Maryland Capital Advisors Inc. purchased a new position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 1,096 shares of the software giant’s stock, valued at approximately $409,000. Microsoft comprises 0.1% of Maryland Capital Advisors Inc.’s portfolio, making the stock its 20th biggest position.
Other large investors also recently bought and sold shares of the company. Longfellow Investment Management Co. LLC grew 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 in the last quarter. Bernzott Capital Advisors purchased a new position in shares of Microsoft during the 4th quarter worth $34,000. Timmons Wealth Management LLC purchased a new position in shares of Microsoft during the 4th quarter worth $36,000. Fairway Wealth LLC boosted its position in shares of Microsoft by 287.0% during 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 last quarter. Finally, Frankly Finances LLC acquired a new position in shares of Microsoft during the 2nd quarter valued at about $35,000. Hedge funds and other institutional investors own 71.13% of the company’s stock.
Key Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft reportedly plans to expand data-center capacity to approximately 38 gigawatts by 2032—more than triple its current footprint. The scale of the investment underscores management’s confidence in long-term Azure and AI demand, although the spending commitment also increases financial risk. Microsoft plans 38 gigawatts of data center capacity by 2032 Positive Sentiment: Microsoft expanded its partnership with Talkdesk, allowing customers to buy contact-center AI software with existing Azure commitments through the Azure Marketplace. The arrangement could increase Azure consumption and make enterprise AI adoption easier. Talkdesk and Microsoft expand partnership Positive Sentiment: TrueFoundry’s AI Gateway is now available in the Microsoft Marketplace, adding another enterprise AI workload to Azure’s commercial ecosystem. Microsoft is also promoting enforceable privacy controls for schools using AI, which may support adoption in sensitive education markets. TrueFoundry AI Gateway availability Neutral Sentiment: Analysts and bullish commentary continue to point to Azure’s more-than-$100 billion annual revenue, rising Copilot adoption and Microsoft’s strong profitability as reasons the stock could outperform. However, the shares remain valued near 28 times earnings, leaving less room for disappointment. Microsoft bull case Negative Sentiment: Investors remain concerned that the AI infrastructure buildup will pressure free cash flow and returns on capital. A separate analysis downgraded Microsoft, arguing that the company’s capital-expenditure rotation does not support an optimistic outlook. Microsoft capital expenditure downgrade Negative Sentiment: Higher Treasury yields are weighing on expensive technology stocks, while Dynamics 365 Activate faces questions about slowing growth and softer bookings despite its effort to win Salesforce migrations. Microsoft also disclosed a record Patch Tuesday involving 974 vulnerabilities, including two exploited Windows zero-days, highlighting ongoing security and reputational risks. Microsoft Patch Tuesday vulnerabilities Analysts Set New Price Targets Several equities research analysts recently issued reports on the stock. Guggenheim restated a “buy” rating and set a $586.00 price objective on shares of Microsoft in a research report on Monday, July 27th. Bank of America boosted their target price on shares of Microsoft from $500.00 to $600.00 and gave the company a “buy” rating in a report on Tuesday, September 1st. Piper Sandler increased their price target on shares of Microsoft from $540.00 to $550.00 and gave the company an “overweight” rating in a research note on Tuesday, July 28th. Scotiabank restated an “outperform” rating and set a $510.00 price target on shares of Microsoft in a report on Thursday, July 30th. Finally, Oppenheimer reaffirmed an “outperform” rating and set a $515.00 price target on shares of Microsoft in a research report on Wednesday, July 22nd. Forty-two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $564.27. View Our Latest Stock Report on MSFT
Microsoft Trading Up 0.2% Shares of NASDAQ MSFT opened at $492.44 on Friday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The stock has a market capitalization of $3.66 trillion, a PE ratio of 27.42, a PEG ratio of 1.58 and a beta of 1.11. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The stock has a fifty day simple moving average of $453.75 and a 200-day simple moving average of $418.62.
Microsoft (NASDAQ:MSFT – Get Free Report) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the prior year, the company earned $3.65 EPS. Microsoft’s revenue was up 17.7% on a year-over-year basis. On average, equities analysts forecast that Microsoft Corporation will post 19.59 earnings per share for the current year.
Insider Transactions at Microsoft In related news, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the sale, the chief executive officer directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 101,335 shares of company stock valued at $50,655,795. 0.03% of the stock is currently owned by corporate insiders.
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.
The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.
Read More Five stocks we like better than Microsoft AeroVironment’s Record Backlog and Earnings Beat Fuel Recovery Case Corning Just Locked In a Massive Verizon Fiber Deal as AI Infrastructure Expands 3 Under-$20 Stocks Tied to the Future of U.S. Energy and Materials Uncle Sam’s Quantum Leap: Feds Fund a $300M Quantum Supercycle 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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HM Payson & Co. trimmed its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 0.3% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 948,625 shares of the software giant’s stock after selling 2,690 shares during the period. Microsoft makes up approximately 4.7% of HM Payson & Co.’s investment portfolio, making the stock its 5th largest position. HM Payson & Co.’s holdings in Microsoft were worth $353,856,000 at the end of the most recent reporting period.
Other hedge funds have also recently bought and sold shares of the company. 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. Bernzott Capital Advisors acquired a new stake in Microsoft in the fourth quarter valued at approximately $34,000. Timmons Wealth Management LLC bought a new stake in shares of Microsoft during the fourth quarter worth $36,000. Fairway Wealth LLC grew its stake in shares of Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after buying an additional 66 shares during the last quarter. Finally, Frankly Finances LLC acquired a new position in shares of Microsoft during the second quarter worth $35,000. 71.13% of the stock is owned by institutional investors.
Insider Buying and Selling In related news, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares of the company’s stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 101,335 shares of company stock worth $50,655,795 in the last quarter. Insiders own 0.03% of the company’s stock.
Microsoft Stock Up 0.2% Shares of NASDAQ:MSFT opened at $492.44 on Friday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The business’s 50 day simple moving average is $453.75 and its two-hundred day simple moving average is $418.62. The firm has a market cap of $3.66 trillion, a P/E ratio of 27.42, a PEG ratio of 1.58 and a beta of 1.11. Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the previous year, the company posted $3.65 earnings per share. The company’s quarterly revenue was up 17.7% on a year-over-year basis. As a group, research analysts forecast that Microsoft Corporation will post 19.59 EPS for the current fiscal year.
Analyst Ratings Changes Several equities research analysts recently weighed in on the company. Oppenheimer reissued an “outperform” rating and set a $515.00 price objective on shares of Microsoft in a report on Wednesday, July 22nd. Phillip Securities downgraded shares of Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 3rd. Weiss Ratings raised shares of Microsoft from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 27th. Wolfe Research restated an “outperform” rating and issued a $550.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Finally, Bank of America raised their price target on shares of Microsoft from $500.00 to $600.00 and gave the company a “buy” rating in a research note on Tuesday, September 1st. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $564.27.
Get Our Latest Report on Microsoft
Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft reportedly plans to expand data-center capacity to approximately 38 gigawatts by 2032—more than triple its current footprint. The scale of the investment underscores management’s confidence in long-term Azure and AI demand, although the spending commitment also increases financial risk. Microsoft plans 38 gigawatts of data center capacity by 2032 Positive Sentiment: Microsoft expanded its partnership with Talkdesk, allowing customers to buy contact-center AI software with existing Azure commitments through the Azure Marketplace. The arrangement could increase Azure consumption and make enterprise AI adoption easier. Talkdesk and Microsoft expand partnership Positive Sentiment: TrueFoundry’s AI Gateway is now available in the Microsoft Marketplace, adding another enterprise AI workload to Azure’s commercial ecosystem. Microsoft is also promoting enforceable privacy controls for schools using AI, which may support adoption in sensitive education markets. TrueFoundry AI Gateway availability Neutral Sentiment: Analysts and bullish commentary continue to point to Azure’s more-than-$100 billion annual revenue, rising Copilot adoption and Microsoft’s strong profitability as reasons the stock could outperform. However, the shares remain valued near 28 times earnings, leaving less room for disappointment. Microsoft bull case Negative Sentiment: Investors remain concerned that the AI infrastructure buildup will pressure free cash flow and returns on capital. A separate analysis downgraded Microsoft, arguing that the company’s capital-expenditure rotation does not support an optimistic outlook. Microsoft capital expenditure downgrade Negative Sentiment: Higher Treasury yields are weighing on expensive technology stocks, while Dynamics 365 Activate faces questions about slowing growth and softer bookings despite its effort to win Salesforce migrations. Microsoft also disclosed a record Patch Tuesday involving 974 vulnerabilities, including two exploited Windows zero-days, highlighting ongoing security and reputational risks. Microsoft Patch Tuesday vulnerabilities Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.
The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.
Featured Articles Five stocks we like better than Microsoft AeroVironment’s Record Backlog and Earnings Beat Fuel Recovery Case Corning Just Locked In a Massive Verizon Fiber Deal as AI Infrastructure Expands 3 Under-$20 Stocks Tied to the Future of U.S. Energy and Materials Uncle Sam’s Quantum Leap: Feds Fund a $300M Quantum Supercycle 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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Americká společnost Microsoft plánuje do roku 2032 rozšířit kapacitu svých datových center na zhruba 38 gigawattů (GW). To představuje více než trojnásobek současné kapacity. Informovala o tom agentura Bloomberg s odvoláním na osoby obeznámené s touto záležitostí.
Microsoft nyní provozuje datová centra s celkovou kapacitou kolem 12 GW. Zhruba dva GW současné kapacity připadají na čipy určené speciálně pro umělou inteligenci (AI). Jejich podíl by měl v budoucnu výrazně vzrůst a tvořit přibližně třetinu z plánované kapacity 38 GW.
Technologické firmy v posledních letech investují do datových center desítky miliard dolarů, aby uspokojily rychle rostoucí poptávku po službách založených na AI. Ty vyžadují obrovské množství výpočetního výkonu.
Microsoft v červenci předpověděl silnější než očekávaný růst svého cloudového podnikání. Výsledky naznačily, že rozsáhlé investice do AI začínají přinášet ovoce a zmírnily obavy investorů, že výdaje na datová centra a výpočetní infrastrukturu porostou rychleji než poptávka.
Microsoft očekává, že ve fiskálním prvním čtvrtletí roku 2027 budou jeho kapitálové výdaje činit 50 miliard USD (přes jeden bilion Kč). Za celý kalendářní rok 2026 pak plánuje kapitálové výdaje 175 miliard USD.
Datová centra jsou při poskytování internetových služeb nepostradatelná, nacházejí se tam velké servery a počítače pro ukládání, zpracování a distribuci dat. Jsou důležitá nejen pro velké podniky, ale i pro běžné lidi. I když jsou důležitá pro digitalizaci ekonomiky, jejich výstavba není bez kontroverzí, hlavně kvůli hluku a vysoké spotřebě elektřiny a vody. Výpočetní kapacita jeden gigawatt spotřebuje přibližně tolik elektřiny jako 750.000 amerických domácností. Plánovaná kapacita 38 GW je srovnatelná se spotřebou elektřiny celého státu New York v době nejvyššího odběru.
Microsoft (MSFT.O) plans to build out its data-center capacity to about 38 gigawatts by 2032, more than triple its current footprint, Bloomberg News reported on Thursday, citing people familiar with the matter.
Here are some details:
According to the report only about 2 gigawatts of the company's current 12-gigawatt capacity is centered on AI-specific chips, a share expected to grow to about a third of the 38 gigawatts it plans to have online.
Microsoft did not immediately respond to a Reuters request for comment.
Technology companies have been pouring billions of dollars into data centers to power generative AI services such as ChatGPT and Copilot, which require huge amounts of computing power.
In July, Microsoft forecast stronger-than-expected cloud growth offering fresh evidence that Microsoft's massive AI investments are beginning to pay off, helping ease investor concerns that heavy spending on data centers and computing infrastructure could outpace demand.
Microsoft expects capital expenditures of $50 billion for the fiscal first quarter of 2027 and $175 billion for the 2026 calendar year.
The company is planning to spread long-term leases on data centers over 25 years rather than 15, which has the effect of lowering its annual reported capital expenditures.
Amazon is adding the Activity Feed from its Quick desktop app to the AI assistant's iPhone and Android apps, combining email, Slack messages, calendar invites and CRM updates into one prioritized list.
SAN FRANCISCO--(BUSINESS WIRE)--TrueFoundry, an enterprise AI infrastructure platform, today announced the availability of TrueFoundry AI Gateway in the Microsoft Marketplace, the unified online destination for customers to buy trusted cloud solutions, AI apps, and agents to meet their business needs. TrueFoundry customers can now discover and deploy TrueFoundry AI Gateway through Microsoft Marketplace, with smooth integration and streamlined management across Microsoft Azure and other Microsof.
Contractually enforceable restrictions may become a template for selling AI into politically sensitive institutions. Summary
Microsoft is trading data flexibility for permission to keep AI inside classrooms.
Microsoft MSFT, the cloud and enterprise-software giant, committed to ten enforceable AI safeguards through an agreement with two major teachers unions. The stock edged approximately 0.1% higher to $492.41 Thursday.
The rules draw sharp boundaries around AI in classrooms. Microsoft cannot train models on student or educator data, must limit data collection and provide plain-language disclosures, while AI companions are prohibited and high-risk decisions require human oversight. Starting in November, school districts can add these protections to new or existing Microsoft contracts without reopening the entire agreement.
The immediate revenue impact remains unclear because Microsoft does not separately report education sales. Still, the strategic logic is clear: tighter privacy commitments could preserve access to schools after New York City and Los Angeles placed one-year restrictions on many student-facing AI tools. Microsoft Cloud produced $59.3 billion in revenue last quarter as companywide capital spending reached $41 billion. The picture adds a valuation angle, showing Microsoft trading 15.59% below its GF Value estimate of $583.36—a sizable gap if stronger trust helps defend its education footprint.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Pavan Davuluri says Windows will keep serving human users while adding agentic workloads. (Microsoft Photo) GeekWire is profiling over the next few weeks some of the people and teams that are shaping the evolution of Microsoft in what we’re calling its “Microsoft 2.5” era.
Just Don’t Call It an ‘Agentic OS.’ Given Microsoft’s one-pointed AI focus these days, it’s not surprising that the Windows organization is on the agentic train.
But Executive Vice President of Windows + Devices Pavan Davuluri has learned the hard way not to call Windows an agentic OS. He did so back in November 2025, via a tweet and blog post, and the customer backlash was quick and biting.
But Davuluri has not done a complete U-turn because of the criticism. Instead, he has changed how he talks about where Windows is going — which is still in an agentic direction.
“The user of Windows going forward will continue to be users … but it’s also going to add these agentic workloads,” the nearly 26-year Microsoft veteran Davuluri told GeekWire in a recent interview.
During his time at Microsoft, he’s held a variety of roles, from intern to General Manager of Surface, to Corporate Vice President of Windows Silicon & Systems Integration. He was appointed Executive Vice President of Windows + Devices in March 2026, reporting directly to CEO Satya Nadella.
Windows needs to evolve to support agentic workloads through new platform capabilities that the team is building under the covers, Davuluri said. These low-level capabilities, or “primitives,” affect how Windows handles security, identity, governance, observability, and performance when it comes to building and running agents natively.
These coming changes likely will affect the Windows file system, security model, PowerShell, and other foundational components.
Microsoft already is working on Windows identity and manageability to make them better able to service agents. Windows can assign agents a local ID, or a cloud-provisioned identity backed by Entra.
And it also has an early preview of technology known as Microsoft Execution Containers, meant to help secure agents by running untrusted code in sandboxes or virtual machines. It’s these system-level areas where the team is focusing first in preparation for a human+agent future, Davuluri said, rather than the UX/UI level.
Going Back to Basics. Windows has had a lot of very different leaders over the years, with very different management styles and priorities.
For his part, Davuluri said he plans to run the Windows and Surface teams with four principles in mind: Maintaining customer obsession; treating Windows as a complete end-to-end system (“full stack”); focusing on complete user experiences and workflows rather than individual features; and building Windows openly and transparently, with clearer communication about plans and priorities.
On the heels of his promotion to EVP, Davuluri committed publicly to the much-needed goals of improving Windows quality and reliability. In a blog post, he outlined some of the requested changes that his team would be making to Windows, ranging from fixing the way the Insider test program works, to more granular improvements like allowing users to reposition the Windows task bar.
And since then, the team largely has been delivering to the surprise and delight of many long-time Windows users.
Davuluri has also been working to shift the conversation from which new features are coming to a specific build to what are the outcomes Microsoft wants to enable for specific groups of Windows users.
“There is no one single sort of ring for a billion-plus users on the platform,” Davuluri said. Windows users encompass people who use the product in a variety of different ways, so “we need to get clarity in our minds on the things that we do that lift all boats that raise the entire platform — and things that we have to go do that are specific and unique to each of our sets of users based on how they primarily or typically use the device.”
Full-Stack Thinking. Is there still a role for Microsoft as a PC maker in the coming agentic future? Not surprisingly, given his heavily hardware-focused background, Davuluri insisted there is.
When Microsoft debuted its first Surface devices in 2012, officials said the company needed to build its own hardware to create reference designs and innovative form-factor examples for other Windows PC makers.
These days, most Surfaces that ship arguably are not better, spec- or design-wise, than other PCs. But Microsoft still needs to keep a hand in hardware design to understand the full stack, Davuluri claimed.
Surface plays a key role in how Microsoft develops platform abstractions, incubates support for technologies like pen, facial-recognition, and neural-processing units that later spread across Windows, and optimizes for silicon-to-cloud, he said.
While the company’s attempt to create a distinct category of “Copilot+” AI PCs fizzled, Microsoft continues to try to find AI-centric reasons to convince customers to choose Windows devices. Davuluri and others have referred to the idea of “unmetered intelligence” to attempt to make the case for running AI models locally on PCs.
This fall, Microsoft (and other Windows PC makers) plan to roll out new PCs built on the Nvidia RTX Spark platform. The coming Surface Laptop Ultra, which will be optimized for RTX Spark, is aimed at creators, developers and AI builders, all of whom — Microsoft is hoping — will be fueling the growth of its next target user category: Agents.
Key Takeaways Microsoft launched Dynamics 365 Activate to ease Salesforce-to-Dynamics 365 CRM migrations.Dynamics 365 growth slowed to 13%, with softer bookings and moderated CRM growth weighing on results.Q1 fiscal 2027 guidance calls for low-teens Dynamics 365 growth, signaling near-term deceleration. Microsoft (MSFT - Free Report) shares are facing a fresh test of whether its enterprise applications unit can move the needle for investors. The trigger is Dynamics 365 Activate, an AI-powered migration tool the company introduced recently, designed to help organizations shift from Salesforce's (CRM - Free Report) customer relationship management platform to Dynamics 365 with reduced manual effort and lower implementation risk.
Currently in public preview for Salesforce-to-Dynamics 365 transitions, the tool analyzes an existing CRM environment's data, workflows and customizations before generating migration recommendations, with additional ERP and business-application migration scenarios planned later this year. The move positions Dynamics 365 as a more direct competitor for CRM market share at a moment when Microsoft is leaning on agentic, AI-driven tools across its applications portfolio.
Activate arrives amid a broader run of Dynamics 365 updates over the past few months. Microsoft announced that it is retiring the twice-yearly release wave model for Dynamics 365, Power Platform and Dataverse, replacing it with a continuous "AI at Work" roadmap that will disclose new capabilities as they become committed rather than in batched semi-annual announcements.
Alongside that shift, the company has been rolling out agent-based features across the suite: Dynamics 365 Sales gained the ability to create records via a Sales agent, reaching general availability in September 2026. Dynamics 365 Customer Insights - Journeys introduced a Journey Creation Agent and an Outreach Optimization Agent in public preview during June 2026, alongside a centralized Dynamics 365 AI Hub for governing agents and Copilot. Dynamics 365 Business Central also added financial reporting enhancements and new APIs for analyzing approval workflows. Collectively, these updates signal a push toward embedding autonomous agents deeper into core CRM and ERP workflows, ahead of and alongside the Activate launch.
The announcement follows a mixed fiscal fourth-quarter 2026 performance for the segment. Dynamics 365 revenues rose 13% (12% in constant currency) for the quarter ended June 30, a deceleration from the 22% growth logged in the prior quarter and well below the 18-19% pace seen earlier in fiscal 2026. Management attributed the slowdown to a difficult prior-year comparison and softer bookings, noting that ERP bookings remained healthy while CRM growth moderated amid longer sales cycles.
