FINHUB Insights

MSFT · Q1 FY26 · Jul 1 – Sep 30, 2025

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

Microsoft Q1 FY26: revenue $77.7B (+18% year over year). Net profit $27.7B. Largest cohort Server $28.9B. The whole income statement as a sankey diagram from the SEC filing.

Period
Jul 1 – Sep 30, 2025
Reported
Oct 29, 2025 10-Q
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.

Tap the diagram to enlarge · figures in billions of dollars

Revenue$77.7B +18% year over year
Gross profit$53.6B 69% margin
Operating profit$38B 49% margin
Net profit$27.7B 36% margin

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 28.9 37% +30%
Microsoft 365 Commercial 24 31% +17%
Gaming 5.5 7% −2%
LinkedIn 4.7 6% +10%
Windows and Devices 4.6 6% +5%
Other 4.2 5%
Search and News Advertising 3.7 5% +15%
Microsoft 365 Consumer 2.2 3% +28%
Cost of revenue−2431%
Gross profit53.669% margin+0pp
Research & development−8.110%−1pp
Sales & marketing−5.77%−1pp
G&A−1.82%+0pp
Operating profit3849% margin+2pp
Tax−6.6
Interest & other costs−3.7
Net profit27.736%−2pp
Filing on EDGAR More quarters of MSFT

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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