Microsoft vs Wix: Revenue, Profit and Business Model
Microsoft had $331.8B of annual revenue in FY2026 and $133.7B of net income. Wix had $2B of annual revenue in FY2025 and $50.6M of net income.
Latest financial snapshot
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.
Wix
Wix's revenue grew from $1.27 billion in 2021 to $1.99 billion in 2025, and the company moved from a $424.9 million net loss in 2022 to profits in 2023-2025 ($50.6 million in 2025). Free cash flow excluding acquisition costs was $605 million in 2025, about 30% of revenue, and Wix repurchased $575 million of stock that year. In March 2026 it announced a $250 million equity investment led by Durable Capital Partners. In Q2 2026, revenue rose 15% to $563.1 million, bookings rose 12% to $569.1 million and ARR reached $1.963 billion. Higher AI and marketing costs, plus restructuring charges, produced a GAAP net loss of $76.4 million, and free cash flow fell to $52.6 million. For full-year 2026 Wix expects revenue growth in the low- to mid-teens and a free cash flow margin in the high teens, excluding acquisition and restructuring costs.
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 |
Wix
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $2B | $50.6M | 2.5% | +13.2% | Source |
| FY2024 | $1.8B | $138.3M | 7.9% | +12.7% | Source |
| FY2023 | $1.6B | $33.1M | 2.1% | +12.5% | Source |
| FY2022 | $1.4B | -$424.9M | -30.6% | +9.3% | Source |
| FY2021 | $1.3B | -$117.2M | -9.2% | +29.0% | Source |
| FY2020 | $984.4M | — | — | +29.9% | Source |
| FY2019 | $757.7M | — | — | +25.5% | Source |
| FY2018 | $603.7M | — | — | +41.8% | Source |
| FY2017 | $425.6M | — | — | +46.7% | Source |
| FY2016 | $290.1M | — | — | — | 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.
Wix
- Creative Subscriptions
~71% (Q2 2026)
Premium website plans, Wix Studio, bundled domains and Base44 subscriptions.
- Business Solutions
~29% (Q2 2026)
Wix Payments and other transaction revenue, Google Workspace resale, third-party apps and other add-ons.
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.
Wix
How it makes money
Wix runs a freemium model. Anyone can build a site for free, and Wix earns money when users upgrade to premium plans for custom domains, ad removal, more storage, eCommerce and professional tools. It reports two segments. Creative Subscriptions (premium plans, Wix Studio seats, domains bundled with plans and Base44 subscriptions) brought in $398.4 million in Q2 2026 at an 80% GAAP gross margin.
Growth strategy
Wix plans to grow by bringing in new users through AI-first creation tools (Wix Harmony for websites and Base44 for apps). It also wants to sell more Business Solutions, especially payments and commerce, to existing sites, and to keep agencies and resellers building on Wix Studio. In the second half of 2026 it is moving marketing spend from core Wix to Base44, paid for by lower AI costs.
Competitive advantage
Wix has a large free user base that feeds paid upgrades. It also offers a wide range of built-in business tools, including payments, bookings, stores and events, and a professional tier (Wix Studio) for agencies. Base44 gives it an early position in prompt-based app creation, and Wix is building its own AI models (the Harmony model and Base44's Base 1 LLM) to lower inference costs.
Questions about Microsoft vs Wix
Which company has higher revenue — Microsoft Corporation or Wix?
Microsoft Corporation had $331.8B (FY2026), while Wix had $2.0B (FY2025). By latest annual revenue, Microsoft Corporation is the larger business, with Wix 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 Wix?
Microsoft Corporation's market capitalisation stands at $3.83T, while Wix's is $1.9B. Microsoft Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Wix.
How does revenue per employee compare for Microsoft Corporation and Wix?
Microsoft Corporation has $1.49M / employee in revenue per employee, while Wix has $456k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Microsoft Corporation and Wix make money?
Microsoft Corporation and Wix generate revenue in fundamentally different ways. Microsoft Corporation: Microsoft reports three segments. Wix: Wix runs a freemium model.
Which company is valued higher relative to revenue — Microsoft Corporation or Wix?
On a price-to-sales (P/S) basis, Microsoft Corporation trades at 11.5x P/S and Wix at 1.0x P/S. Microsoft Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Wix. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Microsoft Corporation bigger than Wix?
By last reported revenue, Microsoft Corporation ($331.8B (FY2026)) is the larger company compared to Wix ($2.0B (FY2025)). 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 Wix overview