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Gross Margin by Type
Reveals profitability across various product lines, indicating pricing power and cost management effectiveness.Products gross margin has jumped and remained elevated, likely from favorable licensing mix and timing/one‑off recognition, while Services & Other (cloud/AI services) has softened from prior peaks. The divergence keeps aggregate margin deceptively stable but fragile: management’s guidance for lower Microsoft Cloud gross margins and outsized COGS/CapEx to scale AI capacity means cloud economics will drive next moves in profitability—watch cloud margin guidance, Azure capacity allocation and OpenAI-related booking timing for material margin volatility ahead.
Date | Products | Total | Services and Other |
|---|---|---|---|
Jun 30, 2026 | 83.00 | 67.20 | 64.00 |
Mar 31, 2026 | 81.89 | 67.63 | 64.46 |
Dec 31, 2025 | 79.00 | 68.04 | 65.33 |
Sep 30, 2025 | 81.65 | 69.04 | 65.80 |
Jun 30, 2025 | 80.66 | 68.58 | 65.01 |
Mar 31, 2025 | 80.17 | 68.72 | 65.51 |
Dec 31, 2024 | 76.22 | 68.69 | 66.40 |
Sep 30, 2024 | 78.43 | 69.35 | 66.59 |
Jun 30, 2024 | 89.10 | 69.60 | 64.60 |
Mar 31, 2024 | 74.60 | 70.10 | 68.40 |