MSFT Q1 2026 Earnings — Income Statement Breakdown
For its Q1 2026 period (ending 2025-09-30), MSFT reported revenue of $77.7B, gross profit of $53.6B (69.0% gross margin), operating income of $38.0B, and net income of $27.7B (35.7% net margin). The flow of revenue into costs and profit is visualized below.
What changed
MSFT was profitable; revenue grew 18.4% year over year.
| Comparison | Revenue | Net income | Net margin |
|---|---|---|---|
| Year over year | +18.4% | +12.5% | −1.9 pp |
| Quarter over quarter | +1.6% | +1.9% | +0.1 pp |
Consensus estimate data is not available for this report.
MSFT Q1 2026 Income Statement
| Line item | Amount (USD) | % of revenue |
|---|---|---|
| Revenue | $77.7B | 100% |
| Cost of Revenue | −$24.0B | 31.0% |
| Gross Profit | $53.6B | 69.0% |
| Research & Development | −$8.1B | 10.5% |
| Selling, General & Administrative | −$7.5B | 9.7% |
| Operating Income | $38.0B | 48.9% |
| Other Income, net | −$3.7B | 4.7% |
| Income Tax Expense | −$6.6B | 8.4% |
| Net Income | $27.7B | 35.7% |
Source: original SEC filing (filed 2025-10-29). Accession 0001193125-25-256310. Data normalized by EarningsFyi.