Track market-moving stories before they get noisy

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Meta Platforms (NASDAQ:META | META Price Prediction) and Microsoft (NASDAQ:MSFT) both step to the microphone on July 29, and the setups look nothing alike. Meta’s last quarter showed AI plugging straight into a $150B+ ad engine reaching 3.56 billion daily users. Microsoft’s most recent report leaned on cloud backlog and capacity that takes quarters to convert.

Ad Impressions Print Cash. Azure Waits on Steel. Meta’s Q1 report showed ad impressions up 19% YoY and average price per ad up 12%, with revenue of $56.31B (+33.1% YoY). Mark Zuckerberg framed it plainly: “We had a milestone quarter with strong momentum across our apps and the release of our first model from Meta Superintelligence Labs.” Advantage+ and recommendation upgrades turned infrastructure into inventory sold the same week.

Microsoft’s Q3 FY2026 delivered revenue of $82.89B (+18.3%) with Azure up 40% and an AI run rate of $37B, +123% YoY. Satya Nadella called it “the beginning phases of AI diffusion.” The catch: enterprise contracts cannot be turned on faster than servers arrive.

Business Driver Meta Microsoft Main Growth Engine AI-optimized ads Azure and Copilot Monetization Speed Immediate impressions Multi-quarter onboarding CapEx Growth YoY +46.8% +84.4% One Ships Bits, the Other Ships Buildings Meta’s FY2026 CapEx raised to $125-145B is aimed at superintelligence models that improve targeting on day one. Microsoft’s $627B commercial RPO backlog (+99% YoY) is real, but locked behind data center construction and GPU delivery windows. Prediction markets caught the difference: Polymarket assigns a 94.7% probability Meta beats, versus 91% for Microsoft. Close, but the tone diverges more than the odds.

The Next Test Is Capex Justification Since April 29, META is down 10.97% and MSFT is down 9.88%, so both stocks enter this earnings report bruised. I will be watching whether Meta’s ad price growth lands in the 9%-12% range the crowd expects (38.5% probability) and whether Microsoft’s Azure growth clears the 40%-42% consensus (53.5% probability). Anything less on Azure with capex still climbing would repeat April’s 9.99% single-day drop.

Why I Lean Toward Meta for This Report Honestly, I think Meta walks into July 29 with the cleaner story. AI spend is already showing up in the ad auction, and a P/E of 22 gives room to breathe. Microsoft is the higher-quality compounder over five years, but at 23 times earnings with capex up 84% YoY, patience is required. If you want a defensive AI compounder, Microsoft still fits. If you want the faster feedback loop into this report, Meta is where I would rather be. If capex commentary sours on either call, I would step back on both and reassess in October.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

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With four Mag 7 companies reporting earnings this week, Maria Llerena discusses the CapEx expectations for Microsoft (MSFT), Meta Platforms (META), and Amazon (AMZN) after Alphabet (GOOGL) shares sold off when it increased figures. Nick Raich adds that Wall Street is focused more on the AI spending than profits its generating, urging investors to focus more on earnings than CapEx.

Microsoft MSFT shares are inching higher heading into the giant’s fiscal Q4 earnings scheduled to be released after market close on Wednesday, July 29th.

Wall Street has set a high bar for MSFT, with consensus estimates set at $87.42 billion for revenue, representing a 14.4% year-on-year increase – and $4.21 per share for earnings, reflecting a 15.3% growth from last year.

Still, Microsoft stock has come under pressure amidst a broader tech rout in recent weeks, currently down more than 15% versus its June high.

The recent weakness in MSFT shares has failed to deter options traders, though.

Heading into the quarterly print, the put-to-call ratio on contracts expiring at the end of this week sits at 0.41, indicating a bullish skew.

And the upper price on those contracts, according to Barchart, is set at $416.54, signaling potential for a more than 6% rally in Microsoft Corp on the back of the earnings release.

Crucially, this optimism is mirrored in the technical setup as well.

MSFT has recently ripped through its 20-day moving average (MA), and is now trading just under its 50-day MA, with a clear break above the $399 level expected to accelerate positive momentum after Q2 financials.

Adding a layer of nuance to the earnings setup, UBS’s senior analyst Karl Kierstead trimmed his price target on Microsoft shares today to $480.

The revision follows recent field checks with roughly a dozen key enterprise clients and channel partners.

Kierstead pointed to near-term capacity constraints on external Azure customers and growing token-optimization efforts by developers, which could cap immediate upside in cloud revenue growth.

Moreover, UBS cautioned that MSFT’s capex could escalate beyond previous expectations due to memory chip inflation and heavy infrastructure commitments, noting that public markets have recently punished tech giants whose surging AI spend fails to instantly yield expanding operating margins.

Even with the price target haircut, UBS maintained its Buy rating on MSFT stock – stressing that the long-term structural thesis for the tech titan remains firmly intact.

In fact, Kierstead’s downwardly revised price objective still represents a massive 22% upside from here. According to him, underlying demand across Azure and rival AWS remains “exceptionally” healthy.

Plus, strategic monetization levers, such as GitHub Copilot pricing updates and growing enterprise AI integration, are expected to provide a steady tailwind to cloud growth.

With Microsoft trading at an “attractive valuation” relative to its long-term growth outlook, UBS views the current pullback as a temporary consolidation before the next leg higher.

A small 0.93% dividend yield on MSFT makes it even more compelling as a long-term holding, at least for income-focused investors.

By PYMNTS  |  July 27, 2026

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Microsoft has introduced an agentic security system designed to protect against cybersecurity threats posted by attackers using artificial intelligence and agents.

The new Project Perception turns signals into real-time protections and uses AI to defend against AI, the company said in a Monday (July 27) blog post.

“Project Perception is based on a simple idea: effective defense requires continuous understanding of how an attacker sees the world, how a defender evaluates risk and how protections are improved over time,” Microsoft said in the post.

Perception coordinates three classes of specialized agents, including red team agents that identify potential vulnerabilities before an attacker can exploit them, blue team agents that investigate and determine what represents meaningful risk, and green team agents that take corrective actions and strengthen defenses, according to the post.

“Working together, these agents form a closed-loop system that continuously discovers, evaluates and improves an organization’s security posture,” the post said.

Project Perception uses a multi-model architecture that encompasses frontier and specialized cyber models and optimizes for quality and cost, per the post.

“As part of this multi-model strategy, we are committed to bringing customers the best models for each security task, including innovating with our own specialized models,” Microsoft said in the post.

Together with agents and models, Project Perception includes signals and sensors, security context, a harness that coordinates the agents and models, and actuators that turn decisions into protection, according to the post.

“Together, these layers create a continuous learning system that can understand risk, adapt to changing conditions and improve security outcomes over time,” the post said.

It was reported July 15 that Microsoft’s cybersecurity business was developing more AI security products, cutting back on some of its more traditional security products and consolidating engineering teams.

The report said Microsoft was making these changes to better respond to customer demand for solutions to the threat of AI-powered hacks, and to capture some of the spending that is going to AI firms Anthropic and OpenAI.

The PYMNTS Intelligence report “Where Payments Decisions Happen: How Issuer Data Is Powering the Next Era of Commerce” found that 42% of issuers said AI has helped them save more than $5 million from fraud attempts in recent years.

Microsoft is scheduled to report earnings after the closing bell on Wednesday, with traders anticipating a big move from the software giant's stock.

Microsoft has topped earnings expectations consistently in recent years, yet its stock is near a one-year low. So while it’s worth paying attention to revenue and profits when the company reports its fiscal year-end results Wednesday, there are clearly other forces at play on Wall Street.

Here are the key stats and trendlines to watch going into the earnings report for the fourth quarter of the company’s 2026 fiscal year, ended June 30.

Core numbers: Analysts expect revenue of about $87.7 billion for the quarter, up 14.7% from a year ago, and earnings of $4.24 per share, up 16%, according to Yahoo Finance. Microsoft’s own revenue guidance was $86.7 billion to $87.8 billion — meaning Wall Street is looking for a result at the very top of the company’s range.

For the full fiscal year, that works out to roughly $329 billion in revenue, up 17% from $281.7 billion in fiscal 2025.

Capital expense: This is the big one. Microsoft told investors to expect more than $40 billion in capital spending for the quarter, which would be a record — up from $31.9 billion in the March quarter and $37.5 billion in the one before that. About two-thirds goes to GPUs and other short-lived hardware.

For the calendar year, the company expects to spend roughly $190 billion. Chief Financial Officer Amy Hood said about $25 billion of that total is the result of higher component prices.

