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Mizuho Markets Americas LLC decreased its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 47.3% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 148,023 shares of the software giant’s stock after selling 132,970 shares during the quarter. Microsoft makes up 0.9% of Mizuho Markets Americas LLC’s holdings, making the stock its 25th biggest position. Mizuho Markets Americas LLC’s holdings in Microsoft were worth $55,216,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in MSFT. Partners in Financial Planning grew its stake in Microsoft by 0.9% in the 4th quarter. Partners in Financial Planning now owns 2,593 shares of the software giant’s stock valued at $1,254,000 after purchasing an additional 24 shares during the period. FWG Holdings LLC grew its position in Microsoft by 0.3% during the fourth quarter. FWG Holdings LLC now owns 8,368 shares of the software giant’s stock valued at $4,047,000 after buying an additional 24 shares during the period. Skylands Capital LLC increased its holdings in Microsoft by 4.0% during the fourth quarter. Skylands Capital LLC now owns 645 shares of the software giant’s stock worth $312,000 after buying an additional 25 shares during the last quarter. Friedenthal Financial increased its stake in shares of Microsoft by 6.2% during the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant’s stock worth $160,000 after purchasing an additional 25 shares during the last quarter. Finally, Sequent Planning LLC increased its stake in shares of Microsoft by 0.7% during the 1st quarter. Sequent Planning LLC now owns 3,733 shares of the software giant’s stock worth $1,382,000 after purchasing an additional 25 shares during the last quarter. 71.13% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth Several brokerages have issued reports on MSFT. Barclays lowered their target price on Microsoft from $545.00 to $512.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. CLSA reiterated an “outperform” rating on shares of Microsoft in a research note on Thursday, July 30th. Oppenheimer lifted their price target on Microsoft from $515.00 to $570.00 and gave the company an “outperform” rating in a research report on Tuesday. Evercore set a $528.00 price objective on Microsoft in a research note on Thursday, July 30th. Finally, Benchmark restated a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. Forty-three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $569.29.

View Our Latest Stock Analysis on Microsoft Insider Transactions at Microsoft In other news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 143,009 shares of company stock valued at $71,420,699 over the last quarter. 0.03% of the stock is owned by company insiders.

Microsoft News Summary Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Stifel upgraded Microsoft to Buy from Hold and raised its price target to $575 from $530. The analyst expects Azure, Copilot and other AI services to accelerate revenue while Microsoft maintains resilient margins without needing excessive spending on AI models. Microsoft upgraded as analyst sees steady margins Positive Sentiment: Microsoft plans to invest more than $10 billion in the Gulf through 2030, funding cloud and AI infrastructure, cybersecurity, connectivity and workforce development across the UAE, Saudi Arabia, Qatar and Kuwait. The spending expands Azure’s international capacity and could create long-term commercial opportunities. Microsoft plans Gulf investment Positive Sentiment: AI monetization remains the central bullish thesis. Microsoft is pursuing broader Copilot adoption, including discounts of roughly 30% to 50% for large enterprise customers, while management highlights independent AI safety evaluators and software that controls AI agents as emerging opportunities. Microsoft plans larger Copilot discounts Neutral Sentiment: Microsoft and Coinbase disrupted an AI-enabled phishing network, reinforcing Microsoft’s cybersecurity credentials. However, the operation does not eliminate the persistent economic incentive for criminals to compromise accounts. Microsoft cuts AI phishing supply chain Neutral Sentiment: Microsoft’s collaboration with Photonic on quantum-computing resource estimation and its decision to give DARPA access to its Majorana 2 system enhance its technology and government relationships, but these projects are unlikely to affect near-term earnings. Microsoft opens quantum system to DARPA testing Negative Sentiment: Xbox is cutting 268 positions and transferring the next Halo game to Activision as part of a gaming restructuring. The move may improve efficiency but raises concerns about Microsoft’s gaming execution and follows recent layoffs. Microsoft cuts Xbox roles Negative Sentiment: Broader technology stocks weakened, while scrutiny of data-center water consumption and Microsoft’s heavy AI infrastructure spending adds to concerns about costs, regulation and execution. Microsoft Trading Up 0.5% Shares of Microsoft stock opened at $500.59 on Thursday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The firm has a market cap of $3.72 trillion, a PE ratio of 27.87, a PEG ratio of 1.60 and a beta of 1.11. The company has a 50 day simple moving average of $473.55 and a two-hundred day simple moving average of $424.91.

Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.65 EPS. Analysts expect that Microsoft Corporation will post 19.61 earnings per share for the current fiscal year.

Microsoft Increases Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 19th. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio (DPR) is currently 21.83%.

Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.

See Also Five stocks we like better than Microsoft Chips to Bots: Qualcomm’s Agentic AI Breakout Ciena Fell 40%—Now One Analyst Sees 50% Upside Energy Transfer Taps the AI Power Boom Viking’s Obesity Edge May Be Staying Power, Not Weight Loss

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Vest Financial LLC increased its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 16.5% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 347,843 shares of the software giant’s stock after acquiring an additional 49,178 shares during the quarter. Microsoft makes up about 1.4% of Vest Financial LLC’s holdings, making the stock its 8th biggest position. Vest Financial LLC’s holdings in Microsoft were worth $129,752,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in MSFT. Frankly Finances LLC acquired a new stake in shares of Microsoft in the 2nd quarter worth $35,000. MidAtlantic Capital Management Inc. purchased a new stake in Microsoft in the 4th quarter valued at approximately $59,000. Lifetime Wealth Management P.C. purchased a new stake in Microsoft in the 4th quarter valued at approximately $101,000. Ramsey Quantitative Systems acquired a new position in Microsoft during the 2nd quarter worth approximately $112,000. Finally, Midwest Capital Advisors LLC raised its stake in shares of Microsoft by 16.6% during the 1st quarter. Midwest Capital Advisors LLC now owns 422 shares of the software giant’s stock worth $156,000 after buying an additional 60 shares in the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling In other news, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the transaction, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer owned 486,763 shares in the company, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is owned by insiders.

Microsoft News Summary Here are the key news stories impacting Microsoft this week: Positive Sentiment: Stifel upgraded Microsoft to Buy from Hold and raised its price target to $575 from $530. The analyst expects Azure, Copilot and other AI services to accelerate revenue while Microsoft maintains resilient margins without needing excessive spending on AI models. Microsoft upgraded as analyst sees steady margins Positive Sentiment: Microsoft plans to invest more than $10 billion in the Gulf through 2030, funding cloud and AI infrastructure, cybersecurity, connectivity and workforce development across the UAE, Saudi Arabia, Qatar and Kuwait. The spending expands Azure’s international capacity and could create long-term commercial opportunities. Microsoft plans Gulf investment Positive Sentiment: AI monetization remains the central bullish thesis. Microsoft is pursuing broader Copilot adoption, including discounts of roughly 30% to 50% for large enterprise customers, while management highlights independent AI safety evaluators and software that controls AI agents as emerging opportunities. Microsoft plans larger Copilot discounts Neutral Sentiment: Microsoft and Coinbase disrupted an AI-enabled phishing network, reinforcing Microsoft’s cybersecurity credentials. However, the operation does not eliminate the persistent economic incentive for criminals to compromise accounts. Microsoft cuts AI phishing supply chain Neutral Sentiment: Microsoft’s collaboration with Photonic on quantum-computing resource estimation and its decision to give DARPA access to its Majorana 2 system enhance its technology and government relationships, but these projects are unlikely to affect near-term earnings. Microsoft opens quantum system to DARPA testing Negative Sentiment: Xbox is cutting 268 positions and transferring the next Halo game to Activision as part of a gaming restructuring. The move may improve efficiency but raises concerns about Microsoft’s gaming execution and follows recent layoffs. Microsoft cuts Xbox roles Negative Sentiment: Broader technology stocks weakened, while scrutiny of data-center water consumption and Microsoft’s heavy AI infrastructure spending adds to concerns about costs, regulation and execution. Microsoft Stock Up 0.5% Shares of NASDAQ MSFT opened at $500.59 on Thursday. The firm’s 50-day moving average is $473.55 and its two-hundred day moving average is $424.91. The company has a market capitalization of $3.72 trillion, a PE ratio of 27.87, a price-to-earnings-growth ratio of 1.60 and a beta of 1.11. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22.

Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. During the same period last year, the company posted $3.65 EPS. The company’s revenue was up 17.7% on a year-over-year basis. Equities analysts anticipate that Microsoft Corporation will post 19.61 EPS for the current fiscal year.

Microsoft Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.8%. Microsoft’s dividend payout ratio (DPR) is 21.83%.

Wall Street Analyst Weigh In Several analysts have recently commented on MSFT shares. DA Davidson reissued a “buy” rating and issued a $550.00 price target on shares of Microsoft in a report on Thursday, July 30th. Wells Fargo & Company upped their price objective on Microsoft from $650.00 to $700.00 and gave the stock an “overweight” rating in a report on Wednesday, August 12th. The Goldman Sachs Group reiterated a “buy” rating and issued a $640.00 price objective on shares of Microsoft in a research note on Thursday, July 30th. Wolfe Research downgraded shares of Microsoft from an “outperform” rating to a “peer perform” rating in a report on Wednesday. Finally, Scotiabank reiterated an “outperform” rating and set a $510.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Forty-three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $569.29.

