Microsoft: Net Income, by year
YearNet income,
in billion USD
  • Region: Worldwide
  • Time period: FY 2002 to 2023
  • Published: Jul 2023

Data Analysis and Insights

Updated: Apr 6, 2024 | Published by: Statistico

Net income growth from 2002 to 2023

Microsoft's net income saw a substantial increase over two decades, growing from $5.36 billion in 2002 to $72.36 billion in 2023. This growth represents a more than thirteenfold increase, illustrating Microsoft's expanding profitability and success in adapting to market changes over time.

Significant jumps in net income

Between 2018 and 2019, Microsoft's net income saw a dramatic rise, jumping from $16.57 billion to $39.24 billion. This increase signifies a pivotal moment in Microsoft's financial history, reflecting potentially strategic shifts or market successes that greatly enhanced profitability.

Comparison of recent years

In the most recent years, Microsoft's net income demonstrated a slight fluctuation, peaking at $72.74 billion in 2022 before slightly declining to $72.36 billion in 2023. These numbers indicate a stabilization of growth at a high level of profitability.

Analysis of early years' net income

During the initial years covered by the data, from 2002 to 2006, Microsoft's net income experienced consistent growth, starting at $5.36 billion in 2002 and increasing to $12.60 billion by 2006. This steady rise reflects the company's growing dominance in the tech industry during the early 21st century.

Decade comparison: 2002-2011 versus 2012-2023

Comparing the first and second halves of the provided timeline, Microsoft's net income in the first decade (2002-2011) increased by approximately $17.79 billion, from $5.36 billion to $23.15 billion. In contrast, from 2012 to 2023, it surged by $49.21 billion, from $16.98 billion to $72.36 billion, highlighting a significantly accelerated growth rate in the latter period.

Lowest to highest net income transition

The data showcases Microsoft's journey from its lowest recorded net income of $5.36 billion in 2002 to its highest of $72.74 billion in 2022. This transition not only underscores the company's financial resilience but also its ability to capture and capitalize on emerging tech trends.

Frequently Asked Questions

How did Microsoft's net income perform in recent years?

Microsoft's net income peaked at $72.74 billion in 2022 before slightly dropping to $72.36 billion in 2023.

What was the significant increase in Microsoft's net income?

Microsoft's net income jumped significantly from $16.57 billion in 2018 to $39.24 billion in 2019.

Terms and Definitions

Microsoft is a multinational technology company founded by Bill Gates and Paul Allen. It specializes in the creation and provision of computer software, hardware products, and services. Microsoft is known for its products such as the Windows operating system, Office suite, and Azure cloud services, among others.

Net income is a term in financial accounting. It refers to a company's total earnings or profit. After deducting all costs and expenses—including operating expenses, cost of goods sold (COGS), interest, taxes, depreciation and amortization—from its total revenue, a company derives its net income.

Revenue refers to the money that a company earns from its business activities, typically from the sale of goods and services to customers. It's often referred to as the top line because it's listed first on a company's income statement.

Operating expense is the cost incurred in the ordinary course of running a business such as wages, rent, utilities, and administrative costs among others. These are often recurring, and are necessary to maintain the business operations and generate income.
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