MSFT Q3 2025 Earnings — Income Statement Breakdown
For its Q3 2025 period (ending 2025-03-31), MSFT reported revenue of $70.1B, gross profit of $48.1B (68.7% gross margin), operating income of $32.0B, and net income of $25.8B (36.9% net margin). The flow of revenue into costs and profit is visualized below.
What changed
MSFT was profitable; revenue grew 13.3% year over year.
| Comparison | Revenue | Net income | Net margin |
|---|---|---|---|
| Year over year | +13.3% | +17.7% | +1.4 pp |
| Quarter over quarter | +0.6% | +7.1% | +2.2 pp |
Consensus estimate data is not available for this report.
MSFT Q3 2025 Income Statement
| Line item | Amount (USD) | % of revenue |
|---|---|---|
| Revenue | $70.1B | 100% |
| Cost of Revenue | −$21.9B | 31.3% |
| Gross Profit | $48.1B | 68.7% |
| Research & Development | −$8.2B | 11.7% |
| Selling, General & Administrative | −$7.9B | 11.3% |
| Operating Income | $32.0B | 45.7% |
| Other Income, net | −$623M | 0.9% |
| Income Tax Expense | −$5.6B | 7.9% |
| Net Income | $25.8B | 36.9% |
Source: original SEC filing (filed 2025-04-30). Accession 0000950170-25-061032. Data normalized by EarningsFyi.