Read Our Latest Report on MSFT

About Microsoft (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.

Featured Articles Five stocks we like better than Microsoft Chips to Bots: Qualcomm’s Agentic AI Breakout Ciena Fell 40%—Now One Analyst Sees 50% Upside Energy Transfer Taps the AI Power Boom Viking’s Obesity Edge May Be Staying Power, Not Weight Loss Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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Mizuho Markets Cayman LP purchased a new position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 534,822 shares of the software giant’s stock, valued at approximately $199,499,000. Microsoft accounts for 7.5% of Mizuho Markets Cayman LP’s investment portfolio, making the stock its 4th biggest holding.

A number of other institutional investors have also made changes to their positions in MSFT. Partners in Financial Planning lifted its stake in shares of Microsoft by 0.9% in the fourth quarter. Partners in Financial Planning now owns 2,593 shares of the software giant’s stock valued at $1,254,000 after purchasing an additional 24 shares during the period. FWG Holdings LLC grew its position in Microsoft by 0.3% during the fourth quarter. FWG Holdings LLC now owns 8,368 shares of the software giant’s stock worth $4,047,000 after buying an additional 24 shares during the period. Skylands Capital LLC grew its position in Microsoft by 4.0% during the fourth quarter. Skylands Capital LLC now owns 645 shares of the software giant’s stock worth $312,000 after buying an additional 25 shares during the period. Friedenthal Financial raised its holdings in Microsoft by 6.2% during the first quarter. Friedenthal Financial now owns 431 shares of the software giant’s stock worth $160,000 after purchasing an additional 25 shares during the last quarter. Finally, Sequent Planning LLC boosted its position in Microsoft by 0.7% during the first quarter. Sequent Planning LLC now owns 3,733 shares of the software giant’s stock worth $1,382,000 after purchasing an additional 25 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Stock Up 0.5% MSFT opened at $500.59 on Thursday. The stock has a market capitalization of $3.72 trillion, a price-to-earnings ratio of 27.87, a price-to-earnings-growth ratio of 1.60 and a beta of 1.11. The business has a 50-day moving average of $473.55 and a two-hundred day moving average of $424.91. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the prior year, the firm posted $3.65 EPS. The business’s revenue for the quarter was up 17.7% on a year-over-year basis. On average, research analysts expect that Microsoft Corporation will post 19.61 earnings per share for the current year. Microsoft Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This is an increase from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.8%. The ex-dividend date is Thursday, November 19th. Microsoft’s payout ratio is presently 21.83%.

More Microsoft News Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Stifel upgraded Microsoft to Buy from Hold and raised its price target to $575 from $530. The analyst expects Azure, Copilot and other AI services to accelerate revenue while Microsoft maintains resilient margins without needing excessive spending on AI models. Microsoft upgraded as analyst sees steady margins Positive Sentiment: Microsoft plans to invest more than $10 billion in the Gulf through 2030, funding cloud and AI infrastructure, cybersecurity, connectivity and workforce development across the UAE, Saudi Arabia, Qatar and Kuwait. The spending expands Azure’s international capacity and could create long-term commercial opportunities. Microsoft plans Gulf investment Positive Sentiment: AI monetization remains the central bullish thesis. Microsoft is pursuing broader Copilot adoption, including discounts of roughly 30% to 50% for large enterprise customers, while management highlights independent AI safety evaluators and software that controls AI agents as emerging opportunities. Microsoft plans larger Copilot discounts Neutral Sentiment: Microsoft and Coinbase disrupted an AI-enabled phishing network, reinforcing Microsoft’s cybersecurity credentials. However, the operation does not eliminate the persistent economic incentive for criminals to compromise accounts. Microsoft cuts AI phishing supply chain Neutral Sentiment: Microsoft’s collaboration with Photonic on quantum-computing resource estimation and its decision to give DARPA access to its Majorana 2 system enhance its technology and government relationships, but these projects are unlikely to affect near-term earnings. Microsoft opens quantum system to DARPA testing Negative Sentiment: Xbox is cutting 268 positions and transferring the next Halo game to Activision as part of a gaming restructuring. The move may improve efficiency but raises concerns about Microsoft’s gaming execution and follows recent layoffs. Microsoft cuts Xbox roles Negative Sentiment: Broader technology stocks weakened, while scrutiny of data-center water consumption and Microsoft’s heavy AI infrastructure spending adds to concerns about costs, regulation and execution. Analyst Ratings Changes Several research firms have weighed in on MSFT. Guggenheim reissued a “buy” rating and issued a $586.00 target price on shares of Microsoft in a report on Monday, July 27th. Evercore set a $528.00 price target on shares of Microsoft in a report on Thursday, July 30th. Weiss Ratings upgraded shares of Microsoft from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, August 27th. Scotiabank reissued an “outperform” rating and set a $510.00 price objective on shares of Microsoft in a research note on Thursday, July 30th. Finally, BMO Capital Markets upped their price objective on Microsoft from $500.00 to $515.00 and gave the company an “outperform” rating in a research report on Thursday, July 30th. Forty-three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Microsoft presently has a consensus rating of “Moderate Buy” and an average price target of $569.29.

Read Our Latest Research Report on Microsoft

Insider Buying and Selling at Microsoft In other news, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Amy Hood sold 41,674 shares of the business’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the transaction, the executive vice president directly owned 533,624 shares in the company, valued at approximately $265,888,830.48. The trade was a 7.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 143,009 shares of company stock worth $71,420,699 over the last three months. 0.03% of the stock is currently owned by insiders.

Microsoft Company Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.

See Also Five stocks we like better than Microsoft Chips to Bots: Qualcomm’s Agentic AI Breakout Ciena Fell 40%—Now One Analyst Sees 50% Upside Energy Transfer Taps the AI Power Boom Viking’s Obesity Edge May Be Staying Power, Not Weight Loss

Receive News & Ratings for Microsoft Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Microsoft and related companies with MarketBeat.com's FREE daily email newsletter.

Characteristics and Risks of Standardized Options: https://bit.ly/2v9tH6D. Stifel upgraded Microsoft (MSFT) to buy from hold, citing expectations on margin strength and AI revenue to drive future momentum.

Microsoft (MSFT.O) is planning to invest more than $10 billion across the United Arab Emirates, Saudi Arabia, Qatar and Kuwait between now and 2030, including in ​cloud and AI infrastructure, a senior executive said on Wednesday.

The US tech ‌giant is making digital resilience a key part of its strategy for the region as the Iran war rumbles on.

Microsoft's investment reflects both its "ongoing build-out of infrastructure and also the expansion of operations in the ​region," Vice Chair and President Brad Smith told Reuters.

Gulf countries are pouring billions ​into AI as they strive to become global hubs to help diversify ⁠their economies away from oil and gas, betting that land abundance and access to ​cheap energy will lure hyperscalers, including Microsoft.

However, challenges remain in areas including access to advanced ​chips and the uncertainty brought by the war, including attacks on data centres such as Amazon (AMZN.O) cloud unit AWS's facilities in Bahrain and the UAE.

"We're sustaining all the investments we planned to make before this ​conflict started, and we're in fact adding to them ... It's an aggressive spending schedule," ​said Smith.

He said Microsoft had supported local partners during the conflict, including with digital resilience assessments, even ‌in ⁠the first week of the conflict, which began on February 28.

DIGITAL RESILIENCE
Microsoft is now working to help the Gulf countries in areas such as readiness and critical data protection as part of a digital resilience initiative.

It could not provide a breakdown of the planned ​investment by country or ​specific project, Smith ⁠said, citing factors including security.

While the UAE has been largely spared attacks since May, several other Gulf countries have continued to face threats.

Microsoft also plans ​to invest more than $400 million in subsea and terrestrial connectivity across ​the Middle ⁠East by 2030.

It is also strengthening its partnership with national AI companies, including Abu Dhabi's G42, in which Microsoft invested $1.5 billion for a minority stake in 2024, giving the US ⁠firm a ​board seat currently filled by Smith.

Microsoft is working with ​Saudi Arabia's Humain and Qatar's Qai "in selected areas that are priorities for them," he said, noting that it ​does not plan capital investments in the firms.

Meta is surging while Alphabet slides hard, yet Microsoft sits completely unmoved and the broad tech funds are barely lower. That three-way split points to something more specific than a sector selloff, and the fund figures tell a story the…

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Big Tech is splitting along a single axis in Wednesday afternoon trading. Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction) stock is falling several times faster than the technology sector itself, while Meta Platforms (NASDAQ:META) stock climbs and Microsoft (NASDAQ:MSFT) stock sits essentially unchanged. The sector itself isn’t cracking, which points the story at a single name rather than a broad risk event.

The Technology Select Sector SPDR Fund (NYSEARCA:XLK) is down 0.9% in Wednesday morning trading, and the Invesco QQQ Trust (NASDAQ:QQQ) is down 1.12%. Neither fund is collapsing, and Microsoft has barely budged, so what’s happening to Alphabet stock isn’t happening to technology as a group. That framing puts the burden of explanation on Alphabet itself.

Alphabet stock is at $337.82, down 4% in Wednesday morning trading. Meta Platforms stock is at $754.45, up 2% on the same session, while Microsoft stock is at $498.32, up 0.1%.