One big question this week will be the company’s guidance for capex going forward. Because this is the fiscal year-end, Wednesday brings the company’s first capital spending guidance for fiscal 2027, which began July 1.

Capex concerns: Google parent Alphabet last week foreshadowed what may happen to Microsoft. It reported revenue up 24% and cloud revenue up 82%, then raised its own capital spending forecast to as much as $205 billion — well above the roughly $188 billion analysts expected. The stock fell 7% the next day and Alphabet fell below its prior $4 trillion market valuation.

Big picture, investors seem to have decided the capital spending is getting ahead of the payoff. Data centers and chips cost money now, while the AI revenue meant to justify them arrives over years — if it ever reaches the scale these companies are promising.

Moody’s Ratings raised its own red flags about this last week, saying the six largest cloud and AI platforms will spend about $785 billion this year and close to $1 trillion in 2027. Demand is real and accelerating, the ratings agency said, but “the ultimate return on investment is unclear.”

Cloud margins: This is where the capital spending starts to become evident in the company’s core quarterly results. Microsoft Cloud gross margin — the share of cloud revenue left after the cost of delivering the service — has slipped from 72% three years ago to 66% last quarter.

For the quarter it reports Wednesday, Microsoft told investors to expect about 64%. On the prior earnings call, Hood attributed the decline to AI infrastructure costs and growing use of GitHub Copilot, partly offset by efficiency gains in Azure.

Microsoft doesn’t absorb the cost of a data center all at once. It spreads the expense across the years the equipment is expected to last. That cost shows up here, in the expense of running the cloud — making this one of the first places where the capital spending hits earnings.

Microsoft Azure: On its prior conference call, Microsoft said it expected the Azure cloud business to grow 39% to 40% in constant currency in Q4, a slight acceleration from the 39% posted in Q3. Analysts expect roughly the same, with some outliers such as BNP Paribas looking for 41%.

But the published expectations aren’t the real bar. In January, Azure grew 38% — ahead of Microsoft’s guidance — and the stock fell 10%, because Wall Street had privately been expecting 39.4%.

Azure’s growth rate also reflects a choice as much as it does demand. Microsoft has been routing scarce computing capacity to its own products first — Copilot, GitHub Copilot, internal research — and selling what remains to Azure customers. Hood has said the growth rate would have been higher had that capacity gone to customers instead. Demand continues to outrun supply, and the company expects to stay “constrained at least through 2026.”

Business Insider reported Sunday that the shortage of supply has pushed Microsoft to shop for additional computing capacity outside its own data centers, evaluating capacity from Amazon and Google, and that Amazon stepped in following a series of GitHub outages.

Copilot and AI revenue: Microsoft said in April that its AI business had reached a $37 billion annual revenue run rate, up 123% from a year earlier. It was the first update to that number since January 2025, when the company put it at $13 billion. Whether Microsoft discloses it a third time Wednesday is a signal in itself.

Microsoft 365 Copilot passed 20 million paid seats last quarter, up from 15 million in January. That’s about 4.4% of the 450 million commercial seats across Microsoft 365 — the gap that has drawn skepticism from investors all year. Microsoft said it expects the number of new paid seats to grow again this quarter.

Meanwhile, the company is launching new initiatives to drive adoption of AI among its customers. Earlier this month it launched the Microsoft Frontier Company, a $2.5 billion effort to put 6,000 engineers inside customer organizations to help them deploy AI.

Wednesday is also the first report since Microsoft changed how it charges for GitHub Copilot. As of June 1, customers pay based on usage rather than a flat fee per user.

The OpenAI backlog: Microsoft’s remaining performance obligations — RPO, a measure of contracts customers have signed but the company has not yet fulfilled — reached $627 billion last quarter, up 99% from a year earlier. About a quarter of that is expected to become revenue in the next 12 months. It’s the strongest evidence that there’s real demand supporting the AI buildout.

But the RPO is also highly concentrated. In January, when it stood at $625 billion, 45% was tied to OpenAI — roughly $281 billion committed by a single customer that is still losing money. Take OpenAI out of last quarter’s figure and the growth drops from 99% to 26%.

Then in April, Microsoft and OpenAI revamped their partnership, and OpenAI ended its exclusive commitment to run on Azure.

Reliability: On July 23, a bug in Microsoft’s automated network maintenance tooling cut a West US Azure data center off from the company’s global network, knocking out Teams, SharePoint, OneDrive and Copilot Chat for about five hours. Microsoft has published a preliminary post-incident report, and a final one is due within two weeks.

The outage falls in the quarter that began July 1, so it won’t appear in Wednesday’s numbers. But it comes as Microsoft is asking businesses to hand AI agents real control of their operations.

Retirement charge: Wednesday’s results will include about $900 million in one-time costs from Microsoft’s voluntary retirement program, the first in the company’s 51-year history. Hood said roughly $350 million falls in the cost of revenue and $550 million in operating expenses.

About 8,750 U.S. employees were eligible — 7% of Microsoft’s U.S. workforce — and about 30% accepted, Chief People Officer Amy Coleman confirmed in an interview with GeekWire, in line with what the company expected. Those departures reduced the size of the 4,800-job cut Microsoft announced July 6, which happened after this quarter ended.

Even with the retirement costs, Microsoft told investors it expects operating margins for the full fiscal year to be about a point higher than last year. Hood also said on last quarter’s call that headcount declined year over year and will keep declining in fiscal 2027.

Windows: Microsoft expects Windows OEM revenue — what PC makers pay to put Windows on their machines — to decline close to 20% this quarter.

A few factors are driving this:

Last year’s wave of PC upgrades, when support for Windows 10 ended, makes for a tough comparison. PC makers stocked up on parts and machines ahead of rising memory prices and are now working through them. The PC market itself is slower, because memory prices have made computers more expensive. The memory shortage is hitting Microsoft a few different ways. In addition to adding about $25 billion to the company’s capital spending this calendar year, as noted above, it lowers what Microsoft earns from Windows. Also, in late June, Microsoft raised Xbox console prices by $100 to $150, saying storage and memory costs had risen more than 2.5 times.

This week: Facebook parent Meta reports the same afternoon as Microsoft, with Apple and Amazon on Thursday and Alphabet already out. Check back Wednesday afternoon for coverage.

Posted by Defense World Staff on Jul 27th, 2026

Carnegie Investment Counsel increased its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 2.8% in the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 428,997 shares of the software giant’s stock after purchasing an additional 11,848 shares during the quarter. Microsoft makes up 3.0% of Carnegie Investment Counsel’s investment portfolio, making the stock its 3rd largest holding. Carnegie Investment Counsel’s holdings in Microsoft were worth $156,616,000 as of its most recent filing with the SEC.

A number of other large investors have also recently added to or reduced their stakes in MSFT. Taylor Securities Services Inc. acquired a new position in Microsoft during the 4th quarter valued at $2,616,000. Werba Rubin Papier Wealth Management grew its position in Microsoft by 15.7% in the 4th quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock worth $6,041,000 after purchasing an additional 1,698 shares during the last quarter. SG Americas Securities LLC increased its holdings in shares of Microsoft by 2,332.1% during the 4th quarter. SG Americas Securities LLC now owns 6,746,017 shares of the software giant’s stock worth $3,262,509,000 after purchasing an additional 6,468,645 shares during the period. World Investment Advisors raised its position in shares of Microsoft by 22.1% during the fourth quarter. World Investment Advisors now owns 272,424 shares of the software giant’s stock valued at $131,750,000 after buying an additional 49,371 shares during the last quarter. Finally, Overbrook Management Corp raised its position in shares of Microsoft by 2.8% during the fourth quarter. Overbrook Management Corp now owns 87,535 shares of the software giant’s stock valued at $42,334,000 after buying an additional 2,384 shares during the last quarter. Institutional investors own 71.13% of the company’s stock.

Microsoft Price Performance Shares of MSFT opened at $381.70 on Monday. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. The company has a 50-day moving average price of $398.21 and a two-hundred day moving average price of $407.62. The stock has a market cap of $2.84 trillion, a price-to-earnings ratio of 22.72, a P/E/G ratio of 1.17 and a beta of 1.13. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $555.45.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, beating the consensus estimate of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The company had revenue of $82.89 billion for the quarter, compared to analyst estimates of $81.44 billion. During the same period in the prior year, the company posted $3.46 EPS. The company’s revenue was up 18.3% compared to the same quarter last year. Equities analysts predict that Microsoft Corporation will post 16.7 EPS for the current fiscal year.

