MSFT Q2 2025 Earnings — Income Statement Breakdown

For its Q2 2025 period (ending 2024-12-31), MSFT reported revenue of $69.6B, gross profit of $47.8B (68.7% gross margin), operating income of $31.7B, and net income of $24.1B (34.6% net margin). The flow of revenue into costs and profit is visualized below.

What changed

MSFT was profitable; revenue grew 12.3% year over year.

ComparisonRevenueNet incomeNet margin
Year over year+12.3%+10.2%−0.6 pp
Quarter over quarter+6.2%−2.3%−3.0 pp

Consensus estimate data is not available for this report.

MSFT Q2 2025 Income Statement

MSFT Q2 2025 income statement. Figures in USD.
Line itemAmount (USD)% of revenue
Revenue$69.6B100%
Cost of Revenue−$21.8B31.3%
Gross Profit$47.8B68.7%
Research & Development−$7.9B11.4%
Selling, General & Administrative−$8.3B11.9%
Operating Income$31.7B45.5%
Other Income, net−$2.3B3.3%
Income Tax Expense−$5.3B7.5%
Net Income$24.1B34.6%

Source: original SEC filing (filed 2025-01-29). Accession 0000950170-25-010484. Data normalized by EarningsFyi.