Microsoft (MSFT) Net Income History: Quarterly Data 2020–2025
Microsoft quarterly net income from 2020 Q3 through 2025 Q4. Tracks expansion from $13B to $25B+ per quarter, sourced from SEC EDGAR XBRL.
| Quarter | Net Income (USD) | YoY Change |
|---|
Source: SEC EDGAR XBRL (NetIncomeLoss). Quarters marked * are derived (annual filing minus prior three quarters). Calendar year quarters shown.
Microsoft Net Income: 2020–2025
Microsoft (MSFT) reported net income of $38.5 billion in 2025 Q4 (October–December 2025). Calendar-year 2025 net income totaled approximately $119.3 billion, up 28.6% from $92.8 billion in 2024. Net income includes the effect of Microsoft’s equity income from the OpenAI investment, which can create quarter-to-quarter volatility depending on how OpenAI’s carrying value is adjusted.
At approximately 38.9% net profit margin, Microsoft generates more than 35 cents of bottom-line profit for every dollar of revenue — a remarkable achievement for a company at this scale that is simultaneously investing in transformational AI infrastructure.
Microsoft Annual Net Income by Year
| Year | Net Income | Net Margin | YoY Change |
|---|---|---|---|
| 2025 | $119.3B | 38.9% | +28.6% |
| 2024 | $92.8B | 35.4% | +12.4% |
| 2023 | $82.5B | 36.3% | +22.4% |
| 2022 | $67.4B | 33.1% | — |
| 2021 | $71.2B | 38.6% | — |
Source: SEC EDGAR XBRL. Calendar-year aggregates.
Net Income vs. Operating Income
Microsoft’s net income consistently exceeds expectations based on operating income alone because the company carries a large investment portfolio (US Treasuries and other securities) that generates substantial interest income, which falls below the operating line. As interest rates rose in 2022-2024, Microsoft’s other income component grew meaningfully, adding to net income without touching operating costs.
The OpenAI relationship also creates below-the-line income or expense depending on how the investment is marked. When OpenAI raises capital at higher valuations, Microsoft records gain; when losses occur, Microsoft records charges. This creates volatility in the gap between operating income and net income that analysts must account for when modelling.
Tax Rate and Net Margin
Microsoft maintains a relatively stable effective tax rate, typically in the 18–20% range, benefiting from R&D tax credits, foreign-earnings arrangements, and the qualified business income deduction. This efficient tax management adds approximately 5 percentage points to the net profit margin relative to what the statutory 21% federal rate would imply.
Comparison with Palantir and Meta
Microsoft’s net income of ~$100B+ annually in 2025 dwarfs Palantir’s ~$1.1B — but Palantir grows much faster from a smaller base. Meta’s net income is broadly comparable to Microsoft’s in scale, though Meta’s 2025 net income was impacted by a significant one-time charge in Q3 2025. Both Microsoft and Meta are at the top of the global net income rankings among technology companies.
Frequently Asked Questions
Q: What is Microsoft’s net income? ~$119.3B in 2025, net margin ~38.9%.
Q: Does OpenAI affect net income? Yes — equity-method accounting for the OpenAI stake creates below-the-line volatility.
Q: Net margin vs. Apple? Microsoft’s ~38.9% is comparable to Apple’s ~25%, on roughly half the revenue base.
Related: Microsoft Operating Income · Microsoft EPS · Meta Net Income · Net Income Glossary · Enterprise Software Sector
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