Microsoft Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Thursday, August 20th. Microsoft’s dividend payout ratio is 21.67%.

Analyst Ratings Changes A number of equities research analysts recently weighed in on MSFT shares. Rothschild & Co Redburn decreased their target price on Microsoft from $450.00 to $400.00 and set a “neutral” rating on the stock in a research report on Thursday, April 23rd. Wells Fargo & Company cut their price target on Microsoft from $650.00 to $625.00 and set an “overweight” rating for the company in a report on Wednesday, July 15th. Robert W. Baird reduced their price objective on Microsoft from $540.00 to $500.00 and set an “outperform” rating for the company in a research report on Wednesday, April 15th. CLSA began coverage on Microsoft in a report on Monday, July 20th. They set an “outperform” rating and a $535.00 price objective on the stock. Finally, UBS Group restated a “buy” rating on shares of Microsoft in a research report on Friday, April 24th. Forty-two equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, Microsoft presently has an average rating of “Moderate Buy” and a consensus target price of $555.40.

Get Our Latest Research Report on Microsoft

Insider Buying and Selling at Microsoft In other news, EVP Takeshi Numoto sold 4,500 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $402.84, for a total value of $1,812,780.00. Following the sale, the executive vice president owned 47,468 shares of the company’s stock, valued at approximately $19,122,009.12. This represents a 8.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Amy Coleman sold 1,262 shares of the stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the sale, the executive vice president owned 46,003 shares of the company’s stock, valued at $18,922,874.02. This trade represents a 2.67% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 23,762 shares of company stock worth $10,508,361 over the last three months. Company insiders own 0.03% of the company’s stock.

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

Positive Sentiment: Microsoft joined 25 tech companies in urging U.S. policymakers not to impose broad restrictions on open-weight and open-source AI models, a stance that supports its broader AI ecosystem strategy and could help preserve flexibility for future product development. Reuters article Positive Sentiment: Microsoft also backed a coalition letter with Nvidia, Meta, and other firms arguing that open-weight AI is important for U.S. leadership, reinforcing investor confidence that the company remains a major AI platform player rather than being boxed into one model provider. Business Insider article Positive Sentiment: Microsoft’s expanded Databricks partnership extends a key cloud/data-AI relationship through the 2030s, which should help Azure adoption and strengthen long-term enterprise demand for Microsoft’s cloud services. TipRanks article Neutral Sentiment: Several previews ahead of Microsoft’s July 29 earnings report say the big investor focus will be FY2027 CapEx guidance and Azure growth, with analysts expecting strong results but worrying that AI infrastructure spending could weigh on free cash flow and margins. MarketBeat article Negative Sentiment: Multiple law firms issued class-action alerts and deadline reminders tied to Microsoft securities-fraud claims, including allegations related to Copilot disclosures, which adds headline risk and may keep some investors cautious into earnings. GlobeNewswire article Negative Sentiment: Broader tech weakness tied to AI spending fears also weighed on Microsoft, as investors sold mega-cap names after seeing massive capital outlays across the sector and questioning near-term returns on AI investment. Fox Business article About Microsoft (Free Report)

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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Fifth Third Bancorp raised its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 59.1% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 4,576,422 shares of the software giant’s stock after buying an additional 1,700,110 shares during the period. Microsoft accounts for about 3.1% of Fifth Third Bancorp’s portfolio, making the stock its 5th largest holding. Fifth Third Bancorp owned about 0.06% of Microsoft worth $1,694,054,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Norges Bank bought a new position in Microsoft in the fourth quarter valued at approximately $50,664,631,000. Auto Owners Insurance Co raised its stake 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 in the last quarter. Nuveen LLC bought a new stake in shares of Microsoft during the 1st quarter worth approximately $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Microsoft by 500.0% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant’s stock valued at $30,840,432,000 after buying an additional 49,618,571 shares during the last quarter. Finally, Laurel Wealth Advisors LLC boosted its holdings in shares of Microsoft by 49,640.3% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant’s stock valued at $14,905,904,000 after buying an additional 29,906,791 shares during the last quarter. 71.13% of the stock is owned by institutional investors.

Insider Activity at Microsoft In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the company’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president directly owned 46,003 shares of the company’s stock, valued at $18,922,874.02. This represents a 2.67% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Takeshi Numoto sold 4,500 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total value of $1,812,780.00. Following the transaction, the executive vice president owned 47,468 shares in the company, valued at $19,122,009.12. The trade was a 8.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 23,762 shares of company stock worth $10,508,361 in the last ninety days. 0.03% of the stock is owned by company insiders.

Microsoft Price Performance Microsoft stock opened at $381.70 on Monday. The company’s 50-day moving average price is $398.21 and its two-hundred day moving average price is $407.62. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. The stock has a market cap of $2.84 trillion, a P/E ratio of 22.72, a P/E/G ratio of 1.17 and a beta of 1.13. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $555.45.

Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The company had revenue of $82.89 billion during the quarter, compared to analysts’ expectations of $81.44 billion. During the same quarter in the previous year, the company posted $3.46 earnings per share. The business’s revenue was up 18.3% on a year-over-year basis. As a group, analysts expect that Microsoft Corporation will post 16.7 EPS for the current year.

Microsoft Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 1.0%. Microsoft’s payout ratio is 21.67%.

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

Positive Sentiment: Microsoft joined 25 tech companies in urging U.S. policymakers not to impose broad restrictions on open-weight and open-source AI models, a stance that supports its broader AI ecosystem strategy and could help preserve flexibility for future product development. Reuters article Positive Sentiment: Microsoft also backed a coalition letter with Nvidia, Meta, and other firms arguing that open-weight AI is important for U.S. leadership, reinforcing investor confidence that the company remains a major AI platform player rather than being boxed into one model provider. Business Insider article Positive Sentiment: Microsoft’s expanded Databricks partnership extends a key cloud/data-AI relationship through the 2030s, which should help Azure adoption and strengthen long-term enterprise demand for Microsoft’s cloud services. TipRanks article Neutral Sentiment: Several previews ahead of Microsoft’s July 29 earnings report say the big investor focus will be FY2027 CapEx guidance and Azure growth, with analysts expecting strong results but worrying that AI infrastructure spending could weigh on free cash flow and margins. MarketBeat article Negative Sentiment: Multiple law firms issued class-action alerts and deadline reminders tied to Microsoft securities-fraud claims, including allegations related to Copilot disclosures, which adds headline risk and may keep some investors cautious into earnings. GlobeNewswire article Negative Sentiment: Broader tech weakness tied to AI spending fears also weighed on Microsoft, as investors sold mega-cap names after seeing massive capital outlays across the sector and questioning near-term returns on AI investment. Fox Business article Wall Street Analyst Weigh In MSFT has been the topic of a number of recent analyst reports. Cantor Fitzgerald restated an “overweight” rating and set a $502.00 target price on shares of Microsoft in a report on Thursday, June 4th. Tigress Financial boosted their price objective on shares of Microsoft from $595.00 to $680.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. UBS Group reaffirmed a “buy” rating on shares of Microsoft in a report on Friday, April 24th. BNP Paribas Exane dropped their price objective on Microsoft from $556.00 to $555.00 and set an “outperform” rating on the stock in a research note on Friday, May 1st. Finally, Argus cut their price objective on Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a research report on Friday, July 10th. Forty-two investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $555.40.

Get Our Latest Analysis on Microsoft

Microsoft Company Profile (Free Report)

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

Featured Articles Five stocks we like better than Microsoft RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit

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Jay Woods points out the inflationary concerns he sees lingering over the Fed beyond crude oil prices. Out of the Mag 7 earnings, he says Microsoft (MSFT) will be the one to watch the most as Azure cloud growth and tentative CapEx increases take focus of investors.

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SummaryMicrosoft Corporation faces free cash flow compression and margin pressure from surging AI infrastructure CAPEX, with shares down over 20% in the past year.Base case analysis implies MSFT is priced below its 8%-12% WACC, offering little margin of safety and justifying a Hold rating at current levels.Robust Intelligent Cloud growth alone likely cannot sustain historical returns; achieving >$600B revenue requires sustained high-margin segment growth, which remains uncertain.Key risks include margin dilution from capital-intensive AI data centers, competitive pressures, and heavy reliance on OpenAI for backlog realization. lcva2/iStock Editorial via Getty Images

Microsoft Corporation's (MSFT) share price has come under pressure lately, down over 20% the past year, due to investor concerns over free cash flow compression driven by heavy CAPEX and margin pressure from AI infrastructure costs. Under

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Key Takeaways Microsoft is likely to report earnings results on July 29, a key event for AI and tech ETFs.Azure growth is the key to easing AI ROI concerns and lifting sentiment. GXPT, VGT and GAMR may react sharply as Microsoft remains a top holding. Microsoft Corporation (MSFT - Free Report) is set to report fourth-quarter fiscal 2026 earnings results on July 29, 2026 — an event that could become a key catalyst not only for the software giant but also for artificial intelligence (AI)-focused exchange-traded funds (ETFs).