Looking ahead, Microsoft's guidance for the first quarter of fiscal 2027, issued alongside July's earnings release, calls for Dynamics 365 revenue growth in the low-teens range, suggesting the deceleration trend is expected to persist near-term rather than reverse sharply. Whether Dynamics 365 Activate and the accompanying wave of agentic features translate into renewed bookings momentum, particularly in CRM, will likely determine if this specific business line reaccelerates enough to move the broader growth narrative. For now, the tool represents a strategic lever rather than a confirmed catalyst for the stock.
How CRM & ORCL Compare on Business Applications GrowthSalesforce and Oracle (ORCL - Free Report) remain Microsoft's closest rivals in the business-applications race that Dynamics 365 Activate targets. Salesforce's subscription revenue growth has moderated into single digits, with quarterly revenues up roughly 9-11% year over year through fiscal 2026, making it the direct target of Microsoft's migration push. Oracle, by contrast, has posted stronger cloud-applications momentum, with Fusion Cloud ERP revenues growing in the mid-to-high teens across recent quarters. Both Salesforce and Oracle continue investing heavily in their own AI agent platforms, meaning Oracle and Salesforce present distinct competitive pressure points as Microsoft works to convert Dynamics 365's share gains into sustained double-digit growth.
MSFT’s Share Price Performance, Valuation & EstimatesMSFT shares have returned 1.8% in the year-to-date (YTD) period against the Zacks Computer – Software industry’s decline of 4.7%. The Zacks Computer and Technology sector has appreciated 18.1% in the same time frame.
MSFT’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MSFT stock appears overvalued, trading at a forward 12-month price/earnings ratio of 24.22X, higher than the industry’s 22.89X. MSFT has a Value Score of D.
MSFT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MSFT’s fiscal 2026 earnings is pegged at $19.59 per share. The estimate indicates 9.14% year-over-year growth.
Microsoft currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Azure is crossing milestones, Copilot seats are multiplying, and 55 analysts refuse to budge from their bullish ratings, yet Microsoft shares have gone nowhere for a year while the broader market climbed 17%. One analyst sees a path to gains…
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Microsoft (NASDAQ:MSFT | MSFT Price Prediction) trades at $491.65, while the Wall Street consensus price target sits at $572.92, implying roughly 16.5% upside. The Street-high call goes much further: Arete Research’s $870 target, which also serves as the upper-bound estimate captured across major consensus trackers, implies about 77% upside from here.
Microsoft is the software franchise carrying the enterprise AI story on its back, and Wall Street has been fixated on how quickly Azure, Copilot, and the OpenAI partnership can convert massive capex into durable earnings power. The gap between where shares sit and where bulls think they can go has widened because the market is discounting near-term free cash flow compression while analysts underwrite the payoff.
Why Shares Slipped Even as the Beats Kept Coming Microsoft has drifted lower for nearly a year, essentially flat at -0.54% over the past 12 months while the S&P 500 rose 17.23%. The pain started with capex sticker shock. Full-year fiscal 2026 capital expenditures hit $115.948 billion, up 79.62% year over year, and Q4 capex jumped 109.63% to $35.802 billion. Free cash flow fell 6.46% for the year and dropped 23.19% in Q4.
Investors watched the price walk down from $517.85 at the Q1 FY26 filing to $451.01, $428, and $395.50 through the reporting sequence. Each earnings report raised the same question: how long until AI infrastructure spend translates into cash returns? A More Personal Computing segment shrinking 4% in Q4 and Xbox impairment charges added noise, and swings in the OpenAI investment line have muddied earnings quality.
What Keeps 55 Analysts Bullish on the Story The business is running hot underneath the capex noise. Azure crossed $100 billion in annual revenue and grew 43% in Q4, commercial remaining performance obligations reached $678 billion (up 84%), and Microsoft 365 Copilot passed 30 million paid seats with net adds more than doubling quarter over quarter. Management guided Azure to roughly 45% constant-currency growth for the first quarter of fiscal 2027.
The bull case that produces Arete’s $870 rests on three pillars: Copilot-driven ARPU expansion across M365, GitHub, and Security stacks; Azure’s role as the primary host for frontier AI, backed by OpenAI’s incremental $250 billion Azure commitment and extended IP rights through 2032; and prohibitively high switching costs across Fortune 500 IT footprints.
Forward estimates support the direction. Consensus fiscal 2027 EPS has moved to $19.7531 with 21 upward revisions versus 8 downward in the last 30 days, and fiscal 2028 EPS is modeled at $23.5733 with a high of $26.00. The revision trend is one-directional.
Analyst ratings lean heavily positive:
Strong Buy: 14 Buy: 38 Hold: 3 Sell: 0 How Microsoft Stacks Up Against Alphabet, Amazon, and Oracle The hyperscaler group has not sold off together. Microsoft has lagged while capital rotated into peers with cleaner cash flow or bigger cloud growth surprises.
The buildout keeps demanding more power, cooling, and networking capacity than the hyperscalers can supply themselves, which is why we broke down seven suppliers riding that same wave in a free report on the picks-and-shovels side of the AI boom.
Alphabet (NASDAQ:GOOGL) trades at $330.65 against a $428.07 consensus target, roughly 29.5% upside. Shares are up 38.34% over 12 months, backed by 82% Google Cloud growth in Q2, and analyst posture skews heavily Buy.
Amazon (NASDAQ:AMZN) sits at $252.40 with a $328.17 target, about 30% upside. AWS accelerated to 37% in Q2, its fastest growth in 18 quarters, and the ratings mix is firmly Buy.
Oracle (NYSE:ORCL) trades at $161.72 versus a $241.43 target, implying nearly 49.3% upside. The catch: shares are down 32.31% over 12 months, with FY26 free cash flow at negative $23.7 billion against RPO of $638 billion. The rating mix stays Buy-tilted with one Sell.
Oracle carries the largest consensus-implied upside in the group. Microsoft carries the largest bull-case gap once Arete’s Street-high is included.
Numbers That Frame the Setup Microsoft’s $491.65 price against a $572.92 consensus target across 55 analysts leaves roughly 16.5% upside to the average and about 77% to the $870 high. Trailing P/E is 28 and forward P/E is 25 on TTM diluted EPS of $17.94.
Performance has trailed the broader market. MSFT is -0.54% over 12 months and up just 2.31% year to date, while the S&P 500 is up 11.80% YTD and 17.23% over the year.
Bull and Bear Scenarios at $491 The bull thesis works if capex intensity is close to peaking, Copilot’s 30 million paid seats become the base of a much larger ARPU curve, and the OpenAI IP rights through 2032 turn into a durable margin advantage as AI monetization shifts from tokens to seats. In that scenario, consensus becomes a floor and Arete’s $870 enters the conversation.
The bear thesis holds if the $115.948 billion capex year is a preview rather than a peak, FCF compression drags into fiscal 2027, and AWS and Google Cloud continue closing the growth gap. That combination turns a compounder into a capital-intensive utility on a premium multiple.
My lean is cautiously constructive. The consensus 16.5% upside layered on top of Copilot monetization looks reasonable to underwrite. The 77% Arete case is defensible, but it requires several things to break right in sequence, and the market is telling you it wants to see the cash before it pays for the vision.
Contact [email protected] for any questions or corrections.
Tech StocksPublic backlash, costs of power and even cooler climates are among the reasons Big Tech is looking abroad for opportunities to build data centers
Building data centers in the U.S. is becoming a nightmare for artificial-intelligence hyperscalers.
Between outrage from voters fearing higher energy and water bills, representatives fearing blame and obstacles from federal regulators, the challenges are mounting for Big Tech companies looking to meet the demand for AI.
Activest Wealth Management trimmed its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 32.3% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 12,034 shares of the software giant’s stock after selling 5,730 shares during the quarter. Microsoft accounts for about 0.9% of Activest Wealth Management’s investment portfolio, making the stock its 16th biggest position. Activest Wealth Management’s holdings in Microsoft were worth $4,489,000 as of its most recent SEC filing.
Several other institutional investors have also modified their holdings of the business. Longfellow Investment Management Co. LLC boosted its stake in shares of Microsoft by 51.3% during 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 shares of Microsoft in the fourth quarter worth $34,000. Timmons Wealth Management LLC bought a new stake in shares of Microsoft in the fourth quarter worth $36,000. Fairway Wealth LLC raised its holdings in Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after acquiring an additional 66 shares in the last quarter. Finally, Frankly Finances LLC acquired a new stake in Microsoft in the second quarter valued at $35,000. Institutional investors and hedge funds own 71.13% of the company’s stock.
Insider Buying and Selling at Microsoft In related news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the transaction, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at $244,092,173.98. This represents a 15.09% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 101,335 shares of company stock worth $50,655,795. 0.03% of the stock is owned by company insiders.
Analyst Upgrades and Downgrades MSFT has been the subject of several recent analyst reports. Bank of America raised their price objective on shares of Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a report on Tuesday, September 1st. Barclays cut their target price on shares of Microsoft from $545.00 to $512.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. Stifel Nicolaus increased their price target on shares of Microsoft from $450.00 to $530.00 and gave the stock a “hold” rating in a research report on Friday, September 4th. Cantor Fitzgerald lifted their price target on Microsoft from $502.00 to $522.00 and gave the stock an “overweight” rating in a research note on Monday, July 27th. Finally, Citizens Jmp reissued a “market outperform” rating and issued a $550.00 price objective on shares of Microsoft in a report on Tuesday, July 28th. Forty-two analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $564.27. Check Out Our Latest Stock Report on MSFT
Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft disclosed that Azure has surpassed a $100 billion annualized revenue run rate and reorganized its reporting structure around AI agents and infrastructure. The disclosure improves visibility into the company’s fastest-growing business and reinforces the long-term AI investment case. Microsoft Breaks Out Azure Sales at $100 Billion Annualized Pace, Reorganizes AI Segments Positive Sentiment: Microsoft is supporting UpDoc’s team in an ARPA-H program developing autonomous clinical AI for cardiovascular care, alongside OpenAI and NVIDIA. The initiative offers potential strategic and reputational benefits in healthcare AI, although the immediate financial impact is likely limited. ARPA-H Selects UpDoc to Lead Development of Autonomous Clinical AI System Positive Sentiment: Pershing Square, managed by Bill Ackman, reportedly increased its Microsoft position by 6.2 million shares. The purchase may provide a sentiment boost by signaling confidence from a prominent activist investor. Pershing Square’s Bill Ackman Boosts Microsoft Stake Neutral Sentiment: Strong demand for high-bandwidth memory from Microsoft and other AI companies is benefiting suppliers such as SK Hynix. The report highlights Microsoft’s continued AI infrastructure spending, but also underscores dependence on costly hardware and supply-chain capacity. Nvidia and Meta Are Hungry for HBM Negative Sentiment: Microsoft’s latest Patch Tuesday addressed a record 974 vulnerabilities, including two Windows zero-days reportedly exploited in the wild. While the fixes reduce longer-term security risk, the scale of the release may raise concerns about software quality, cybersecurity costs and potential customer disruption. Microsoft Patches Record 974 Flaws Negative Sentiment: An analyst downgrade argues that Microsoft’s AI capital-expenditure rotation does not yet support an optimistic view, intensifying concerns that infrastructure spending could pressure returns and free cash flow before monetization catches up. Microsoft: CapEx Rotation Does Not Support an Optimistic View Negative Sentiment: Fresh lawsuits from news organizations over AI training and content usage add legal and regulatory uncertainty to Microsoft’s OpenAI relationship. Rising Treasury yields are an additional valuation headwind for large technology companies. Microsoft’s OpenAI Partnership Draws Fresh Legal Fire Microsoft Stock Down 0.5% Microsoft stock opened at $491.65 on Thursday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company has a 50-day simple moving average of $451.71 and a 200-day simple moving average of $417.95. The firm has a market capitalization of $3.65 trillion, a P/E ratio of 27.37, a P/E/G ratio of 1.59 and a beta of 1.11.
Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. Microsoft’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period last year, the firm posted $3.65 EPS. As a group, equities analysts expect that Microsoft Corporation will post 19.59 earnings per share for the current year.
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.
The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.
Featured Stories Five stocks we like better than Microsoft Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal GE Aerospace’s $11.75B Deal Puts Howmet Aerospace in Focus Casey’s Post-Earnings Drop May Give Investors a Better Entry Into a Quality Retailer Sovereign AI: Palantir and Nebius Cut the Cloud Cord
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Ahara Advisors LLC increased its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 359.9% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 56,035 shares of the software giant’s stock after acquiring an additional 43,852 shares during the quarter. Microsoft comprises about 9.3% of Ahara Advisors LLC’s investment portfolio, making the stock its 2nd largest holding. Ahara Advisors LLC’s holdings in Microsoft were worth $20,735,000 at the end of the most recent quarter.
A number of other institutional investors have also recently bought and sold shares of the business. Longfellow Investment Management Co. LLC raised its position in shares of Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after purchasing an additional 20 shares during the period. Shepherd Kaplan Krochuk LLC grew its position in Microsoft by 4.9% in the 3rd 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 period. Fischer Investment Strategies LLC raised its holdings in Microsoft by 3.1% during the fourth quarter. Fischer Investment Strategies LLC now owns 697 shares of the software giant’s stock worth $337,000 after buying an additional 21 shares during the last quarter. Pollock Investment Advisors LLC lifted 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 valued at $1,453,000 after buying an additional 21 shares in the last quarter. Finally, Better Money Decisions LLC grew its holdings in shares of Microsoft by 0.6% during 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 last quarter. Institutional investors own 71.13% of the company’s stock.
Wall Street Analysts Forecast Growth MSFT has been the subject of a number of analyst reports. Stifel Nicolaus lifted their price target on Microsoft from $450.00 to $530.00 and gave the company a “hold” rating in a research note on Friday, September 4th. Phillip Securities downgraded Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research note on Monday, August 3rd. Barclays dropped their target price on Microsoft from $545.00 to $512.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Bank of America upped their price target on Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a report on Tuesday, September 1st. Finally, BMO Capital Markets increased their price target on Microsoft from $500.00 to $515.00 and gave the company an “outperform” rating in a research report on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, Microsoft presently has an average rating of “Moderate Buy” and a consensus price target of $564.27.
View Our Latest Stock Analysis on MSFT Microsoft Trading Down 0.5% NASDAQ MSFT opened at $491.65 on Thursday. The business’s fifty day moving average is $451.71 and its 200-day moving average is $417.95. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The stock has a market capitalization of $3.65 trillion, a price-to-earnings ratio of 27.37, a PEG ratio of 1.59 and a beta of 1.11. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the prior year, the firm earned $3.65 EPS. The company’s revenue was up 17.7% compared to the same quarter last year. Equities research analysts predict that Microsoft Corporation will post 19.59 EPS for the current year.
Insiders Place Their Bets In related news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the sale, the chief executive officer owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at $49,007,086.83. The trade was a 9.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 101,335 shares of company stock worth $50,655,795 over the last quarter. 0.03% of the stock is currently owned by company insiders.
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft disclosed that Azure has surpassed a $100 billion annualized revenue run rate and reorganized its reporting structure around AI agents and infrastructure. The disclosure improves visibility into the company’s fastest-growing business and reinforces the long-term AI investment case. Microsoft Breaks Out Azure Sales at $100 Billion Annualized Pace, Reorganizes AI Segments Positive Sentiment: Microsoft is supporting UpDoc’s team in an ARPA-H program developing autonomous clinical AI for cardiovascular care, alongside OpenAI and NVIDIA. The initiative offers potential strategic and reputational benefits in healthcare AI, although the immediate financial impact is likely limited. ARPA-H Selects UpDoc to Lead Development of Autonomous Clinical AI System Positive Sentiment: Pershing Square, managed by Bill Ackman, reportedly increased its Microsoft position by 6.2 million shares. The purchase may provide a sentiment boost by signaling confidence from a prominent activist investor. Pershing Square’s Bill Ackman Boosts Microsoft Stake Neutral Sentiment: Strong demand for high-bandwidth memory from Microsoft and other AI companies is benefiting suppliers such as SK Hynix. The report highlights Microsoft’s continued AI infrastructure spending, but also underscores dependence on costly hardware and supply-chain capacity. Nvidia and Meta Are Hungry for HBM Negative Sentiment: Microsoft’s latest Patch Tuesday addressed a record 974 vulnerabilities, including two Windows zero-days reportedly exploited in the wild. While the fixes reduce longer-term security risk, the scale of the release may raise concerns about software quality, cybersecurity costs and potential customer disruption. Microsoft Patches Record 974 Flaws Negative Sentiment: An analyst downgrade argues that Microsoft’s AI capital-expenditure rotation does not yet support an optimistic view, intensifying concerns that infrastructure spending could pressure returns and free cash flow before monetization catches up. Microsoft: CapEx Rotation Does Not Support an Optimistic View Negative Sentiment: Fresh lawsuits from news organizations over AI training and content usage add legal and regulatory uncertainty to Microsoft’s OpenAI relationship. Rising Treasury yields are an additional valuation headwind for large technology companies. Microsoft’s OpenAI Partnership Draws Fresh Legal Fire Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.
The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.
Featured Stories Five stocks we like better than Microsoft Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal GE Aerospace’s $11.75B Deal Puts Howmet Aerospace in Focus Casey’s Post-Earnings Drop May Give Investors a Better Entry Into a Quality Retailer Sovereign AI: Palantir and Nebius Cut the Cloud Cord
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Asio Capital LLC trimmed its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 4.9% in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 42,668 shares of the software giant’s stock after selling 2,209 shares during the period. Microsoft accounts for approximately 2.0% of Asio Capital LLC’s holdings, making the stock its 11th largest holding. Asio Capital LLC’s holdings in Microsoft were worth $15,916,000 at the end of the most recent quarter.
Several other institutional investors have also recently bought and sold shares of MSFT. Vanguard Group Inc. grew its holdings in Microsoft by 2.3% during the 4th quarter. Vanguard Group Inc. now owns 717,942,580 shares of the software giant’s stock worth $347,211,391,000 after acquiring an additional 15,955,898 shares during the last quarter. State Street Corp increased its position in Microsoft by 2.1% in the 4th quarter. State Street Corp now owns 306,150,608 shares of the software giant’s stock valued at $148,060,557,000 after acquiring an additional 6,388,930 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Microsoft by 1.1% in the fourth quarter. Geode Capital Management LLC now owns 182,618,400 shares of the software giant’s stock worth $88,056,019,000 after acquiring an additional 1,911,142 shares during the last quarter. Morgan Stanley lifted its position in shares of Microsoft by 0.8% during the fourth quarter. Morgan Stanley now owns 121,220,561 shares of the software giant’s stock worth $58,624,690,000 after purchasing an additional 980,439 shares in the last quarter. Finally, Norges Bank acquired a new position in shares of Microsoft during the fourth quarter worth approximately $50,664,631,000. Institutional investors own 71.13% of the company’s stock.
Key Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft disclosed that Azure has surpassed a $100 billion annualized revenue run rate and reorganized its reporting structure around AI agents and infrastructure. The disclosure improves visibility into the company’s fastest-growing business and reinforces the long-term AI investment case. Microsoft Breaks Out Azure Sales at $100 Billion Annualized Pace, Reorganizes AI Segments Positive Sentiment: Microsoft is supporting UpDoc’s team in an ARPA-H program developing autonomous clinical AI for cardiovascular care, alongside OpenAI and NVIDIA. The initiative offers potential strategic and reputational benefits in healthcare AI, although the immediate financial impact is likely limited. ARPA-H Selects UpDoc to Lead Development of Autonomous Clinical AI System Positive Sentiment: Pershing Square, managed by Bill Ackman, reportedly increased its Microsoft position by 6.2 million shares. The purchase may provide a sentiment boost by signaling confidence from a prominent activist investor. Pershing Square’s Bill Ackman Boosts Microsoft Stake Neutral Sentiment: Strong demand for high-bandwidth memory from Microsoft and other AI companies is benefiting suppliers such as SK Hynix. The report highlights Microsoft’s continued AI infrastructure spending, but also underscores dependence on costly hardware and supply-chain capacity. Nvidia and Meta Are Hungry for HBM Negative Sentiment: Microsoft’s latest Patch Tuesday addressed a record 974 vulnerabilities, including two Windows zero-days reportedly exploited in the wild. While the fixes reduce longer-term security risk, the scale of the release may raise concerns about software quality, cybersecurity costs and potential customer disruption. Microsoft Patches Record 974 Flaws Negative Sentiment: An analyst downgrade argues that Microsoft’s AI capital-expenditure rotation does not yet support an optimistic view, intensifying concerns that infrastructure spending could pressure returns and free cash flow before monetization catches up. Microsoft: CapEx Rotation Does Not Support an Optimistic View Negative Sentiment: Fresh lawsuits from news organizations over AI training and content usage add legal and regulatory uncertainty to Microsoft’s OpenAI relationship. Rising Treasury yields are an additional valuation headwind for large technology companies. Microsoft’s OpenAI Partnership Draws Fresh Legal Fire Microsoft Stock Performance MSFT stock opened at $491.65 on Thursday. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The company has a market cap of $3.65 trillion, a P/E ratio of 27.37, a price-to-earnings-growth ratio of 1.59 and a beta of 1.11. The business’s fifty day moving average is $451.71 and its 200-day moving average is $417.95. Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $3.65 earnings per share. Equities research analysts forecast that Microsoft Corporation will post 19.59 EPS for the current year.
