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Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The Productivity and Business Processes segment offers Microsoft 365 commercial, enterprise mobility + security, windows commercial, power BI, exchange, sharepoint, Microsoft teams, security and compliance, and copilot; Microsoft 365 commercial products, such as Windows commercial on-premises and office licensed services; Microsoft 365 consumer products and cloud services, including Microsoft 365 consumer subscriptions, office licensed on-premises, and other consumer services; LinkedIn; dynamics products and cloud services, such as dynamics 365, cloud-based applications, and on-premises ERP and CRM applications. Its Intelligent Cloud segment provides Server products and cloud services comprising Azure and other cloud services, GitHub, Nuance Healthcare, virtual desktop offerings, and other cloud services; server products, including SQL and windows server, visual studio and system center related client access licenses, and other on-premises offerings; enterprise and partner services, such as enterprise support and nuance professional services, industry solutions, Microsoft partner network, and learning experience. The Personal Computing segment provides windows and devices, such as Windows OEM licensing and devices and surface and PC accessories; gaming services and solutions, such as Xbox hardware, content, and services, first- and third-party content Xbox game pass, subscriptions, and cloud gaming, advertising, and other cloud services; search and news advertising services that includes Bing and Copilot, Microsoft News and Edge, and third-party affiliates. It sells its products through OEMs, distributors, and resellers; and online and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.
5-year financial trends. Figures in USD millions.
Latest fiscal year: 2025
Year-by-year revenue, profitability, and cash flow (USD millions, last 10 years)
| Year | Revenue | EBITDA | Net Profit | FCF | ROE | Rev Growth 1Y | NP Growth 1Y |
|---|---|---|---|---|---|---|---|
| 2025 | $281.7B | $160.2B | $101.8B | $71.6B | 29.6% | 14.9% | 15.5% |
| 2024 | $245.1B | $133.0B | $88.1B | $74.1B | 32.8% | 15.7% | 21.8% |
| 2023 | $211.9B | $105.1B | $72.4B | $59.5B | 35.1% | 6.9% | -0.5% |
| 2022 | $198.3B | $100.2B | $72.7B | $65.1B | 43.7% | - | - |
| 2021 | - |
Income statement, balance sheet, and cash flow as reported
Consolidated Figures in USD Millions.
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Total Revenue | - | 198,270 | 211,915 | 245,122 | 281,724 |
| Operating Revenue | - | 198,270 | 211,915 | 245,122 | 281,724 |
| Cost Of Revenue | - | 62,650 | 65,863 | 74,114 | 87,831 |
| Gross Profit | - | 135,620 | 146,052 | 171,008 | 193,893 |
| Operating Expense | - | 52,237 | 57,529 | 61,575 | 65,365 |
| Research And Development | - | 24,512 | 27,195 | 29,510 | 32,488 |
| Selling General And Administration | - | 27,725 | 30,334 | 32,065 | 32,877 |
| Total Expenses | - | 114,887 | 123,392 | 135,689 | 153,196 |
| Operating Income | - | 83,383 | 88,523 | 109,433 | 128,528 |
| Total Operating Income As Reported | - | 83,383 | 88,523 | 109,433 | 128,528 |