Meta’s Muse Rally Sets the Frame The competitive backdrop in play is Meta Platforms and its personal artificial intelligence (AI) assistant, Muse, which the company unveiled earlier this month. The broader question is how Alphabet’s position in AI holds up against well-funded rivals shipping fresh consumer products, and a working consumer AI assistant from a rival of that size complicates the assumption that search distribution is the endgame in AI (we profiled seven suppliers powering the AI buildout, from power to networking, in a free report you can grab here). That debate isn’t a confirmed cause of Wednesday’s session move for Alphabet stock, but it fits the split the fund figures draw.

No verified Alphabet disclosure explains Wednesday’s decline in Alphabet stock, which leaves profit taking after a strong run and rotation within large-cap technology as the readings the figures support. Both are consistent with a session in which the money coming out of Alphabet is showing up in Meta Platforms rather than leaving technology altogether. That’s the shape the fund figures draw around the session.

The past month sharpens the split further. Meta Platforms stock is up 37% over the past month, while Alphabet stock is down 1% over the same stretch. A single session can be noise, but a month of one name being rewarded while another drifts is positioning, and that’s the more informative comparison here.

What the Fund Figures Say About Alphabet Stock The fund moves are the clue. If Wednesday were a broad-tech risk event, the Technology Select Sector SPDR Fund and the Invesco QQQ Trust would be down materially, and Microsoft stock would be sliding with them. Instead, both funds are barely lower and Microsoft stock is close to flat, which leaves Alphabet as the outlier the session is repricing on its own terms.

Alphabet’s Google still owns search distribution and a substantial cloud franchise, and the past-month decline in Alphabet stock is only slightly negative. The picture that comes through is Meta Platforms being paid for something the market hasn’t yet credited to Alphabet, not Alphabet breaking down. Microsoft, sitting flat, is the neutral vote in that argument, since a Microsoft that saw the same threat would trade with Alphabet rather than beside it.

The distinction matters for how Alphabet stock trades from here. A positioning story unwinds differently than a fundamentals story, and Wednesday’s fund figures suggest the current move in Alphabet stock belongs to the first category. That’s a narrower problem, and a solvable one, if Alphabet gives the market a reason to re-underwrite the AI thesis on its own name.

What to Watch Now Investors can watch for whether Alphabet stock stabilizes as Wednesday’s session runs on, given the absence of a verified Alphabet-specific catalyst so far. Traders may want to keep an eye on whether Meta Platforms holds its gain into the close, given how sharp the past-month advance in Meta Platforms stock has already been. Microsoft stock holding flat is itself a signal that the split is name-specific rather than sector-wide, and Microsoft stock deserves attention as a tell if the fund moves widen from here.

Traders holding any of these three names can size their positions to the split the market is drawing, trimming their exposure to Meta Platforms where the past-month move already prices in the AI-winner narrative and keeping their allocation to Alphabet modest while the competitive debate stays open. The Alphabet story looks like repositioning while the AI winners debate continues, and their risk should reflect that reading rather than a conclusion the fund figures don’t support.

Contact [email protected] for any questions or corrections.

Microsoft Corp. will spend $10 billion through 2030 in four Persian Gulf countries - Saudi Arabia, Kuwait, Qatar and the United Arab Emirates. The software giant will build out infrastructure and strengthen cyber security.

MUMBAI, India--(BUSINESS WIRE)-- #AI--IFI Techsolutions Limited today announced it has achieved the Agentic DevOps with Microsoft Azure and GitHub specialization.

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Crewe Advisors LLC increased its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 4.8% during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 87,611 shares of the software giant’s stock after purchasing an additional 4,016 shares during the quarter. Microsoft makes up about 2.4% of Crewe Advisors LLC’s holdings, making the stock its 12th biggest position. Crewe Advisors LLC’s holdings in Microsoft were worth $32,681,000 at the end of the most recent reporting period.

A number of other institutional investors have also added to or reduced their stakes in MSFT. Partners in Financial Planning lifted its holdings in Microsoft by 0.9% during the fourth quarter. Partners in Financial Planning now owns 2,593 shares of the software giant’s stock worth $1,254,000 after acquiring an additional 24 shares during the period. FWG Holdings LLC increased its position in shares of Microsoft by 0.3% during the 4th quarter. FWG Holdings LLC now owns 8,368 shares of the software giant’s stock valued at $4,047,000 after purchasing an additional 24 shares during the last quarter. Skylands Capital LLC increased its position in shares of Microsoft by 4.0% during the 4th quarter. Skylands Capital LLC now owns 645 shares of the software giant’s stock valued at $312,000 after purchasing an additional 25 shares during the last quarter. Friedenthal Financial raised its stake in shares of Microsoft by 6.2% during the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant’s stock worth $160,000 after purchasing an additional 25 shares during the period. Finally, Sequent Planning LLC boosted its holdings in shares of Microsoft by 0.7% in the 1st quarter. Sequent Planning LLC now owns 3,733 shares of the software giant’s stock worth $1,382,000 after buying an additional 25 shares during the last quarter. 71.13% of the stock is owned by institutional investors.

More Microsoft News Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analysts raised their outlook. Oppenheimer increased its Microsoft price target to $570 from $515 while maintaining an Outperform rating, citing sustained Azure and Microsoft 365 commercial momentum into fiscal 2027. Cantor Fitzgerald also reportedly raised its target to $608 and kept an Overweight rating. Oppenheimer Microsoft price target article Positive Sentiment: Azure has additional growth levers. BNP Paribas said recent Azure strength may not reflect the full opportunity, pointing to higher pricing as contracts renew, capacity expansion and a potential SpaceX cloud relationship. Azure growth has reportedly reached the mid-40% range, supporting the view that AI infrastructure demand can continue driving revenue. BNP Paribas Azure outlook article Positive Sentiment: Capital returns remain supportive. Microsoft raised its quarterly dividend approximately 8% to $0.98 per share, extending its dividend-growth streak to more than two decades. The increase signals management confidence, although the modest yield is unlikely to be the primary stock catalyst. Microsoft dividend increase article Neutral Sentiment: OpenAI remains both an opportunity and a concentration risk. Microsoft’s AI partner is reportedly seeking a valuation above $1.2 trillion, potentially reinforcing Microsoft’s Azure and Copilot ecosystem. However, projected cash burn of roughly $278 billion and the company’s reliance on Microsoft-supported infrastructure raise questions about customer durability and AI spending economics. OpenAI valuation and Microsoft article Negative Sentiment: Xbox layoffs pressured sentiment. Microsoft is cutting approximately 268 Xbox jobs, with broader reports pointing to roughly 500 affected employees, while shifting the next Halo game to Activision. The move highlights a continuing gaming reset and was the clearest near-term reason for weakness in MSFT shares. Microsoft Xbox restructuring article Negative Sentiment: AI execution risks remain. Investors continue to monitor heavy capital spending, copyright and regulatory challenges, and concerns that AI revenue is concentrated among a small number of customers. These risks could pressure margins or the valuation if Azure growth fails to meet elevated expectations. Insider Activity In related news, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, the executive vice president owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the transaction, the executive vice president directly owned 533,624 shares of the company’s stock, valued at approximately $265,888,830.48. The trade was a 7.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 143,009 shares of company stock valued at $71,420,699. Corporate insiders own 0.03% of the company’s stock. Analyst Ratings Changes MSFT has been the subject of a number of research analyst reports. Guggenheim restated a “buy” rating and set a $586.00 price objective on shares of Microsoft in a report on Monday, July 27th. Stifel Nicolaus set a $575.00 target price on shares of Microsoft in a research report on Tuesday. Mizuho decreased their price target on shares of Microsoft from $515.00 to $490.00 and set an “outperform” rating for the company in a research note on Wednesday, July 15th. The Goldman Sachs Group reiterated a “buy” rating and issued a $640.00 price objective on shares of Microsoft in a research note on Thursday, July 30th. Finally, Barclays reduced their price objective on Microsoft from $545.00 to $512.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Forty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $569.29.

Check Out Our Latest Analysis on MSFT

Microsoft Price Performance Microsoft stock opened at $498.00 on Wednesday. The firm has a market capitalization of $3.70 trillion, a P/E ratio of 27.73, a PEG ratio of 1.61 and a beta of 1.11. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The business has a fifty day moving average price of $471.45 and a 200-day moving average price of $424.28.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same period in the previous year, the company posted $3.65 EPS. As a group, equities research analysts forecast that Microsoft Corporation will post 19.61 EPS for the current year.

Microsoft Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a $0.98 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. Microsoft’s payout ratio is currently 20.27%.

Microsoft Company Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.

Read More Five stocks we like better than Microsoft Meta’s Muse Highlights Arm’s Growing Role in AI Infrastructure Oura’s $15.6 Billion IPO Is Betting Investors See More Than a Smart Ring AMD Chips Away at NVIDIA’s AI Throne Is the Fed Playing Chess With Rates—Or Just Behind the Curve Again?

Receive News & Ratings for Microsoft Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Microsoft and related companies with MarketBeat.com's FREE daily email newsletter.