Despite robust growth in its cloud computing and AI businesses, Microsoft has emerged as one of the weakest-performing mega-cap technology stocks in 2026, leaving investors confused, per a The Street article, as quoted on Yahoo Finance.

Unlike Nvidia, shares of which have continued to rally on booming AI demand, Microsoft's stock has fallen 19.3% from the start of the year till July 24, 2026.

Bank of America Anticipates ImprovementDespite the recent weakness, Bank of America analyst Tal Liani remains optimistic on Microsoft. Ahead of the July 29 earnings release, Liani reiterated a Buy rating and maintained a $500 price target, while raising his earnings estimates for the next two fiscal years, per a The Street article, as quoted on Yahoo Finance.

According to Liani, Microsoft is trading at around 19 times his projected fiscal 2027 earnings, well below its five-year average valuation multiple of 29 times. He believes that the market is focusing too heavily on near-term capital expenditure, while overlooking Microsoft's long-term earnings potential, per Yahoo Finance.

Azure Growth Remains Major CatalystFor investors, Azure's performance is expected to be the single most important metric in the earnings report.

Microsoft has guided for Azure revenue growth in the high-30% to 40%, while Bank of America expects growth of 39-40%, per a The Street article, as quoted on Yahoo Finance.

Meeting or exceeding this level would demonstrate that Microsoft's expanding AI infrastructure is successfully converting customer demand into revenues. However, a weaker-than-expected Azure number can reignite concerns over whether Microsoft's enormous AI investments are delivering adequate returns.

Heavy AI Spending Under the SpotlightThe company expects to invest $190 billion in infrastructure, with much of the spending directed toward AI-focused data centers, advanced chips and cloud infrastructure, per Yahoo Finance.

Management argues that today's spending is laying the foundation for substantially higher future revenues. However, investors will closely watch management's commentary on fiscal 2027 capital expenditure plans to determine whether AI spending is beginning to moderate.

Zacks Consensus Estimates for MicrosoftThe Zacks Consensus Estimate for Microsoft's fourth-quarter earnings per share (EPS) stands at $4.21, suggesting 15.34% year-over-year growth. For the fiscal year, the consensus EPS estimate stands at $17.32, indicating a 26.98% year-over-year rally.

The Zacks Consensus Estimate for revenues stands at $87.44 billion, implying a 14.39% year-over-year rise. For the fiscal year, the consensus estimate for revenues is pegged at $329.26 billion, suggesting year-over-year growth of 16.87%.

In a nutshell, Microsoft could benefit from AI momentum, Copilot adoption and Azure cloud expansion. Strong Microsoft 365 Commercial demand continues to drive revenue growth. However, AI ROI concerns may act as a headwind for the stock.

Microsoft-Heavy ETFs in FocusMicrosoft remains one of the largest holdings across numerous technology and AI-focused ETFs. A strong earnings report can provide a boost to relevant ETFs.

Conversely, disappointing Azure growth or further increases in AI spending without clear evidence of improving profitability could pressure both Microsoft shares, and the broader AI and technology ETF universe.

Global X PureCap MSCI Information Technology ETF (GXPT - Free Report) is designed to give investors exposure to the U.S. information technology sector. Microsoft holds a weightage of 12.03% in this fund.

GXPT has risen 15.9% from the start of the year till July 24, 2026, with an expense ratio of 0.15% and traded a volume of 100,000 shares. It has an AUM base of $134.9 million and it holds a Zacks ETF Rank #2 (Buy). 

Vanguard Information Technology (VGT - Free Report) is one of the popular U.S. technology ETFs, offering low-cost exposure to a wide range of IT companies with a strong emphasis on semiconductors, hardware and software.

Microsoft holds a weightage of 8.28% in this fund. VGT has assets under management worth $138,694 million, along with an expense ratio of 0.09%. The fund trades an average volume of 5,000,000 shares. The fund has risen about 20% year to date. It holds Zacks ETF #1 (Strong Buy).

Amplify Video Game Leaders ETF(GAMR - Free Report) invests in companies across the global video gaming ecosystem that includes companies involved in game development, GPUs, gaming platforms, mobile games, hardware and metaverse-related technologies.

Microsoft holds a weightage of 9.62% in this fund. The fund has an expense ratio of 0.59% and trades an average volume of 1,141 shares with assets under management worth $36.8 million.

HomeEarnings Analysis

SummaryAll eyes turn to big tech names this week: Apple, Amazon, Meta and Microsoft.Q2 S&P 500 profit growth currently stands at 37.9% with 27% of companies having reported.Potential earnings surprises this week: Illinois Tool Works, Xylem, Vulcan Materials, GoDaddy, and more. Ole_CNX/iStock via Getty Images

Capex Cracks and Mainframe Slumps: What Early Q2 Reports Tell Us About the AI Trade As the Q2 earnings season kicks into high gear, market sentiment around the AI trade is undergoing a critical sanity check. Alphabet’s (

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Microsoft Corporation trades at a 22.8x forward P/E, a multi-year low, reflecting a 25% stock decline despite strong fundamentals. MSFT's free cash flow is falling due to $190B in AI capex, while Copilot monetization remains slow with only 3% corporate adoption. The Hold rating for MSFT is justified by the unresolved gap between heavy AI investment and lagging Copilot revenue, with July 29 earnings as a key catalyst.

NEW YORK, July 27, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ:MSFT) and certain of the Company’s senior executives for securities fraud after its significant stock drop resulting from potential violations of the federal securities laws.

If you invested in Microsoft, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.

Key Details of the Microsoft ($MSFT) Class Action:

Lead Plaintiff Deadline: August 11, 2026Alleged Misconduct: Securities fraud alleging that Microsoft misled investors regarding its Azure cloud computing platform and AI chatbot CopilotStock Drop: January 28, 2026 – 10% Stock DropCourt: U.S. District Court for the Western District of WashingtonAction: Contact BFA Law to discuss your rights Investors have until August 11, 2026 to ask the Court to be appointed to lead the case. The complaint asserts securities fraud claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Microsoft common stock. The class action is pending in the U.S. District Court for the Western District of Washington. It is captioned City of St. Clair Shores Police and Fire Retirement System, et al., No. 26-cv-02071.

Why is Microsoft Being Sued for Securities Fraud?

Microsoft is a multinational technology company that develops software, cloud services, and devices. In recent years, Microsoft’s cloud computing platform named Azure has been Microsoft’s main growth driver. A key reason for Azure’s recent growth is Microsoft’s multi-billion-dollar investment into AI, including the development of its own generative AI chatbot named Copilot.

According to the complaint, during the relevant period, Microsoft consistently touted Copilot’s best-in-class capabilities, which purportedly drove widespread and growing user adoption. Copilot’s apparent success allowed Microsoft to report surging Azure-related revenue.

As alleged, in truth, Copilot suffered from severe functionality issues that caused user adoption to decline and put Microsoft’s Azure revenue at risk.

Why did Microsoft’s Stock Drop?

On January 28, 2026, Microsoft announced disappointing 2Q 2026 financial results and that Azure growth had slowed suddenly. Microsoft also allegedly revealed for the first time that the number of Microsoft 365 Copilot premium customers totaled only 15 million, materially below analyst estimates.

This news caused the price of Microsoft common stock to decline $48.13 per share, or 10%, from $481.63 per share on January 28, 2026, to $433.50 per share on January 29, 2026.

Additionally, on February 3, 2026, The Wall Street Journal reported in an article titled “Microsoft’s Pivotal AI Product Is Running Into Big Problems” that severe challenges and functionality issues had plagued Copilot, causing the application to lose market share. Specifically, The Wall Street Journal reported that “[c]onfusing brand positioning and interoperability problems have frustrated users.”

Click here for more information: https://www.bfalaw.com/cases/microsoft-class-action-lawsuit.

What Can You Do?

If you invested in Microsoft, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/microsoft-class-action-lawsuit

Or contact:
Adam McCall
[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters.

