Microsoft (MSFT) Margins & Profitability 2020-2026

Gross, EBITDA, operating, and net margin trends

Margins

Profit margins across the income statement

Gross Margin: 67.6%
EBITDA Margin: 57.2%
Op. Margin: 46.3%
Net Margin: 38.3%

Op. margin of 46.3% is up 0.7% YoY — cost efficiency is improving. Net margin at 38.3% and gross margin of 67.6% — earnings take a bigger bite when COGS stays lean..

Gross Margin (%)

Revenue left after direct cost of goods sold

EBITDA Margin (%)

Operating profitability independent of capital structure

Operating & Net Margins (%)

How much of each dollar becomes profit