Leelyn Smith LLC lifted its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 6.1% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 32,799 shares of the software giant’s stock after buying an additional 1,883 shares during the quarter. Microsoft makes up approximately 1.5% of Leelyn Smith LLC’s portfolio, making the stock its 13th biggest holding. Leelyn Smith LLC’s holdings in Microsoft were worth $12,235,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of the company. Partners in Financial Planning grew its position in shares of Microsoft by 0.9% during the 4th quarter. Partners in Financial Planning now owns 2,593 shares of the software giant’s stock valued at $1,254,000 after purchasing an additional 24 shares in the last quarter. FWG Holdings LLC raised its position in shares of Microsoft by 0.3% in the fourth quarter. FWG Holdings LLC now owns 8,368 shares of the software giant’s stock worth $4,047,000 after buying an additional 24 shares in the last quarter. Skylands Capital LLC raised its position in shares of Microsoft by 4.0% in the fourth quarter. Skylands Capital LLC now owns 645 shares of the software giant’s stock worth $312,000 after buying an additional 25 shares in the last quarter. Friedenthal Financial boosted its stake in Microsoft by 6.2% during the first quarter. Friedenthal Financial now owns 431 shares of the software giant’s stock valued at $160,000 after buying an additional 25 shares during the period. Finally, Sequent Planning LLC grew its position in Microsoft by 0.7% during the first quarter. Sequent Planning LLC now owns 3,733 shares of the software giant’s stock worth $1,382,000 after buying an additional 25 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors.

Microsoft Stock Performance NASDAQ MSFT opened at $498.00 on Wednesday. The company has a 50-day simple moving average of $471.45 and a two-hundred day simple moving average of $424.28. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The firm has a market cap of $3.70 trillion, a price-to-earnings ratio of 27.73, a PEG ratio of 1.61 and a beta of 1.11. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the previous year, the business earned $3.65 earnings per share. The company’s quarterly revenue was up 17.7% on a year-over-year basis. On average, equities analysts forecast that Microsoft Corporation will post 19.61 EPS for the current year. Microsoft Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a $0.98 dividend. This is an increase from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.8%. Microsoft’s payout ratio is presently 20.27%.

Insider Buying and Selling In other news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the sale, the chief executive officer owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the transaction, the executive vice president owned 533,624 shares in the company, valued at $265,888,830.48. This represents a 7.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 143,009 shares of company stock worth $71,420,699. Company insiders own 0.03% of the company’s stock.

Wall Street Analysts Forecast Growth Several analysts have weighed in on the company. Mizuho lowered their price target on Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a report on Wednesday, July 15th. Sanford C. Bernstein set a $660.00 price objective on Microsoft in a report on Monday, August 10th. BMO Capital Markets upped their price objective on shares of Microsoft from $500.00 to $515.00 and gave the stock an “outperform” rating in a research report on Thursday, July 30th. Phillip Securities downgraded shares of Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research note on Monday, August 3rd. Finally, Bank of America lifted their target price on shares of Microsoft from $500.00 to $600.00 and gave the company a “buy” rating in a research report on Tuesday, September 1st. Forty-two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $569.29.

Read Our Latest Stock Report on Microsoft

Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analysts raised their outlook. Oppenheimer increased its Microsoft price target to $570 from $515 while maintaining an Outperform rating, citing sustained Azure and Microsoft 365 commercial momentum into fiscal 2027. Cantor Fitzgerald also reportedly raised its target to $608 and kept an Overweight rating. Oppenheimer Microsoft price target article Positive Sentiment: Azure has additional growth levers. BNP Paribas said recent Azure strength may not reflect the full opportunity, pointing to higher pricing as contracts renew, capacity expansion and a potential SpaceX cloud relationship. Azure growth has reportedly reached the mid-40% range, supporting the view that AI infrastructure demand can continue driving revenue. BNP Paribas Azure outlook article Positive Sentiment: Capital returns remain supportive. Microsoft raised its quarterly dividend approximately 8% to $0.98 per share, extending its dividend-growth streak to more than two decades. The increase signals management confidence, although the modest yield is unlikely to be the primary stock catalyst. Microsoft dividend increase article Neutral Sentiment: OpenAI remains both an opportunity and a concentration risk. Microsoft’s AI partner is reportedly seeking a valuation above $1.2 trillion, potentially reinforcing Microsoft’s Azure and Copilot ecosystem. However, projected cash burn of roughly $278 billion and the company’s reliance on Microsoft-supported infrastructure raise questions about customer durability and AI spending economics. OpenAI valuation and Microsoft article Negative Sentiment: Xbox layoffs pressured sentiment. Microsoft is cutting approximately 268 Xbox jobs, with broader reports pointing to roughly 500 affected employees, while shifting the next Halo game to Activision. The move highlights a continuing gaming reset and was the clearest near-term reason for weakness in MSFT shares. Microsoft Xbox restructuring article Negative Sentiment: AI execution risks remain. Investors continue to monitor heavy capital spending, copyright and regulatory challenges, and concerns that AI revenue is concentrated among a small number of customers. These risks could pressure margins or the valuation if Azure growth fails to meet elevated expectations. Microsoft Company Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.

See Also Five stocks we like better than Microsoft Meta’s Muse Highlights Arm’s Growing Role in AI Infrastructure Oura’s $15.6 Billion IPO Is Betting Investors See More Than a Smart Ring AMD Chips Away at NVIDIA’s AI Throne Is the Fed Playing Chess With Rates—Or Just Behind the Curve Again? Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

Receive News & Ratings for Microsoft Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Microsoft and related companies with MarketBeat.com's FREE daily email newsletter.

Hunter Associates Investment Management LLC lifted its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 1.9% in the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 84,899 shares of the software giant’s stock after purchasing an additional 1,553 shares during the quarter. Microsoft comprises approximately 3.6% of Hunter Associates Investment Management LLC’s investment portfolio, making the stock its 3rd biggest position. Hunter Associates Investment Management LLC’s holdings in Microsoft were worth $31,677,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of MSFT. Tanager Wealth Management LLP raised its stake in shares of Microsoft by 0.3% in the 2nd quarter. Tanager Wealth Management LLP now owns 44,118 shares of the software giant’s stock valued at $16,457,000 after acquiring an additional 149 shares during the period. Mason & Associates Inc boosted its position in shares of Microsoft by 3.6% during the second quarter. Mason & Associates Inc now owns 18,070 shares of the software giant’s stock worth $6,740,000 after buying an additional 626 shares during the period. Northwest Wealth Advisors LLC boosted its position in shares of Microsoft by 2.2% during the second quarter. Northwest Wealth Advisors LLC now owns 11,673 shares of the software giant’s stock worth $4,354,000 after buying an additional 249 shares during the period. Greenline Wealth Management LLC grew its stake in shares of Microsoft by 3.0% in the second quarter. Greenline Wealth Management LLC now owns 5,596 shares of the software giant’s stock valued at $2,087,000 after buying an additional 163 shares in the last quarter. Finally, Mine & Arao Wealth Creation & Management LLC. raised its holdings in shares of Microsoft by 2.5% in the 2nd quarter. Mine & Arao Wealth Creation & Management LLC. now owns 4,925 shares of the software giant’s stock valued at $1,837,000 after buying an additional 119 shares during the period. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft Stock Down 0.7% Shares of NASDAQ MSFT opened at $498.00 on Wednesday. The company has a market capitalization of $3.70 trillion, a price-to-earnings ratio of 27.73, a price-to-earnings-growth ratio of 1.61 and a beta of 1.11. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The business has a 50-day moving average of $471.45 and a two-hundred day moving average of $424.28. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the prior year, the business posted $3.65 EPS. The business’s revenue for the quarter was up 17.7% on a year-over-year basis. On average, analysts forecast that Microsoft Corporation will post 19.61 earnings per share for the current fiscal year. Microsoft Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a $0.98 dividend. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio (DPR) is currently 20.27%.

Insider Activity at Microsoft In other news, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the sale, the chief executive officer owned 486,763 shares in the company, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the sale, the chief executive officer directly owned 100,447 shares of the company’s stock, valued at $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 143,009 shares of company stock worth $71,420,699. Corporate insiders own 0.03% of the company’s stock.