Most recently, The Legal 500 awarded BFA the most client satisfaction accolades of any plaintiff’s securities litigation law firm, with clients noting: “[t]here is no better service provider in the practice area,” “[t]he interest of the client is always front and center,” and “[t]here isn’t a better firm in this space.” One testimonial described the firm as “nimble and entrepreneurial,” with a “relentless focus on adding value for clients.”

Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/microsoft-class-action-lawsuit

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Old-school whiteboard interviews are a big part of this startup's hiring. Aaron Epstein/PEACOCK via Getty Images Mercor's interview process is less vibe coding, more whiteboarding.

On an episode of the "20VC" podcast released on Saturday, Mercor's head of product, Osvald Nitski, said that the AI training company has moved away from take-home assignments that can be completed with AI.

"We'll do one round where we find out if the person is familiar with AI tools," he said. "We care a lot about being able to set up good experiments and understanding statistics, having good judgment, and then systems design as well," he said, referring to what is asked in whiteboarding sessions.

Whiteboard interviews, where candidates draw and explain their thinking process, became an industry gold standard in the 2010s and are part of standard technical interviews at companies like Google, Meta, and Microsoft.

On the podcast, Nitski, who joined the $10 billion startup last year, said that AI makes it very easy to "offload" a lot of decision-making.

"We want to make sure that people still have the ability to have good judgment and know what they're doing and not just, like, regurgitate what comes out of Claude," he said.

While Mercor uses AI to screen candidates for its talent marketplace, its full-time job interview process contradicts what most of Silicon Valley is increasingly adopting.

For one, work trials and take-home assessments, which Nitski said Mercor has moved away from, are quickly replacing traditional interviews, such as culture-fit screenings and whiteboarding sessions. AI coding startups like Lovable, Cursor, and Kilo say work experiments are a one-shot way to gauge whether someone has the technical and soft skills they want to see.

Mercor's low-AI interview strategy is also unique compared to peers.

Over the last few months, Business Insider reported that Big Tech companies such as Google, Microsoft-owned LinkedIn, and Cisco are changing their interview to allow candidates to use AI. Some tech startups are giving candidates full access to AI tools and coding assistants.

Emily Cohen, who heads people and operations at AI coding startup Cognition, said the company has changed its interview process to account for AI and vibe coding.

"I guess this is like asking a kid to take a math test without a calculator," she said about not allowing AI use in interviews. "For the bulk of building something similar to what you would do on the role, you can and should use AI tools."

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New York, New York--(Newsfile Corp. - July 26, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the "Class Period"), of the important August 11, 2026 lead plaintiff deadline.

SO WHAT: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.

DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/306607

Source: The Rosen Law Firm PA

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Being a Microsoft (MSFT +0.02%) and Meta Platforms (META -1.80%) investor in 2026 has been pretty disappointing. The stocks are both negative for the year, with Meta down nearly 10% while Microsoft is down over 20%. With these two widely being considered two of the major AI hyperscalers, it's surprising to see their stocks down so much, but the market hasn't bought what these two are selling.

All of that could change in the next few days as they report final results, but in the meantime, I think there's a clear winner to load up on.

Image source: Getty Images.

Why are these two down so much? Meta Platforms' demise has ultimately been in its own hands. The market is worried that Meta's AI spending could be a repeat of its metaverse debacle, in which it spent billions on developing a metaverse that never panned out and was eventually shut down. Meta is spending hundreds of billions on AI data centers and using all of this AI computing capacity for internal uses, but doesn't really have a groundbreaking model to show for it. While its Llama model is used heavily on its social media platforms, it hasn't found a ton of use in the AI community at large, making it seem like a flop. Furthermore, Meta isn't charging for it, so there doesn't appear to be a payoff for investors, either.

Today's Change

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Meta is focused on building a superintelligence model that could be paired with some of its AI glasses to see and interact with the world around it. This is its major bet, and if it pans out, it could pay off, but if it doesn't, hundreds of billions of dollars would have been spent for nothing. Meta's strategy doesn't convince the market of its worth, so the stock is down.

The bear case for Microsoft is a lot less clear. Microsoft's AI strategy is actually panning out, with its AI annual revenue run rate passing $37 billion during its last quarter, up 123% year over year. This includes products like Copilot, which has become a top tool for businesses to use. Microsoft also has a thriving cloud computing segment, with revenue soaring 40% year over year. Microsoft is checking all of the boxes it should be to be a successful investment in the AI world, yet the market has chosen to sell it off.

These two now trade for similar valuations, with Meta being slightly cheaper.

MSFT PE Ratio (Forward) data by YCharts

For reference, the S&P 500 trades for 21.5 times forward earnings, so both stocks are cheaper than the broader market.

But which one is the better buy now?

A new division could turn Meta's stock around One announcement could change the course of Meta's stock trajectory: a cloud computing business. Investors have largely given companies like Microsoft a pass because some of the money that it's spending on data centers is being used for cloud computing capacity, which has a well-defined payoff. Meta doesn't have that, but rumors are growing that it may be launching one soon. The market would then have a clear path as to partial monetization of its computing resources, and that could ignite a rally in Meta's stock.

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While that's a positive outlook, I think the better bet is Microsoft stock, as it already has a thriving cloud computing segment and a great AI business. With Microsoft trading at a fairly cheap valuation and having little execution risk, I think it's about as no-brainer a buy in the stock market as it gets.

Unless Microsoft completely flops during the next quarter, I wouldn't be surprised to see the stock rally, as there isn't a great reason for it to be down so much when it's executing at a high level.

Posted by Defense World Staff on Jul 26th, 2026

Darwin Wealth Management LLC lifted its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 25.9% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 13,298 shares of the software giant’s stock after acquiring an additional 2,734 shares during the quarter. Microsoft makes up approximately 1.5% of Darwin Wealth Management LLC’s portfolio, making the stock its 16th biggest position. Darwin Wealth Management LLC’s holdings in Microsoft were worth $4,923,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of the company. Longfellow Investment Management Co. LLC raised its holdings in Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after buying an additional 20 shares during the last quarter. Bernzott Capital Advisors bought a new stake in Microsoft during the 4th quarter worth approximately $34,000. Timmons Wealth Management LLC bought a new stake in Microsoft during the 4th quarter worth approximately $36,000. Fairway Wealth LLC increased its position in Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after acquiring an additional 66 shares during the period. Finally, University of Illinois Foundation acquired a new position in Microsoft in the 2nd quarter valued at approximately $50,000. Institutional investors and hedge funds own 71.13% of the company’s stock.

Insiders Place Their Bets In other news, CEO Judson Althoff sold 15,500 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares of the company’s stock, valued at $50,928,792.23. This trade represents a 12.30% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the sale, the executive vice president owned 46,003 shares of the company’s stock, valued at $18,922,874.02. This represents a 2.67% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 23,762 shares of company stock worth $10,508,361. 0.03% of the stock is owned by corporate insiders.

Microsoft Stock Performance Shares of MSFT opened at $381.70 on Friday. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. The stock has a market capitalization of $2.84 trillion, a P/E ratio of 22.72, a price-to-earnings-growth ratio of 1.17 and a beta of 1.13. The firm’s fifty day simple moving average is $398.21 and its two-hundred day simple moving average is $408.08. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $555.45.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping the consensus estimate of $4.06 by $0.21. The firm had revenue of $82.89 billion during the quarter, compared to analyst estimates of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business’s quarterly revenue was up 18.3% on a year-over-year basis. During the same period last year, the company posted $3.46 EPS. As a group, analysts predict that Microsoft Corporation will post 16.7 EPS for the current year.

Microsoft Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Thursday, August 20th. Microsoft’s payout ratio is presently 21.67%.

Analyst Ratings Changes A number of equities analysts have recently commented on MSFT shares. TD Cowen reiterated a “buy” rating and set a $540.00 price target on shares of Microsoft in a report on Thursday, June 4th. Barclays restated an “overweight” rating on shares of Microsoft in a report on Wednesday, June 3rd. HSBC lowered their target price on Microsoft from $593.00 to $571.00 in a research report on Thursday, April 30th. Rothschild & Co Redburn cut their target price on Microsoft from $450.00 to $400.00 and set a “neutral” rating on the stock in a report on Thursday, April 23rd. Finally, Wedbush reiterated an “outperform” rating and issued a $575.00 price target on shares of Microsoft in a research report on Wednesday, May 13th. Forty-two investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $555.40.

