MSFT Q2 2025 Earnings — Income Statement Breakdown
For its Q2 2025 period (ending 2025-12-31), MSFT reported revenue of $81.3B, gross profit of $55.3B (68.0% gross margin), operating income of $38.3B, and net income of $38.5B (47.3% net margin). The flow of revenue into costs and profit is visualized below.
What changed
MSFT was profitable; revenue grew 16.7% year over year, and EPS beat consensus by $0.26.
| Comparison | Revenue | Net income | Net margin |
|---|---|---|---|
| Year over year | +16.7% | +59.5% | Not available |
| Quarter over quarter | +4.6% | +38.6% | Not available |
EPS was $4.14 versus $3.88 expected.
MSFT Q2 2025 Income Statement
| Line item | Amount (USD) | % of revenue |
|---|---|---|
| Revenue | $81.3B | 100% |
| Cost of Revenue | −$26.0B | 32.0% |
| Gross Profit | $55.3B | 68.0% |
| Research & Development | −$8.5B | 10.5% |
| Selling, General & Administrative | −$8.5B | 10.5% |
| Operating Income | $38.3B | 47.1% |
| Other Income, net | $10.0B | 12.3% |
| Income Tax Expense | −$9.8B | 12.0% |
| Net Income | $38.5B | 47.3% |
Source: original SEC filing (filed 2026-01-28). Accession 0001193125-26-027198. Data normalized by EarningsFyi.