Analysts Set New Price Targets A number of analysts recently weighed in on the stock. Argus lowered their price target on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a report on Friday, July 10th. Tigress Financial upped their price objective on Microsoft from $680.00 to $690.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Truist Financial reiterated a “buy” rating and issued a $575.00 price objective on shares of Microsoft in a research report on Wednesday, July 22nd. Wolfe Research restated an “outperform” rating and set a $550.00 target price on shares of Microsoft in a research report on Thursday, July 30th. Finally, UBS Group set a $525.00 price target on Microsoft in a research note on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $564.27.
Get Our Latest Analysis on MSFT
Insiders Place Their Bets In other news, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the sale, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 101,335 shares of company stock worth $50,655,795. Insiders own 0.03% of the company’s stock.
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.
The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.
Featured Stories Five stocks we like better than Microsoft Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal GE Aerospace’s $11.75B Deal Puts Howmet Aerospace in Focus Casey’s Post-Earnings Drop May Give Investors a Better Entry Into a Quality Retailer Sovereign AI: Palantir and Nebius Cut the Cloud Cord 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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Arvest Investments Inc. raised its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 13.4% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 21,351 shares of the software giant’s stock after purchasing an additional 2,527 shares during the period. Microsoft accounts for approximately 1.0% of Arvest Investments Inc.’s investment portfolio, making the stock its 20th biggest holding. Arvest Investments Inc.’s holdings in Microsoft were worth $7,965,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. River Road Asset Management LLC lifted its holdings in shares of Microsoft by 489.7% during the second quarter. River Road Asset Management LLC now owns 40,790 shares of the software giant’s stock worth $15,215,000 after purchasing an additional 33,873 shares during the period. Aspen Investment Management Inc increased its holdings in Microsoft by 1.8% in the 2nd quarter. Aspen Investment Management Inc now owns 23,195 shares of the software giant’s stock worth $8,652,000 after buying an additional 414 shares during the period. Grey Fox Wealth Advisors LLC increased its holdings in Microsoft by 58.2% in the 2nd quarter. Grey Fox Wealth Advisors LLC now owns 3,983 shares of the software giant’s stock worth $1,486,000 after buying an additional 1,465 shares during the period. Benchmark Financial Wealth Advisors LLC raised its position in Microsoft by 0.5% during the 2nd quarter. Benchmark Financial Wealth Advisors LLC now owns 12,014 shares of the software giant’s stock worth $4,481,000 after buying an additional 64 shares during the last quarter. Finally, Cidel Asset Management Inc. raised its position in Microsoft by 6.0% during the 2nd quarter. Cidel Asset Management Inc. now owns 132,721 shares of the software giant’s stock worth $49,508,000 after buying an additional 7,533 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.
Insider Activity In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the firm’s stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the sale, the chief executive officer directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 101,335 shares of company stock worth $50,655,795 in the last ninety days. Company insiders own 0.03% of the company’s stock.
Analysts Set New Price Targets MSFT has been the topic of several recent research reports. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $640.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Barclays reduced their target price on shares of Microsoft from $545.00 to $512.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Oppenheimer restated an “outperform” rating and set a $515.00 target price on shares of Microsoft in a research report on Wednesday, July 22nd. Wedbush reaffirmed an “outperform” rating and issued a $575.00 price target on shares of Microsoft in a report on Wednesday, May 13th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of Microsoft in a research report on Monday, July 20th. Forty-two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, Microsoft currently has a consensus rating of “Moderate Buy” and an average target price of $564.27. Read Our Latest Research Report on Microsoft
Microsoft Stock Down 0.5% MSFT stock opened at $491.65 on Thursday. The firm has a market cap of $3.65 trillion, a PE ratio of 27.37, a P/E/G ratio of 1.59 and a beta of 1.11. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The firm’s fifty day moving average is $451.71 and its 200 day moving average is $417.95. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $3.65 earnings per share. On average, research analysts forecast that Microsoft Corporation will post 19.59 EPS for the current year.
Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft disclosed that Azure has surpassed a $100 billion annualized revenue run rate and reorganized its reporting structure around AI agents and infrastructure. The disclosure improves visibility into the company’s fastest-growing business and reinforces the long-term AI investment case. Microsoft Breaks Out Azure Sales at $100 Billion Annualized Pace, Reorganizes AI Segments Positive Sentiment: Microsoft is supporting UpDoc’s team in an ARPA-H program developing autonomous clinical AI for cardiovascular care, alongside OpenAI and NVIDIA. The initiative offers potential strategic and reputational benefits in healthcare AI, although the immediate financial impact is likely limited. ARPA-H Selects UpDoc to Lead Development of Autonomous Clinical AI System Positive Sentiment: Pershing Square, managed by Bill Ackman, reportedly increased its Microsoft position by 6.2 million shares. The purchase may provide a sentiment boost by signaling confidence from a prominent activist investor. Pershing Square’s Bill Ackman Boosts Microsoft Stake Neutral Sentiment: Strong demand for high-bandwidth memory from Microsoft and other AI companies is benefiting suppliers such as SK Hynix. The report highlights Microsoft’s continued AI infrastructure spending, but also underscores dependence on costly hardware and supply-chain capacity. Nvidia and Meta Are Hungry for HBM Negative Sentiment: Microsoft’s latest Patch Tuesday addressed a record 974 vulnerabilities, including two Windows zero-days reportedly exploited in the wild. While the fixes reduce longer-term security risk, the scale of the release may raise concerns about software quality, cybersecurity costs and potential customer disruption. Microsoft Patches Record 974 Flaws Negative Sentiment: An analyst downgrade argues that Microsoft’s AI capital-expenditure rotation does not yet support an optimistic view, intensifying concerns that infrastructure spending could pressure returns and free cash flow before monetization catches up. Microsoft: CapEx Rotation Does Not Support an Optimistic View Negative Sentiment: Fresh lawsuits from news organizations over AI training and content usage add legal and regulatory uncertainty to Microsoft’s OpenAI relationship. Rising Treasury yields are an additional valuation headwind for large technology companies. Microsoft’s OpenAI Partnership Draws Fresh Legal Fire About Microsoft (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.
The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.
Read More Five stocks we like better than Microsoft Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal GE Aerospace’s $11.75B Deal Puts Howmet Aerospace in Focus Casey’s Post-Earnings Drop May Give Investors a Better Entry Into a Quality Retailer Sovereign AI: Palantir and Nebius Cut the Cloud Cord 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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Azure just crossed $100 billion in annual revenue and the stock is trading well off its highs, which raises an uncomfortable question about whether the selloff reflects a real problem or a market overreaction worth exploiting.
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At $491.65, Microsoft (NASDAQ:MSFT | MSFT Price Prediction) looks attractively priced. The recent big-tech de-risking has knocked the stock lower even as Azure crossed $100 billion in annual revenue, and that gap between price action and fundamentals is the setup worth acting on.
Microsoft is the enterprise software layer for the AI buildout, monetizing through Azure infrastructure, Microsoft 365 Copilot, GitHub Copilot, and its restructured OpenAI partnership. The stock has traded from a 52-week high of $549.20 down through a summer of heavy capex headlines, with shares off 2.66% over the past month as investors rotated out of megacap tech.
What has not changed is the underlying trajectory. Commercial remaining performance obligations sit at $678 billion, up 84% YoY, and management guided fiscal Q1 2027 Azure growth to approximately 45% in constant currency. The market is discounting the spend while overlooking the backlog.
Why the Pullback Is a Gift for Long-Term Buyers The bull case starts with the demand side. CEO Satya Nadella told analysts “demand continues to exceed available supply”, and Azure just delivered a full year at 41% growth. Microsoft 365 Copilot passed 30 million paid seats, GitHub Copilot revenue accelerated over 60% quarter over quarter, and the AI business hit a $37 billion annual run rate growing 123% YoY.
Valuation is not stretched for this growth profile. Shares trade at a forward P/E of 25, with operating margins of 46.78% and ROE of 34.04%. Microsoft has beaten EPS estimates for eight straight quarters, with the latest earnings report landing at $4.74 versus a $4.21 estimate. Analysts remain overwhelmingly constructive, with 14 Strong Buy, 38 Buy, and 3 Hold ratings and zero sells.
Why the Capex Bill Could Sink Sentiment Further The bear case is math. FY2026 capex hit $115.95 billion, up 79.6%, and free cash flow fell 6.5% for the full year and 23.2% in Q4. With the shift to operating leases, capital investment expectations move to approximately $175 billion. That is a lot of GPU spend to earn back, and it is why the power, cooling, and networking suppliers behind these data centers keep showing up in our free report on seven AI infrastructure names that are not chipmakers.
Margins are already compressing. Microsoft Cloud gross margin dropped to 65%, and management guided full-year FY27 operating margins down less than a point. OpenAI investment losses ballooned to $3.1 billion in Q1 versus $523 million the prior year. Reddit chatter reflects the unease, with the top driving thread titled “Thoughts on MSFT. Should I just take all my profit?” and sentiment cooling to neutral at 42.
Why Some Investors Should Sit on Their Hands The hold case rests on timing. The AI thesis is intact, but the capex return curve is still forward-looking, and free cash flow yield of 1.83% leaves little cushion if growth slows. More Personal Computing revenue fell 4%, and Windows OEM and devices is guided down in the high teens for FY27.
Patient investors can wait for the FY27 Q1 earnings report to confirm the 45% constant-currency Azure guide, then reassess. A miss on Azure or a capex surprise would justify holding fire. A clean beat would remove ambiguity.
What the Numbers Show About Entry Timing Shares currently trade at $491.65 against an analyst consensus target of $572.92, implying meaningful upside if the target is met. That target reflects 55 analysts, with 52 rating the stock Buy or Strong Buy and 3 at Hold. Targets are one data point, not a guarantee.
Recent performance frames the setup. MSFT is up 2.31% year to date and down 0.54% over one year. The S&P 500, via SPY, is up 11.81% year to date and 17.24% over one year. Microsoft has clearly lagged the index, which is precisely why the entry looks reasonable.
Valuation supports the case: trailing P/E of 28, forward P/E of 25, and forward FY27 EPS consensus of $19.75, rising to $23.57 for FY28.
Buy Call at This Price At $491.65, the setup for Microsoft looks compelling. Here is why.
The path to appreciation is straightforward. Fiscal Q1 2027 should deliver Azure growth of roughly 45% in constant currency and total revenue of $89.85 to $90.95 billion. If Microsoft delivers, the de-risking narrative flips fast, and the gap between the stock and its analyst target compresses within two quarters. The $678 billion RPO provides multi-year visibility that few megacaps can match.
The entry point is favorable because the softening reflects sentiment rather than a change in fundamentals. Shares are trading above the 50-day moving average of $444.17 and below the 52-week high of $549.20, which frames the risk/reward. Downside is bounded by 46.78% operating margins and a fortress balance sheet at 0.29 debt/equity. Upside is anchored by an AI backlog growing 84% YoY.
What would invalidate the thesis: an Azure deceleration below 35%, a capex guide meaningfully above $175 billion without corresponding bookings, or a sharp deterioration in Copilot seat additions. Watch the FY27 Q1 report and the enterprise adoption numbers from EY, HSBC, and NHS England, all of which just committed to large-scale Copilot deployments.
Buying quality on a sentiment pullback, with a 16% analyst target gap and Azure guided to accelerate, is the setup the data supports.
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3 Stocks Built for Higher Rates—And 2 That Could BreakMicrosoft NASDAQ: MSFT Chief Financial Officer Amy Hood said the company’s broad technology stack, enterprise relationships and focus on trust position it to remain relevant as artificial intelligence reshapes software and cloud computing.
Speaking at the Goldman Sachs Communacopia + Technology Conference, Hood described Microsoft as a platform company with infrastructure, management tools, applications, intelligence capabilities and an emerging agent layer. She said the company’s distribution network, sales organization and long-standing customer relationships are also important competitive advantages.
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MSFT Has Gone Nowhere in 2026—Azure Says That's a Mistake“Trust, security, sovereignty, the protection of IP” are fundamental to a platform company, Hood said, adding that customers expect Microsoft to provide reliable products while protecting their intellectual property.
Enterprise AI and Multi-Model Strategy Hood said enterprise discussions around AI have changed in recent months, particularly regarding intellectual-property protection and the ability to support multiple AI models. Microsoft supports more than 11,000 models on its platform, according to Hood, ranging from frontier and open-source models to specialized models and work from its internal MAI team.
GTA VI's Console Problem Isn't Take-Two's ProblemShe characterized Microsoft’s “frontier ecosystem” approach as enabling companies, organizations and countries to own their own continuous learning loops and benefit directly from the IP they create. Hood said broad access to AI could distribute economic benefits more widely while expanding the total addressable market for the technology industry.
Rather than focusing on predictions for the mix of frontier-model and open-source-model usage, Hood said customers are increasingly focused on outcomes and return on investment. The company’s goal is to use the appropriate mix of models to produce the needed result at the best value, she said.
Hood highlighted Microsoft Agent 365 as a product intended to help customers measure and manage AI spending. She said the company is applying similar principles in its own applications, seeking to deliver outcomes at lower cost where possible.
Azure Capacity and Infrastructure Efficiency On Azure, Hood said the company remains focused on bringing capacity online and making hardware “revenue ready” more quickly. She said the company has reduced “dock-to-live” times by more than 50% over the course of a year, referring to the time needed to move hardware from delivery to revenue-generating deployment.
Efficiency work extends from physical infrastructure through software and application layers, Hood said. Improving throughput and reducing deployment times enables Microsoft to convert capital spending into revenue faster, with the impact generally reflected in Azure results during the quarter.
Hood distinguished between long-lived investments, such as construction and leases, and shorter-term capital expenditures driven by demand. She said the short-term priority is less about adjusting spending by a particular dollar amount and more about getting available supply into the system faster.
For longer-term capacity, Microsoft has entered long-term agreements across its supply chain to secure what Hood called “full sets” of required equipment and components. She also said companies need to focus on positive local community impacts as they pursue data-center projects.
On internal semiconductors, Hood said Microsoft’s strategy is to maintain competitive price-performance through a mix of internally designed and third-party components. She noted that the company’s Cobalt CPU will be deployed in roughly 25 data centers over the year and said Microsoft was encouraged by benchmarks released for its Maia chips.
Pricing, Copilot and AI Monetization Hood said Microsoft is moving toward a mix of user-based and consumption-based pricing across parts of its software portfolio. User licenses remain important because customers value budget predictability, she said, while consumption pricing is better suited for AI services tied to units of work or measurable outcomes.
The company recently made changes to GitHub pricing, and Hood said the experience reinforced that users are willing to pay more when a high-quality product meaningfully improves productivity. At the same time, she said customers need controls, measurement and observability to manage consumption-based spending.
Regarding Copilot, Hood said higher usage can raise costs within fixed-price user licenses, but Microsoft has historically managed rising service costs through efficiency and productivity improvements. The company also aims to use the right model for each task, she said.
Hood said broader Copilot adoption could support demand for usage-based offerings such as Copilot Cowork. She described the combination of predictable user licensing and consumption-based tools as a way to create growth beyond a simple replacement of existing software budgets.
Reporting Changes and Agentic Workflows Hood said Microsoft’s recent decision to re-segment its reporting reflects how the company now manages its operations. Coding, security and knowledge work are becoming more integrated within Microsoft 365, while agents, applications and infrastructure are increasingly delivered as a unified stack, she said.
Looking ahead, Hood said Microsoft is positioned to help enterprises deploy sophisticated agents in secure and regulated environments. The company’s advantages include access to work-related data and context through Work IQ, multi-model support, secure access to customer tenants and IP, frontier-model investments, and tools for developers to build applications.
“Agents and apps and humans will work together,” Hood said, adding that she believes Microsoft 365 can provide a secure and trusted environment for that transition.
About Microsoft (NASDAQ:MSFT)Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.
The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Coastwise Capital Group LLC lifted its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 9.1% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 15,783 shares of the software giant’s stock after purchasing an additional 1,313 shares during the quarter. Microsoft accounts for approximately 3.4% of Coastwise Capital Group LLC’s investment portfolio, making the stock its 8th largest position. Coastwise Capital Group LLC’s holdings in Microsoft were worth $5,887,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also made changes to their positions in MSFT. WFA Asset Management Corp grew its stake in Microsoft by 27.0% in the 1st quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after acquiring an additional 216 shares in the last quarter. Ironwood Wealth Management LLC. raised its stake in shares of Microsoft by 0.3% during the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock valued at $5,658,000 after acquiring an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC boosted its holdings in shares of Microsoft by 410.4% in the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock valued at $1,144,000 after purchasing an additional 2,138 shares during the period. Wealth Group Ltd. grew its stake in Microsoft by 1.2% in the fourth quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock worth $1,000,000 after purchasing an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC grew its stake in Microsoft by 0.4% in the fourth quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock worth $9,735,000 after purchasing an additional 96 shares in the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.
Insider Buying and Selling In related news, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. This trade represents a 9.05% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 101,335 shares of company stock worth $50,655,795 in the last 90 days. Insiders own 0.03% of the company’s stock.
Microsoft Stock Performance Shares of Microsoft stock opened at $493.95 on Wednesday. The company has a 50 day moving average price of $449.56 and a 200 day moving average price of $417.29. The firm has a market capitalization of $3.67 trillion, a P/E ratio of 27.50, a PEG ratio of 1.61 and a beta of 1.11. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the prior year, the business posted $3.65 EPS. Microsoft’s revenue for the quarter was up 17.7% compared to the same quarter last year. Sell-side analysts expect that Microsoft Corporation will post 19.59 EPS for the current year.
Analysts Set New Price Targets MSFT has been the subject of several research reports. Phillip Securities downgraded Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 3rd. Cantor Fitzgerald raised their target price on shares of Microsoft from $502.00 to $522.00 and gave the company an “overweight” rating in a research report on Monday, July 27th. Weiss Ratings upgraded Microsoft from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 27th. Benchmark reissued a “buy” rating on shares of Microsoft in a research report on Friday, July 24th. Finally, Royal Bank Of Canada reiterated an “outperform” rating and issued a $640.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Forty-two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $564.27.
Check Out Our Latest Research Report on MSFT
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft disclosed that Azure is generating more than a $100 billion annualized revenue run rate and reorganized reporting around AI infrastructure and agents. Greater Azure transparency and accelerating demand could support revenue visibility and investor confidence. Microsoft Breaks Out Azure Sales at $100 Billion Annualized Pace, Reorganizes AI Segments Positive Sentiment: Microsoft is positioned at the center of a projected multitrillion-dollar AI infrastructure buildout, with Azure demand, large customer commitments, and its partnership with NVIDIA potentially creating a long-term growth opportunity. Nvidia, Microsoft at Center of $7 Trillion AI Boom Neutral Sentiment: Analysts remain broadly constructive, with recent buy or overweight ratings and a reported median price target of $540. However, the stock’s sharp advance and proximity to its prior high make continued gains dependent on cash-flow conversion and the payoff from heavy AI investment. Microsoft Stock Opinions on Recent Earnings and Business Reorganization Negative Sentiment: Two additional lawsuits from news organizations over the use of news content in AI training increase legal uncertainty around Microsoft’s OpenAI relationship and could create financial, reputational, or operational costs. Microsoft’s OpenAI Partnership Draws Fresh Legal Fire Negative Sentiment: Microsoft’s effort to measure the “useful yield” produced by each AI infrastructure dollar and watt highlights investor concerns about whether massive data-center spending will generate adequate returns. The scrutiny could pressure sentiment toward Microsoft and key supplier NVIDIA. Microsoft’s Useful Yield Test Raises the Stakes for NVIDIA’s AI Economics Negative Sentiment: Recent reports also cite insider selling, including sales by Chief Executive Officer Satya Nadella, while separate reports of Outlook and Microsoft 365 service disruptions add modest execution and reliability concerns. Microsoft’s OpenAI Partnership Draws Fresh Legal Fire About Microsoft (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.