Read Our Latest Stock Report on Microsoft

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

Positive Sentiment: Microsoft joined 25 tech companies in urging U.S. policymakers not to impose broad restrictions on open-weight and open-source AI models, a stance that supports its broader AI ecosystem strategy and could help preserve flexibility for future product development. Reuters article Positive Sentiment: Microsoft also backed a coalition letter with Nvidia, Meta, and other firms arguing that open-weight AI is important for U.S. leadership, reinforcing investor confidence that the company remains a major AI platform player rather than being boxed into one model provider. Business Insider article Positive Sentiment: Microsoft’s expanded Databricks partnership extends a key cloud/data-AI relationship through the 2030s, which should help Azure adoption and strengthen long-term enterprise demand for Microsoft’s cloud services. TipRanks article Neutral Sentiment: Several previews ahead of Microsoft’s July 29 earnings report say the big investor focus will be FY2027 CapEx guidance and Azure growth, with analysts expecting strong results but worrying that AI infrastructure spending could weigh on free cash flow and margins. MarketBeat article Negative Sentiment: Multiple law firms issued class-action alerts and deadline reminders tied to Microsoft securities-fraud claims, including allegations related to Copilot disclosures, which adds headline risk and may keep some investors cautious into earnings. GlobeNewswire article Negative Sentiment: Broader tech weakness tied to AI spending fears also weighed on Microsoft, as investors sold mega-cap names after seeing massive capital outlays across the sector and questioning near-term returns on AI investment. Fox Business article About Microsoft (Free Report)

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

See Also Five stocks we like better than Microsoft Telecom Earnings Reveal a Sector That Finally Looks Healthier Defense Earnings Show Readiness Now and Modernization Ahead Why Palantir Investors Aren’t Panicking While the Rest of AI Sells Off MarketBeat Week in Review – 07/20- 07/24 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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NEW YORK, July 26, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ: MSFT) and certain of its officers.

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Microsoft securities between May 1, 2025 and January 28, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/MSFT.

Microsoft Case Details

The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements because they failed to disclose that:

(1) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; 
(2) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; 
(3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit (“GPU”) and central processing unit (“CPU”) capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development (“R&D”); and 
(4) as a result of the above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft’s Copilot offerings had lost market share to rival products, a trend that was increasing.

What's Next for Microsoft Investors?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/MSFT. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Microsoft you have until August 11, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

No Cost to Microsoft Investors

We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman, LLC for Microsoft Securities Class Action?

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com

"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.

Follow us for updates on LinkedIn, X, Facebook, or Instagram.

Contact Info

Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]

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Three years ago, Satya Nadella catapulted Microsoft to the front of the AI race and became "like a superhero," one recent former Microsoft executive said.

In February 2023, after betting early on OpenAI, the CEO unveiled Microsoft's AI-powered Bing search engine before a packed audience outside Seattle, and declared a war on Google's search dominance. "A race starts today," he said. Waves of adulation followed. When Nadella helped navigate OpenAI's board crisis later that year, Bill Gurley called it an "amazing shift in corporate reputation." CNN Business chose Nadella as the CEO of the Year.

Inside Microsoft and across the tech industry, Nadella was hailed for seizing the future. Now, his legacy is at stake.

Microsoft's stock is down more than 24% from 12 months ago, significantly worse than the rest of the Magnificent 7. Investors have grown increasingly skeptical that the company's multibillion-dollar AI bet will deliver. Copilot, Microsoft's flagship AI product, lags behind other AI tools like ChatGPT and Claude. LinkedIn has drawn criticism for becoming flooded with AI-generated hustleporn. Xbox's business is "not healthy," its CEO recently said, and undergoing layoffs and restructuring as it tries to justify the company's record-breaking $69 billion Activision Blizzard acquisition.

And inside the company, employees are questioning Microsoft's plans to spend a record $190 billion this year to build AI infrastructure. As generative AI changes how people work, write software, and consume information, three of the company's core businesses hang in the balance: Microsoft 365, GitHub, and Azure. Investors will get a report card on these challenges on Wednesday, when the company releases its fourth-quarter earnings results.

As AI adoption spreads through corporate America, every software company is fighting to fend off the so-called SaaSpocalypse. But the battle is particularly fraught for Nadella's Microsoft, which made an early and loud bet on AI to propel the company's future. Now the company's north star has also become a potential noose.

For decades, Microsoft's productivity software has been the default homeroom where knowledge workers start their day. They opened Word to write, Excel to analyze data, and PowerPoint to build presentations. Now, millions of those workers are beginning to do all these things directly inside AI tools. Gartner analysts earlier this year predicted AI would threaten to dethrone traditional productivity suites like Microsoft 365 and Google Workspace in a $58 billion market shakeup.

Microsoft executives point to continued growth in Microsoft 365 and increasing Copilot adoption as evidence customers still want Microsoft's products at the center of their workdays. "The M365 business is seeing tons of new adoption and M365 Copilot usage," one executive said, who said the company is specifically chasing computing capacity to meet the demand.

GitHub faces a similar challenge. Since acquiring the software development platform in 2018, the company has held a dominant position with developers and had an early advantage in AI coding through GitHub Copilot. And it continues to grow: The platform recently had its "best month ever," an executive told employees in internal meeting comments viewed by Business Insider, though he didn't say by what measure.

But upstarts have swarmed in, as millions of engineers have adopted Cursor — which SpaceX recently announced plans to acquire for $60 billion — and Anthropic's Claude Code. As Business Insider previously reported, executives have discussed internally the need to overhaul GitHub to better compete with those AI-native coding tools. AI demand has also strained Github. As AI usage surged GitHub has experienced dozens of major outages this year.

The company is also struggling broadly to keep up with the demand for compute capacity. Despite this crunch, Microsoft is raising salespeople quotas for selling its cloud computing platform, Azure, some by 30% this year, according to people familiar with the change.

Azure remains Microsoft's fastest-growing strategic business, but internally executives say it has become a constant balancing act. Demand for computing infrastructure has outpaced the company's ability to build new capacity, forcing Microsoft to make difficult decisions about where its resources go. Even with this year's $190 billion capital expenditures — largely to expand data-center capacity for AI workloads — executives say the company is still constrained.

Earlier this year, Chief Financial Officer Amy Hood suggested Microsoft was prioritizing scarce computing resources for its own AI products before allocating the remaining capacity to Azure customers.

"The first thing we're doing is solving for the increased usage in sales and the accelerating pace of M365 Copilot, as well as GitHub Copilot, our first-party apps," Hood said during Microsoft's January earnings call. "Then we make sure we're investing in the long-term nature of R&D and product innovation... Then what you end up with is the remainder going towards serving the Azure capacity that continues to grow in terms of demand."

Why would Satya prioritize growing Adobe over growing M365?Microsoft executiveIf Microsoft had allocated the GPUs that came online during the first half of its fiscal year to Azure instead of its own AI products, Azure growth would have exceeded 40% instead of 39%, Hood said. Microsoft previously reported $75 billion in Azure revenue for its 2025 fiscal year.

That earnings report triggered one of Microsoft's biggest post-earnings stock declined by more than 10% as investors questioned the company's slower Azure outlook despite record AI spending and growing concerns that Microsoft was diverting capacity away from cloud customers.

Executives who spoke to Business Insider say those tradeoffs have intensified.

Microsoft is so desperate for capacity that it's turning to competitors to help relieve some of those constraints. Following a series of GitHub outages, Amazon bailed Microsoft out. The company also explored leasing Oracle cloud infrastructure but Microsoft walked away due to security and compliance concerns.

Microsoft is now seeking additional cloud capacity from other providers, including evaluating Amazon and Google, according to people familiar with the discussions. "We are shopping for capacity everywhere," one of those people said.

While prioritizing internal services has a mixed reception on Wall Street, the strategy is clear within Microsoft.

"All of the supply is gone once you solve for frontier labs and our internal businesses like M365 and Microsoft AI," one executive said.

Those decisions have created difficult conversations internally.

"Why would Satya prioritize growing Adobe over growing M365?" the person said. "I have no idea how we're going to land that message with customers."

As the pressure on Microsoft's core businesses mounts, Nadella has been bearing that pressure down on his workforce, and reshaping the structure of the company and its leaders.

As Business Insider previously reported, Nadella promoted Judson Althoff to CEO of Microsoft's commercial business to free himself and the company's engineering leaders to focus more directly on AI. Althoff was previously Microsoft's longtime sales boss but the role gave him a bigger profile. In an internal memo viewed by Business Insider at the time, Nadella described the moment as "a tectonic AI platform shift."

The mounting pressure on Nadella has trickled down through Microsoft's ranks from the executive suite to the rank-and-file employee.

