MSFTBULLISH

Gross Margin

67.6%

Higher than 60% of Technology sector peers

Updated 22h ago

Sector Performance

60th percentile

MSFT

67.6%

Sector Median

62.2%

Sector Avg

60.4%

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Deep Analysis

Microsoft Corporation (MSFT) has a Gross Margin of 67.6% as of May 2026.

This places MSFT in the 60th percentile of the Technology sector, which has a median Gross Margin of 62.2% and a sector average of 60.4%. MSFT's Gross Margin is 8.7% above the sector median. In context: Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

Frequently Asked Questions

What does the Gross Margin tell investors about MSFT?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does MSFT's Gross Margin compare to its sector?

MSFT's Gross Margin of 67.6% compares to a Technology sector median of 62.2%, placing it in the 60th percentile.

Who are MSFT's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: FORM (47.9%), LYFT (47.6%), UBER (45.0%), GRAB (43.4%), LSPD (42.8%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.