The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.
Read More Five stocks we like better than Microsoft Tesla’s Robotaxi Launch Wasn’t the Moment Investors Expected Despite Post-Earnings Drop, Wall Street Analysts Eye New Highs for Broadcom Stock Morgan Stanley Eyes Good Things Ahead for Meta After $18 Billion Legal Settlement Q3 Earnings Could Be the Catalyst the Market Has Been Waiting For 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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Crossmark Global Holdings Inc. raised its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 3.2% in the 2nd quarter, according to its most recent 13F filing with the SEC. The fund owned 473,877 shares of the software giant’s stock after acquiring an additional 14,673 shares during the period. Microsoft accounts for about 2.3% of Crossmark Global Holdings Inc.’s holdings, making the stock its 4th biggest position. Crossmark Global Holdings Inc.’s holdings in Microsoft were worth $176,766,000 at the end of the most recent quarter.
Other hedge funds have also made changes to their positions in the company. Longfellow Investment Management Co. LLC grew 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 period. Shepherd Kaplan Krochuk LLC boosted its position in shares of Microsoft by 4.9% in the third quarter. Shepherd Kaplan Krochuk LLC now owns 431 shares of the software giant’s stock worth $223,000 after acquiring an additional 20 shares during the last quarter. Fischer Investment Strategies LLC boosted its position in shares of Microsoft by 3.1% in the fourth 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 holdings in Microsoft by 0.8% in the third quarter. Pollock Investment Advisors LLC now owns 2,805 shares of the software giant’s stock valued at $1,453,000 after purchasing an additional 21 shares during the period. Finally, Better Money Decisions LLC increased its position in Microsoft by 0.6% during the second quarter. Better Money Decisions LLC now owns 3,498 shares of the software giant’s stock worth $1,740,000 after purchasing an additional 21 shares during the last quarter. Institutional investors and hedge funds own 71.13% of the company’s stock.
Insider Activity In other news, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer owned 486,763 shares of the company’s stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 101,335 shares of company stock worth $50,655,795 over the last 90 days. Company insiders own 0.03% of the company’s stock.
Analyst Upgrades and Downgrades A number of equities analysts have weighed in on the stock. Benchmark reiterated a “buy” rating on shares of Microsoft in a report on Friday, July 24th. The Goldman Sachs Group reissued a “buy” rating and set a $640.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Piper Sandler raised their price objective on Microsoft from $540.00 to $550.00 and gave the stock an “overweight” rating in a report on Tuesday, July 28th. Morgan Stanley reaffirmed an “overweight” rating on shares of Microsoft in a research note on Thursday, July 30th. Finally, Wolfe Research reiterated an “outperform” rating and set a $550.00 target price on shares of Microsoft in a report on Thursday, July 30th. Forty-two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $564.27. View Our Latest Report on MSFT
Microsoft Price Performance Shares of NASDAQ MSFT opened at $493.95 on Wednesday. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The business has a 50-day moving average of $449.56 and a 200-day moving average of $417.29. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The company has a market capitalization of $3.67 trillion, a price-to-earnings ratio of 27.50, a PEG ratio of 1.61 and a beta of 1.11.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company’s revenue was up 17.7% on a year-over-year basis. During the same period last year, the business posted $3.65 EPS. On average, equities analysts anticipate that Microsoft Corporation will post 19.59 EPS for the current fiscal year.
Key Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft disclosed that Azure is generating more than a $100 billion annualized revenue run rate and reorganized reporting around AI infrastructure and agents. Greater Azure transparency and accelerating demand could support revenue visibility and investor confidence. Microsoft Breaks Out Azure Sales at $100 Billion Annualized Pace, Reorganizes AI Segments Positive Sentiment: Microsoft is positioned at the center of a projected multitrillion-dollar AI infrastructure buildout, with Azure demand, large customer commitments, and its partnership with NVIDIA potentially creating a long-term growth opportunity. Nvidia, Microsoft at Center of $7 Trillion AI Boom Neutral Sentiment: Analysts remain broadly constructive, with recent buy or overweight ratings and a reported median price target of $540. However, the stock’s sharp advance and proximity to its prior high make continued gains dependent on cash-flow conversion and the payoff from heavy AI investment. Microsoft Stock Opinions on Recent Earnings and Business Reorganization Negative Sentiment: Two additional lawsuits from news organizations over the use of news content in AI training increase legal uncertainty around Microsoft’s OpenAI relationship and could create financial, reputational, or operational costs. Microsoft’s OpenAI Partnership Draws Fresh Legal Fire Negative Sentiment: Microsoft’s effort to measure the “useful yield” produced by each AI infrastructure dollar and watt highlights investor concerns about whether massive data-center spending will generate adequate returns. The scrutiny could pressure sentiment toward Microsoft and key supplier NVIDIA. Microsoft’s Useful Yield Test Raises the Stakes for NVIDIA’s AI Economics Negative Sentiment: Recent reports also cite insider selling, including sales by Chief Executive Officer Satya Nadella, while separate reports of Outlook and Microsoft 365 service disruptions add modest execution and reliability concerns. Microsoft’s OpenAI Partnership Draws Fresh Legal Fire About Microsoft (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices and digital solutions for consumers, businesses and public-sector organizations. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Teams collaboration software, Dynamics business applications and Azure cloud computing services.
The company also operates LinkedIn, GitHub and Xbox, which includes gaming consoles, video games and related online services.
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A handful of stocks have quietly turned ordinary investors into millionaires over the past decade, and the specific pattern behind each one suggests the compounding window is still open rather than closing.
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Real wealth in equities rarely comes from trading. It comes from owning the same handful of durable businesses for decades and letting the math work. The pattern is consistent: a category-defining moat, decades of compounding revenue and earnings, expanding margins, aggressive shareholder returns through buybacks and dividends, and a credible engine to power the next decade. Miss any one of those and you get a good stock. Get all of them and you get a millionaire-maker.
Three names still fit every part of the framework. Their long-run price records are already extraordinary, and each has a specific next-leg thesis that keeps the compounding story alive rather than closing it out (we studied a batch of recent runners most investors walked past and pulled out the pattern in a free report here). Future compounding is never guaranteed, yet the setups here are unusually clean.
#3. Visa: Toll Booth on Global Commerce Over the past 10 years, Visa shares returned more than 350%, with a 64% gain over the past five. Visa (NYSE:V | V Price Prediction) prints money the old-fashioned way: taking a small slice of every swipe, tap, and cross-border transaction on the world’s largest payments rail.
Fiscal Q3 2026 net revenue rose 14% year-over-year to $11.6 billion, and payments volume crossed $4 trillion for the first time in Visa’s history. Cross-border volume ex intra-Europe grew 12% constant-dollar, and value-added services revenue expanded 34% year-over-year in constant dollars. Visa returned $6.2 billion to shareholders in the quarter and has $28.4 billion remaining in buyback authorization. The quarterly dividend has stepped up from 0.45 in 2023 to 0.67 in 2026.
The forward engine comes in the form of agentic commerce, stablecoin rails and Visa Direct. CEO Ryan McInerney told investors “Agentic Commerce is a when, not an if,” and Visa has already partnered with OpenAI on secure agent-initiated payments.
Risk: local payment schemes, regulators pushing account-to-account rails, and stablecoin disintermediation all target the same interchange stream. Visa is building on both sides of that transition, but the risk to network economics is real and measurable.
#2. Microsoft: Enterprise AI With a Balance Sheet Fortress Microsoft (NASDAQ:MSFT) has compounded shareholders at a staggering pace: around 760% over 10 years and more than 66% over five. The stock trades at roughly 27x earnings, and the business now looks less like a software company and more like the world’s most important AI infrastructure operator.
Fiscal Q4 2026 revenue hit $90 billion, up 18%, and Azure revenue surpassed $100 billion in full-year revenue, growing 41%. Commercial RPO surged to $678 billion, up 84%, and Microsoft 365 Copilot passed 30 million paid seats. Full-year FY26 operating income exceeded $155 billion, and Microsoft returned over $43 billion to shareholders. The quarterly dividend has climbed from 0.68 in 2023 to 0.91 in 2026.
Satya Nadella said “Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats.” Demand still exceeds supply, and Azure Q1 FY27 guidance is approximately 45% constant-currency growth.
Risk: FY27 capex is guided to roughly $175 billion. If AI demand ever softens, that spending becomes a heavy anchor on returns on capital.
#1. Apple: The Compounding Machine That Refuses to Slow Apple (NASDAQ:AAPL) is the top of this list because no other mega-cap combines Apple’s installed base, cash generation, and buyback discipline. The 1o-year return is more than 1,100%, the five-year return over 112% and shares are up nearly 34% over the last year alone. Four forward splits since 2000, including the 4-for-1 split in 2020, tell the compounding story visually.
Fiscal Q3 2026 revenue hit $109.42 billion, up 16.4% year-over-year, with EPS of $2.02 versus $1.89 consensus, marking a ninth consecutive EPS beat. iPhone revenue reached $54.3 billion, up 22%, Mac grew 29%, and Services set another record at $30.74 billion. Apple returned $33 billion to shareholders in the quarter, and the board authorized an additional $100B buyback. The dividend has stepped from 0.23 in 2022 to 0.27 in 2026.
Tim Cook told investors “I truly have never been more confident that the best is yet to come.” The forward engine is a reimagined Siri AI unveiled at WWDC26, riding a two and a half billion device install base.
Risk: supply constraints are widening. Apple expects supply constraints to increase significantly next quarter, with Cook citing “a 100-year flood on the memory pricing”. Regulatory pressure on Services in the EU and U.S. is a separate overhang.
Why the Pattern Still Has Room to Run The premise was simple: durable moats, decades of compounding, margin expansion, giant capital returns, and a credible next-decade engine. Visa dominates payments and is building the rails for agentic commerce. Microsoft owns enterprise AI infrastructure and is monetizing it faster than any peer. Apple sits at the top because it combines the largest installed base in consumer technology with a Services engine growing 12% year-over-year, a fresh Siri AI platform layered on $62.09 billion in nine-month buybacks, and management guiding to 9% to 11% revenue growth into the next quarter. Future compounding is never a certainty. Yet when the same business keeps setting records at a $4.7 trillion market cap, betting against the pattern has historically been the expensive trade.
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Azure and Google Cloud are posting jaw-dropping growth numbers just as Treasury yields hit levels that have historically crushed high-multiple tech stocks. Whether Microsoft's fortress balance sheet or Alphabet's cheaper valuation wins this rate-scare showdown could determine which mega-cap compounds…
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Microsoft (NASDAQ: MSFT | MSFT Price Prediction) and Alphabet (NASDAQ: GOOGL) both posted blowout AI-fueled quarters just as the 10-year Treasury yield pushed to 4.78%, its 98.8th percentile reading over the past year. With rate-hike anxiety squeezing growth multiples, these two mega-caps stand out because their balance sheets absorb the shock other hyperscalers have to borrow through. Huge cash reserves make borrowing-cost worries less prominent for both.
Azure Crosses $100 Billion, Google Cloud Accelerates to 82% Microsoft’s fiscal Q4 delivered revenue of $90.01 billion, up 17.8%, with Intelligent Cloud jumping 32% and Azure growing 43%. Satya Nadella called out that “Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats.” Commercial RPO ballooned to $678 billion, up 84%, a booking backlog that dwarfs peers.
Alphabet’s Q2 was arguably louder. Revenue hit $119.80 billion, up 24.2%, marking its 12th straight quarter of double-digit growth. Google Cloud accelerated to 82% growth at $24.77 billion, a stunning jump. Sundar Pichai noted “nearly 90% of the Fortune 100 using” Gemini Enterprise, and Search still cranked out $63.27 billion, up 17%.
Business Driver Microsoft Alphabet Cloud growth Azure +43% Google Cloud +82% FY CapEx $115.95B $91.45B (FY25) Main AI wedge Copilot + OpenAI Full-stack Gemini + TPUs Cash Fortress vs. Debt-Funded Sprint Microsoft generated $182.94 billion in operating cash flow for FY26 and still returned over $43 billion to shareholders. Amy Hood emphasized flexibility: “You have a big book of business that’s flexible… It does allow us to have a lot more flexibility to manage through those.” Free cash flow was pinched to $19.64 billion, but the war chest keeps rate sensitivity muted.
Alphabet leaned harder on financing. Q2 free cash flow turned negative $5.86 billion, long-term debt jumped from $46.5 billion to $98.2 billion, and buybacks were suspended. Alphabet raised roughly $70 billion in combined equity and debt. Rising yields matter more here, though Google’s P/E of 17 gives it valuation cushion versus Microsoft’s P/E of 28.
What Decides the Next Leg I will be watching whether Microsoft can convert that $678 billion RPO into revenue without margin slippage as capacity finally catches demand. For Alphabet, the key metric to watch is when free cash flow turns positive again and whether Google Cloud’s 82% pace holds. If yields keep climbing from 4.78%, the debt-funded builder will feel it first (the power, cooling, and networking names taking the other side of that capex are in our free AI infrastructure report).
Why I Lean Toward Alphabet on Valuation Right Now Personally, I find Alphabet more interesting at these levels. A forward P/E of 23 for a business compounding 24% with an 82% cloud growth rate looks mispriced against Microsoft’s premium multiple. Microsoft is the safer AI compounder, and if you want the cleanest balance sheet and a 0.71% yield with buybacks intact, it fits defensive portfolios well. For a growth investor willing to absorb capex volatility, Alphabet’s ad moat plus Gemini traction stands out through this rate scare.
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Microsoft's stock has gone nowhere for a year while its fundamentals quietly broke out, and one AI-driven business unit may have just handed it a credible shot at joining the most exclusive club in markets.
Microsoft has quietly become the most interesting name in the race to the $5 trillion club. Microsoft (NASDAQ:MSFT | MSFT Price Prediction) sits at a market cap of roughly $3.67 trillion, well behind NVIDIA’s $5.45 trillion, but Azure’s momentum and the Copilot monetization curve give it a credible path higher.
Our 24/7 Wall St. price target for Microsoft is $608.72, implying 23.24% upside from the current $493.95. Our model output is a buy signal, with high confidence at 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $493.95 24/7 Wall St. Price Target $608.72 Upside 23.24% Recommendation BUY Confidence Level 90% A Sideways Year Masking a Fundamental Breakout MSFT has gone almost nowhere over the past 12 months, essentially flat at -0.03% on a year-over-year basis and down 1.02% on the month, even as the fundamentals accelerated.
Fiscal Q4 2026 delivered revenue of $90.01 billion (+17.8% YoY) and non-GAAP EPS of $4.74, beating consensus by 11.81%. Intelligent Cloud grew 32% to $39.31 billion, Azure and other cloud services jumped 43% YoY, and Azure crossed $100 billion in full-year revenue. Commercial RPO surged 84% to $678 billion, a booked-demand signal that dwarfs almost any peer.
The Case for $700+ Bulls have plenty to work with. Microsoft 365 Copilot passed 30 million paid seats with net additions more than doubling sequentially, and Satya Nadella called out the AI opportunity: “I’ve never been more confident in Microsoft’s opportunity to drive durable long-term growth.”
Azure guidance of approximately 45% constant-currency growth for Q1 FY27 signals demand still exceeds supply. GitHub Copilot revenue accelerated over 60% quarter over quarter with 50 million users. Our bull-case scenario points to $704.82, a 42.69% return that would push Microsoft’s market cap through $5 trillion.
What Could Go Wrong The bear case starts with capital intensity. FY26 CapEx exploded 79.62% to $115.95 billion, and free cash flow fell 6.46% to $66.99 billion. Amy Hood conceded FY27 operating margins will decline, though by less than a point.
Bulls counter that CapEx is pivoting to short-lived assets like CPUs and GPUs, which can be throttled if demand cools. Our bear-case scenario lands at $520.21, still a 5.32% positive return, reflecting how defensible the installed base is even in a downside scenario.
How Microsoft Compares to NVIDIA and Alphabet NVIDIA (NASDAQ:NVDA) is the reference point for the $5T club, already at $5.45 trillion with Data Center revenue of $89.02 billion growing 117%. NVIDIA trades at a P/E of 45 versus Microsoft’s 27, which makes our MSFT target look conservative on a growth-adjusted basis.
Alphabet (NASDAQ:GOOGL) is the direct cloud comp, with Google Cloud accelerating 82% to $24.77 billion. Alphabet trades at just 15 P/E, a discount tied to a $70B financing raise and negative Q2 free cash flow. That contrast argues Microsoft has earned its premium.
Company P/E Market Cap Microsoft 27 $3.67T NVIDIA 45 $5.45T Alphabet 15 $4.14T Microsoft Price Prediction 2026-2030 The bull thesis at $493.95 hinges on Azure sustaining 40%+ growth into FY27 and Copilot per-seat-plus-consumption billing continuing to ramp.
The thesis weakens if CapEx creeps toward $150B without a matching acceleration in cloud revenue. Analyst consensus at $572.92 across 52 buys and 3 holds lines up with our buy view. The 24/7 Wall St. price target of $608.72 stands.
Year 24/7 Wall St. Price Target 2026 $527.54 2027 $608.72 2028 $706.02 2029 $795 2030 $860 These projections assume Azure sustains its current trajectory and Copilot monetization scales. Significant upside or downside could come from AI capacity constraints or a hyperscaler capex reset. All that Azure buildout has to be powered, cooled, and networked by somebody, and we profiled seven of those suppliers in a free report on the AI infrastructure names that aren’t chipmakers.
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BTC Capital Management Inc. grew its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 14.1% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 172,761 shares of the software giant’s stock after purchasing an additional 21,395 shares during the period. Microsoft comprises about 3.9% of BTC Capital Management Inc.’s investment portfolio, making the stock its 6th biggest holding. BTC Capital Management Inc.’s holdings in Microsoft were worth $64,512,000 at the end of the most recent quarter.
Several other hedge funds have also recently modified their holdings of the business. WFA Asset Management Corp increased its stake in Microsoft by 27.0% in the 1st quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after acquiring an additional 216 shares during the last quarter. Ironwood Wealth Management LLC. grew its holdings in shares of Microsoft by 0.3% in the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock valued at $5,658,000 after purchasing an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC increased its position in Microsoft by 410.4% in the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock worth $1,144,000 after purchasing an additional 2,138 shares during the last quarter. Wealth Group Ltd. grew its stake in shares of Microsoft by 1.2% in the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock worth $1,000,000 after buying an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC increased its holdings in shares of Microsoft by 0.4% in the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock worth $9,735,000 after buying an additional 96 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.
Insider Buying and Selling at Microsoft In related news, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Judson Althoff sold 10,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 105,835 shares of company stock valued at $52,468,575 in the last ninety days. Corporate insiders own 0.03% of the company’s stock.
Analyst Upgrades and Downgrades A number of brokerages have issued reports on MSFT. Barclays decreased their price objective on Microsoft from $545.00 to $512.00 and set an “overweight” rating on the stock in a research report on Thursday, July 30th. DA Davidson restated a “buy” rating and set a $550.00 price target on shares of Microsoft in a report on Thursday, July 30th. Citigroup restated a “market outperform” rating on shares of Microsoft in a research report on Monday, August 31st. Morgan Stanley reaffirmed an “overweight” rating on shares of Microsoft in a research note on Thursday, July 30th. Finally, Stifel Nicolaus boosted their price objective on shares of Microsoft from $450.00 to $530.00 and gave the company a “hold” rating in a research report on Friday. Forty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, Microsoft presently has an average rating of “Moderate Buy” and an average price target of $564.27. Read Our Latest Research Report on Microsoft
Microsoft Stock Performance MSFT stock opened at $499.70 on Tuesday. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The firm has a market cap of $3.71 trillion, a price-to-earnings ratio of 27.82, a PEG ratio of 1.61 and a beta of 1.11. The business’s fifty day simple moving average is $447.15 and its two-hundred day simple moving average is $416.63. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.
