Software. Pexels Image.
This page presents Microsoft’s revenue by product and service, consisting of sales generated from the following product and service categories:
- Server products and cloud services,
- Microsoft 365 Commercial products and cloud services,
- XBOX,
- LinkedIn,
- Windows and Devices,
- Search advertising,
- Microsoft 365 Consumer products and cloud services,
- Dynamics products and cloud services,
- Enterprise and partner services, and
- Other.
For your information, Microsoft reorganized how it reports its product and service revenue starting in fiscal 2025. Some namings of the product and service categories have changed after 2024.
Let’s look at the revenue breakdown results!
For other statistics of Microsoft Corporation, you may find more information on this page: Microsoft key stats.
Please use the table of contents to navigate this page.
Table Of Contents
Definitions And Overview
- Server products and cloud services
- Microsoft 365 Commercial products and cloud services
- XBOX
- Windows and Devices
- Search advertising
- Microsoft 365 Consumer products and cloud services
- Dynamics products and cloud services
- Enterprise and partner services
Insight & Summary of Observed Trends
Z1. Insight & Summary of Microsoft’s Revenue Breakdown By Product and Service
Product and Service Revenue (New Composition) Results
A1. Revenue breakdown by product and service
A2. Revenue mix by product and service
A3. Revenue growth by product and service
Product and Service Revenue (Legacy Composition) Results
B1. Revenue breakdown by product and service
B2. Revenue mix by product and service
Reference, Credits, and Disclosure
S1. References and Credits
S2. Disclosure
Definitions
To help readers understand the content better, the following terms and glossaries have been provided.
Server products and cloud services:
Server products and cloud services, including Azure and other cloud services, comprising cloud and AI consumption-based services, GitHub cloud services, Health and Life Sciences cloud services (formerly Nuance Healthcare cloud services), virtual desktop offerings, and other cloud services; and Server products, comprising SQL Server, Windows Server, Visual Studio, System Center, related Client Access Licenses (“CALs”), and other on-premises offerings.
Microsoft 365 Commercial products and cloud services:
Microsoft 365 Commercial products and cloud services, including Microsoft 365 Commercial cloud, comprising Microsoft 365 Commercial, Enterprise Mobility + Security, the cloud portion of Windows Commercial, the per-user portion of Power BI, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, and Microsoft 365 Copilot; and Microsoft 365 Commercial products, comprising Windows Commercial on-premises and Office licensed on-premises.
XBOX:
XBOX (formerly Gaming), including XBOX hardware and XBOX content and services, comprising first- and third-party content (including games and in-game content), XBOX Game Pass and other subscriptions, XBOX Cloud Gaming, advertising, and other cloud services.
LinkedIn:
LinkedIn includes Talent Solutions, Marketing Solutions, Premium Subscriptions, and Sales Solutions
Windows and Devices:
Windows and Devices, including Windows OEM licensing (Windows Pro and non-Pro licenses sold through the OEM channel) and Devices, comprising Surface and PC accessories.
Search advertising:
Search advertising (formerly Search and news advertising) comprises Bing, Copilot, Microsoft News, Microsoft Edge, and third-party affiliates.
Microsoft 365 Consumer products and cloud services:
Microsoft 365 Consumer products and cloud services includes Microsoft 365 Consumer subscriptions, Office licensed onpremises, and other consumer services.
Dynamics products and cloud services:
Dynamics products and cloud services, including Dynamics 365, comprising a set of intelligent, cloud-based applications across ERP, CRM, Power Apps, and Power Automate; and on-premises ERP and CRM applications.
Enterprise and partner services:
Enterprise and partner services includes Enterprise Support Services, Industry Solutions, Microsoft Partner Network, and Learning Experience.
Insight & Summary of Microsoft’s Revenue Breakdown By Product and Service
Microsoft has moved from a diversified licence-and-devices portfolio to one led by cloud infrastructure and commercial subscriptions. In FY2023–FY2026, Server products and cloud services supplied 54% of incremental revenue. Together with Microsoft 365 Commercial it supplied 83%, and the pair now makes up 69.7% of revenue.
