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— Management
03Detailed Report
MSFT.NE
Company MSFT.NE
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 27, 2026
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Executive Summary
Microsoft reported solid QQ1 2025 results with a revenue level of $65.585 billion, marking 16.0% year-over-year growth and 1.33% quarter-over-quarter growth. The robust top-line performance was complemented by high profitability, with gross margin of 69.35% and operating margin of 46.58%, driving net income to $24.667 billion and diluted EPS of $3.30-$3.32. Cash generation remained exceptionally strong, evidenced by $34.18 billion of cash flow from operations and free cash flow of $19.26 billion. The balance sheet remains highly intact, featuring substantial liquidity (cash and short-term investments of about $78.43 billion combined) and conservative leverage metrics (debt to capital around 0.176 and interest coverage ~52x). Management commentary focused on sustaining momentum in cloud and productivity platforms, supported by AI-enabled offerings, although explicit forward guidance was not provided in the supplied materials.
Key Performance Indicators
Revenue
Increasing
65.59B
QoQ: 1.33% | YoY: 16.04%
Gross Profit
Increasing
45.49B
69.35% margin
QoQ: 0.98% | YoY: 13.11%
Operating Income
Increasing
30.55B
QoQ: 9.41% | YoY: 13.60%
Net Income
Increasing
24.67B
QoQ: 11.94% | YoY: 10.66%
EPS
Increasing
3.32
QoQ: 12.16% | YoY: 10.67%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $65.585B; YoY growth 16.04%, QoQ growth 1.33%; Gross Profit: $45.486B, Gross Margin 69.35%; Operating Income: $30.552B, Operating Margin 46.58%; Net Income: $24.667B, Net Margin 37.61%; EPS (GAAP-ish): $3.32 basic, $3.30 diluted; D&A: $7.383B; R&D: $7.544B; SG&A: $7.39B; Cash from Ops: $34.18B; Capex: $(14.923)B; Free Cash Flow: $19.257B; Cash and Equivalents: $20.84B; Short-term Investments: $57.59B; Total Cash & ST Investments: $78.43B; Total Assets: $523.01B; Total Liabilities: $235.29B; Total Equity: $287.72B; Net Debt: $40.64B; Current Ratio: 1.301; Quick Ratio: 1.287; Cash Conversion Cycle: negative 34 days.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
65.59B
16.04%
1.33%
Gross Profit
45.49B
13.11%
0.98%
Operating Income
30.55B
13.60%
9.41%
Net Income
24.67B
10.66%
11.94%
EPS
3.32
10.67%
12.16%
Key Financial Ratios
Gross Profit Margin
Excellent
69.40%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
46.60%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
37.60%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
4.72%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
8.57%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.30
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.21
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
32.42x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
11.12x
Very high premium suggests asset-light business model or lofty expectations
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