Microsoft (NASDAQ:MSFT – Get Free Report) last issued its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same period in the previous year, the firm earned $3.65 earnings per share. The business’s revenue was up 17.7% on a year-over-year basis. Analysts predict that Microsoft Corporation will post 19.59 earnings per share for the current year.
Microsoft Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is presently 20.27%.
Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft’s Azure business reportedly crossed a significant revenue milestone, while its large backlog points to continued demand for cloud and AI services. This is strengthening the long-term bull case and fueling speculation that the stock could approach $600. Microsoft Stock Is Building a Trillion-Dollar AI Opportunity Positive Sentiment: Microsoft and Nvidia are described as major beneficiaries of a potential $7 trillion AI infrastructure buildout. Rising data-center construction and demand for computing capacity could support sustained growth across Azure, software, and AI products. Nvidia, Microsoft at Center of $7 Trillion AI Boom Positive Sentiment: Investment commentary continues to favor Microsoft as a long-term holding because of its diversified software ecosystem, recurring revenue, cloud position, and favorable earnings outlook. Its latest reported quarter also showed revenue growth and earnings well above expectations. Why Microsoft Is a Top Stock for the Long-Term Positive Sentiment: Microsoft’s partnerships and investments in Gulf data-center infrastructure highlight its efforts to expand global AI capacity. Separately, company representatives said AI could create new employment opportunities rather than only eliminate jobs, supporting broader adoption narratives. Microsoft and Schneider Electric Bet Big on the Gulf Neutral Sentiment: Analysts are focused on a key cash-flow line item, likely reflecting the impact of elevated AI-related capital expenditures. Strong investment may expand future growth but could constrain free cash flow and delay a breakout to a new high. Microsoft Is Close to a New All-Time High Negative Sentiment: Microsoft’s next-generation Xbox, Project Helix, could face a pricing challenge if advanced hardware pushes the console toward $1,000. A high price could limit adoption and pressure the gaming business, although Microsoft is considering affordability measures. Microsoft Has a $1,000 Problem With Its Next Xbox Negative Sentiment: Recent Outlook and Exchange Online outages, alongside a separate ChatGPT Work disruption, raise concerns about reliability for Microsoft’s productivity and cloud services. The incidents have not materially undermined reported results but remain a reputational and retention risk. Microsoft’s Outlook and OpenAI’s ChatGPT Work Both Broke the Same Day 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).
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ARS Wealth Advisors Group LLC raised its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 3.5% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 88,084 shares of the software giant’s stock after acquiring an additional 2,991 shares during the period. Microsoft comprises about 2.6% of ARS Wealth Advisors Group LLC’s investment portfolio, making the stock its 10th largest position. ARS Wealth Advisors Group LLC’s holdings in Microsoft were worth $32,857,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
A number of other hedge funds and other institutional investors also recently made changes to their positions in MSFT. Norges Bank acquired a new position in Microsoft in the fourth quarter valued at about $50,664,631,000. Auto Owners Insurance Co increased its holdings in shares of Microsoft by 56,160.8% during the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after buying an additional 60,009,531 shares in the last quarter. Nuveen LLC bought a new position in shares of Microsoft in the first quarter valued at 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 worth $30,840,432,000 after acquiring an additional 49,618,571 shares in 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 worth $14,905,904,000 after acquiring an additional 29,906,791 shares in the last quarter. 71.13% of the stock is owned by institutional investors.
Key Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft’s Azure business reportedly crossed a significant revenue milestone, while its large backlog points to continued demand for cloud and AI services. This is strengthening the long-term bull case and fueling speculation that the stock could approach $600. Microsoft Stock Is Building a Trillion-Dollar AI Opportunity Positive Sentiment: Microsoft and Nvidia are described as major beneficiaries of a potential $7 trillion AI infrastructure buildout. Rising data-center construction and demand for computing capacity could support sustained growth across Azure, software, and AI products. Nvidia, Microsoft at Center of $7 Trillion AI Boom Positive Sentiment: Investment commentary continues to favor Microsoft as a long-term holding because of its diversified software ecosystem, recurring revenue, cloud position, and favorable earnings outlook. Its latest reported quarter also showed revenue growth and earnings well above expectations. Why Microsoft Is a Top Stock for the Long-Term Positive Sentiment: Microsoft’s partnerships and investments in Gulf data-center infrastructure highlight its efforts to expand global AI capacity. Separately, company representatives said AI could create new employment opportunities rather than only eliminate jobs, supporting broader adoption narratives. Microsoft and Schneider Electric Bet Big on the Gulf Neutral Sentiment: Analysts are focused on a key cash-flow line item, likely reflecting the impact of elevated AI-related capital expenditures. Strong investment may expand future growth but could constrain free cash flow and delay a breakout to a new high. Microsoft Is Close to a New All-Time High Negative Sentiment: Microsoft’s next-generation Xbox, Project Helix, could face a pricing challenge if advanced hardware pushes the console toward $1,000. A high price could limit adoption and pressure the gaming business, although Microsoft is considering affordability measures. Microsoft Has a $1,000 Problem With Its Next Xbox Negative Sentiment: Recent Outlook and Exchange Online outages, alongside a separate ChatGPT Work disruption, raise concerns about reliability for Microsoft’s productivity and cloud services. The incidents have not materially undermined reported results but remain a reputational and retention risk. Microsoft’s Outlook and OpenAI’s ChatGPT Work Both Broke the Same Day Insider Buying and Selling at Microsoft In other news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares of the company’s stock, valued at $21,188,276.96. This represents a 10.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the sale, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 105,835 shares of company stock worth $52,468,575. Insiders own 0.03% of the company’s stock. Analyst Ratings Changes A number of research firms recently weighed in on MSFT. Wells Fargo & Company raised their price target on Microsoft from $650.00 to $700.00 and gave the company an “overweight” rating in a report on Wednesday, August 12th. Piper Sandler lifted their price target on Microsoft from $540.00 to $550.00 and gave the company an “overweight” rating in a report on Tuesday, July 28th. Evercore set a $528.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Truist Financial reissued a “buy” rating and set a $575.00 price objective on shares of Microsoft in a report on Wednesday, July 22nd. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Microsoft in a research report on Monday, July 20th. Forty-two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $564.27.
Read Our Latest Report on Microsoft
Microsoft Stock Performance Shares of NASDAQ:MSFT opened at $499.70 on Tuesday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The stock has a market capitalization of $3.71 trillion, a P/E ratio of 27.82, a P/E/G ratio of 1.61 and a beta of 1.11. The business has a 50-day moving average price of $447.15 and a two-hundred day moving average price of $416.63.
Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the previous year, the firm posted $3.65 earnings per share. Microsoft’s revenue for the quarter was up 17.7% compared to the same quarter last year. Equities analysts predict that Microsoft Corporation will post 19.59 earnings per share 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 given a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a dividend yield of 0.7%. Microsoft’s payout ratio is presently 20.27%.
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).
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Canoe Financial LP lessened its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 9.2% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 465,891 shares of the software giant’s stock after selling 47,440 shares during the quarter. Microsoft makes up approximately 2.2% of Canoe Financial LP’s investment portfolio, making the stock its 14th largest position. Canoe Financial LP’s holdings in Microsoft were worth $173,787,000 at the end of the most recent quarter.
Other hedge funds have also added to or reduced their stakes in the company. Empirical Financial Services LLC d.b.a. Empirical Wealth Management boosted its position in shares of Microsoft by 4.0% during the 2nd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant’s stock valued at $85,604,000 after purchasing an additional 8,773 shares in the last quarter. Markel Group Inc. increased its holdings in Microsoft by 0.4% in the first quarter. Markel Group Inc. now owns 537,630 shares of the software giant’s stock worth $199,014,000 after purchasing an additional 1,950 shares in the last quarter. Bessemer Group Inc. increased its holdings in Microsoft by 8.4% in the first quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant’s stock worth $2,562,197,000 after purchasing an additional 537,634 shares in the last quarter. Taylor Securities Services Inc. acquired a new position in Microsoft in the fourth quarter valued at approximately $2,616,000. Finally, Werba Rubin Papier Wealth Management lifted its stake 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 buying an additional 1,698 shares during the period. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Microsoft Stock Performance Shares of MSFT stock opened at $499.70 on Tuesday. The firm has a market capitalization of $3.71 trillion, a PE ratio of 27.82, a price-to-earnings-growth ratio of 1.61 and a beta of 1.11. The firm has a fifty day simple moving average of $447.15 and a two-hundred day simple moving average of $416.63. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period last year, the firm earned $3.65 earnings per share. Analysts forecast that Microsoft Corporation will post 19.59 EPS for the current fiscal year. Microsoft Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s payout ratio is currently 20.27%.
Wall Street Analysts Forecast Growth Several analysts have recently commented on MSFT shares. Bank of America raised their price objective on shares of Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a research report on Tuesday, September 1st. Oppenheimer restated an “outperform” rating and issued a $515.00 price target on shares of Microsoft in a report on Wednesday, July 22nd. CLSA reaffirmed an “outperform” rating on shares of Microsoft in a research note on Thursday, July 30th. Citizens Jmp reiterated a “market outperform” rating and set a $550.00 price objective on shares of Microsoft in a report on Tuesday, July 28th. Finally, Sanford C. Bernstein set a $660.00 price objective on shares of Microsoft in a research report on Monday, August 10th. Forty-two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Microsoft presently has an average rating of “Moderate Buy” and an average target price of $564.27.
Read Our Latest Research Report on Microsoft
Insider Transactions at Microsoft In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Satya Nadella sold 86,525 shares of the stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the sale, the chief executive officer owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 105,835 shares of company stock valued at $52,468,575 over the last ninety days. 0.03% of the stock is currently owned by insiders.
Microsoft News Summary Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft’s Azure business reportedly crossed a significant revenue milestone, while its large backlog points to continued demand for cloud and AI services. This is strengthening the long-term bull case and fueling speculation that the stock could approach $600. Microsoft Stock Is Building a Trillion-Dollar AI Opportunity Positive Sentiment: Microsoft and Nvidia are described as major beneficiaries of a potential $7 trillion AI infrastructure buildout. Rising data-center construction and demand for computing capacity could support sustained growth across Azure, software, and AI products. Nvidia, Microsoft at Center of $7 Trillion AI Boom Positive Sentiment: Investment commentary continues to favor Microsoft as a long-term holding because of its diversified software ecosystem, recurring revenue, cloud position, and favorable earnings outlook. Its latest reported quarter also showed revenue growth and earnings well above expectations. Why Microsoft Is a Top Stock for the Long-Term Positive Sentiment: Microsoft’s partnerships and investments in Gulf data-center infrastructure highlight its efforts to expand global AI capacity. Separately, company representatives said AI could create new employment opportunities rather than only eliminate jobs, supporting broader adoption narratives. Microsoft and Schneider Electric Bet Big on the Gulf Neutral Sentiment: Analysts are focused on a key cash-flow line item, likely reflecting the impact of elevated AI-related capital expenditures. Strong investment may expand future growth but could constrain free cash flow and delay a breakout to a new high. Microsoft Is Close to a New All-Time High Negative Sentiment: Microsoft’s next-generation Xbox, Project Helix, could face a pricing challenge if advanced hardware pushes the console toward $1,000. A high price could limit adoption and pressure the gaming business, although Microsoft is considering affordability measures. Microsoft Has a $1,000 Problem With Its Next Xbox Negative Sentiment: Recent Outlook and Exchange Online outages, alongside a separate ChatGPT Work disruption, raise concerns about reliability for Microsoft’s productivity and cloud services. The incidents have not materially undermined reported results but remain a reputational and retention risk. Microsoft’s Outlook and OpenAI’s ChatGPT Work Both Broke the Same Day 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 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane
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Mid American Wealth Advisory Group Inc. raised its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 133.4% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,192 shares of the software giant’s stock after purchasing an additional 1,253 shares during the quarter. Microsoft accounts for approximately 0.3% of Mid American Wealth Advisory Group Inc.’s portfolio, making the stock its 24th largest position. Mid American Wealth Advisory Group Inc.’s holdings in Microsoft were worth $818,000 at the end of the most recent reporting period.
A number of other large investors also recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC increased its stake in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after purchasing an additional 20 shares during the period. Bernzott Capital Advisors acquired a new position in shares of Microsoft in the fourth quarter valued at approximately $34,000. Frankly Finances LLC acquired a new position in shares of Microsoft in the second quarter valued at approximately $35,000. Timmons Wealth Management LLC purchased a new stake in Microsoft during the 4th quarter worth approximately $36,000. Finally, Fairway Wealth LLC lifted its holdings in Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after buying an additional 66 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Insiders Place Their Bets In other news, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the sale, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 105,835 shares of company stock valued at $52,468,575. 0.03% of the stock is owned by corporate insiders.
Microsoft Price Performance Shares of NASDAQ MSFT opened at $499.70 on Tuesday. The business has a 50-day moving average of $447.15 and a two-hundred day moving average of $416.63. The company has a market capitalization of $3.71 trillion, a price-to-earnings ratio of 27.82, a price-to-earnings-growth ratio of 1.61 and a beta of 1.11. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the prior year, the business posted $3.65 EPS. The business’s revenue for the quarter was up 17.7% on a year-over-year basis. On average, analysts forecast that Microsoft Corporation will post 19.59 earnings per share 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 paid a $0.91 dividend. This represents a $3.64 annualized dividend and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft’s dividend payout ratio is currently 20.27%.
Analysts Set New Price Targets MSFT has been the subject of several research reports. Cantor Fitzgerald boosted their price target on shares of Microsoft from $502.00 to $522.00 and gave the stock an “overweight” rating in a research note on Monday, July 27th. The Goldman Sachs Group reiterated a “buy” rating and issued a $640.00 target price on shares of Microsoft in a report on Thursday, July 30th. Royal Bank Of Canada restated an “outperform” rating and set a $640.00 price target on shares of Microsoft in a report on Thursday, July 30th. CLSA reiterated an “outperform” rating on shares of Microsoft in a research note on Thursday, July 30th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating on shares of Microsoft in a research report on Monday, July 20th. Forty-two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat, Microsoft has an average rating of “Moderate Buy” and a consensus target price of $564.27.
Read Our Latest Stock Report on Microsoft
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft’s Azure business reportedly crossed a significant revenue milestone, while its large backlog points to continued demand for cloud and AI services. This is strengthening the long-term bull case and fueling speculation that the stock could approach $600. Microsoft Stock Is Building a Trillion-Dollar AI Opportunity Positive Sentiment: Microsoft and Nvidia are described as major beneficiaries of a potential $7 trillion AI infrastructure buildout. Rising data-center construction and demand for computing capacity could support sustained growth across Azure, software, and AI products. Nvidia, Microsoft at Center of $7 Trillion AI Boom Positive Sentiment: Investment commentary continues to favor Microsoft as a long-term holding because of its diversified software ecosystem, recurring revenue, cloud position, and favorable earnings outlook. Its latest reported quarter also showed revenue growth and earnings well above expectations. Why Microsoft Is a Top Stock for the Long-Term Positive Sentiment: Microsoft’s partnerships and investments in Gulf data-center infrastructure highlight its efforts to expand global AI capacity. Separately, company representatives said AI could create new employment opportunities rather than only eliminate jobs, supporting broader adoption narratives. Microsoft and Schneider Electric Bet Big on the Gulf Neutral Sentiment: Analysts are focused on a key cash-flow line item, likely reflecting the impact of elevated AI-related capital expenditures. Strong investment may expand future growth but could constrain free cash flow and delay a breakout to a new high. Microsoft Is Close to a New All-Time High Negative Sentiment: Microsoft’s next-generation Xbox, Project Helix, could face a pricing challenge if advanced hardware pushes the console toward $1,000. A high price could limit adoption and pressure the gaming business, although Microsoft is considering affordability measures. Microsoft Has a $1,000 Problem With Its Next Xbox Negative Sentiment: Recent Outlook and Exchange Online outages, alongside a separate ChatGPT Work disruption, raise concerns about reliability for Microsoft’s productivity and cloud services. The incidents have not materially undermined reported results but remain a reputational and retention risk. Microsoft’s Outlook and OpenAI’s ChatGPT Work Both Broke the Same Day 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).
Read More Five stocks we like better than Microsoft 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane 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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PFG Advisors trimmed its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 5.7% in the second quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 68,913 shares of the software giant’s stock after selling 4,171 shares during the quarter. Microsoft accounts for 1.3% of PFG Advisors’ holdings, making the stock its 14th biggest position. PFG Advisors’ holdings in Microsoft were worth $25,706,000 as of its most recent SEC filing.
Other hedge funds have also recently bought and sold shares of the company. WFA Asset Management Corp raised its holdings in shares of Microsoft by 27.0% during the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after acquiring an additional 216 shares during the period. Ironwood Wealth Management LLC. boosted its stake in Microsoft by 0.3% in the 2nd quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock worth $5,658,000 after purchasing an additional 38 shares during the period. Discipline Wealth Solutions LLC increased its holdings in Microsoft by 410.4% during the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock worth $1,144,000 after purchasing an additional 2,138 shares in the last quarter. Wealth Group Ltd. increased its holdings in Microsoft by 1.2% during the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock worth $1,000,000 after purchasing an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC raised its stake in shares of Microsoft by 0.4% in the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock valued at $9,735,000 after purchasing an additional 96 shares during the period. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Insider Activity at Microsoft In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the company’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the sale, the chief executive officer directly owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 105,835 shares of company stock valued at $52,468,575. 0.03% of the stock is owned by corporate insiders.
Microsoft Price Performance NASDAQ:MSFT opened at $499.70 on Tuesday. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The company has a market cap of $3.71 trillion, a P/E ratio of 27.82, a P/E/G ratio of 1.61 and a beta of 1.11. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock’s 50-day simple moving average is $447.15 and its 200 day simple moving average is $416.63. Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.65 earnings per share. As a group, sell-side analysts forecast that Microsoft Corporation will post 19.59 EPS for the current fiscal year.
Microsoft Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a $0.91 dividend. This represents a $3.64 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s dividend payout ratio is presently 20.27%.
Wall Street Analysts Forecast Growth Several research analysts have recently weighed in on MSFT shares. Royal Bank Of Canada reaffirmed an “outperform” rating and set a $640.00 price objective on shares of Microsoft in a research report on Thursday, July 30th. Morgan Stanley reissued an “overweight” rating on shares of Microsoft in a research report on Thursday, July 30th. The Goldman Sachs Group restated a “buy” rating and issued a $640.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Scotiabank reaffirmed an “outperform” rating and set a $510.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Finally, Benchmark reiterated a “buy” rating on shares of Microsoft in a report on Friday, July 24th. Forty-two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, Microsoft has a consensus rating of “Moderate Buy” and a consensus price target of $564.27.
Read Our Latest Research Report on MSFT
Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft’s Azure business reportedly crossed a significant revenue milestone, while its large backlog points to continued demand for cloud and AI services. This is strengthening the long-term bull case and fueling speculation that the stock could approach $600. Microsoft Stock Is Building a Trillion-Dollar AI Opportunity Positive Sentiment: Microsoft and Nvidia are described as major beneficiaries of a potential $7 trillion AI infrastructure buildout. Rising data-center construction and demand for computing capacity could support sustained growth across Azure, software, and AI products. Nvidia, Microsoft at Center of $7 Trillion AI Boom Positive Sentiment: Investment commentary continues to favor Microsoft as a long-term holding because of its diversified software ecosystem, recurring revenue, cloud position, and favorable earnings outlook. Its latest reported quarter also showed revenue growth and earnings well above expectations. Why Microsoft Is a Top Stock for the Long-Term Positive Sentiment: Microsoft’s partnerships and investments in Gulf data-center infrastructure highlight its efforts to expand global AI capacity. Separately, company representatives said AI could create new employment opportunities rather than only eliminate jobs, supporting broader adoption narratives. Microsoft and Schneider Electric Bet Big on the Gulf Neutral Sentiment: Analysts are focused on a key cash-flow line item, likely reflecting the impact of elevated AI-related capital expenditures. Strong investment may expand future growth but could constrain free cash flow and delay a breakout to a new high. Microsoft Is Close to a New All-Time High Negative Sentiment: Microsoft’s next-generation Xbox, Project Helix, could face a pricing challenge if advanced hardware pushes the console toward $1,000. A high price could limit adoption and pressure the gaming business, although Microsoft is considering affordability measures. Microsoft Has a $1,000 Problem With Its Next Xbox Negative Sentiment: Recent Outlook and Exchange Online outages, alongside a separate ChatGPT Work disruption, raise concerns about reliability for Microsoft’s productivity and cloud services. The incidents have not materially undermined reported results but remain a reputational and retention risk. Microsoft’s Outlook and OpenAI’s ChatGPT Work Both Broke the Same Day 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 Stories Five stocks we like better than Microsoft 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane 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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Cambridge Advisors Inc. lowered its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 7.8% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 25,493 shares of the software giant’s stock after selling 2,144 shares during the quarter. Microsoft comprises 1.6% of Cambridge Advisors Inc.’s investment portfolio, making the stock its 15th biggest holding. Cambridge Advisors Inc.’s holdings in Microsoft were worth $9,510,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Longfellow Investment Management Co. LLC lifted its position in shares of Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after acquiring an additional 20 shares in the last quarter. Shepherd Kaplan Krochuk LLC grew its position in shares of 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 in the last quarter. Better Money Decisions LLC raised its stake in shares of Microsoft by 0.6% during the 2nd quarter. Better Money Decisions LLC now owns 3,498 shares of the software giant’s stock valued at $1,740,000 after purchasing an additional 21 shares during the period. Endowment Wealth Management Inc. raised its stake in shares of Microsoft by 0.4% during the 3rd quarter. Endowment Wealth Management Inc. now owns 5,251 shares of the software giant’s stock valued at $2,720,000 after purchasing an additional 21 shares during the period. Finally, Pollock Investment Advisors LLC lifted its holdings in Microsoft by 0.8% during the 3rd 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 in the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.
Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft’s Azure business reportedly crossed a significant revenue milestone, while its large backlog points to continued demand for cloud and AI services. This is strengthening the long-term bull case and fueling speculation that the stock could approach $600. Microsoft Stock Is Building a Trillion-Dollar AI Opportunity Positive Sentiment: Microsoft and Nvidia are described as major beneficiaries of a potential $7 trillion AI infrastructure buildout. Rising data-center construction and demand for computing capacity could support sustained growth across Azure, software, and AI products. Nvidia, Microsoft at Center of $7 Trillion AI Boom Positive Sentiment: Investment commentary continues to favor Microsoft as a long-term holding because of its diversified software ecosystem, recurring revenue, cloud position, and favorable earnings outlook. Its latest reported quarter also showed revenue growth and earnings well above expectations. Why Microsoft Is a Top Stock for the Long-Term Positive Sentiment: Microsoft’s partnerships and investments in Gulf data-center infrastructure highlight its efforts to expand global AI capacity. Separately, company representatives said AI could create new employment opportunities rather than only eliminate jobs, supporting broader adoption narratives. Microsoft and Schneider Electric Bet Big on the Gulf Neutral Sentiment: Analysts are focused on a key cash-flow line item, likely reflecting the impact of elevated AI-related capital expenditures. Strong investment may expand future growth but could constrain free cash flow and delay a breakout to a new high. Microsoft Is Close to a New All-Time High Negative Sentiment: Microsoft’s next-generation Xbox, Project Helix, could face a pricing challenge if advanced hardware pushes the console toward $1,000. A high price could limit adoption and pressure the gaming business, although Microsoft is considering affordability measures. Microsoft Has a $1,000 Problem With Its Next Xbox Negative Sentiment: Recent Outlook and Exchange Online outages, alongside a separate ChatGPT Work disruption, raise concerns about reliability for Microsoft’s productivity and cloud services. The incidents have not materially undermined reported results but remain a reputational and retention risk. Microsoft’s Outlook and OpenAI’s ChatGPT Work Both Broke the Same Day Insider Transactions at Microsoft In other news, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the sale, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the transaction, the executive vice president owned 42,677 shares of the company’s stock, valued at $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 105,835 shares of company stock valued at $52,468,575 in the last quarter. Insiders own 0.03% of the company’s stock. Microsoft Stock Performance NASDAQ:MSFT opened at $499.70 on Tuesday. The business’s 50-day moving average price is $447.15 and its two-hundred day moving average price is $416.63. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The stock has a market cap of $3.71 trillion, a P/E ratio of 27.82, a PEG ratio of 1.61 and a beta of 1.11. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.
Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter last year, the company posted $3.65 EPS. As a group, equities analysts predict that Microsoft Corporation will post 19.59 EPS for the current fiscal 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 paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s payout ratio is currently 20.27%.
Wall Street Analyst Weigh In Several brokerages have commented on MSFT. The Goldman Sachs Group restated a “buy” rating and issued a $640.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Bank of America increased their price target on shares of Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a report on Tuesday, September 1st. Citigroup restated a “market outperform” rating on shares of Microsoft in a research report on Monday, August 31st. Piper Sandler boosted their price objective on shares of Microsoft from $540.00 to $550.00 and gave the company an “overweight” rating in a research note on Tuesday, July 28th. Finally, DA Davidson reaffirmed a “buy” rating and set a $550.00 target price on shares of Microsoft in a report on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $564.27.
Read Our Latest Report on MSFT
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).
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Microsoft is developing Project Helix as its next-generation Xbox Summary
A $1,000 launch price could sharply reduce console adoption
Microsoft Corp. (MSFT, Financials) wants its next Xbox to do more than the current one. The problem is what gamers will pay for it.
Project Helix is Microsoft's next-generation console, designed to play both Xbox and PC games. That wider ambition could make it more powerful and flexible.
It could also make it expensive.
Ampere Analysis estimates that if the next Xbox and Sony's PlayStation 6 launch around $1,000, their combined sales during the first five years could be as much as 38% below the current generation.
That is a serious problem for Microsoft.
Console hardware is only the beginning of the relationship. Microsoft also makes money when players buy games, subscribe to Game Pass and spend inside the Xbox ecosystem.
Fewer consoles can mean fewer customers for all of those businesses.
One option is giving buyers a cheaper starting point and letting them add features later. But ideas such as modular storage, removable disc drives or upgradeable computing remain possibilities rather than confirmed Project Helix features.
For Microsoft, the challenge is becoming simple. Project Helix needs to feel like a major upgrade. It just cannot be priced like one.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Microsoft sits within reach of a record high, yet one line item buried in its cash flow statement could either launch the stock through that ceiling or keep it rangebound for another year.
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At $499.70, Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is a Hold, with free cash flow the single number that will decide whether the stock breaks out to a fresh record or stalls out below it. Shares sit within striking distance of the $549.20 52-week high, yet the setup underneath the price is more complicated than the headline suggests.
Microsoft is the world’s largest software company by market value at roughly $3.71 trillion, and its Azure cloud, Microsoft 365 franchise, and OpenAI partnership have made it the default operating layer for enterprise AI. Fiscal 2026 closed with $331.839 billion in revenue, up 17.79% year over year, and Azure crossed $100 billion in annual revenue for the first time.
What has kept the stock rangebound is the other side of that growth story: capital spending is exploding faster than cash generation, and investors are trying to price how long that gap lasts.
Bull Case: A Contracted AI Backlog Growth Cannot Ignore Bulls point to a demand book that keeps outrunning the model. Commercial remaining performance obligations grew 84% to $678 billion, and Azure and other cloud services expanded 43% in the fiscal fourth quarter. Management guided to roughly 45% constant-currency Azure growth for the next quarter with first-half growth expected to accelerate.
Monetization at the application layer is compounding too. Microsoft 365 Copilot passed 30 million paid seats, GitHub Copilot revenue accelerated over 60% quarter over quarter, and the AI business hit a $37 billion annual run rate. Margins remain elite at a 46.78% operating margin and 34.04% return on equity, and EPS has beaten estimates for five straight quarters.
Bear Case: Capex Is Eating the Cash Flow The bear thesis lives inside the cash flow statement. Full-year capital expenditures hit $115.948 billion, up 79.62% year over year, and Q4 capex alone jumped 109.63%. Free cash flow fell to $66.987 billion, down 6.46%, even as operating cash flow grew 34.35%.
Following an accounting change extending data-center useful life to 25 years, the calendar 2026 capex expectation was adjusted to roughly $175 billion, with FY27 capex expected to grow again. That buildout has to be powered, cooled, and networked by somebody, and we mapped seven of the suppliers riding that spend in a free AI infrastructure report. Gross margin already slipped to 67%, and Microsoft Cloud gross margin fell to 65%. On top of that, CEO Satya Nadella sold $43 million of stock in early September, a headline that will not help sentiment near the highs.
Hold Case: Waiting for the FCF Inflection The middle path is the most defensible one right now. Microsoft is executing, but at 27x trailing earnings, 26x forward earnings, and a price-to-free-cash-flow multiple of 55, the stock is already priced for AI to convert into cash. Sentiment reads neutral at 53.8, with a 7-day change of -9.54.
The story reverses only when FCF re-accelerates. That requires Azure revenue to outrun capex growth, Copilot per-seat and consumption billing to scale, and the Maya 200 custom silicon (with 30% better performance per dollar) to lower unit economics. Until one or two of those show up in the earnings report, patience is defensible.
Data Check: Target Above Price, Performance Below Market Microsoft trades at $499.70 against an analyst consensus target of $572.92, implying roughly 14.7% of upside. The rating skew is decisively constructive: 14 Strong Buy, 38 Buy, 3 Hold, and no Sell ratings across 55 analysts. Targets are one input among many.
Performance tells the other half of the story. MSFT is up 3.98% year to date and down 0.81% over one year, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 12.94% YTD and 18.65% over one year. Microsoft has trailed the index badly even as fundamentals compounded.
Verdict: Free Cash Flow Is the Tiebreaker At $499.70, Microsoft is a Hold. Here is why.
The bull case and bear case are both intact, and they resolve at the same line item. If FY27 free cash flow re-accelerates as Azure revenue growth (guided near 45%) outpaces the step-up in operating leases and capex, the multiple compresses on its own and the stock breaks through $549. If FCF stays flat or declines a second consecutive year while capex climbs toward $175 billion, the market will re-rate a stock trading at 55x FCF regardless of how large the RPO backlog gets.
Keep an eye on three data points across the next two quarters: Azure constant-currency growth versus the 45% guide, quarterly free cash flow versus the prior-year comparable, and Copilot seat additions with consumption revenue disclosed alongside them. A beat on all three flips this to a Buy setup. A miss on FCF with capex still climbing tips it toward Sell.
The cost of waiting is modest given MSFT’s 12-month underperformance versus the S&P 500. The cost of buying at the highs before the FCF inflection arrives is meaningfully higher.
Microsoft is a Hold because the next earnings report is what decides whether this stock earns a new all-time high.
Contact [email protected] for any questions or corrections.
Most retirees assume a forced IRA withdrawal means selling shares whether they want to or not, but a little-known IRS rule lets you satisfy the requirement without liquidating a single position, even in a falling market.
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If you own a traditional IRA and you’ve reached the age when the government forces withdrawals, here’s a rule almost nobody uses: your required minimum distribution (RMD) doesn’t have to leave as cash. You can order the custodian to move the shares themselves, at fair market value, into a taxable brokerage account. The IRS calls this an in-kind distribution. It satisfies the RMD with the identical tax bill a cash withdrawal would generate, and you never have to sell into a weak market.
How an In-Kind Transfer Satisfies Your RMD An RMD is the minimum you’re forced to pull from a pretax retirement account each year once you hit the trigger age. The dollar amount is set by dividing your account balance on the last business day of the prior year by an IRS life-expectancy factor. If stocks have dropped since then, a cash RMD forces you to sell into the decline and permanently exit those shares.
Move the shares in kind and your investment position is unchanged. Your custodian transfers a specified number of shares of, say, Apple (NASDAQ:AAPL | AAPL Price Prediction) or Microsoft (NASDAQ:MSFT) from the IRA to your taxable account. The value on the transfer date counts as the distribution. Dividends keep flowing, and any recovery accrues to you.
Rule Chapter and Verse RMDs are governed by Internal Revenue Code §401(a)(9) and §408(a)(6), with mechanics detailed in IRS Publication 590-B. The SECURE 2.0 Act of 2022 raised the starting age to 73, rising to 75 in 2033. Distributions must be taken by December 31 each year, with your first RMD allowed as late as April 1 of the year after you turn 73. Publication 590-B explicitly permits property distributions valued at fair market value on the date of transfer. A larger pretax balance means a larger forced withdrawal, and the bill lands hardest in year one (we mapped how to shrink that first-year tax bomb years before RMDs begin in a free guide here).
A Down-Market Illustration Assume your 2026 RMD is $40,000, calculated off your Dec. 31, 2025 IRA balance, and by September the market is well off its highs. You direct your custodian to move Apple shares priced at $319.97 and Microsoft shares priced at $499.70 (both as of Sept. 4, 2026), totaling roughly $40,000 in fair market value, into your brokerage account. You owe ordinary income tax on that $40,000, identical to what a cash RMD would trigger. The shares remain yours, still collecting Apple’s $0.27 quarterly dividend and Microsoft’s $0.91 quarterly dividend.
Basis and Holding Period Reset A couple of tax rules drive how this plays out. First, the value you transfer is treated as ordinary income and taxed at your marginal rate, so don’t expect any tax savings here. This move is really about timing the market, not cutting your tax bill. Second, the shares you receive get a new cost basis equal to the fair market value on the day of the transfer, and your holding period resets from that date. If you hold them for more than a year, any gains will qualify for the lower long-term capital gains rate, which makes a meaningful difference for most retirees.
When to Skip It If you need the RMD cash to live on, selling is unavoidable. If you’re charitably inclined, a qualified charitable distribution (QCD) sent straight from the IRA to a qualifying nonprofit is usually better: the income never touches your adjusted gross income and therefore avoids pushing you into a higher Medicare bracket. In 2026, Medicare IRMAA surcharges begin at modified AGI above $109,000 for single filers and $218,000 for joint filers. QCDs are available starting at age 70½.
Traps That Cost People Money Withholding is the first trap you need to watch for, as the IRS normally takes taxes out of IRA distributions, but when you transfer shares in kind, there is no cash to withhold. You have two choices. Either waive withholding and cover the tax bill yourself through estimated payments, or leave some cash inside the IRA so the custodian can withhold against it.
Valuation is the second issue. The custodian uses the fair market value on the execution date, so you cannot hit your RMD number to the exact dollar in advance. Most people end up transferring a little more than needed, or they add a small cash top-up to cover the difference.
Miss the December 31 deadline entirely, and SECURE 2.0 hits you with a 25% excise tax on the shortfall, though that drops to 10% if you correct it within the statutory correction window. The smart move is to start early in the year, confirm your custodian supports in-kind transfers, decide on your withholding approach, and choose the holding with the strongest recovery potential to move.
Contact [email protected] for any questions or corrections.
Microsoft Corp. NASDAQ: MSFT shares closed at approximately $497 on Sept. 2, which is almost exactly where the stock started 2026. But for investors who owned MSFT at the start of the year, the current price is a relief.
Microsoft Today
$499.70 0.00 (0.00%)
As of 09/4/2026 04:00 PM Eastern
$349.20▼
$553.720.73%
27.82
$564.27
MSFT staged a record-setting post-earnings rally that erased months of losses in a single session. Before that rally, MSFT was down nearly 30% for the year on AI-spending anxiety, fears of the impact of artificial intelligence on software companies, and concerns over Copilot adoption.
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None of those have turned out to carry much weight, but that was little solace for shareholders. Net-net, the market still appears to be discounting Microsoft's growing Azure business.
In its most recent earnings report, Azure's growth accelerated, the backlog swelled, and management guided even higher. That means MSFT's post-earnings rally wasn't driven by new information about the quality of the business. The market is simply catching up to information that had been building for months.
MSFT Gets a Boost From Accelerating Azure GrowthThe bear case on Microsoft all year rested on one idea: cloud growth was cooling as AI infrastructure spending outpaced returns. That thesis took a direct hit in the Q4 2026 report. Azure and other cloud services revenue grew 43%, up from 40% in the prior quarter, and Azure crossed $100 billion in annual revenue for the first time. Management then guided to roughly 45% Azure growth for the current quarter.
That acceleration matters more than the raw growth number. A business decelerating from 46% to 40% tells one story about maturation. A business accelerating from 40% to 43%, with guidance pointing higher still, tells a different one entirely: demand is outrunning even Microsoft's aggressive infrastructure buildout, not shrinking against it.
Microsoft's $678 Billion Backlog Challenges AI Spending ConcernsCommercial remaining performance obligations (RPOs) rose 84% year-over-year to $678 billion. CFO Amy Hood noted the sequential growth came from customers outside the frontier AI labs. That matters because it undercuts another common bearish argument: that Microsoft's cloud demand is a mirage propped up by a handful of AI labs burning venture capital.
That backlog represents signed commitments from a broad customer base, locked in ahead of revenue recognition. When a number that large accelerates that fast, it's telling you something the stock price, chopping sideways for a year, was not.
MSFT Valuation Hasn't Caught Up With Earnings GrowthEven after the post-earnings surge, Microsoft trades at roughly 26x forward earnings—below its own five-year average multiple. That's happening even as forward earnings per share (EPS) estimates have climbed steadily all year, and even as the company just posted its strongest quarter of the fiscal year in its most important growth driver.
Microsoft Corporation (MSFT) Price Chart for Monday, September, 7, 2026
Normally, a stock re-rates upward when growth accelerates, and estimates rise in tandem. Microsoft's multiple compressions alongside rising estimates is the market saying, in effect, "we don't trust this growth to persist." That's a psychological stance, not a fundamentals-driven one—and it's the exact gap that tends to close, one way or another; once enough quarters confirm the trend.
Microsoft's AI Spend Remains the Biggest Risk to the Bull CaseIf Azure guidance holds at 45%+ and the backlog keeps converting into recognized revenue, a below-average multiple on an accelerating hyperscaler starts to look like the market hasn't finished repricing the stock. Investors who anchored to the "AI spend without payoff" narrative earlier in the year now have concrete, recent evidence that the payoff phase has begun.
However, investors should weigh the most significant risk. Capital expenditures (CapEx) are still enormous. Microsoft revised its 2026 CapEx outlook to roughly $175 billion by lengthening the assumed useful life of its data center assets.
If Azure growth stalls even briefly, or if the AI-lab-adjacent demand Hood described proves less durable than the broader commercial backlog suggests, the "shrug" the stock delivered this year could turn into something sharper.
For now, the more interesting question isn't whether Microsoft's fundamentals are strong—the quarter answered that decisively. It's why a stock sitting on 43% cloud growth, an 84% backlog surge, and rising earnings estimates is still valued below its own historical average. That gap between what the business is doing and what the multiple says investors believe about it is the actual story.
The Flat Chart May Signal a Sentiment ShiftWhat investors believe about a business can stay wrong for a long time. But eventually, the fundamentals make a case that's too strong to ignore. Microsoft investors who were pricing in decelerating cloud growth for most of 2026 got a data point in July that should have forced a real update to that belief.
However, the muted forward multiple suggests plenty of investors haven't fully made that update yet. Whether that gap closes with the stock re-rating higher or with fundamentals eventually validating the market's caution is a question worth tracking before Microsoft reports earnings in late October.
Should You Invest $1,000 in Microsoft Right Now?Before you consider Microsoft, you'll want to hear this.
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Microsoft (MSFT - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this software maker have returned -0.1% over the past month versus the Zacks S&P 500 composite's -0.1% change. The Zacks Computer - Software industry, to which Microsoft belongs, has gained 2.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Microsoft is expected to post earnings of $4.67 per share for the current quarter, representing a year-over-year change of +13.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0%.
For the current fiscal year, the consensus earnings estimate of $19.59 points to a change of +9.1% from the prior year. Over the last 30 days, this estimate has changed +0.1%.
For the next fiscal year, the consensus earnings estimate of $23.18 indicates a change of +18.3% from what Microsoft is expected to report a year ago. Over the past month, the estimate has changed -0.2%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Microsoft is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Microsoft, the consensus sales estimate for the current quarter of $90.53 billion indicates a year-over-year change of +16.6%. For the current and next fiscal years, $388.84 billion and $460.08 billion estimates indicate +17.2% and +18.3% changes, respectively.
Last Reported Results and Surprise HistoryMicrosoft reported revenues of $90.01 billion in the last reported quarter, representing a year-over-year change of +17.7%. EPS of $4.74 for the same period compares with $3.65 a year ago.