| EBITDA | - | 100,239 | 105,140 | 133,009 | 160,165 |
| Normalized EBITDA | - | 99,905 | 105,155 | 133,558 | 160,603 |
| EBIT | - | 85,779 | 91,279 | 110,722 | 126,012 |
| Interest Income | - | 2,094 | 2,994 | 3,157 | 2,647 |
| Interest Expense | - | 2,063 | 1,968 | 2,935 | 2,385 |
| Net Interest Income | - | 31 | 1,026 | 222 | 262 |
| Other Non Operating Income Expenses | - | -32 | -223 | -1,319 | -4,725 |
| Other Income Expense | - | 302 | -238 | -1,868 | -5,163 |
| Interest Income Non Operating | - | 2,094 | 2,994 | 3,157 | 2,647 |
| Interest Expense Non Operating | - | 2,063 | 1,968 | 2,935 | 2,385 |
| Net Non Operating Interest Income Expense | - | 31 | 1,026 | 222 | 262 |
| Pretax Income | - | 83,716 | 89,311 | 107,787 | 123,627 |
| Tax Provision | - | 10,978 | 16,950 | 19,651 | 21,795 |
| Tax Rate For Calcs | - | 0 | 0 | 0 | 0 |
| Tax Effect Of Unusual Items | - | 43.75 | -2.85 | -99.92 | -77.09 |
| Net Income Continuous Operations | - | 72,738 | 72,361 | 88,136 | 101,832 |
| Net Income From Continuing And Discontinued Operation | - | 72,738 | 72,361 | 88,136 | 101,832 |
| Net Income From Continuing Operation Net Minority Interest | - | 72,738 | 72,361 | 88,136 | 101,832 |
| Net Income | - | 72,738 | 72,361 | 88,136 | 101,832 |
| Net Income Common Stockholders | - | 72,738 | 72,361 | 88,136 | 101,832 |
| Net Income Including Noncontrolling Interests | - | 72,738 | 72,361 | 88,136 | 101,832 |
| Normalized Income | - | 72,447.75 | 72,373.15 | 88,585.08 | 102,192.91 |
| Diluted NI Availto Com Stockholders | - | 72,738 | 72,361 | 88,136 | 101,832 |
| Basic Average Shares | - | 7,496 | 7,446 | 7,431 | 7,433 |
| Diluted Average Shares | - | 7,540 | 7,472 | 7,469 | 7,465 |
| Reconciled Depreciation | - | 14,460 | 13,861 | 22,287 | 34,153 |
| Reconciled Cost Of Revenue | - | 62,650 | 65,863 | 74,114 | 87,831 |
| Total Unusual Items | - | 334 | -15 | -549 | -438 |
| Total Unusual Items Excluding Goodwill | - | 334 | -15 | -549 | -438 |
| Special Income Charges | - | -101 | -30 | -206 | -943 |
| Write Off | - | 101 | 30 | 206 | 943 |
| Gain On Sale Of Security | - | 435 | 15 | -343 | 505 |
| General And Administrative Expense | - | 5,900 | 7,575 | 7,609 | 7,223 |
| Other Gand A | - | 5,900 | 7,575 | 7,609 | 7,223 |
| Selling And Marketing Expense | - | 21,825 | 22,759 | 24,456 | 25,654 |
Technology sector peers, ranked by market cap
| Company | Ticker | Market Cap | P/E | P/B | ROE | EV/EBITDA |
|---|---|---|---|---|---|---|
| Microsoft Corporationthis co. | MSFT | $3.2T | 31.23↓ discount | 9.26 | 29.6% | 19.64 |
| NVIDIA Corporation | NVDA | $5.3T | 44.11 | 33.67 | 76.3% | 36.64 |
| Apple Inc. | AAPL | $4.6T | 40.81 | 62.00 | 151.9% | 32.01 |
| Broadcom Inc. | AVGO | $2.0T | 85.76 | 24.40 | 28.4% | 58.55 |
| Micron Technology, Inc. | MU | $1.1T | 131.54 |
| - |
| - |
| - |
| - |
| - |
| - |
| 20.74 |
| 15.8% |
| 61.08 |
| Advanced Micro Devices, Inc. | AMD | $853.1B | 196.80 | 13.54 | 6.9% | 117.04 |
| Oracle Corporation | ORCL | $679.7B | 54.63 | 33.24 | 60.8% | 32.33 |
| ASML Holding N.V. | ASML | $677.4B | 70.49 | 34.54 | 49.0% | 53.29 |
| Intel Corporation | INTC | $561.8B | - | 4.92 | -0.2% | 39.78 |
| Peer Median | - | 70.49 | 28.82 | 38.7% | 46.54 | |