At the same time, Nadella has remade his inner circle. Business Insider previously reported that Microsoft effectively retired its traditional senior leadership team structure in favor of smaller, flatter leadership groups. AI CEO Mustafa Suleyman has narrowed his focus to Microsoft's superintelligence efforts, top Nadella lieutenant Rajesh Jha retired, longtime product and marketing leader Yusuf Mehdi is preparing to leave the company, and more executive changes are expected.

According to people familiar with the succession planning, Hayete Gallot, who recently returned to Microsoft from Google to lead the company's security business, is viewed internally as the long-term successor to Althoff as sales chief. Gallot previously worked for Althoff and left in what one executive told Business Insider was "not an amicable departure." Nadella recruited Gallot back to replace Charlie Bell, who moved into an individual contributor role focused on engineering quality. Rodrigo Kede Lima, who Microsoft just put in charge of a $2.5 billion AI sales unit, is also a rising star, one of the people said.

The changes extend beyond the executive suite. Business Insider has learned that Microsoft overhauled its performance review system this year, simplifying ratings into five categories while making performance distinctions significantly sharper.

Executives say the new process feels like a return to "stack ranking," the controversial system that evaluated employees relative to one another during the Steve Ballmer era. At the same time, managers have been instructed to reduce the number of employees in higher-level engineering roles as Microsoft continues flattening parts of the organization, emblematic of a broader hardcore work culture that's spread across Big Tech in the last few years.

"It's almost like the old era of Microsoft is back," one former executive said. "The old Windows era where you lead with a lot of fear and a billy club in your hand."

For years, Microsoft's greatest strength was that it owned where people worked and where developers built software. AI is beginning to challenge both assumptions at once. Now Nadella's legacy won't be defined by whether Microsoft can build the best AI, but by whether it can keep AI from eroding the businesses that made it one of the world's most valuable companies.

Ashley Stewart is a chief technology correspondent at Business Insider.

Business Insider's Discourse stories provide perspectives on the day's most pressing issues, informed by analysis, reporting, and expertise.

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Microsoft (NASDAQ:MSFT | MSFT Price Prediction) reports fiscal Q4 2026 earnings on July 29, with its stock down 24.69% over the past year, despite accelerating demand across Azure and artificial intelligence.

Azure grew 40% last quarter, Microsoft’s AI business reached a $37 billion annual revenue run rate, and commercial remaining performance obligations nearly doubled to $627 billion. Yet shares now trade at $381.70 and approximately 20 times forward earnings.

Three Reasons to Buy Microsoft Ahead of Earnings First, valuation. MSFT trades at a forward P/E of 20 with a PEG ratio of 1.18, well below where this business has traded for most of the AI cycle. The stock’s 52-week high of $551.05 sits far above today’s price of $381.70, and the consensus analyst target of $556.75 is backed by 54 buy ratings against zero sells.

Second, income and capital return. Microsoft pays a $3.56 annual dividend and returned $12.7 billion to shareholders in Q2 FY26, up 32% year over year. A debt-to-equity ratio of 0.18 and interest coverage of 53.89x shows Microsoft has a fortress balance sheet. The business also has an excellent 33.28% return on equity.

Third, the growth engine. Azure grew 40% last quarter, the AI business hit a $37 billion annual run rate, up 123% year over year, and commercial remaining performance obligations reached $627 billion, nearly doubling year over year.

Can a $627 Billion Backlog Justify Microsoft’s AI Spending? The bear case for Microsoft (and hyperscalers at large) is capital intensity. Microsoft spent $30.88 billion on capex last quarter, up 84.39% year over year, and skeptics question the return. The $627 billion RPO shows promise from this spending. Customers have already signed the checks that pay for the buildout, with roughly 25% recognized as revenue in the next 12 months, up 39% year over year.

With commercial backlog nearly doubling, a fortress balance sheet, and Azure growing faster than AWS, Microsoft appears better positioned than most companies to turn its AI investments into decades of earnings and cash-flow growth.

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Channing Global Advisors LLC increased its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 30.3% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 16,004 shares of the software giant’s stock after buying an additional 3,725 shares during the period. Microsoft accounts for approximately 3.5% of Channing Global Advisors LLC’s holdings, making the stock its 7th biggest position. Channing Global Advisors LLC’s holdings in Microsoft were worth $5,924,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of MSFT. Taylor Securities Services Inc. purchased a new stake in Microsoft in the fourth quarter valued at approximately $2,616,000. Werba Rubin Papier Wealth Management lifted its position in Microsoft by 15.7% in the fourth quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock valued at $6,041,000 after purchasing an additional 1,698 shares during the last quarter. SG Americas Securities LLC boosted its position in Microsoft by 2,332.1% during the 4th quarter. SG Americas Securities LLC now owns 6,746,017 shares of the software giant’s stock valued at $3,262,509,000 after buying an additional 6,468,645 shares during the period. World Investment Advisors increased its holdings in Microsoft by 22.1% during the 4th quarter. World Investment Advisors now owns 272,424 shares of the software giant’s stock valued at $131,750,000 after purchasing an additional 49,371 shares during the period. Finally, Overbrook Management Corp raised its holdings in shares of Microsoft by 2.8% during the fourth quarter. Overbrook Management Corp now owns 87,535 shares of the software giant’s stock valued at $42,334,000 after acquiring an additional 2,384 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Stock Up 0.0% Shares of NASDAQ:MSFT opened at $381.70 on Friday. The business’s 50 day moving average is $398.21 and its 200 day moving average is $408.08. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $555.45. The stock has a market cap of $2.84 trillion, a P/E ratio of 22.72, a price-to-earnings-growth ratio of 1.17 and a beta of 1.13. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.06 by $0.21. The business had revenue of $82.89 billion for the quarter, compared to the consensus estimate of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business’s revenue was up 18.3% compared to the same quarter last year. During the same period last year, the business posted $3.46 EPS. Sell-side analysts predict that Microsoft Corporation will post 16.7 EPS for the current year.

Microsoft Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a $0.91 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 1.0%. Microsoft’s dividend payout ratio (DPR) is currently 21.67%.

Analyst Upgrades and Downgrades MSFT has been the topic of several research reports. Guggenheim reaffirmed a “buy” rating and set a $586.00 price objective on shares of Microsoft in a research report on Thursday, April 30th. DZ Bank reiterated a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. Piper Sandler reissued an “overweight” rating on shares of Microsoft in a report on Tuesday, May 26th. UBS Group restated a “buy” rating on shares of Microsoft in a research note on Friday, April 24th. Finally, Royal Bank Of Canada restated a “buy” rating on shares of Microsoft in a research note on Friday, May 22nd. Forty-two investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $555.40.

Get Our Latest Research Report on Microsoft

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

Positive Sentiment: Microsoft joined 25 tech companies in urging U.S. policymakers not to impose broad restrictions on open-weight and open-source AI models, a stance that supports its broader AI ecosystem strategy and could help preserve flexibility for future product development. Reuters article Positive Sentiment: Microsoft also backed a coalition letter with Nvidia, Meta, and other firms arguing that open-weight AI is important for U.S. leadership, reinforcing investor confidence that the company remains a major AI platform player rather than being boxed into one model provider. Business Insider article Positive Sentiment: Microsoft’s expanded Databricks partnership extends a key cloud/data-AI relationship through the 2030s, which should help Azure adoption and strengthen long-term enterprise demand for Microsoft’s cloud services. TipRanks article Neutral Sentiment: Several previews ahead of Microsoft’s July 29 earnings report say the big investor focus will be FY2027 CapEx guidance and Azure growth, with analysts expecting strong results but worrying that AI infrastructure spending could weigh on free cash flow and margins. MarketBeat article Negative Sentiment: Multiple law firms issued class-action alerts and deadline reminders tied to Microsoft securities-fraud claims, including allegations related to Copilot disclosures, which adds headline risk and may keep some investors cautious into earnings. GlobeNewswire article Negative Sentiment: Broader tech weakness tied to AI spending fears also weighed on Microsoft, as investors sold mega-cap names after seeing massive capital outlays across the sector and questioning near-term returns on AI investment. Fox Business article Insider Buying and Selling In other Microsoft news, EVP Takeshi Numoto sold 4,500 shares of Microsoft stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the completion of the sale, the executive vice president owned 47,468 shares of the company’s stock, valued at approximately $19,122,009.12. The trade was a 8.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Amy Coleman sold 1,262 shares of the business’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the sale, the executive vice president owned 46,003 shares in the company, valued at approximately $18,922,874.02. The trade was a 2.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 23,762 shares of company stock worth $10,508,361 in the last 90 days. Insiders own 0.03% of the company’s stock.

Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

Recommended Stories Five stocks we like better than Microsoft AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits 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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Posted by Defense World Staff on Jul 25th, 2026

Fulcrum Capital LLC raised its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 8.3% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 83,376 shares of the software giant’s stock after purchasing an additional 6,364 shares during the period. Microsoft makes up approximately 6.7% of Fulcrum Capital LLC’s investment portfolio, making the stock its 2nd biggest position. Fulcrum Capital LLC’s holdings in Microsoft were worth $30,863,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Longfellow Investment Management Co. LLC boosted its stake in shares of Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after purchasing an additional 20 shares in the last quarter. Shepherd Kaplan Krochuk LLC raised its position in Microsoft by 4.9% in the third quarter. Shepherd Kaplan Krochuk LLC now owns 431 shares of the software giant’s stock valued at $223,000 after purchasing an additional 20 shares during the last quarter. Fischer Investment Strategies LLC grew its holdings in Microsoft by 3.1% during the 4th quarter. Fischer Investment Strategies LLC now owns 697 shares of the software giant’s stock worth $337,000 after acquiring an additional 21 shares during the last quarter. Pollock Investment Advisors LLC grew its stake in shares of Microsoft by 0.8% in the third quarter. Pollock Investment Advisors LLC now owns 2,805 shares of the software giant’s stock worth $1,453,000 after purchasing an additional 21 shares during the last quarter. Finally, Better Money Decisions LLC increased its stake in shares of Microsoft by 0.6% in the second quarter. Better Money Decisions LLC now owns 3,498 shares of the software giant’s stock valued at $1,740,000 after buying an additional 21 shares during the period. 71.13% of the stock is currently owned by institutional investors.

Microsoft Trading Up 0.0% NASDAQ MSFT opened at $381.70 on Friday. The business’s fifty day moving average is $398.21 and its 200-day moving average is $408.08. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27. The stock has a market capitalization of $2.84 trillion, a price-to-earnings ratio of 22.72, a PEG ratio of 1.17 and a beta of 1.13. Microsoft Corporation has a one year low of $349.20 and a one year high of $555.45.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.06 by $0.21. The business had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The firm’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same quarter last year, the company posted $3.46 earnings per share. Equities research analysts predict that Microsoft Corporation will post 16.7 EPS for the current year.

Microsoft Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Thursday, August 20th. Microsoft’s dividend payout ratio is presently 21.67%.

Analyst Upgrades and Downgrades MSFT has been the subject of a number of analyst reports. Oppenheimer reissued an “outperform” rating and set a $515.00 target price on shares of Microsoft in a research note on Wednesday. Wells Fargo & Company cut their target price on shares of Microsoft from $650.00 to $625.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 15th. Morgan Stanley started coverage on shares of Microsoft in a report on Tuesday. They issued an “overweight” rating and a $600.00 price target for the company. China Renaissance decreased their price target on shares of Microsoft from $630.00 to $550.00 and set a “buy” rating for the company in a research note on Monday, May 4th. Finally, BNP Paribas Exane cut their price objective on shares of Microsoft from $556.00 to $555.00 and set an “outperform” rating on the stock in a research report on Friday, May 1st. Forty-two equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $555.40.

View Our Latest Stock Analysis on MSFT

Insider Activity at Microsoft In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the sale, the executive vice president owned 46,003 shares in the company, valued at $18,922,874.02. This represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Judson Althoff sold 15,500 shares of the firm’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the transaction, the chief executive officer directly owned 110,477 shares of the company’s stock, valued at $50,928,792.23. The trade was a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 23,762 shares of company stock worth $10,508,361. 0.03% of the stock is owned by corporate insiders.

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

Positive Sentiment: Microsoft joined 25 tech companies in urging U.S. policymakers not to impose broad restrictions on open-weight and open-source AI models, a stance that supports its broader AI ecosystem strategy and could help preserve flexibility for future product development. Reuters article Positive Sentiment: Microsoft also backed a coalition letter with Nvidia, Meta, and other firms arguing that open-weight AI is important for U.S. leadership, reinforcing investor confidence that the company remains a major AI platform player rather than being boxed into one model provider. Business Insider article Positive Sentiment: Microsoft’s expanded Databricks partnership extends a key cloud/data-AI relationship through the 2030s, which should help Azure adoption and strengthen long-term enterprise demand for Microsoft’s cloud services. TipRanks article Neutral Sentiment: Several previews ahead of Microsoft’s July 29 earnings report say the big investor focus will be FY2027 CapEx guidance and Azure growth, with analysts expecting strong results but worrying that AI infrastructure spending could weigh on free cash flow and margins. MarketBeat article Negative Sentiment: Multiple law firms issued class-action alerts and deadline reminders tied to Microsoft securities-fraud claims, including allegations related to Copilot disclosures, which adds headline risk and may keep some investors cautious into earnings. GlobeNewswire article Negative Sentiment: Broader tech weakness tied to AI spending fears also weighed on Microsoft, as investors sold mega-cap names after seeing massive capital outlays across the sector and questioning near-term returns on AI investment. Fox Business article Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

Read More Five stocks we like better than Microsoft AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits 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 +0.02%) has been a poor stock to own over the past year. It's down nearly 30% from its all-time high, although it was down around 35% at the lows of its sell-off. However, I think that could all change on July 29, when Microsoft reports Q4 earnings, which could kick-start the stock's long-awaited rebound. 

Microsoft's stock is undervalued and looks like a great buy right now. If the company reports soaring growth in a few key divisions, that could give the market exactly what it needs to see for a major rally in Microsoft's stock.

Image source: Getty Images.

All eyes will be focused on two items Microsoft is a huge company with a wide-ranging business spanning productivity software, gaming, hardware sales, and cloud computing. However, despite Microsoft's size, two factors will drive the response to the earnings report.

First is cloud computing growth. Azure, Microsoft's cloud computing platform, offers a glimpse into the strength of overall AI spending, as several companies, including OpenAI, run AI workflows on Microsoft's servers. As Azure's revenue rises, it shows that more computing capacity is coming online and that it's being contracted out as quickly as it comes online.

Last quarter, Azure's revenue rose 40% year over year. However, investors will want to see a significant acceleration in revenue this quarter.

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Microsoft's competitor in the cloud computing space, Alphabet, saw tremendous growth during its previous quarter. Google Cloud's Q2 revenue rose 82% year over year, a major acceleration from Q1's 63% growth. If Microsoft maintains its 40% growth rate, that may raise red flags, as it would show that Alphabet is expanding far faster than Microsoft. I doubt that happens, and if Azure can report rapid growth, that will be the first catalyst Microsoft stock needs to start a rebound.

The second, and maybe most important, factor will be the fiscal 2027 capital expenditure guidance. Alphabet's stock got hammered following earnings after it bumped up capital expenditures by $10 billion. If the market deemed Microsoft's spending unreasonable, a sell-off may ensue. However, Microsoft's spending has already been tempered compared to its peers, so I don't expect this to happen.

If Azure's growth rate comes in ahead of expectations and capital exposure guidance is in line, I think Microsoft stock is primed to soar after July 29. But if it misses either of these two projections, the stock could tumble even further.

Bragar Eagel & Squire, P.C. Litigation Partners Brandon Walker and Melissa Fortunato Encourage Investors Who Suffered Losses In Microsoft (MSFT) To Contact Them Directly To Discuss Their Options

If you purchased or acquired Microsoft common stock between May 1, 2025 and January 28, 2026 and would like to discuss your legal rights, contact Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato by email at [email protected] or by telephone at (212) 355-4648

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NEW YORK, July 24, 2026 (GLOBE NEWSWIRE) --

What’s Happening:

Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Microsoft Corporation (“Microsoft” or the “Company”) (NASDAQ:MSFT) in the United States District Court for the Western District of Washington on behalf of all persons and entities who purchased or otherwise acquired Microsoft common stock between May 1, 2025 and January 28, 2026, both dates inclusive (the “Class Period”). Investors have until August 11, 2026 to apply to the Court to be appointed as lead plaintiff in the lawsuit. Allegation Details:

According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages. Next Steps:

If you purchased or otherwise acquired Microsoft shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, South Carolina, and California. The firm represents individual and institutional investors in securities, derivative, and commercial litigation as well as individuals in consumer protection and data privacy litigation. The firm has a nationwide practice and routinely handles cases in both federal and state courts. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

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Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
[email protected]
www.bespc.com