Microsoft News Summary Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analysts raised their outlook. Oppenheimer increased its Microsoft price target to $570 from $515 while maintaining an Outperform rating, citing sustained Azure and Microsoft 365 commercial momentum into fiscal 2027. Cantor Fitzgerald also reportedly raised its target to $608 and kept an Overweight rating. Oppenheimer Microsoft price target article Positive Sentiment: Azure has additional growth levers. BNP Paribas said recent Azure strength may not reflect the full opportunity, pointing to higher pricing as contracts renew, capacity expansion and a potential SpaceX cloud relationship. Azure growth has reportedly reached the mid-40% range, supporting the view that AI infrastructure demand can continue driving revenue. BNP Paribas Azure outlook article Positive Sentiment: Capital returns remain supportive. Microsoft raised its quarterly dividend approximately 8% to $0.98 per share, extending its dividend-growth streak to more than two decades. The increase signals management confidence, although the modest yield is unlikely to be the primary stock catalyst. Microsoft dividend increase article Neutral Sentiment: OpenAI remains both an opportunity and a concentration risk. Microsoft’s AI partner is reportedly seeking a valuation above $1.2 trillion, potentially reinforcing Microsoft’s Azure and Copilot ecosystem. However, projected cash burn of roughly $278 billion and the company’s reliance on Microsoft-supported infrastructure raise questions about customer durability and AI spending economics. OpenAI valuation and Microsoft article Negative Sentiment: Xbox layoffs pressured sentiment. Microsoft is cutting approximately 268 Xbox jobs, with broader reports pointing to roughly 500 affected employees, while shifting the next Halo game to Activision. The move highlights a continuing gaming reset and was the clearest near-term reason for weakness in MSFT shares. Microsoft Xbox restructuring article Negative Sentiment: AI execution risks remain. Investors continue to monitor heavy capital spending, copyright and regulatory challenges, and concerns that AI revenue is concentrated among a small number of customers. These risks could pressure margins or the valuation if Azure growth fails to meet elevated expectations. Analyst Upgrades and Downgrades A number of equities analysts recently commented on the company. Evercore set a $528.00 target price on Microsoft in a report on Thursday, July 30th. Morgan Stanley reiterated an “overweight” rating on shares of Microsoft in a research note on Thursday, July 30th. Phillip Securities cut shares of Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 3rd. Tigress Financial raised their price objective on shares of Microsoft from $680.00 to $690.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Finally, Truist Financial restated a “buy” rating and issued a $575.00 price objective on shares of Microsoft in a report on Wednesday, July 22nd. Forty-two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, Microsoft currently has an average rating of “Moderate Buy” and a consensus price target of $569.29.

Read Our Latest Stock Report on Microsoft

About Microsoft (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.

Read More Five stocks we like better than Microsoft Meta’s Muse Highlights Arm’s Growing Role in AI Infrastructure Oura’s $15.6 Billion IPO Is Betting Investors See More Than a Smart Ring AMD Chips Away at NVIDIA’s AI Throne Is the Fed Playing Chess With Rates—Or Just Behind the Curve Again?

Receive News & Ratings for Microsoft Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Microsoft and related companies with MarketBeat.com's FREE daily email newsletter.

Griffin Asset Management Inc. grew its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 1.5% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 79,676 shares of the software giant’s stock after purchasing an additional 1,192 shares during the quarter. Microsoft makes up about 3.1% of Griffin Asset Management Inc.’s portfolio, making the stock its 4th biggest holding. Griffin Asset Management Inc.’s holdings in Microsoft were worth $29,721,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Auto Owners Insurance Co boosted its holdings in shares of Microsoft by 56,160.8% during the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after purchasing an additional 60,009,531 shares during the last quarter. Corient Private Wealth LLC boosted its stake in Microsoft by 234.5% during the fourth quarter. Corient Private Wealth LLC now owns 17,822,280 shares of the software giant’s stock worth $8,619,211,000 after buying an additional 12,493,786 shares during the last quarter. Amundi grew its holdings in Microsoft by 30.8% in the 1st quarter. Amundi now owns 41,675,076 shares of the software giant’s stock valued at $15,426,862,000 after buying an additional 9,814,598 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Microsoft by 64.3% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant’s stock worth $8,982,083,000 after acquiring an additional 9,493,778 shares during the last quarter. Finally, Diamant Asset Management Inc. increased its stake in shares of Microsoft by 38,442.1% in the 1st quarter. Diamant Asset Management Inc. now owns 6,810,388 shares of the software giant’s stock worth $2,521,001,000 after acquiring an additional 6,792,718 shares during the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Microsoft In related news, EVP Amy Hood sold 41,674 shares of the company’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the sale, the executive vice president directly owned 533,624 shares of the company’s stock, valued at $265,888,830.48. This represents a 7.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 143,009 shares of company stock worth $71,420,699. 0.03% of the stock is currently owned by company insiders.

Analysts Set New Price Targets A number of equities research analysts recently issued reports on MSFT shares. Tigress Financial upped their price objective on shares of Microsoft from $680.00 to $690.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Mizuho reduced their target price on shares of Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a research note on Wednesday, July 15th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Microsoft in a report on Monday, July 20th. Barclays cut their price target on shares of Microsoft from $545.00 to $512.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Finally, UBS Group set a $525.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Forty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $569.29. Get Our Latest Research Report on MSFT

Microsoft Trading Down 0.7% MSFT opened at $498.00 on Wednesday. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The business has a fifty day simple moving average of $471.45 and a 200-day simple moving average of $424.28. The firm has a market cap of $3.70 trillion, a P/E ratio of 27.73, a P/E/G ratio of 1.61 and a beta of 1.11. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the previous year, the business earned $3.65 EPS. The company’s quarterly revenue was up 17.7% compared to the same quarter last year. On average, equities analysts expect that Microsoft Corporation will post 19.61 earnings per share for the current year.

Microsoft Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. Microsoft’s payout ratio is 20.27%.

Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analysts raised their outlook. Oppenheimer increased its Microsoft price target to $570 from $515 while maintaining an Outperform rating, citing sustained Azure and Microsoft 365 commercial momentum into fiscal 2027. Cantor Fitzgerald also reportedly raised its target to $608 and kept an Overweight rating. Oppenheimer Microsoft price target article Positive Sentiment: Azure has additional growth levers. BNP Paribas said recent Azure strength may not reflect the full opportunity, pointing to higher pricing as contracts renew, capacity expansion and a potential SpaceX cloud relationship. Azure growth has reportedly reached the mid-40% range, supporting the view that AI infrastructure demand can continue driving revenue. BNP Paribas Azure outlook article Positive Sentiment: Capital returns remain supportive. Microsoft raised its quarterly dividend approximately 8% to $0.98 per share, extending its dividend-growth streak to more than two decades. The increase signals management confidence, although the modest yield is unlikely to be the primary stock catalyst. Microsoft dividend increase article Neutral Sentiment: OpenAI remains both an opportunity and a concentration risk. Microsoft’s AI partner is reportedly seeking a valuation above $1.2 trillion, potentially reinforcing Microsoft’s Azure and Copilot ecosystem. However, projected cash burn of roughly $278 billion and the company’s reliance on Microsoft-supported infrastructure raise questions about customer durability and AI spending economics. OpenAI valuation and Microsoft article Negative Sentiment: Xbox layoffs pressured sentiment. Microsoft is cutting approximately 268 Xbox jobs, with broader reports pointing to roughly 500 affected employees, while shifting the next Halo game to Activision. The move highlights a continuing gaming reset and was the clearest near-term reason for weakness in MSFT shares. Microsoft Xbox restructuring article Negative Sentiment: AI execution risks remain. Investors continue to monitor heavy capital spending, copyright and regulatory challenges, and concerns that AI revenue is concentrated among a small number of customers. These risks could pressure margins or the valuation if Azure growth fails to meet elevated expectations. Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.

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L. Roy Papp & Associates LLP grew its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 2.9% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 120,590 shares of the software giant’s stock after purchasing an additional 3,369 shares during the quarter. Microsoft makes up approximately 4.7% of L. Roy Papp & Associates LLP’s portfolio, making the stock its 3rd biggest position. L. Roy Papp & Associates LLP’s holdings in Microsoft were worth $44,982,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Auto Owners Insurance Co boosted its holdings in shares of Microsoft by 56,160.8% during the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after purchasing an additional 60,009,531 shares during the period. Amundi raised its position in Microsoft by 30.8% during the 1st quarter. Amundi now owns 41,675,076 shares of the software giant’s stock valued at $15,426,862,000 after purchasing an additional 9,814,598 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in Microsoft by 10.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock worth $10,852,884,000 after buying an additional 2,784,809 shares during the period. Fisher Asset Management LLC grew its position in shares of Microsoft by 1.8% in the 4th quarter. Fisher Asset Management LLC now owns 25,300,410 shares of the software giant’s stock worth $12,235,785,000 after buying an additional 458,014 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its holdings in Microsoft by 64.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant’s stock valued at $8,982,083,000 after acquiring an additional 9,493,778 shares in the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades MSFT has been the topic of several research analyst reports. UBS Group set a $525.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Microsoft in a research note on Monday, July 20th. KeyCorp reiterated an “overweight” rating on shares of Microsoft in a research report on Thursday, September 3rd. Weiss Ratings upgraded shares of Microsoft from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, August 27th. Finally, Wolfe Research reissued an “outperform” rating and set a $550.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Forty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Microsoft has a consensus rating of “Moderate Buy” and a consensus price target of $567.07.

Check Out Our Latest Stock Analysis on Microsoft Insider Buying and Selling In other news, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the sale, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at $244,092,173.98. The trade was a 15.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is owned by insiders.

Microsoft Stock Performance Shares of Microsoft stock opened at $501.61 on Tuesday. The company has a market capitalization of $3.72 trillion, a PE ratio of 27.93, a price-to-earnings-growth ratio of 1.59 and a beta of 1.11. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The stock’s fifty day moving average is $469.18 and its two-hundred day moving average is $423.62.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter last year, the firm posted $3.65 EPS. The firm’s revenue was up 17.7% compared to the same quarter last year. As a group, analysts expect that Microsoft Corporation will post 19.61 earnings per share for the current year.

Microsoft Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This is a boost from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 19th. Microsoft’s payout ratio is 20.27%.

