Microsoft vs Smartsheet: Revenue, Profit and Business Model
Microsoft had $331.8B of annual revenue in FY2026 and $133.7B of net income. Smartsheet had $958.3M of annual revenue in FY2024 and a net loss of $104.6M.
Latest financial snapshot
Microsoft
- Latest annual revenue
- $331.8B (FY2026)
- Net income
- $133.7B
- Net margin
- 40.3%
- Revenue growth
- +14.7% a year, FY2017–FY2026
Smartsheet
- Latest annual revenue
- $958.3M (FY2024)
- Net income
- -$104.6M
- Net margin
- -10.9%
- Revenue growth
- +46.3% a year, FY2017–FY2024
Financial summary
Microsoft
Microsoft's FY2026 revenue rose 17.8% to $331.8 billion, operating income rose 21% to $155.2 billion, and GAAP net income rose 31% to $133.7 billion. Fourth-quarter revenue was $90.0 billion (up 18%) with net income of $35.8 billion, helped by a $3.2 billion gain on its Anthropic investment. Microsoft Cloud revenue reached $59.3 billion in Q4, up 27%. The main pressure point is capital intensity: AI data center spending has pushed free cash flow growth well below earnings growth. Microsoft crossed the $3 trillion market valuation threshold in 2024, driven by its leadership in cloud computing and artificial intelligence.
Smartsheet
Smartsheet grew revenue from $67.0 million in fiscal 2017 to $958.3 million in fiscal 2024 (year ended January 31, 2024), a 25% increase that year, while the GAAP net loss narrowed from $215.6 million in fiscal 2023 to $104.6 million. In its last reported quarter as a public company, Q3 fiscal 2025, revenue rose 17% to $286.9 million, ARR grew 15% and the company posted $1.3 million of GAAP net income. As a private company since January 2025, it no longer publishes results. Smartsheet Inc. is a major American enterprise software company providing cloud-based work management and collaboration tools, sustaining a market valuation typically over $8 billion.
Revenue and profit by year
Microsoft
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $331.8B | $133.7B | 40.3% | +17.8% | Source |
| FY2025 | $281.7B | $101.8B | 36.1% | +14.9% | Source |
| FY2024 | $245.1B | $88.1B | 36.0% | +15.7% | Source |
| FY2023 | $211.9B | $72.4B | 34.1% | +6.9% | Source |
| FY2022 | $198.3B | $72.7B | 36.7% | +18.0% | Source |
| FY2021 | $168.1B | $61.3B | 36.5% | +17.5% | Source |
| FY2020 | $143B | $44.3B | 31.0% | +13.6% | Source |
| FY2019 | $125.8B | $39.2B | 31.2% | +14.0% | Source |
| FY2018 | $110.4B | $16.6B | 15.0% | +14.3% | Source |
| FY2017 | $96.6B | $25.5B | 26.4% | — | Source |
Smartsheet
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2024 | $958.3M | -$104.6M | -10.9% | +25.0% | Source |
| FY2023 | $766.9M | -$215.6M | -28.1% | +39.2% | Source |
| FY2022 | $550.8M | -$171.1M | -31.1% | +42.9% | Source |
| FY2021 | $385.5M | -$115M | -29.8% | +42.3% | Source |
| FY2020 | $270.9M | -$95.9M | -35.4% | +52.4% | Source |
| FY2019 | $177.7M | -$53.9M | -30.3% | +59.7% | Source |
| FY2018 | $111.3M | -$49.1M | -44.1% | +66.1% | Source |
| FY2017 | $67M | -$15.2M | -22.7% | — | Source |
Where the revenue comes from
Microsoft
- Productivity And Business ProcessesMajor
Office, Microsoft 365, LinkedIn, Dynamics, and related cloud services.
- Intelligent CloudMajor
Azure, server products, enterprise services, and cloud infrastructure.
- More Personal ComputingMajor
Windows, devices, gaming, search, and advertising.
- AI Services And CopilotsGrowth
AI features and model-powered services embedded across Azure, Microsoft 365, GitHub, security, and developer tools.
Smartsheet
- Subscriptions95
Per-user plans plus premium add-ons such as Control Center, Data Shuttle, Dynamic View, Resource Management and Brandfolder ($273.7M of $286.9M revenue in Q3 fiscal 2025).
- Professional services5
Implementation, consulting and training ($13.2M in Q3 fiscal 2025).
Business model and strategy
Microsoft
How it makes money
Microsoft reports three segments. Intelligent Cloud covers Azure, SQL Server, Windows Server, GitHub, Nuance, and enterprise services; server products and cloud services alone brought in $129.4 billion in FY2026, and Azure passed $100 billion in annual revenue for the first time.
Growth strategy
Microsoft's growth plan centers on AI capacity and AI subscriptions. It is spending heavily on data centers and chips to meet Azure demand that management says remains capacity constrained, and it is selling Microsoft 365 Copilot as a paid add-on, which passed 30 million paid seats by the end of FY2026.
Competitive advantage
Microsoft's main advantage is distribution inside enterprises. Identity (Entra), email and documents (Microsoft 365), collaboration (Teams), developer tools (GitHub, Visual Studio), and cloud infrastructure (Azure) are often bought together, which raises switching costs and lets Microsoft attach new products such as Copilot to existing contracts.
Smartsheet
How it makes money
Smartsheet sells software subscriptions. Customers pay per user on tiered plans (Pro, Business, Enterprise) and can add premium capabilities such as Control Center, Dynamic View, Data Shuttle, Bridge, Resource Management and Brandfolder digital asset management.
Growth strategy
Under CEO Rajeev Singh, Smartsheet is focusing on enterprise AI: the November 2025 ENGAGE launch added AI agents and data features to the platform. It has also cut costs through two rounds of layoffs, rebuilt its executive team and revamped its partner program in 2026 to lean more on channel sales.
Competitive advantage
Smartsheet's main advantage is a familiar grid interface that lets non-technical business users start quickly, paired with enterprise controls (Control Center for portfolio provisioning, Dynamic View for restricted sharing, admin governance) and a FedRAMP-authorized Smartsheet Gov environment for public-sector buyers.
Questions about Microsoft vs Smartsheet
Which company has higher revenue — Microsoft Corporation or Smartsheet?
Microsoft Corporation had $331.8B (FY2026), while Smartsheet had $958.3M (FY2024). By latest annual revenue, Microsoft Corporation is the larger business, with Smartsheet showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Microsoft Corporation vs Smartsheet?
Microsoft Corporation's market capitalisation stands at $3.83T, while Smartsheet's is $8.4B. Microsoft Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Smartsheet.
How does revenue per employee compare for Microsoft Corporation and Smartsheet?
Microsoft Corporation has $1.49M / employee in revenue per employee, while Smartsheet has $290k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Microsoft Corporation and Smartsheet make money?
Microsoft Corporation and Smartsheet generate revenue in fundamentally different ways. Microsoft Corporation: Microsoft reports three segments. Smartsheet: Smartsheet sells software subscriptions.
Which company is valued higher relative to revenue — Microsoft Corporation or Smartsheet?
On a price-to-sales (P/S) basis, Microsoft Corporation trades at 11.5x P/S and Smartsheet at 8.8x P/S. Microsoft Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Smartsheet. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Microsoft Corporation bigger than Smartsheet?
By last reported revenue, Microsoft Corporation ($331.8B (FY2026)) is the larger company compared to Smartsheet ($958.3M (FY2024)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Microsoft vs Smartsheet overview