Microsoft Corporation Profit Margin
Data as of June 01, 2026
Profit Margin (TTM)
39.3%
Revenue (TTM)
$318.27B
Sector
Technology
Ticker
MSFT
How It's Calculated
What This Means
Microsoft Corporation's profit margin of 39.3% is strong, indicating the company retains a large share of revenue as net income.
About Microsoft Corporation
Microsoft Corporation (MSFT) operates in the Technology sector, specifically in Software - Infrastructure. With a market capitalization of about $3.34T, it ranks as a mega-cap stock — one of the largest publicly traded companies.
Shares recently traded near $450.24, within a 52-week range of $356.28 to $555.45 (-18.9% from the high, +26.4% from the low). Beta of 1.09 is broadly in line with typical market sensitivity.
Trailing profit margin is about 39.3%, signaling a strong profit margin relative to many peers.
Understanding This Metric
Profit margin connects income-statement quality to valuation. For Microsoft Corporation, 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 39.3% trailing profit margin, Microsoft Corporation (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 Corporation's profit margin of 39.3% can be compared with peers such as NVDA (63.0%), AAPL (27.2%), AVGO (36.6%). 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 1.09 suggests market-like price sensitivity.
- Trailing profit margin of 39.3% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for MSFT.
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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 Corporation's margin is about 39.3% on this snapshot — higher margins often support stronger valuation multiples in Technology.
Is 39.3% strong for Technology?
Peers in Technology such as NVDA (63.0%), MU (41.5%), ANET (38.3%) help benchmark MSFT's 39.3%. 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 June 01, 2026.
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