Microsoft Profit Margin

The latest profit margin for MSFT is 40.31% as of June 2026. That compares with 36.15% in the prior-year period — up 11.5% year over year. That is above the Technology sector average of 37.53%. Investors often review this figure alongside Microsoft's historical trend and sector peers before judging valuation or financial health.

Over the past year, MSFT's profit margin moved from 36.15% to 40.31% — a 11.5% year-over-year increase. If the trend continues in the same direction for several quarters, it can signal a meaningful shift in Microsoft's valuation or profitability profile.

Against Technology companies, MSFT currently prints 40.31% for profit margin, while the sector average sits near 37.53%. That is roughly 7.4% above the sector mean. Large gaps often invite a closer look at Microsoft's growth, margins, and balance sheet.

Profit Margin shows how effectively Microsoft converts resources into returns. At 40.31%, MSFT may look efficient or underperforming depending on peer benchmarks and trend direction. That compares with 36.15% in the prior-year period — up 11.5% year over year. Pair the percentage with revenue growth and leverage for a fuller health check.

After noting MSFT's profit margin (40.31%), review year-over-year change from 36.15%, peer averages, and a few neighboring metrics such as revenue, margins, or valuation multiples. That combination usually beats staring at a single figure. The navigation links on this page jump you to those related views.