Compared to the Zacks Consensus Estimate of $87.44 billion, the reported revenues represent a surprise of +2.93%. The EPS surprise was +12.59%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Microsoft is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Microsoft. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Azure just crossed a revenue milestone that caught Wall Street off guard, and Microsoft's backlog tells a story the headline numbers barely hint at. Whether the stock can push toward $600 depends on one number that most investors are not…
Shares of Microsoft (NASDAQ:MSFT | MSFT Price Prediction) have quietly rebuilt their AI narrative over the summer, climbing back toward the $500 handle as Azure crossed $100 billion in annual revenue and Microsoft 365 Copilot passed 30 million paid seats. With the stock at $496.68 and a $600 print firmly in the conversation, the question is whether our proprietary model agrees. It does.
Our 24/7 Wall St. price target for Microsoft is $604.89 over the next 12 months, implying 22.08% upside from current levels. The recommendation is buy, and confidence is high at 90%.
That reflects a rare combination: accelerating cloud growth, expanding AI monetization, and an analyst community that is nearly unanimous in its bullish stance.
24/7 Wall St. Price Target Summary Metric Value Current Price $496.68 24/7 Wall St. Price Target $604.89 Upside 22.08% Recommendation BUY Confidence Level 90% How Microsoft Got Back to $500 MSFT is up 8.02% over the past month and 4.26% year to date, recovering from a summer dip that saw shares touch $393.83 in mid-June. The catalyst was fiscal Q4 2026, filed July 29.
Microsoft reported revenue of $90.01 billion, up 17.75%, with non-GAAP EPS of $4.74 comfortably beating expectations. Azure grew 43%, and commercial remaining performance obligations surged to $678 billion, up 84%, a backlog that dwarfs the trailing revenue base.
Guidance was the real fuel. Management projected fiscal Q1 Intelligent Cloud revenue of $40.95 to $41.25 billion, with Azure growth of roughly 45% in constant currency. CFO Amy Hood was blunt: “Demand continues to exceed available supply.”
Why Bulls See a Breakout Above $700 The bull scenario points to $701.38, a 41.55% return. That path requires Azure to sustain 40%+ growth as capacity comes online. Microsoft added 88 data centers this year and expects to roughly double overall capacity in just two years (all of that buildout has to be powered, cooled, and networked by someone, and we profiled seven of those suppliers in a free AI infrastructure report).
Copilot economics also matter: EY deployed to 400,000 employees, HSBC committed to 200,000 seats, and Microsoft is shifting to per-seat plus consumption pricing. Analyst estimates support the case, with FY2028 EPS consensus at $23.57 and a high estimate of $26.
What Could Send Shares Back to $517 The bear case lands at $517.53, a modest 4.44% return. The core risk is capex discipline. Full-year capex hit $115.95 billion, up 79.62%, and management guided FY27 capex to approximately $175 billion. Free cash flow already fell 6.46% for the year.
Bulls counter that this reflects heavy investment in a supply-constrained market, and Hood emphasized that short-lived assets like CPUs and GPUs give Microsoft flexibility if demand cools. Polymarket contracts assign only a 4.9% probability to MSFT hitting $600 in September 2026, a reminder that the $600 print is a 12-month story.
How Microsoft Compares to Alphabet and Amazon Two hyperscaler peers frame the valuation debate. Alphabet (NASDAQ:GOOGL) trades at a P/E of 15, sharply below MSFT’s 28, despite Google Cloud growing 82% in Q2 2026 to $24.77 billion. Alphabet’s cheaper multiple makes MSFT look pricey on trailing earnings, but Microsoft’s 34.04% ROE and Copilot monetization runway justify the premium.
Amazon (NASDAQ:AMZN) is the closer valuation comparison. AMZN trades at 35 times earnings with AWS growing 37% to $42.23 billion in Q2. Against that field, our 24/7 Wall St. price target of $604.89 looks reasonable: MSFT’s implied forward multiple sits between the two peers while operating margins of 46.78% exceed both.
Company P/E Cloud Growth Microsoft 28 43% Alphabet 15 82% Amazon 35 37% Microsoft Price Prediction 2026 to 2030 Our model output: Buy, target $604.89, confidence 90%. The factor that tips the scale is the $678 billion RPO, which converts contracted demand into forward revenue visibility no other hyperscaler can match at this scale.
The thesis strengthens if Azure delivers on the 45% Q1 growth guide, and weakens if capex balloons past $200 billion without corresponding revenue acceleration.
Year 24/7 Wall St. Price Target 2026 $529 2027 $605 2028 $687 2029 $760 2030 $832 These projections assume Microsoft continues executing on Azure capacity buildout and Copilot monetization. Meaningful upside or downside could come from AI infrastructure demand shifts or a re-rating of hyperscaler multiples.
Contact [email protected] for any questions or corrections.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.
It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.
Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates, or expectations of growth and profitability, come from brokerage analysts who track publicly traded companies; these analysts work together with company management to analyze every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Microsoft (MSFT - Free Report) Redmond, WA-based Microsoft Corporation is one of the largest broad-based technology providers in the world. The company holds the leading position in the PC software market with its Windows operating system.
Since being added to the Focus List on February 1, 2016 at $55.09 per share, shares of MSFT have increased 807.06% to $499.7. The stock is currently a #3 (Hold) on the Zacks Rank.
13 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.32 to $19.59. MSFT boasts an average earnings surprise of 9.3%.
Moreover, analysts are expecting MSFT's earnings to grow 9.1% for the current fiscal year.
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A provision buried in the tax code lets families quietly erase decades of capital gains before a single share gets sold, but the window to pull it off is narrow and the traps that kill the strategy are ones most…
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If you own a stock you bought decades ago and refuse to sell because the capital gains tax would eat you alive, there is a provision buried in the tax code that can erase those gains entirely. It is called the stepped-up basis rule, and it resets an asset to fair market value the day the owner dies. The quirk most families miss: you can hand appreciated shares to an aging parent while they are still living, and if the timing works, the same shares come back to your side of the family with the tax basis rewritten and thirty years of gain wiped off the books.
Picture a position in Microsoft (NASDAQ:MSFT | MSFT Price Prediction) bought in the mid-1990s and held through two 2-for-1 splits. Shares closed at $499.70 on September 4, 2026, an adjusted 1,678.73% gain since November 1999 alone. The embedded gain on a truly long-held lot is enormous, and selling triggers a bruising tax bill.
How Step-Up in Basis Actually Works Cost basis is what you paid. Capital gains tax hits the difference between the sale price and the basis. Under 26 U.S. Code §1014, assets in a decedent’s estate generally get revalued to fair market value on the date of death. The heir inherits with that new basis, and every dollar of appreciation the deceased accumulated during their lifetime vanishes from the taxable ledger. Sell the next day, owe nothing on those gains.
Upstream gifting weaponizes this. You transfer highly appreciated stock to an older parent. They hold it in their name. When they die, the shares pass through their estate, and the basis resets. Decades of appreciation, gone.
One-Year Trap Written Into the Statute Congress saw this coming. 26 U.S. Code §1014(e) denies the step-up if the decedent dies within one year of receiving the gift AND the property passes back to the original donor or the donor’s spouse. When both conditions hit, the heir takes the original carryover basis (your old low basis), and the entire maneuver accomplishes nothing.
That is why the eighteen months in the headline is the mechanism. It clears the one-year window. Sixty days would not. Two workable escapes exist: wait past the anniversary of the gift, or route the inheritance to someone other than the original donor or their spouse (a child of yours, a sibling, an irrevocable trust). It is one of nine IRS rules that quietly drain wealth from families who miss the fine print, all charted in our free tax trap map.
Who Can Actually Use This This strategy works when the parent’s total taxable estate sits safely below the federal estate tax exemption, which sits at $13.99 million per individual in 2026 under IRC § 2010(c). The math shines on concentrated, low-basis assets. A position of 1,000 Microsoft shares purchased in the mid-1990s for roughly $15,000 carries an embedded gain of over $484,000 at a price near $499.70. Liquidating those shares outright exposes that gain to the top 20% federal capital gains rate and the 3.8% Net Investment Income Tax, handing roughly $115,000 directly to the IRS.
Upstream gifting lets the parent hold that block past the statutory waiting period, passing the entire position back through their estate with a brand-new $499,700 cost basis. That wipes away the entire six-figure tax bill on day one. Loss positions, by contrast, must never be transferred. The step-up rule cuts both ways: depreciated assets step down to date-of-death market value, permanently extinguishing the tax-loss write-off.
Mechanics, Step by Step Confirm the parent’s total estate is well under the federal exemption and check the state estate or inheritance tax rules where they live. Transfer the shares. A gift above the 2026 annual exclusion of $19,000 per recipient requires filing IRS Form 709, a gift tax return that uses the lifetime exemption but usually generates no tax owed. Have the parent update their will. If there is any chance of death within a year, the shares must pass to someone other than you or your spouse. Wait past the one-year §1014(e) window. At death, the executor establishes the date-of-death fair market value per IRS Publication 559. That becomes the new basis. Sell when ready. Risks Serious Enough to Kill the Plan Once shares transfer, they are legally the parents’. They can sell them, spend the proceeds, lose them in a lawsuit or divorce, remarry and trigger state spousal-share rules, or rewrite the will and leave the stock to someone else. There is no enforceable promise to give it back.
Medicaid is a bigger threat than most families realize. If the parent later needs long-term care, the transfer sits inside the federal five-year lookback period, and shares in the parent’s name count toward the asset limit for eligibility. This is the single most common way the strategy backfires.
State estate tax is the second landmine. Massachusetts, Oregon, Washington, and several other states impose estate or inheritance taxes at thresholds far below $15 million. A gift that erases federal capital gains tax can create a state estate tax bill.
Also, if the parent sells during their lifetime, your original low basis carries over to them, and the full gain is taxed on their return at their rate. Do nothing without an estate attorney and a tax professional licensed in the parent’s state. The paperwork is the easy part. The family conversation is harder.
Contact [email protected] for any questions or corrections.
Two more news organizations are suing OpenAI and Microsoft over the supposed use of their journalism to train AI.
A lawsuit filed by The Seattle Times and Newsday argued that with the advent of AI, the journalism industry could become “broken beyond repair.” The lawsuit described generative AI as “a snake eating its own tail” that could “destroy the very organizations” that produce the content it’s trained on.
“AI products like ChatGPT and CoPilot are touted as producers of content, but in fact they are rapacious consumers, devouring human-authored content and delivering back to the world copies and derivative imitations of that same original content they consumed to achieve their commercial objectives,” the lawsuit said.
Back in 2023, The New York Times sued OpenAI and its partner/investor Microsoft over alleged copyright infringement; other publications have followed suit as the case continued. The Seattle Times’ lawsuit is particularly notable because Microsoft and OpenAI have funded some of the organization’s journalism projects and fellowships.
A Microsoft spokesperson told GeekWire that the company is “surprised by the lawsuit” but is “always happy to sit down and explore solutions to this type of dispute.”
Asset Allocation & Management Company LLC cut its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 53.4% during the second quarter, according to its most recent Form 13F filing with the SEC. The fund owned 1,323 shares of the software giant’s stock after selling 1,517 shares during the period. Microsoft accounts for about 0.2% of Asset Allocation & Management Company LLC’s portfolio, making the stock its 26th largest holding. Asset Allocation & Management Company LLC’s holdings in Microsoft were worth $494,000 at the end of the most recent quarter.
Several other hedge funds also recently added to or reduced their stakes in MSFT. Winebrenner Capital Management LLC increased its stake in Microsoft by 12.1% during the second quarter. Winebrenner Capital Management LLC now owns 4,404 shares of the software giant’s stock worth $1,643,000 after acquiring an additional 475 shares during the last quarter. Keudell Morrison Wealth Management grew its holdings in shares of Microsoft by 0.6% during the 2nd quarter. Keudell Morrison Wealth Management now owns 20,062 shares of the software giant’s stock worth $7,483,000 after purchasing an additional 120 shares during the period. Gemmer Asset Management LLC grew its holdings in shares of Microsoft by 3.2% during the 2nd quarter. Gemmer Asset Management LLC now owns 14,514 shares of the software giant’s stock worth $5,414,000 after purchasing an additional 454 shares during the period. FSM Wealth Advisors LLC increased its position in shares of Microsoft by 15.6% during the 2nd quarter. FSM Wealth Advisors LLC now owns 33,780 shares of the software giant’s stock worth $12,600,000 after purchasing an additional 4,550 shares during the last quarter. Finally, Range Financial Group LLC raised its holdings in Microsoft by 2.6% in the 2nd quarter. Range Financial Group LLC now owns 4,005 shares of the software giant’s stock valued at $1,494,000 after buying an additional 103 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.
Analyst Ratings Changes MSFT has been the topic of a number of recent analyst reports. Sanford C. Bernstein set a $660.00 target price on shares of Microsoft in a research report on Monday, August 10th. Truist Financial reissued a “buy” rating and issued a $575.00 price target on shares of Microsoft in a research note on Wednesday, July 22nd. Wedbush restated an “outperform” rating and issued a $575.00 price objective on shares of Microsoft in a report on Wednesday, May 13th. Phillip Securities cut shares of Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 3rd. Finally, TD Cowen reiterated a “buy” rating and issued a $540.00 target price on shares of Microsoft in a report on Thursday, July 30th. Forty-two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $564.27.
View Our Latest Report on Microsoft Insider Activity at Microsoft In other Microsoft news, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Satya Nadella sold 86,525 shares of the business’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares in the company, valued at $244,092,173.98. The trade was a 15.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 108,335 shares of company stock worth $53,499,700 over the last 90 days. Company insiders own 0.03% of the company’s stock.
More Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft’s decision to disclose Azure revenue separately beginning in fiscal 2027 is improving visibility into its cloud business. Azure generated $29.4 billion in quarterly revenue and $101.9 billion for fiscal 2026, while the company’s remaining performance obligations reached $678 billion. The clearer reporting may help investors assess Microsoft’s position against Amazon Web Services and Google Cloud. Microsoft Finally Reveals Azure’s Core Positive Sentiment: Stifel raised its Microsoft price target to $530, citing improving Copilot adoption and artificial-intelligence momentum. OpenAI’s launch of GPT-6 Astra could also benefit Microsoft because Azure customers are reportedly already using the model, strengthening the strategic value of Microsoft’s OpenAI relationship. Stifel raises Microsoft price target Neutral Sentiment: Microsoft is reorganizing its reporting structure around “Devices and Consumer” and “Agents and Infra.” The change could make AI economics easier to evaluate, but it may also increase scrutiny of spending and margins once the new disclosures begin. Negative Sentiment: Investors remain concerned that Microsoft’s AI buildout is becoming increasingly expensive. Capital expenditures reached about $41 billion in the latest quarter, cloud gross margin reportedly fell to roughly 65% from 67%, and the company plans to continue adding data centers and AI capacity. The risk is that depreciation, power and chip costs could delay returns on the large backlog. Microsoft faces pressure despite cloud and AI growth Negative Sentiment: CEO Satya Nadella sold 86,525 shares worth approximately $43.4 million. The sale was executed under a pre-arranged Rule 10b5-1 plan, limiting its value as a business signal, but the transaction can still add short-term sentiment pressure after the stock’s run-up. Satya Nadella sells Microsoft stock Negative Sentiment: Microsoft is limiting Xbox Game Pass cloud gaming to 15 hours per month for some subscribers as infrastructure costs rise. The move may improve service economics, but it risks frustrating users and weakening Microsoft’s consumer-gaming proposition. Microsoft limits Xbox cloud gaming Microsoft Price Performance Shares of NASDAQ MSFT opened at $499.70 on Friday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The stock has a 50 day moving average of $444.52 and a two-hundred day moving average of $415.80. The stock has a market cap of $3.71 trillion, a P/E ratio of 27.82, a P/E/G ratio of 1.64 and a beta of 1.11.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business’s revenue was up 17.7% compared to the same quarter last year. During the same period in the prior year, the company earned $3.65 earnings per share. On average, research analysts forecast that Microsoft Corporation will post 19.59 earnings per share for the current year.
Microsoft Announces Dividend 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 issued a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s dividend payout ratio is currently 20.27%.
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 Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst 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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Cliftonlarsonallen Wealth Advisors LLC raised its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 16.8% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 86,519 shares of the software giant’s stock after acquiring an additional 12,471 shares during the quarter. Microsoft comprises 0.4% of Cliftonlarsonallen Wealth Advisors LLC’s holdings, making the stock its 21st largest position. Cliftonlarsonallen Wealth Advisors LLC’s holdings in Microsoft were worth $32,273,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other large investors have also recently bought and sold shares of the company. WFA Asset Management Corp lifted its stake in shares of Microsoft by 27.0% in the 1st quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock valued at $427,000 after acquiring an additional 216 shares during the last quarter. Ironwood Wealth Management LLC. raised its stake in Microsoft by 0.3% during the 2nd quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock worth $5,658,000 after buying an additional 38 shares during the period. Discipline Wealth Solutions LLC increased its position in shares of Microsoft by 410.4% during the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock worth $1,144,000 after acquiring an additional 2,138 shares in the last quarter. Wealth Group Ltd. lifted its stake in Microsoft by 1.2% during the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock valued at $1,000,000 after acquiring an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC grew its holdings in shares of Microsoft by 0.4% in the fourth quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock valued at $9,735,000 after acquiring an additional 96 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades Several equities research analysts recently weighed in on MSFT shares. Barclays decreased their price objective on Microsoft from $545.00 to $512.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Phillip Securities lowered shares of Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 3rd. Wells Fargo & Company boosted their target price on Microsoft from $650.00 to $700.00 and gave the company an “overweight” rating in a research note on Wednesday, August 12th. KeyCorp restated an “overweight” rating on shares of Microsoft in a report on Thursday. Finally, Guggenheim reissued a “buy” rating and set a $586.00 price target on shares of Microsoft in a research report on Monday, July 27th. Forty-two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, Microsoft currently has an average rating of “Moderate Buy” and an average price target of $564.27.
View Our Latest Research Report on MSFT Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft’s decision to disclose Azure revenue separately beginning in fiscal 2027 is improving visibility into its cloud business. Azure generated $29.4 billion in quarterly revenue and $101.9 billion for fiscal 2026, while the company’s remaining performance obligations reached $678 billion. The clearer reporting may help investors assess Microsoft’s position against Amazon Web Services and Google Cloud. Microsoft Finally Reveals Azure’s Core Positive Sentiment: Stifel raised its Microsoft price target to $530, citing improving Copilot adoption and artificial-intelligence momentum. OpenAI’s launch of GPT-6 Astra could also benefit Microsoft because Azure customers are reportedly already using the model, strengthening the strategic value of Microsoft’s OpenAI relationship. Stifel raises Microsoft price target Neutral Sentiment: Microsoft is reorganizing its reporting structure around “Devices and Consumer” and “Agents and Infra.” The change could make AI economics easier to evaluate, but it may also increase scrutiny of spending and margins once the new disclosures begin. Negative Sentiment: Investors remain concerned that Microsoft’s AI buildout is becoming increasingly expensive. Capital expenditures reached about $41 billion in the latest quarter, cloud gross margin reportedly fell to roughly 65% from 67%, and the company plans to continue adding data centers and AI capacity. The risk is that depreciation, power and chip costs could delay returns on the large backlog. Microsoft faces pressure despite cloud and AI growth Negative Sentiment: CEO Satya Nadella sold 86,525 shares worth approximately $43.4 million. The sale was executed under a pre-arranged Rule 10b5-1 plan, limiting its value as a business signal, but the transaction can still add short-term sentiment pressure after the stock’s run-up. Satya Nadella sells Microsoft stock Negative Sentiment: Microsoft is limiting Xbox Game Pass cloud gaming to 15 hours per month for some subscribers as infrastructure costs rise. The move may improve service economics, but it risks frustrating users and weakening Microsoft’s consumer-gaming proposition. Microsoft limits Xbox cloud gaming Insider Buying and Selling In other news, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the transaction, the chief executive officer directly owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 108,335 shares of company stock worth $53,499,700 in the last 90 days. 0.03% of the stock is owned by corporate insiders.
Microsoft Trading Down 2.0% Shares of MSFT opened at $499.70 on Friday. The company’s fifty day simple moving average is $444.52 and its 200-day simple moving average is $415.80. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The company has a market cap of $3.71 trillion, a P/E ratio of 27.82, a P/E/G ratio of 1.64 and a beta of 1.11.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business’s revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the firm posted $3.65 earnings per share. As a group, analysts expect that Microsoft Corporation will post 19.59 EPS for the current year.
Microsoft Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is 20.27%.
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).
