Microsoft Corp Profit Margin
Data as of August 04, 2026
Profit Margin (TTM)
40.3%
Revenue (TTM)
$331.15B
Sector
Technology
Ticker
MSFT
How It's Calculated
What This Means
Microsoft Corp's profit margin of 40.3% is strong, indicating the company retains a large share of revenue as net income.
About Microsoft Corp
Microsoft Corp (MSFT) operates in the Technology sector, specifically in Technology. With a market capitalization of about $3.45T, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $487.65, within a 52-week range of $349.20 to $555.45 (-12.2% from the high, +39.6% from the low). Beta of 1.11 is broadly in line with typical market sensitivity.
Trailing profit margin is about 40.3%, signaling a strong profit margin relative to many peers.
Understanding This Metric
Profit margin connects income-statement quality to valuation. For Microsoft Corp, trailing margin summarizes how much revenue converts to net profit after costs. In Technology, margins differ by business model — software and services often run higher margins than capital-intensive industries. Track margin trends across quarters; a stable or improving margin can support earnings durability, while sharp declines may warrant deeper review of guidance and competition.
Using This Number in Practice
At about 40.3% trailing profit margin, Microsoft Corp (MSFT) suggests strong pricing power or cost discipline versus many large-cap peers. For large revenue bases, even a one-point margin move can shift earnings materially, so trend matters as much as the spot reading.
When comparing MSFT to alternatives, combine margin with return on equity, revenue growth, and valuation. Use our margin calculator for scenario work, and browse the MSFT metrics hub plus sector peers in the comparison section above.
Sector Comparison
Among Technology names on our S&P 100 coverage, Microsoft Corp's profit margin of 40.3% can be compared with peers such as AAPL (27.6%), ORCL (25.4%), IBM (15.5%). Sector context helps interpretation, but each company's growth profile and balance sheet differ — use multiple metrics before drawing conclusions. View all Technology stocks.
Key Takeaways
- MSFT is grouped in the Technology sector for peer comparisons.
- Recent beta of 1.11 suggests higher-than-market price sensitivity.
- Trailing profit margin of 40.3% provides context for how much earnings support the headline multiple.
Related Tools & Guides
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Frequently Asked Questions
What is MSFT's profit margin?
Trailing profit margin measures net income as a percent of revenue. Microsoft Corp's margin is about 40.3% on this snapshot — higher margins often support stronger valuation multiples in Technology.
Is 40.3% strong for Technology?
Peers in Technology such as AAPL (27.6%), ORCL (25.4%), INTU (21.9%) help benchmark MSFT's 40.3%. Margins vary by sub-industry and accounting cycle.
How often is profit margin updated?
Margins update after quarterly earnings; price-only fields refresh on trading days. Data as of August 04, 2026.
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