Microsoft Corporation or HP Inc.: Who Manages SG&A Costs Better?

Microsoft vs. HP: A Decade of SG&A Management

In the ever-evolving tech industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Microsoft Corporation and HP Inc. have demonstrated contrasting approaches to SG&A cost management. From 2014 to 2024, Microsoft consistently reported higher SG&A expenses, peaking at approximately $32 billion in 2024. This represents a 56% increase from 2014, reflecting its expansive growth strategy.

Conversely, HP Inc. showcased a more conservative approach, with SG&A expenses fluctuating between $3.8 billion and $13.4 billion. Notably, HP's expenses in 2024 were 58% lower than Microsoft's, highlighting its focus on cost efficiency. This strategic difference underscores Microsoft's aggressive market expansion and HP's emphasis on streamlined operations. As the tech landscape continues to shift, these financial strategies will play a pivotal role in shaping each company's future.