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Server and Cloud: Acceleration at Scale Server growth stepped up from 22.8% and 23.3% to 31.5% in FY2026, and the line roughly doubled to $129.4B. Its mix rose from 30.7% to 39.0%, and it added $31.0B in FY2026, 62% of the group’s increase. The legacy decade shows this is a second leg of growth. Server grew 5.7x over FY2014–FY2024 (about 19% a year) and has been the largest line since overtaking Office in FY2019. Its growth peaked at 25–28% in FY2019–FY2022 and dipped to 18.7% in FY2023. It is now accelerating again on a base about three times larger than in FY2019.
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Steady Compounders: Microsoft 365, Dynamics, LinkedIn Microsoft 365 Commercial has grown a steady 14–16% a year, adding $14.2B in FY2026. Its mix is easing (31.6% to 30.7%) only because Server is growing faster. Legacy Office shows the same reliability, at 9–13% a year since FY2019. Dynamics holds 15–18% growth, and LinkedIn has settled at 9–11% after the 20–30% growth of its early years. The notable new development is Microsoft 365 Consumer, which has accelerated from 3.6% to 11.4% to 23.9%.
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Mature and Event-Driven Lines Windows and Devices has been flat at about $17.1B for three years, and its mix has fallen from 8.1% to 5.1%. In the legacy view, Windows plus Devices fell from 25.1% to 11.4% of revenue over the decade. Enterprise and partner services is recovering (−3.9% to 6.4%), and search advertising has re-accelerated (1.5% to 12.8% and 9.4%).
Gaming growth is event-driven. The FY2021 (+32.8%) and FY2024 (+39.0%) jumps account for over three-quarters of the decade’s gain, and growth was low or negative in between. XBOX peaked at $23.5B in FY2025 and fell 7.1% in FY2026, so the FY2024 step-up has not led to sustained growth.
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Comparability The two compositions cannot be spliced. Windows plus Devices was $27.0B in FY2023 on the legacy basis against $17.1B on the new one, because commercial components moved into Microsoft 365 Commercial. In the legacy series, the FY2022 collapse in Other ($4.5B to $0.2B) coincides with Dynamics first appearing at $4.7B. That looks like a reclassification, not an operating event.
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Structural Takeaway: Structurally, Microsoft is now a commercial-cloud company. On the legacy basis, Server plus Office rose from 47.6% to 62.3% of revenue over the decade, and the equivalent pair under the new composition is already 69.7%.
The trend is changing in one important way: headline growth is increasingly a Server story. Excluding Server, growth has slowed from 12.5% to 10.9% to 10.4%, so FY2026’s acceleration to 17.8% comes entirely from Server. If Server grows about 25% and the rest about 10.5%, Server’s share reaches roughly 42% in FY2027 and 45% in FY2028, with total growth near 16%. If Server normalises to 22%, total growth falls to about 15%, so the group’s momentum depends heavily on one line. The offsets are the acceleration in Microsoft 365 Consumer and the recovery in Enterprise and partner services. The drag is XBOX, which has turned from a growth driver into a decline.
The table below combines all key Microsoft’s product and service revenue metrics into a single view for the latest three fiscal years.