Microsoft News Summary Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Higher Azure prices could support growth and margins. BNP Paribas said Microsoft may gain another growth lever as higher Azure prices are introduced to renewing customers, assigning a $549 price target. Microsoft’s Azure Has Another Growth Lever Waiting in the Wings, Analyst Says Positive Sentiment: Analysts raised their outlooks on AI demand. Cantor Fitzgerald lifted its Microsoft price target from $522 to $608 and maintained an overweight rating, citing opportunities in AI and cybersecurity. Erste Group also raised its earnings estimates. Cantor Fitzgerald Raises Microsoft Price Target to $608 Positive Sentiment: AI infrastructure demand remains substantial. Microsoft and Anthropic reportedly represent $87.7 billion of the $103 billion contract backlog at AI infrastructure provider Nscale, highlighting the scale of enterprise AI spending and potential Azure demand. Microsoft and Anthropic dominate Nscale’s contract backlog Positive Sentiment: Shareholder-return and valuation support added to the bullish case. Bill Ackman described Microsoft as a core holding after building a roughly $2.4 billion position, while Microsoft’s dividend increase and strong software franchise were cited as additional attractions. Neutral Sentiment: Microsoft is adding a fourth cloud region in Hyderabad, improving geographic resilience, although the company provided no site-level capacity or investment details. Satya Nadella’s expected attendance at a Trump-Xi state dinner could provide diplomatic visibility but has limited direct financial impact. Negative Sentiment: Copyright and AI-regulation concerns remain overhangs. Publisher testimony in ongoing copyright disputes has intensified questions about whether AI products substitute for original content. Microsoft executives have also warned that divergent AI rules could affect industry economics. Microsoft Slips as AI Testimony Sharpens Copyright Risk Negative Sentiment: New gaming-advertising initiatives generated investor skepticism. A patent covering contextual in-game advertisements raised concerns about user experience and monetization strategy. Microsoft Stock Slips on Xbox Patent for Ads in Video Games Negative Sentiment: Investors are weighing elevated AI capital spending, cloud-security concerns following the Hugging Face incident and the possibility that expectations are already priced in after Microsoft’s powerful summer advance. Redburn’s lower $440 target underscores the disagreement over valuation. Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.

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Forum Financial Management LP trimmed its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 2.3% in the second quarter, according to its most recent filing with the SEC. The firm owned 46,743 shares of the software giant’s stock after selling 1,107 shares during the period. Microsoft makes up about 0.2% of Forum Financial Management LP’s investment portfolio, making the stock its 11th biggest position. Forum Financial Management LP’s holdings in Microsoft were worth $17,436,000 at the end of the most recent quarter.

A number of other institutional investors also recently added to or reduced their stakes in the stock. Auto Owners Insurance Co lifted its holdings in shares of Microsoft by 56,160.8% during the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock valued at $29,073,486,000 after acquiring an additional 60,009,531 shares during the period. Amundi boosted its stake in shares of Microsoft by 30.8% in the 1st quarter. Amundi now owns 41,675,076 shares of the software giant’s stock valued at $15,426,862,000 after purchasing an additional 9,814,598 shares in the last quarter. Fisher Asset Management LLC grew its holdings in shares of Microsoft by 1.8% in the 4th quarter. Fisher Asset Management LLC now owns 25,300,410 shares of the software giant’s stock worth $12,235,785,000 after purchasing an additional 458,014 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Microsoft by 10.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock worth $10,852,884,000 after purchasing an additional 2,784,809 shares during the last quarter. Finally, Hsbc Holdings PLC increased its position in shares of Microsoft by 7.8% during the 4th quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant’s stock worth $10,715,379,000 after purchasing an additional 1,599,412 shares in the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth Several research firms have recently weighed in on MSFT. CLSA reaffirmed an “outperform” rating on shares of Microsoft in a report on Thursday, July 30th. Evercore set a $528.00 price objective on Microsoft in a report on Thursday, July 30th. Stifel Nicolaus increased their price objective on Microsoft from $450.00 to $530.00 and gave the company a “hold” rating in a research report on Friday, September 4th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Microsoft in a research note on Monday, July 20th. Finally, Rothschild & Co Redburn set a $440.00 target price on shares of Microsoft in a research report on Monday. Forty-two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $567.07.

Read Our Latest Stock Report on MSFT Microsoft Stock Performance Shares of Microsoft stock opened at $501.61 on Tuesday. The firm has a market cap of $3.72 trillion, a price-to-earnings ratio of 27.93, a price-to-earnings-growth ratio of 1.59 and a beta of 1.11. The stock’s 50-day moving average is $469.18 and its 200-day moving average is $423.62. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.65 earnings per share. Equities analysts predict that Microsoft Corporation will post 19.61 earnings per share for the current fiscal year.

Microsoft Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 0.8%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s payout ratio is currently 20.27%.

Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Higher Azure prices could support growth and margins. BNP Paribas said Microsoft may gain another growth lever as higher Azure prices are introduced to renewing customers, assigning a $549 price target. Microsoft’s Azure Has Another Growth Lever Waiting in the Wings, Analyst Says Positive Sentiment: Analysts raised their outlooks on AI demand. Cantor Fitzgerald lifted its Microsoft price target from $522 to $608 and maintained an overweight rating, citing opportunities in AI and cybersecurity. Erste Group also raised its earnings estimates. Cantor Fitzgerald Raises Microsoft Price Target to $608 Positive Sentiment: AI infrastructure demand remains substantial. Microsoft and Anthropic reportedly represent $87.7 billion of the $103 billion contract backlog at AI infrastructure provider Nscale, highlighting the scale of enterprise AI spending and potential Azure demand. Microsoft and Anthropic dominate Nscale’s contract backlog Positive Sentiment: Shareholder-return and valuation support added to the bullish case. Bill Ackman described Microsoft as a core holding after building a roughly $2.4 billion position, while Microsoft’s dividend increase and strong software franchise were cited as additional attractions. Neutral Sentiment: Microsoft is adding a fourth cloud region in Hyderabad, improving geographic resilience, although the company provided no site-level capacity or investment details. Satya Nadella’s expected attendance at a Trump-Xi state dinner could provide diplomatic visibility but has limited direct financial impact. Negative Sentiment: Copyright and AI-regulation concerns remain overhangs. Publisher testimony in ongoing copyright disputes has intensified questions about whether AI products substitute for original content. Microsoft executives have also warned that divergent AI rules could affect industry economics. Microsoft Slips as AI Testimony Sharpens Copyright Risk Negative Sentiment: New gaming-advertising initiatives generated investor skepticism. A patent covering contextual in-game advertisements raised concerns about user experience and monetization strategy. Microsoft Stock Slips on Xbox Patent for Ads in Video Games Negative Sentiment: Investors are weighing elevated AI capital spending, cloud-security concerns following the Hugging Face incident and the possibility that expectations are already priced in after Microsoft’s powerful summer advance. Redburn’s lower $440 target underscores the disagreement over valuation. Insider Buying and Selling In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Satya Nadella sold 86,525 shares of the business’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is currently owned by company insiders.

Microsoft Company Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.

The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.

Further Reading Five stocks we like better than Microsoft Can Bloom Energy Pop the Top Off AI’s Massive Energy Bottleneck? Coach’s Momentum Powers Tapestry Despite the Stock’s Sharp Pullback AI Is Reshaping SaaS—These 2 Software ETFs Offer Different Ways to Play It Insiders Signal Deep Value In DICK’s Sporting Goods Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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Microsoft (MSFT.O) will consider shareholder ​proposals at its annual meetings through next year, at the request of an activist looking to preserve ‌investor rights as they come under pressure from a contentious U.S. Securities and Exchange Commission rule change proposed last week.

Under an agreement with conservative activist Paul Chesser, seen by Reuters, Microsoft will continue to apply existing thresholds for investors to submit resolutions for a vote, even as the SEC ​considers changes that critics say would sideline individual investors, religious groups, unions and others who have had a say ​through the shareholder proposal process for decades.

The agreement only lasts a year, but could effectively offset ⁠efforts by the regulatory agency to shift power away from investors to corporate executives. Chesser said he hopes Microsoft's approach ​will become a corporate-governance model to assure mom-and-pop investors a voice that can be followed by other companies.

"Microsoft put in writing that ​the smallest long-term owners of the company will still have a way to be heard next year, no matter what the SEC does," said Chesser, director at the National Legal and Policy Center. "Every other company that claims to value its shareholders should be asked why it won't do ​the same," he said.

In an e-mailed statement, a Microsoft spokesperson said: "With the Securities and Exchange Commission announcing that its shareholder ​proposal regulatory framework is under review, we agreed to maintain the current eligibility thresholds for one year, providing Microsoft and its shareholders a clear ‌and ⁠predictable process for the next proxy cycle."

Shareholder resolutions on topics like climate change, workforce diversity and executive pay have become the focus of many shareholder meetings in recent years, although many have received diminishing support from major fund firms.

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Microsoft's meeting is set for December 8 and traditionally has been held early in the proxy cycle that runs through June 30 of each year, bringing ​attention to the company's governance ​procedures.

Last week SEC Chair Paul ⁠Atkins, an appointee of US President Donald Trump, proposed to end the agency's oversight of the resolutions process and move the function to state officials, which activists saw as a shift that ​would diminish their influence. The move is part of a broader shift of power away from ​investors toward managers ⁠by the Republican-dominated commission.

