Income Statement
Quarterly Data
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Analysis of Debt
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Microsoft Corp., consolidated income statement (quarterly data)
US$ in millions
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
The financial performance over the observed period demonstrates a generally positive trajectory in revenue and operating income, though with some fluctuations. Revenue experienced consistent growth from September 2019 through December 2021, followed by a period of more moderate expansion and, in some quarters, contraction. Net income generally mirrored this trend, exhibiting overall growth but with noticeable variability.
- Revenue Composition
- Product revenue remained relatively stable, fluctuating between approximately US$15 billion and US$19 billion for much of the period. Service and other revenue, however, demonstrated a consistent upward trend, accelerating significantly from March 2021 onwards. By the end of the observed period, service and other revenue surpassed product revenue, becoming the dominant contributor to overall revenue. This shift suggests a successful transition towards a more service-oriented business model.
- Profitability Analysis
- Gross margin remained relatively consistent, generally ranging between 22% and 25% of revenue. Operating income showed a similar pattern to revenue, with growth through December 2021, followed by periods of fluctuation. A significant increase in operating income is observed in the later quarters, particularly from September 2024, driven by revenue growth and potentially improved operational efficiencies. The impact of 'Other income (expense), net' is notable, with significant positive and negative values appearing in later periods, introducing volatility to income before income taxes.
- Cost Structure
- Cost of revenue increased in proportion to revenue growth, maintaining a relatively stable percentage of revenue. Research and development expenses consistently represented a significant portion of revenue, indicating a continued commitment to innovation. Sales and marketing expenses also remained substantial, though their percentage of revenue fluctuated somewhat. General and administrative expenses showed a gradual increase over time, with a notable jump in December 2022, potentially reflecting increased administrative overhead.
- Tax Rate
- The provision for income taxes generally aligned with income before income taxes, resulting in an effective tax rate fluctuating between approximately 15% and 25%. A substantial increase in the provision for income taxes is observed in the final periods, significantly impacting net income and suggesting a change in tax circumstances or accounting practices.
In summary, the observed period reflects a company adapting its revenue streams, with a growing emphasis on services. While profitability remained generally positive, fluctuations in operating income and the impact of other income/expenses, alongside changes in the tax provision, introduce elements of volatility. Continued monitoring of these trends is recommended to assess the long-term sustainability of the observed growth and profitability.