Microsoft's Product and Service Revenue Analysis — Averages
| Metric | Average |
|---|---|
| Microsoft's Product and Service Revenue Breakdown (New Composition) (3-Year Average (FY2024–FY2026)) | |
| Server products and cloud services | $102,563M |
| Microsoft 365 Commercial products and cloud services | $88,911M |
| XBOX | $22,249M |
| $18,000M | |
| Windows and Devices | $17,141M |
| Search advertising | $13,787M |
| Microsoft 365 Consumer products and cloud services | $7,742M |
| Dynamics products and cloud services | $7,888M |
| Enterprise and partner services | $7,871M |
| Other | $75M |
| Total Revenue | $286,228M |
| Microsoft's Product and Service Revenue Mix (New Composition) (3-Year Average (FY2024–FY2026)) | |
| Server products and cloud services | 35.5% |
| Microsoft 365 Commercial products and cloud services | 31.1% |
| XBOX | 7.9% |
| 6.3% | |
| Windows and Devices | 6.0% |
| Search advertising | 4.8% |
| Microsoft 365 Consumer products and cloud services | 2.7% |
| Dynamics products and cloud services | 2.8% |
| Enterprise and partner services | 2.8% |
| Other | 0.0% |
| Total Revenue | 100.0% |
| Microsoft's Product and Service Revenue Growth (New Composition) (3-Year Average (FY2024–FY2026)) | |
| Server products and cloud services | 25.9% |
| Microsoft 365 Commercial products and cloud services | 15.1% |
| XBOX | 13.7% |
| 9.8% | |
| Windows and Devices | -0.1% |
| Search advertising | 7.9% |
| Microsoft 365 Consumer products and cloud services | 13.0% |
| Dynamics products and cloud services | 15.9% |
| Enterprise and partner services | 1.6% |
| Other | 16.4% |
| Total Revenue | 16.1% |
| Microsoft's Product and Service Revenue Breakdown (Legacy Composition) (3-Year Average (FY2022–FY2024)) | |
| Server products and cloud services | $81,682M |
| Office products and cloud services | $49,564M |
| Windows | $23,161M |
| Gaming | $17,733M |
| $14,997M | |
| Search and news advertising | $12,087M |
| Enterprise and partner services | $7,700M |
| Dynamics products and cloud services | $5,535M |
| Devices | $5,844M |
| Other | $132M |
| Total Revenue | $218,436M |
| Microsoft's Product and Service Revenue Mix (Legacy Composition) (3-Year Average (FY2022–FY2024)) | |
| Server products and cloud services | 37.2% |
| Office products and cloud services | 22.7% |
| Windows | 10.7% |
| Gaming | 8.1% |
| 6.9% | |
| Search and news advertising | 5.5% |
| Enterprise and partner services | 3.5% |
| Dynamics products and cloud services | 2.5% |
| Devices | 2.7% |
| Other | 0.1% |
| Total Revenue | 100.0% |
New composition covers FY2024–FY2026; legacy composition covers FY2022–FY2024. Currency averages rounded to the nearest million US dollars; mix and growth averages rounded to one decimal place. Growth for Other reflects a very small revenue base.
Revenue breakdown by product and service – new composition
View data as table
Microsoft Product and Service Revenue Breakdown (New Composition) — All Metrics by Fiscal Year
| Fiscal Year | Server products and cloud services | Microsoft 365 Commercial products and cloud services | XBOX | Windows and Devices | Search advertising | Microsoft 365 Consumer products and cloud services | Dynamics products and cloud services | Enterprise and partner services | Other | Total Revenue | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | $65,007M | $66,949M | $15,466M | $14,989M | $17,147M | $12,125M | $6,417M | $5,796M | $7,900M | $119M | $211,915M |
| 2024 | $79,828M | $76,969M | $21,503M | $16,372M | $17,026M | $12,306M | $6,648M | $6,831M | $7,594M | $45M | $245,122M |
| 2025 | $98,435M | $87,767M | $23,455M | $17,812M | $17,314M | $13,878M | $7,404M | $7,827M | $7,760M | $72M | $281,724M |
| 2026 | $129,425M | $101,997M | $21,790M | $19,817M | $17,084M | $15,176M | $9,175M | $9,006M | $8,260M | $109M | $331,839M |
For your information, Microsoft reorganized how it reports its product and service revenue starting in fiscal 2025. Some namings of the product and service categories have changed after 2024. The legacy revenue composition is available here: legacy revenue composition.