The agreement between Chesser and Microsoft, seen by Reuters, says Microsoft will continue to apply previous eligibility requirements for investors to submit resolutions for a vote. Chesser's group has similar resolutions pending with Procter & Gamble and Oracle (ORCL.N) and may submit more.

P&G's ⁠annual meeting ​is set for October 13. In its proxy statement dated August 28, the ​company recommended votes against the proposal, among other things calling it premature since the SEC hadn't yet proposed its rulemaking. A P&G representative declined to comment.

Oracle's ​AGM has not yet been set. A representative did not immediately respond to questions.

Microsoft stock earned several positive analyst reports as the cloud computing and software giant grows its AI business.

Microsoft (MSFT) "continues to be integral" to AI infrastructure, says Ron Westfall. He believes the Mag 7 company is poised to capture high-margin revenue through its Azure cloud so long as it maintains industry leadership.

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Sven Hoppe/picture alliance via Getty Images Microsoft began a new round of layoffs on Tuesday, affecting around 500 employees, primarily in its Xbox gaming division, and a small number of roles in other units like cloud + AI.

The latest cuts follow layoffs in July, when Microsoft said it would trim 2.1% of its global workforce, or about around 4,800 employees at the time.

The cuts are the latest step in Microsoft's effort to slim down its gaming business after years of expansion and big acquisitions. Xbox is working through a plan to eliminate roughly 20% of its workforce by the end of Microsoft's fiscal year, while reorganizing studios and deciding which businesses it still wants to own.

The latest developments in Xbox's "reset" include cutting 268 gaming roles, reorganizations of Xbox's studio groups, and updates on its divestment plans.

"The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring," Xbox executive Matt Booty wrote in a memo about the reset.

Microsoft's severance package in July offered laid-off US employees up to 39 weeks' base pay for most US employees with a minimum of 60 days plus additional time based on seniority and tenure, according to documents reviewed by Business Insider.

Read the memoTeam,

I'm writing to share several updates as part of the XBOX reset outlined earlier this year.

First, we are eliminating 268 roles across Halo Studios, other first-party studios, and the XGS management and central functions layer. The actions completed since July, inclusive of the studio divestitures, bring us roughly three-quarters of the way through previously announced restructuring. I am deeply grateful for what our colleagues have built, and I know how difficult today will be for those leaving and the teams around them.

Second, we are reorganizing our studios. The goal is to strengthen our franchises and games by operating fewer business units, aligning groups that already work closely together, and focusing our publishing expertise.

Activision will expand its remit to World's Edge, as well as Rare. Activision will also be developing the next Halo title, led by a new, purpose-built team that is separate from ongoing development and plans for Call of Duty. A small team at Halo Studios will continue supporting the Halo community and games in-market.Bethesda will expand its remit to include Obsidian, which will continue its current projects, including Grounded, as well as the new Fallout project made in collaboration with Bethesda Game Studios.King will expand its remit to include Microsoft Casual Games, uniting our two global leaders in casual game design and live operations.Playground and Turn 10 will come together as one studio focused on the Forza and Fable franchises. These two studios have been technological, creative, and franchise partners for over a decade, and today's changes will formally move their work into one team.Third, an update on our studio divestitures: In August, Compulsion and Double Fine returned to management with their IP, back catalogs, and runway funding. Undead Labs has now successfully transitioned on similar terms and, with a new publisher, will release State of Decay 3 day one on Game Pass. Unfortunately, two separate agreements for Ninja Theory fell through. We will now begin consultation with employees on a proposed closure while continuing to explore other paths forward. Consultation with Arkane remains underway and is expected to continue through the end of the year.

Today, our focus should be on supporting those affected and treating one another with care and respect. I will spend time with our studios over the next week. At our October 6 town hall, we will come together as an ALL-XBOX team to reflect on our progress and look ahead to one of the strongest game lineups in our history.

Matt

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Microsoft Layoffs Xbox More Artificial Intelligence Enterprise Software Cloud Computing Gaming

Oppenheimer has raised its Microsoft (NASDAQ: MSFT) stock price target to $570 from $515 while reiterating its ‘Outperform' rating.

The three largest cloud computing providers are Amazon (AMZN +1.87%), Alphabet (GOOG +1.88%) (GOOGL +1.55%), and Microsoft (MSFT +1.59%). These three command a massive two-thirds market share combined. However, not every single one of these stocks makes for a smart buy right now.

So, of the three, which two am I buying, and which makes the most sense to steer clear of? Let's take a look.

Image source: Getty Images.

AWS and Google Cloud growth rates are accelerating The reason the cloud computing giants are thriving right now is due to the incredible AI workload demand. The AI revolution will likely go down in history books as one of the more impactful technologies ever devised, and these three are primed to cash in on it.

Few companies have the computing power necessary to train and run AI models, so they rent computing capacity from one of the three major cloud computing providers. There is far more demand than there is supply, and the three are scrambling to build out as many data centers as possible so they can capture market share. That's why they're spending hundreds of billions of dollars on data centers, and it appears to be paying off.

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Amazon Web Services (AWS) holds the largest market share of the three, and is the slowest-growing as a result. In the second quarter, its revenue rose 37% year over year. However, this marks a major acceleration. Last year, AWS' growth rate hovered in the low 20% range, which makes this year's growth rate all the more incredible.

Alphabet's Google Cloud is having the most impressive performance of the three. In Q2, Google Cloud's revenue rose 82% year over year. Its operating margin also rose to 36%, marking a major improvement from years past. Google Cloud is the fastest-growing of the three, and with Alphabet spending around $200 billion on data centers this year, this growth rate will likely stay elevated for some time.

Microsoft Azure is the next fastest-growing cloud business. Azure grew at a 43% pace, but there's one issue I take with it: Its growth rate has hardly changed. Last quarter, it was 40%. The quarter before that, it was 39%. While these are solid growth rates in a vacuum, they look a bit suspicious when compared to its peers that are experiencing accelerating growth rates.

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As a result, Microsoft is on my avoid list. Unless it can start reporting meaningful revenue acceleration in its Azure division, AWS and Google Cloud will start to pull away in terms of market share. That gap may be impossible to close in the future.

However, that's not the only reason I'm avoiding Microsoft.

Microsoft's overall profits are growing more slowly All three of these companies are investing in various rapidly growing AI companies, and that's skewing their net income. As a result, I think looking at their operating income growth is a great measure of how their profits are growing. From this standpoint, Amazon and Alphabet are growing at a far greater rate than Microsoft.

AMZN Operating Income (Quarterly YoY Growth) data by YCharts

This shows that Amazon's and Alphabet's impressive performance in the cloud computing space is leaking over into companywide results, while Microsoft's aren't. If Microsoft doesn't start accelerating its cloud growth, this trend may continue, further expanding the lead that Amazon and Alphabet have as investment options.

Alphabet and Amazon look like far better investments than Microsoft right now. And I won't be surprised to see their stocks outperform over the next few years while Microsoft still enjoys market-beating performance, but just underperforms its competition.

BEIJING — With two days to go before Chinese President Xi Jinping is expected to land in the U.S., very little is known about which Chinese executives will join him.

China's Ministry of Foreign Affairs did not immediately respond to a CNBC request for comment Tuesday morning. Late on Monday, the ministry confirmed Xi's U.S. trip, planned for Wednesday to Friday.

On the U.S. side, Microsoft CEO Satya Nadella is one of the executives who will attend a dinner expected Thursday in Washington, D.C., according to a source familiar.

Microsoft and the White House did not immediately respond to a CNBC request for comment.

Senior U.S. officials have shared names of some other executives who will join:

Those business leaders include:

Nvidia's Jensen HuangOpenAI's Sam AltmanGoogle's Sundar PichaiTesla and SpaceX's Elon MuskCitigroup's Jane FraserAmazon's Jeff BezosApple's Tim Cook Dell's Michael DellOn the Chinese side, Reuters reported last week that business representatives under consideration included those from electric car giant BYD, smartphone company Xiaomi, battery makers CATL and Gotion, consumer electronics manufacturer Hisense, automotive parts company Wanxiang, state-owned Bank of China and agricultural conglomerate COFCO Group.

BYD had no comment when contacted by CNBC. The other Chinese companies did not immediately respond to requests for comment.

As tensions between the U.S. and China have escalated in recent years, both governments have put companies from the other country on blacklists that restrict business activity.

—CNBC's Jordan Novet and Ashlee Trujillo contributed to this report.

Microsoft Corp. (NASDAQ:MSFT) could see additional upside from Azure pricing over time, even as recent cloud growth has largely been driven by capacity expansion and efficiency gains, according to BNP Paribas Equity Research.

Analyst Stefan Slowinski reiterated a positive view on Microsoft with a $549 price target, implying about 11% upside from the stock’s Sept. 18 closing price of $493.80.

BNP Paribas spoke with Microsoft Investor Relations ahead of the company’s fiscal first-quarter 2027 quiet period. Microsoft did not change its guidance or provide an intra-quarter update.

Azure Pricing Benefits Could Build GraduallySlowinski said GPU rental pricing has become one of the biggest topics in recent investor discussions.

