Google vs Microsoft Net Income: Surprising Reality Check

The VAR Guy

July 18, 2011

1 Min Read
Google vs Microsoft Net Income: Surprising Reality Check

The VAR Guy recently reported that Google‘s revenues aren’t really gaining ground on Microsoft‘s annual revenues, based on nearly a decade of financial data. Now, our resident blogger is back with an update — this time looking at GOOG vs. MSFT annual net income since 2002. Here again, the results may surprise you.

The data for Google and Microsoft historic net income, covering 2002 through 2010, comes from Wikinvest.

Annual Net Income: GOOG vs. MSFT ($Billions)

Year Google Microsoft Microsoft Lead
2002 $0.10 $7.83 $7.73
2003 $0.11 $9.99 $9.89
2004 $0.40 $8.17 $7.77
2005 $1.47 $12.25 $10.78
2006 $3.08 $12.60 $9.52
2007 $4.20 $14.07 $9.87
2008 $4.23 $17.68 $13.45
2009 $6.52 $14.57 $8.05
2010 $8.51 $18.76 $10.25

What the Data Shows

No doubt, Google’s net income grew far more impressively and far more consistently vs. Microsoft’s net income from 2002 through 2010. But Microsoft is no slouch, delivering $18.76 billion in net income vs. $7.83 billion in 2002. Plenty of rivals would welcome those figures.

Also, look at that column on the far right — which measures Microsoft’s annual lead on net income. In 2002, Microsoft’s net income outpaced Google’s net income by $7.73 billion. By 2010, Microsoft had grown its annual net income lead over Google to $10.25 billion.

What do the numbers show? Admittedly, past results don’t guarantee future success. Google has been far more reliable on net income growth. But The VAR Guy suspects quite a few people have overlooked just how profitable Microsoft remains… easily out-muscling event Google… at least through 2010.

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