The definitions of Microsoft’s product and service categories are available here:
- Server products and cloud services
- Microsoft 365 Commercial products and cloud services
- XBOX
- Windows and Devices
- Search advertising
- Microsoft 365 Consumer products and cloud services
- Dynamics products and cloud services
- Enterprise and partner services
Microsoft's Product and Service Revenue Breakdown (New Composition) — Averages (FY2024–FY2026)
| Metric | 3-Year Average (FY2024–FY2026) |
|---|---|
| Server products and cloud services | $102,563M |
| Microsoft 365 Commercial products and cloud services | $88,911M |
| XBOX | $22,249M |
| $18,000M | |
| Windows and Devices | $17,141M |
| Search advertising | $13,787M |
| Microsoft 365 Consumer products and cloud services | $7,742M |
| Dynamics products and cloud services | $7,888M |
| Enterprise and partner services | $7,871M |
| Other | $75M |
| Total Revenue | $286,228M |
Revenue averages rounded to the nearest million US dollars.
Revenue mix by product and service – new composition
View data as table
Microsoft Product and Service Revenue Mix (New Composition) — All Metrics by Fiscal Year
| Fiscal Year | Server products and cloud services | Microsoft 365 Commercial products and cloud services | XBOX | Windows and Devices | Search advertising | Microsoft 365 Consumer products and cloud services | Dynamics products and cloud services | Enterprise and partner services | Other | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 30.7% | 31.6% | 7.3% | 7.1% | 8.1% | 5.7% | 3.0% | 2.7% | 3.7% | 0.1% |
| 2024 | 32.6% | 31.4% | 8.8% | 6.7% | 6.9% | 5.0% | 2.7% | 2.8% | 3.1% | 0.0% |
| 2025 | 34.9% | 31.2% | 8.3% | 6.3% | 6.1% | 4.9% | 2.6% | 2.8% | 2.8% | 0.0% |
| 2026 | 39.0% | 30.7% | 6.6% | 6.0% | 5.1% | 4.6% | 2.8% | 2.7% | 2.5% | 0.0% |
For your information, Microsoft reorganized how it reports its product and service revenue starting in fiscal 2025. Some namings of the product and service categories have changed after 2024. The legacy revenue composition is available here: legacy revenue composition.
The definitions of Microsoft’s product and service categories are available here:
- Server products and cloud services
- Microsoft 365 Commercial products and cloud services
- XBOX
- Windows and Devices
- Search advertising
- Microsoft 365 Consumer products and cloud services
- Dynamics products and cloud services
- Enterprise and partner services
Microsoft's Product and Service Revenue Mix (New Composition) — Averages (FY2024–FY2026)
| Metric | 3-Year Average (FY2024–FY2026) |
|---|---|
| Server products and cloud services | 35.5% |
| Microsoft 365 Commercial products and cloud services | 31.1% |
| XBOX | 7.9% |
| 6.3% | |
| Windows and Devices | 6.0% |
| Search advertising | 4.8% |
| Microsoft 365 Consumer products and cloud services | 2.7% |
| Dynamics products and cloud services | 2.8% |
| Enterprise and partner services | 2.8% |
| Other | 0.0% |
| Total Revenue | 100.0% |
Mix averages rounded to one decimal place.
Revenue growth by product and service – new composition
View data as table
Microsoft Product and Service Revenue Growth (New Composition) — All Metrics by Fiscal Year
| Fiscal Year | Server products and cloud services | Microsoft 365 Commercial products and cloud services | XBOX | Windows and Devices | Search advertising | Microsoft 365 Consumer products and cloud services | Dynamics products and cloud services | Enterprise and partner services | Total Revenue | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | 22.8% | 15.0% | 39.0% | 9.2% | -0.7% | 1.5% | 3.6% | 17.9% | -3.9% | 15.7% |
| 2025 | 23.3% | 14.0% | 9.1% | 8.8% | 1.7% | 12.8% | 11.4% | 14.6% | 2.2% | 14.9% |
| 2026 | 31.5% | 16.2% | -7.1% | 11.3% | -1.3% | 9.4% | 23.9% | 15.1% | 6.4% | 17.8% |
For your information, Microsoft reorganized how it reports its product and service revenue starting in fiscal 2025. Some namings of the product and service categories have changed after 2024. The legacy revenue composition is available here: legacy revenue composition.
