FINHUB Insights

Microsoft Q1 FY26: where the revenue came from and where it went

The whole income statement of Microsoft for this quarter, as one diagram: what earned the revenue, and what it went on.

Period
Jul 1 – Sep 30, 2025
Reported
Oct 29, 2025 10-Q accession 0001193125-25-256321

Revenue$77.7B +18% year over year
Gross profit$53.6B 69% margin
Operating profit$38.0B 49% margin
Net profit$27.7B 36% margin
Sankey diagram of Microsoft's income statement for Q1 FY26: revenue of $77.7 billion splits into segments and flows out into costs, taxes and net profit.

Figures in billions of dollars.

The numbers

All figures in billions of U.S. dollars, for Q1 FY26 (period ends Sep 30, 2025).
ItemValueShare of revenueYear over year
Revenue 77.7 100% +18%
Server & cloud 28.9 37% +30%
Commercial 24.0 31% +17%
Gaming 5.5 7% −2%
LinkedIn 4.7 6% +10%
Windows & devices 4.6 6% +5%
Other 4.2 5%
Search & news advertising 3.7 5% +15%
Consumer 2.2 3% +28%
Cost of revenue−24.031%
Gross profit53.669% margin+0pp
R&D−8.111%−1pp
Sales & marketing−5.77%−1pp
G&A−1.82%+0pp
Operating profit38.049% margin+2pp
Interest & other costs−3.7
Tax−6.6
Net profit27.7 36% margin−2pp

Figures are rounded to the precision shown, so a column can differ slightly from its own total.

Source of the numbers: structured XBRL data from the filing (10-Q). The diagram is generated automatically and checked against EDGAR before release. How we calculate it → About and methodology.

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