Microsoft acknowledged that Azure pricing is moving higher. However, the company does not plan to alter existing contract economics. Instead, new pricing would take effect as contracts renew.

That means pricing benefits are likely to flow into Azure revenue gradually rather than trigger an immediate jump in growth, the analyst said.

Importantly, Microsoft indicated that recent Azure strength has not been driven by pricing. Instead, fleet efficiency improvements and additional capacity remain the main growth drivers.

BNP Paribas called that encouraging because Azure growth has already accelerated into the mid-40% range before any significant pricing impact.

Microsoft Still Hunting For AI CapacityThe company also pushed back on a Bloomberg report suggesting it plans to scale computing capacity to 38 gigawatts by 2032, although it did not provide its own target.

It declined to address speculation that it may have sourced capacity from SpaceX. However, Microsoft reiterated that it continues to seek additional compute capacity as demand remains ahead of supply.

Slowinski said near-term access to infrastructure that meets Microsoft’s specifications remains difficult.

OpenAI Economics Remain In FocusMicrosoft also confirmed that a cumulative cap exists on its revenue-sharing arrangement with OpenAI, although it did not disclose the amount.

The Information previously reported a $38 billion cap. BNP Paribas estimates that level could allow revenue sharing to continue through early fiscal 2029 if OpenAI tracks toward reported long-term revenue targets.

Microsoft said OpenAI revenue sharing has not been a meaningful source of Azure outperformance in recent quarters. The company also said it would disclose the contribution if it became material.

Meanwhile, the company reiterated that its recent segment restructuring reflects how the company increasingly manages its businesses internally. It also maintained its expectation for Microsoft 365 growth to accelerate through fiscal 2027.

Microsoft carries a Buy consensus rating and an average price forecast of $563.04.

Cantor Fitzgerald maintained an Overweight rating Monday and raised its target to $608. Citizens maintained a Market Outperform rating with a $550 target on Sept. 15. Stifel maintained a Hold rating and raised its target to $530 on Sept. 4.

Microsoft Stock Performance And Technical AnalysisMicrosoft stock traded higher Monday as a broad technology rally lifted large-cap stocks.

The stock remains above its 50-day SMA of $466.92, 100-day SMA of $435.27 and 200-day SMA of $431.64.

However, the stock trades slightly below its 20-day SMA of $498.20. MACD is also below its signal line, pointing to softer near-term momentum.

Resistance sits near $513.50, while support is around $486.

Price ActionMicrosoft shares were up 0.54% at $496.44 at the time of publication Monday, according to Benzinga Pro data.

Photo via Shutterstock

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Although Microsoft Corp. (NASDAQ: MSFT) stock has struggled to reclaim its all-time high (ATH) so far in 2026, up nearly 35% over the past six months, Patrick Walravens, an expert at Citizens, joined other Wall Street analysts in expecting a rally towards a new peak over the next 12 months. 

On September 21, 2026, Walravens maintained a ‘Buy’ rating for Microsoft stock, according to a note sent to clients. This researcher maintained the firm’s 12-month price target for MSFT stock at $550.

With Microsoft stock trading at $494.07, Citizens signals a potential 11.32% upside by September 21, 2027. This firm has reiterated its ‘Market Outperform’ rating for MSFT, driven by the company’s Chairman and CEO Satya Nadella’s clear and highly disciplined strategic vision for responsible artificial intelligence (AI) deployment. 

“Citizens reiterates its Market Outperform rating as Microsoft outlines principles for responsible AI development and deployment,” Walravens noted.

Furthermore, he believes that Microsoft stock benefits from the company’s ability to balance robust human control with industry-leading safety standards and enterprise-grade privacy assurances, thereby effectively eliminating key regulatory and operational risks.

Is Microsoft a good stock to buy? Earlier on Monday, Thomas Blakey, an expert at Cantor Fitzgerald, reaffirmed a ‘Buy’ rating for MSFT and raised the firm’s 12-month price target to $608 from $522. Additionally, Brent Thill, an analyst at Jefferies, reiterated a ‘Buy’ rating for Microsoft stock and maintained the firm’s 12-month price target at $575.

As such, 35 Wall Street analysts surveyed by TipRanks over the last 3 months have set an average rating of ‘Strong Buy’. Meanwhile, their mean 12-month price target for MSFT is $569.94.

Microsoft stock forecast 2026. Source: TipRanks MSFT price performance  Over the past 12 months, MSFT stock has fallen 3.96%, after getting trapped in a bear market since September 2025 and July 2026. However, Microsoft has regained bullish sentiment after forming a likely higher high amid strong AI buildout.

MSFT stock chart for 12 months. Source: Finbold As such, if Microsoft stock continues with its recently established uptrend, the ATH targets from these Wall Street analysts could be met.

Featured image via Shutterstock

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Microsoft is sitting on the biggest contracted backlog in its history while its stock trails the broader market by nearly 900 basis points, and the reason for that disconnect reveals everything about whether this setup is a trap or a…

At $493.78, Microsoft (NASDAQ:MSFT | MSFT Price Prediction) sits at a pivotal setup for investors. Azure growth, an unprecedented contracted backlog, and a capex cycle that has become the entire debate around this stock make a clear view worth having right now.

Microsoft is the world’s second-largest company by market value at roughly $3.67 trillion. Azure crossed $100 billion in annual revenue for the first time while full-year capex ballooned to $115.95 billion, up 79.62% year over year.

Shares have drifted lower through the fiscal year even as results beat estimates, leaving MSFT trailing the broad market and setting up a sharper debate about what investors are actually paying for.

Why Azure and the $678 Billion Backlog Frame the Bull Case Azure grew 43% year over year in the fourth quarter, and management guided to roughly 45% in constant currency for the first quarter of fiscal 2027. Commercial remaining performance obligations reached $678 billion, up 84%, with the portion recognizable beyond the next 12 months up 112%. That is multi-year revenue visibility few software companies can match.

Microsoft 365 Copilot passed 30 million paid seats, GitHub Copilot revenue accelerated over 60% quarter over quarter, and Foundry serves 100,000 customers. Analyst sentiment: 14 strong buy and 38 buy ratings against only 3 holds and zero sells, with a forward P/E of 25 that is not demanding for a business compounding earnings above 30%.

Why the Capex Cycle Has Bears Digging In Free cash flow fell to $66.99 billion for fiscal 2026, down 6.46%, with Q4 free cash flow dropping 23.2%. Calendar 2026 capex expectations translate to roughly $175 billion, and FY27 capex will grow again. Cash and equivalents fell 30.78% to $20.94 billion. All of that spend has to be powered, cooled, and networked by somebody, which is why we pulled together seven suppliers behind the AI buildout in a free report.

MSFT sold off after the January earnings report despite beating estimates, with filing-day prices falling from $517.85 to $395.50 across fiscal 2026. Rising OpenAI equity-method losses, a -4% More Personal Computing segment, and a P/FCF of 55 give the bear case real teeth if AI ROI slips.

Why Some Investors Argue for Patience The hold case: Azure growth is already baked in and capex overhang could persist for several quarters. Q2 FY26 EPS estimates saw 17 downward revisions against 8 upward. With shares up just 2.75% year to date, waiting for one clean quarter pairing capex deceleration with continued Azure strength has merit.

What the Numbers Say Right Now MSFT trades at $493.78 against a consensus analyst target of $572.92, implying roughly 16% upside. Targets are one data point among many. The rating mix is 52 buy-equivalent calls versus 3 holds and no sells.

Valuation is reasonable: trailing P/E of 27, forward P/E of 25, operating margin of 46.78%, and ROIC of 22.01%. FY27 consensus EPS sits at $19.75 on revenue of roughly $391 billion.

MSFT is up 2.75% year to date and down 2.08% over the past year, while the S&P 500 has returned 11.7% YTD and 15.01% over one year. That underperformance is the setup.

Why the Underperformance Looks Like an Opportunity At $493.78, the setup for Microsoft warrants a closer look. Here is why.

If Azure delivers the guided ~45% constant-currency growth in Q1 FY27 and Intelligent Cloud lands in the $40.95 to $41.25 billion range, the market’s fear that hyperscale demand is peaking gets falsified. A $678 billion backlog with weighted-average duration of 2.3 years is a contracted revenue stream, and 30% of it converts within 12 months.

MSFT has lagged the S&P 500 by roughly 900 basis points YTD despite five straight EPS beats and Azure growth accelerating into year-end. Forward P/E of 25 for a business compounding operating income at 20.78% is the cheapest this stock has looked relative to its growth in years. Amy Hood emphasized that CPUs and GPUs are short-lived assets Microsoft can throttle if demand softens, and management expects to remain free cash flow positive in FY27.

What invalidates the thesis: an Azure print that misses the mid-40s bar, a capex figure that pushes materially above the ~$175 billion calendar-2026 mark without matching revenue conversion, or evidence that Copilot seat growth is stalling below the 30 million level. Watch RPO ex-OpenAI, which grew 25% last quarter, as the cleanest signal that enterprise demand is broad-based.

Bulls see a market-leading AI franchise trading at a discount to the S&P 500’s year-to-date return, with a contracted backlog that underwrites the next 24 months of growth and a management team that has already shown it can flex spending. That is the case the bulls will make at this price.

Contact [email protected] for any questions or corrections.