The definitions of Microsoft’s product and service categories are available here:
- Server products and cloud services
- Microsoft 365 Commercial products and cloud services
- XBOX
- Windows and Devices
- Search advertising
- Microsoft 365 Consumer products and cloud services
- Dynamics products and cloud services
- Enterprise and partner services
Microsoft's Product and Service Revenue Growth (New Composition) — Averages (FY2024–FY2026)
| Metric | 3-Year Average (FY2024–FY2026) |
|---|---|
| Server products and cloud services | 25.9% |
| Microsoft 365 Commercial products and cloud services | 15.1% |
| XBOX | 13.7% |
| 9.8% | |
| Windows and Devices | -0.1% |
| Search advertising | 7.9% |
| Microsoft 365 Consumer products and cloud services | 13.0% |
| Dynamics products and cloud services | 15.9% |
| Enterprise and partner services | 1.6% |
| Other | 16.4% |
| Total Revenue | 16.1% |
Growth averages rounded to one decimal place. Other is immaterial (under 0.1% of revenue), so its growth rates reflect a very small base.
Revenue breakdown by product and service – legacy composition
View data as table
Microsoft Product and Service Revenue Breakdown (Legacy Composition) — All Metrics by Fiscal Year
| Fiscal Year | Server products and cloud services | Office products and cloud services | Windows | Gaming | Search and news advertising | Enterprise and partner services | Dynamics products and cloud services | Devices | Other | Total Revenue | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2014 | $17,055M | $24,323M | $16,856M | $8,643M | n.a. | $4,016M | $4,767M | n.a. | $4,956M | $6,217M | $86,833M |
| 2015 | $18,612M | $23,538M | $14,826M | $9,121M | n.a. | $4,557M | $5,090M | n.a. | $11,602M | $6,234M | $93,580M |
| 2016 | $19,062M | $23,868M | $17,548M | $9,202M | n.a. | $5,428M | $5,659M | n.a. | $7,888M | $2,499M | $91,154M |
| 2017 | $21,649M | $25,573M | $18,593M | $9,051M | $2,271M | $6,219M | $5,542M | n.a. | $5,062M | $2,611M | $96,571M |
| 2018 | $26,129M | $28,316M | $19,518M | $10,353M | $5,259M | $7,012M | $5,846M | n.a. | $5,134M | $2,793M | $110,360M |
| 2019 | $32,622M | $31,769M | $20,395M | $11,386M | $6,754M | $7,628M | $6,124M | n.a. | $6,095M | $3,070M | $125,843M |
| 2020 | $41,379M | $35,316M | $21,510M | $11,575M | $8,077M | $8,524M | $6,409M | n.a. | $6,457M | $3,768M | $143,015M |
| 2021 | $52,589M | $39,872M | $22,488M | $15,370M | $10,289M | $9,267M | $6,943M | n.a. | $6,791M | $4,479M | $168,088M |
| 2022 | $67,350M | $44,970M | $24,732M | $16,230M | $13,631M | $11,526M | $7,605M | $4,687M | $7,306M | $233M | $198,270M |
| 2023 | $79,970M | $48,848M | $21,507M | $15,466M | $14,989M | $12,158M | $7,900M | $5,437M | $5,521M | $119M | $211,915M |
| 2024 | $97,726M | $54,875M | $23,244M | $21,503M | $16,372M | $12,576M | $7,594M | $6,481M | $4,706M | $45M | $245,122M |
For your information, Microsoft reorganized how it reports its product and service revenue starting in fiscal 2025. Some namings of the product and service categories have changed after 2024. The new revenue composition is available here: new revenue composition.
