Based on GuruFocus' analysis, Microsoft stock appears to be undervalued.
The current stock price of CHF319.90 is trading 31.6% below its estimated GF Value™ of CHF467.97.
GuruFocus considers Microsoft to be Significantly Undervalued.
Key valuation signals for XSWX:MSFT:
Gross Profit: CHF173,528 Mil
GF Value™: CHF467.97 vs. price of CHF319.90 (31.6% below fair value)
No single metric tells the full story. See the XSWX:MSFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).
95GF Score
Get the complete analysis for XSWX:MSFT
Gross Profit is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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