FINHUB Insights

Microsoft Q2 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
Oct 1 – Dec 31, 2025
Reported
Jan 28, 2026 10-Q accession 0001193125-26-027207

Revenue$81.3B +17% year over year
Gross profit$55.3B 68% margin
Operating profit$38.3B 47% margin
Net profit$38.5B 47% margin

Net profit is larger than what operations earned, because the statement adds $10.0B below it, under Other income, net.

Sankey diagram of Microsoft's income statement for Q2 FY26: revenue of $81.3 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 Q2 FY26 (period ends Dec 31, 2025).
ItemValueShare of revenueYear over year
Revenue 81.3 100% +17%
Server & cloud 30.9 38% +31%
Commercial 24.5 30% +16%
Gaming 6.0 7% −9%
LinkedIn 5.1 6% +11%
Windows & devices 4.5 6% −1%
Other 4.2 5%
Search & news advertising 3.8 5% +7%
Consumer 2.3 3% +27%
Cost of revenue−26.032%
Gross profit55.368% margin−1pp
R&D−8.511%−1pp
Sales & marketing−6.68%−1pp
G&A−1.92%+0pp
Operating profit38.347% margin+2pp
Other income, net10.0
Tax−9.8
Net profit38.5 47% margin+13pp

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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