The definitions of Microsoft’s product and service categories are available here:
- Server products and cloud services
- Microsoft 365 Commercial products and cloud services
- XBOX
- Windows and Devices
- Search advertising
- Microsoft 365 Consumer products and cloud services
- Dynamics products and cloud services
- Enterprise and partner services
Microsoft's Product and Service Revenue Breakdown (Legacy Composition) — Averages (FY2022–FY2024)
| Metric | 3-Year Average (FY2022–FY2024) |
|---|---|
| Server products and cloud services | $81,682M |
| Office products and cloud services | $49,564M |
| Windows | $23,161M |
| Gaming | $17,733M |
| $14,997M | |
| Search and news advertising | $12,087M |
| Enterprise and partner services | $7,700M |
| Dynamics products and cloud services | $5,535M |
| Devices | $5,844M |
| Other | $132M |
| Total Revenue | $218,436M |
Revenue averages rounded to the nearest million US dollars.
Revenue mix by product and service – legacy composition
View data as table
Microsoft Product and Service Revenue Mix (Legacy Composition) — All Metrics by Fiscal Year
| Fiscal Year | Server products and cloud services | Office products and cloud services | Windows | Gaming | Search and news advertising | Enterprise and partner services | Dynamics products and cloud services | Devices | Other | |
|---|---|---|---|---|---|---|---|---|---|---|
| 2014 | 19.6% | 28.0% | 19.4% | 10.0% | n.a. | 4.6% | 5.5% | n.a. | 5.7% | 7.2% |
| 2015 | 19.9% | 25.2% | 15.8% | 9.7% | n.a. | 4.9% | 5.4% | n.a. | 12.4% | 6.7% |
| 2016 | 20.9% | 26.2% | 19.3% | 10.1% | n.a. | 6.0% | 6.2% | n.a. | 8.7% | 2.7% |
| 2017 | 22.4% | 26.5% | 19.3% | 9.4% | 2.4% | 6.4% | 5.7% | n.a. | 5.2% | 2.7% |
| 2018 | 23.7% | 25.7% | 17.7% | 9.4% | 4.8% | 6.4% | 5.3% | n.a. | 4.7% | 2.5% |
| 2019 | 25.9% | 25.2% | 16.2% | 9.0% | 5.4% | 6.1% | 4.9% | n.a. | 4.8% | 2.4% |
| 2020 | 28.9% | 24.7% | 15.0% | 8.1% | 5.6% | 6.0% | 4.5% | n.a. | 4.5% | 2.6% |
| 2021 | 31.3% | 23.7% | 13.4% | 9.1% | 6.1% | 5.5% | 4.1% | n.a. | 4.0% | 2.7% |
| 2022 | 34.0% | 22.7% | 12.5% | 8.2% | 6.9% | 5.8% | 3.8% | 2.4% | 3.7% | 0.1% |
| 2023 | 37.7% | 23.1% | 10.1% | 7.3% | 7.1% | 5.7% | 3.7% | 2.6% | 2.6% | 0.1% |
| 2024 | 39.9% | 22.4% | 9.5% | 8.8% | 6.7% | 5.1% | 3.1% | 2.6% | 1.9% | 0.0% |
For your information, Microsoft reorganized how it reports its product and service revenue starting in fiscal 2025. Some namings of the product and service categories have changed after 2024. The new revenue composition is available here: new revenue composition.
The definitions of Microsoft’s product and service categories are available here:
- Server products and cloud services
- Microsoft 365 Commercial products and cloud services
- XBOX
- Windows and Devices
- Search advertising
- Microsoft 365 Consumer products and cloud services
- Dynamics products and cloud services
- Enterprise and partner services
Microsoft's Product and Service Revenue Mix (Legacy Composition) — Averages (FY2022–FY2024)
| Metric | 3-Year Average (FY2022–FY2024) |
|---|---|
| Server products and cloud services | 37.2% |
| Office products and cloud services | 22.7% |
| Windows | 10.7% |
| Gaming | 8.1% |
| 6.9% | |
| Search and news advertising | 5.5% |
| Enterprise and partner services | 3.5% |
| Dynamics products and cloud services | 2.5% |
| Devices | 2.7% |
| Other | 0.1% |
| Total Revenue | 100.0% |
Mix averages rounded to one decimal place.
Credits And References
1. All data presented in this article were obtained and referenced from Microsoft’s quarterly and annual reports published on the company’s investor relations: Microsoft investor relations.
2. Pexels Images.
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