Microsoft (Microsoft) Net Margin %

: 35.26% (As of Dec. 2023)

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Net margin is calculated as Net Income divided by its Revenue. Microsoft's Net Income for the three months ended in Dec. 2023 was $21,870 Mil. Microsoft's Revenue for the three months ended in Dec. 2023 was $62,020 Mil. Therefore, Microsoft's net margin for the quarter that ended in Dec. 2023 was 35.26%.

The historical rank and industry rank for Microsoft's Net Margin % or its related term are showing as below:

MSFT' s Net Margin % Range Over the Past 10 Years
Min: 13.03 Med: 28.68 Max: 36.69
Current: 36.27

MSFT's Net Margin % is ranked better than
97.28% of 2762 companies
in the Software industry
Industry Median: 1.72 vs MSFT: 36.27

Microsoft Net Margin % Historical Data

The historical data trend for Microsoft's Net Margin % 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.

* Premium members only.

Microsoft Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Net Margin %

31.18

30.96

36.45

36.69

34.15

Microsoft Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Net Margin %																31.14	34.62	35.74	39.44	35.26

Competitive Comparison

For the Software - Infrastructure subindustry, Microsoft's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % Distribution

For the Software industry and Technology sector, Microsoft's Net Margin % distribution charts can be found below:

* The bar in red indicates where Microsoft's Net Margin % falls into.

Microsoft Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Microsoft's Net Margin for the fiscal year that ended in Jun. 2023 is calculated as

Net Margin	=	Net Income (A: Jun. 2023 )	/	Revenue (A: Jun. 2023 )
	=	72361	/	211915
	=	34.15 %

Microsoft's Net Margin for the quarter that ended in Dec. 2023 is calculated as

Net Margin	=	Net Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	21870	/	62020
	=	35.26 %

Microsoft (NAS:MSFT) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.

Microsoft Net Margin % Related Terms

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Microsoft (Microsoft) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Microsoft Corp (NAS:MSFT) » Definitions » Net Margin %

Comparable Companies

Traded in Other Exchanges

MSFT:Peru MSFT:Mexico MSFT:Italy MSFd:UK 0QYP:UK MSF0:Germany MSF:Germany MSF:Germany MSF:Germany MSF:Germany MSFT:Chile MSFT:Canada MSFT34:Brazil MSFT:Austria MSFT:Argentina

Address

One Microsoft Way, Redmond, WA, USA, 98052-6399

Website

https://www.microsoft.com

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).

Executives

Kathleen T Hogan	officer: EVP, Human Resources	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Judson Althoff	officer: EVP, Chief Commercial Officer	MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052
Satya Nadella	director, officer: Chief Executive Officer	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Bradford L Smith	officer: Executive Vice President	MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Teri List	director	2200 PENNSYLVANIA AVENUE, SUITE 800W, WASHINGTON DC 20037
Christopher C Capossela	officer: EVP, Chief Marketing Officer	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Amy Hood	officer: Chief Financial Officer	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Emma N Walmsley	director	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Carlos A Rodriguez	director	10200 SUNSET DRIVE, MIAMI FL 33173
Christopher David Young	officer: EVP, Business Development	C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
John W Stanton	director	3650 131ST AVE SE #400, WESTERN WIRELESS CORP, BELLEVUE WA 98006
Charles W Scharf	director	C/O VISA INC., 900 METRO CENTER BLVD., FOSTER CITY CA 94404
Hugh F Johnston	director	PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Reid Hoffman	director	C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Sandra E Peterson	director	100 PARSONS POND DRIVE, FRANKLIN LAKES NJ 07417