Recommended Stories Five stocks we like better than Microsoft Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst 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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FSM Wealth Advisors LLC lifted its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 15.6% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 33,780 shares of the software giant’s stock after buying an additional 4,550 shares during the quarter. Microsoft comprises approximately 1.3% of FSM Wealth Advisors LLC’s holdings, making the stock its 12th biggest position. FSM Wealth Advisors LLC’s holdings in Microsoft were worth $12,600,000 as of its most recent filing with the Securities and Exchange Commission.
Several other hedge funds and other institutional investors also recently made changes to their positions in MSFT. Longfellow Investment Management Co. LLC boosted its holdings in shares of Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after acquiring an additional 20 shares during the period. Bernzott Capital Advisors bought a new stake in shares of Microsoft during the 4th quarter worth approximately $34,000. Frankly Finances LLC bought a new position in shares of Microsoft in the 2nd quarter valued at $35,000. Timmons Wealth Management LLC bought a new position in shares of Microsoft in the fourth quarter worth about $36,000. Finally, Fairway Wealth LLC boosted its position in Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after buying an additional 66 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors.
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft’s decision to disclose Azure revenue separately beginning in fiscal 2027 is improving visibility into its cloud business. Azure generated $29.4 billion in quarterly revenue and $101.9 billion for fiscal 2026, while the company’s remaining performance obligations reached $678 billion. The clearer reporting may help investors assess Microsoft’s position against Amazon Web Services and Google Cloud. Microsoft Finally Reveals Azure’s Core Positive Sentiment: Stifel raised its Microsoft price target to $530, citing improving Copilot adoption and artificial-intelligence momentum. OpenAI’s launch of GPT-6 Astra could also benefit Microsoft because Azure customers are reportedly already using the model, strengthening the strategic value of Microsoft’s OpenAI relationship. Stifel raises Microsoft price target Neutral Sentiment: Microsoft is reorganizing its reporting structure around “Devices and Consumer” and “Agents and Infra.” The change could make AI economics easier to evaluate, but it may also increase scrutiny of spending and margins once the new disclosures begin. Negative Sentiment: Investors remain concerned that Microsoft’s AI buildout is becoming increasingly expensive. Capital expenditures reached about $41 billion in the latest quarter, cloud gross margin reportedly fell to roughly 65% from 67%, and the company plans to continue adding data centers and AI capacity. The risk is that depreciation, power and chip costs could delay returns on the large backlog. Microsoft faces pressure despite cloud and AI growth Negative Sentiment: CEO Satya Nadella sold 86,525 shares worth approximately $43.4 million. The sale was executed under a pre-arranged Rule 10b5-1 plan, limiting its value as a business signal, but the transaction can still add short-term sentiment pressure after the stock’s run-up. Satya Nadella sells Microsoft stock Negative Sentiment: Microsoft is limiting Xbox Game Pass cloud gaming to 15 hours per month for some subscribers as infrastructure costs rise. The move may improve service economics, but it risks frustrating users and weakening Microsoft’s consumer-gaming proposition. Microsoft limits Xbox cloud gaming Insider Buying and Selling In other news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the transaction, the chief executive officer owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the company’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the sale, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 108,335 shares of company stock valued at $53,499,700 over the last ninety days. 0.03% of the stock is owned by insiders. Microsoft Stock Down 2.0% Shares of NASDAQ MSFT opened at $499.70 on Friday. The business has a 50-day moving average of $444.52 and a 200-day moving average of $415.80. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $3.71 trillion, a price-to-earnings ratio of 27.82, a PEG ratio of 1.64 and a beta of 1.11. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the previous year, the business earned $3.65 earnings per share. Sell-side analysts expect that Microsoft Corporation will post 19.59 earnings per share for the current fiscal year.
Microsoft Announces Dividend The company 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 dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.7%. Microsoft’s dividend payout ratio is presently 20.27%.
Analyst Upgrades and Downgrades Several research firms have recently issued reports on MSFT. Morgan Stanley reaffirmed an “overweight” rating on shares of Microsoft in a research note on Thursday, July 30th. Weiss Ratings raised Microsoft from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, August 27th. Wolfe Research restated an “outperform” rating and issued a $550.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Piper Sandler boosted their price target on shares of Microsoft from $540.00 to $550.00 and gave the company an “overweight” rating in a research note on Tuesday, July 28th. Finally, Oppenheimer reaffirmed an “outperform” rating and set a $515.00 price objective on shares of Microsoft in a report on Wednesday, July 22nd. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $564.27.
Get Our Latest Research Report on MSFT
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).
Featured Articles Five stocks we like better than Microsoft Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst
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DB Fitzpatrick & Co Inc boosted its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 4,365.7% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 4,689 shares of the software giant’s stock after buying an additional 4,584 shares during the period. Microsoft makes up about 1.3% of DB Fitzpatrick & Co Inc’s holdings, making the stock its 18th biggest position. DB Fitzpatrick & Co Inc’s holdings in Microsoft were worth $1,749,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently modified their holdings of the business. Longfellow Investment Management Co. LLC grew its position in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after buying an additional 20 shares during the period. Bernzott Capital Advisors purchased a new stake in Microsoft during the 4th quarter worth about $34,000. Frankly Finances LLC purchased a new position in shares of Microsoft during the second quarter valued at approximately $35,000. Timmons Wealth Management LLC purchased a new position in Microsoft during the fourth quarter worth about $36,000. Finally, Fairway Wealth LLC grew its holdings in Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after purchasing an additional 66 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft’s decision to disclose Azure revenue separately beginning in fiscal 2027 is improving visibility into its cloud business. Azure generated $29.4 billion in quarterly revenue and $101.9 billion for fiscal 2026, while the company’s remaining performance obligations reached $678 billion. The clearer reporting may help investors assess Microsoft’s position against Amazon Web Services and Google Cloud. Microsoft Finally Reveals Azure’s Core Positive Sentiment: Stifel raised its Microsoft price target to $530, citing improving Copilot adoption and artificial-intelligence momentum. OpenAI’s launch of GPT-6 Astra could also benefit Microsoft because Azure customers are reportedly already using the model, strengthening the strategic value of Microsoft’s OpenAI relationship. Stifel raises Microsoft price target Neutral Sentiment: Microsoft is reorganizing its reporting structure around “Devices and Consumer” and “Agents and Infra.” The change could make AI economics easier to evaluate, but it may also increase scrutiny of spending and margins once the new disclosures begin. Negative Sentiment: Investors remain concerned that Microsoft’s AI buildout is becoming increasingly expensive. Capital expenditures reached about $41 billion in the latest quarter, cloud gross margin reportedly fell to roughly 65% from 67%, and the company plans to continue adding data centers and AI capacity. The risk is that depreciation, power and chip costs could delay returns on the large backlog. Microsoft faces pressure despite cloud and AI growth Negative Sentiment: CEO Satya Nadella sold 86,525 shares worth approximately $43.4 million. The sale was executed under a pre-arranged Rule 10b5-1 plan, limiting its value as a business signal, but the transaction can still add short-term sentiment pressure after the stock’s run-up. Satya Nadella sells Microsoft stock Negative Sentiment: Microsoft is limiting Xbox Game Pass cloud gaming to 15 hours per month for some subscribers as infrastructure costs rise. The move may improve service economics, but it risks frustrating users and weakening Microsoft’s consumer-gaming proposition. Microsoft limits Xbox cloud gaming Microsoft Stock Performance Shares of MSFT opened at $499.70 on Friday. The company’s fifty day moving average price is $444.52 and its 200 day moving average price is $415.80. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company has a market capitalization of $3.71 trillion, a PE ratio of 27.82, a price-to-earnings-growth ratio of 1.64 and a beta of 1.11. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the previous year, the business posted $3.65 EPS. As a group, analysts expect that Microsoft Corporation will post 19.59 earnings per share for the current year.
Microsoft Announces Dividend The company also recently disclosed 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. The ex-dividend date is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s dividend payout ratio (DPR) is currently 20.27%.
Analysts Set New Price Targets A number of analysts recently issued reports on the stock. CLSA reissued an “outperform” rating on shares of Microsoft in a research report on Thursday, July 30th. Citizens Jmp reissued a “market outperform” rating and issued a $550.00 target price on shares of Microsoft in a research report on Tuesday, July 28th. Sanford C. Bernstein set a $660.00 price target on shares of Microsoft in a research report on Monday, August 10th. Weiss Ratings upgraded Microsoft from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, August 27th. Finally, Wolfe Research reiterated an “outperform” rating and set a $550.00 price objective on shares of Microsoft in a research report on Thursday, July 30th. Forty-two equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $564.27.
Get Our Latest Stock Report on Microsoft
Insider Buying and Selling In related news, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the transaction, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. This trade represents a 10.13% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 108,335 shares of company stock valued at $53,499,700 over the last ninety days. 0.03% of the stock is owned by company insiders.
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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Harold Davidson & Associates Inc. decreased its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 6.2% during the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 36,932 shares of the software giant’s stock after selling 2,430 shares during the period. Microsoft comprises approximately 6.0% of Harold Davidson & Associates Inc.’s portfolio, making the stock its 3rd biggest holding. Harold Davidson & Associates Inc.’s holdings in Microsoft were worth $13,776,000 at the end of the most recent reporting period.
Several other institutional investors and hedge funds have also bought and sold shares of the business. Empirical Financial Services LLC d.b.a. Empirical Wealth Management grew its holdings in Microsoft by 4.0% in the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant’s stock valued at $85,604,000 after purchasing an additional 8,773 shares during the last quarter. Markel Group Inc. grew its holdings in Microsoft by 0.4% in the first quarter. Markel Group Inc. now owns 537,630 shares of the software giant’s stock valued at $199,014,000 after purchasing an additional 1,950 shares during the period. Bessemer Group Inc. raised its position in shares of Microsoft by 8.4% in the 1st quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant’s stock worth $2,562,197,000 after buying an additional 537,634 shares during the period. Taylor Securities Services Inc. purchased a new stake in shares of Microsoft during the 4th quarter worth about $2,616,000. Finally, Werba Rubin Papier Wealth Management increased its position in shares of Microsoft by 15.7% in the fourth quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock worth $6,041,000 after acquiring an additional 1,698 shares in the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.
Insider Activity In other news, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the sale, the chief executive officer owned 486,763 shares of the company’s stock, valued at $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 108,335 shares of company stock valued at $53,499,700 over the last ninety days. 0.03% of the stock is currently owned by company insiders.
Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week: Positive Sentiment: Microsoft’s decision to disclose Azure revenue separately beginning in fiscal 2027 is improving visibility into its cloud business. Azure generated $29.4 billion in quarterly revenue and $101.9 billion for fiscal 2026, while the company’s remaining performance obligations reached $678 billion. The clearer reporting may help investors assess Microsoft’s position against Amazon Web Services and Google Cloud. Microsoft Finally Reveals Azure’s Core Positive Sentiment: Stifel raised its Microsoft price target to $530, citing improving Copilot adoption and artificial-intelligence momentum. OpenAI’s launch of GPT-6 Astra could also benefit Microsoft because Azure customers are reportedly already using the model, strengthening the strategic value of Microsoft’s OpenAI relationship. Stifel raises Microsoft price target Neutral Sentiment: Microsoft is reorganizing its reporting structure around “Devices and Consumer” and “Agents and Infra.” The change could make AI economics easier to evaluate, but it may also increase scrutiny of spending and margins once the new disclosures begin. Negative Sentiment: Investors remain concerned that Microsoft’s AI buildout is becoming increasingly expensive. Capital expenditures reached about $41 billion in the latest quarter, cloud gross margin reportedly fell to roughly 65% from 67%, and the company plans to continue adding data centers and AI capacity. The risk is that depreciation, power and chip costs could delay returns on the large backlog. Microsoft faces pressure despite cloud and AI growth Negative Sentiment: CEO Satya Nadella sold 86,525 shares worth approximately $43.4 million. The sale was executed under a pre-arranged Rule 10b5-1 plan, limiting its value as a business signal, but the transaction can still add short-term sentiment pressure after the stock’s run-up. Satya Nadella sells Microsoft stock Negative Sentiment: Microsoft is limiting Xbox Game Pass cloud gaming to 15 hours per month for some subscribers as infrastructure costs rise. The move may improve service economics, but it risks frustrating users and weakening Microsoft’s consumer-gaming proposition. Microsoft limits Xbox cloud gaming Wall Street Analyst Weigh In MSFT has been the topic of a number of recent analyst reports. Piper Sandler upped their target price on Microsoft from $540.00 to $550.00 and gave the company an “overweight” rating in a research report on Tuesday, July 28th. Sanford C. Bernstein set a $660.00 price objective on Microsoft in a research report on Monday, August 10th. Wedbush restated an “outperform” rating and set a $575.00 price target on shares of Microsoft in a research report on Wednesday, May 13th. Barclays lowered their target price on Microsoft from $545.00 to $512.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Finally, TD Cowen reissued a “buy” rating and set a $540.00 price objective on shares of Microsoft in a research note on Thursday, July 30th. Forty-two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $564.27.
View Our Latest Research Report on Microsoft
Microsoft Trading Down 2.0% Shares of NASDAQ MSFT opened at $499.70 on Friday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The company has a market cap of $3.71 trillion, a PE ratio of 27.82, a P/E/G ratio of 1.64 and a beta of 1.11. The company has a 50-day moving average of $444.52 and a two-hundred day moving average of $415.80.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company’s revenue was up 17.7% compared to the same quarter last year. During the same period in the prior year, the company posted $3.65 EPS. As a group, equities analysts expect that Microsoft Corporation will post 19.59 earnings per share for the current fiscal year.
Microsoft Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders 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 dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is 20.27%.
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).
Featured Stories Five stocks we like better than Microsoft Revolution Medicines Got Its Breakthrough—What Moves It Next? Retail Earnings Just Exposed a Bigger Divide in the U.S. Consumer Economy FB Financial’s Southern Expansion and Buybacks Drive Analyst Optimism AST SpaceMobile Stock Soared 12%—This Was the Catalyst 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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Amazon (AMZN -0.15%), Microsoft (MSFT -2.04%), and Alphabet (GOOG -1.05%) (GOOGL -1.11%) are generally recognized as the big three hyperscalers. These three also operate the leading cloud computing platforms, which are a huge part of the AI build-out. Most companies don't have computing capacity available to run AI workloads, so they rent computing power from these three. There isn't enough capacity available, so this trio is spending hundreds of billions of dollars on data center capital expenditures this year and is likely to do the same in 2027. That will lead to monster growth for these companies, but are they all solid buys right now?
Of the three, there are two that I think are smart buys, while one is the odd stock out. Which one is the one to avoid? Let's find out.
Image source: Getty Images.
One stands out with a faster growth rate All three of these companies are fairly similar: They have a primary business but also a booming cloud computing segment. Amazon has its commerce business, Microsoft has a business software product lineup, and Alphabet has the Google Search empire. All three of these businesses generate significant cash flows, allowing them to invest in cloud computing, which requires heavy upfront investment but then enables massive cash generation in the future.
When it comes to growth rates, Alphabet is by far the fastest-growing. In Q2, Google Cloud's revenue increased 82% year over year. It's also doing it profitably, as its operating margin rose from 21% to 36% over the year. It's hard to pick apart those results, and Google Cloud is by far the fastest-growing. But it's also accelerating. Its growth rate in Q1 was 63%. With more computing capacity coming online, don't be surprised to see this growth rate cross triple digits over the next few quarters.
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Amazon Web Services (AWS) and Microsoft Azure are closer in their growth rates, but there is one glaring defect in Microsoft's results that makes me question its strength. AWS' growth rate in Q2 was 37% versus Azure's 43%. However, in Q1, AWS' growth rate was 28% versus Azure's 40%. Why is that a big deal? Well, AWS' growth rate is rapidly accelerating (similar to Google Cloud's), while Azure's is staying fairly stagnant.
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This could be a one-off quarterly issue, and if Microsoft reports rapidly accelerating Azure revenue next quarter, it could solve the problem. But if Azure continues its 40% or so growth rate while its peers are experiencing accelerating growth, it could be a red flag that Microsoft isn't capturing as much market opportunity as possible in one of the biggest technological arms races we've ever seen.
As a result, I prefer the other two to Microsoft right now, but is there also a valuation component to be aware of?
Valuing these three isn't straightforward Each of these companies has invested billions into up-and-coming AI companies, which skews their earnings-per-share (EPS) metric, which affects their price-to-earnings (P/E) ratios. As a result, valuing the stocks based on operating income makes the most sense.
AMZN Operating PE Ratio data by YCharts
From this standpoint, Microsoft is by far the cheapest. This could be the market adjusting for the discrepancy seen in Azure versus the other cloud computing providers. If it is, then the market may have priced the stock correctly to account for AWS' and Google Cloud's rapid acceleration.
However, I'm still picking Amazon and Alphabet over Microsoft despite a cheaper price tag due to their growth acceleration. I think grabbing market share is a better long-term setup than a lower price now, and that makes them top AI stocks to buy and hold over the next few years as the AI arms race ramps up.
The Seattle Times and Newsday sued Microsoft and OpenAI on Friday, accusing the tech companies of using their journalism to train AI products without permission. (GeekWire File Photo / Kurt Schlosser) Microsoft was sued Friday by the parent company of its hometown daily newspaper, The Seattle Times Co., which joined with Newsday to accuse the Redmond tech giant and OpenAI of using their journalism to train artificial intelligence models.
The lawsuit alleges that the companies scraped hundreds of thousands of Seattle Times and Newsday articles — bypassing paywalls and ignoring terms of service — to train their AI models. It seeks financial damages and the destruction of any training datasets and models built with their content.
“Like a snake eating its own tail, GenAI that is trained on painstakingly researched, expensive-to-produce content threatens to destroy the very news organizations by competing directly with them through AI-generated substitutive content,” the suit says. “If Defendants are allowed to succeed, independent journalism of the kind Plaintiffs produce will struggle to survive.”
The case is notable in part because the Seattle Times is suing two of its own funders. Microsoft Philanthropies underwrites some Seattle Times journalism projects. In 2024, Microsoft and OpenAI jointly funded a $10 million Lenfest Institute AI fellowship that included both the Seattle Times and Newsday among its inaugural participating newsrooms. The Times says it maintains editorial independence.
A Microsoft spokesperson said in a statement Friday evening, “While we’re surprised by the lawsuit, we appreciate the importance of the Seattle Times to our region and we’re always happy to sit down and explore solutions to this type of dispute.”
It’s not clear if there were negotiations or licensing talks in advance of the suit. GeekWire has contacted The Seattle Times Co. for comment.
In its own coverage of the lawsuit Friday evening, the newspaper quoted a memo from Seattle Times Co. President and CEO Alan Fisco, saying: “This was not an easy decision. However, we feel strongly that we must defend our content — which we spend millions of dollars a year to produce — from being used without our consent or compensation.”
Fisco, a longtime Seattle Times executive, took over as CEO on Jan. 1, succeeding Frank Blethen, who led the paper for 40 years and remains chair of the board. Ryan Blethen, Frank Blethen’s son and a fifth-generation member of the family that has owned the paper since 1896, became publisher in the same transition.
The complaint Friday includes examples of ChatGPT reproducing Seattle Times and Newsday journalism nearly word for word, including an 88-word verbatim stretch from The Seattle Times’ Pulitzer-winning coverage of the Boeing 737 MAX crashes, generated when a user prompted the chatbot with just the article’s headline and web address.
The suit echoes The New York Times’ 2023 copyright case against the same defendants, which just this week drew a U.S. Justice Department brief siding with Microsoft and OpenAI, arguing that a ruling for the publishers would stifle American AI development.
The newspapers join a growing list of publishers suing OpenAI and Microsoft over AI training. In addition to the New York Times, that includes the New York Daily News, Ziff Davis and the Center for Investigative Reporting, all consolidated before U.S. District Judge Sidney H. Stein in Manhattan.
On Friday, the publishers in that case moved for summary judgment, as did OpenAI and Microsoft.
OpenAI has struck licensing deals with more than a dozen other outlets, including The Associated Press, News Corp and Axel Springer. Publicly disclosed terms of three of those deals top $300 million, according to the Seattle Times complaint.
The Seattle Times and Newsday sued OpenAI and Microsoft (MSFT.O) on Friday, alleging in federal court that the tech companies copied the newspapers' journalism without permission to train their AI systems.
The suit in the U.S. District Court for the Southern District of New York alleges that OpenAI and Microsoft scraped the newspapers' websites, including content behind paywalls, and incorporated articles into datasets used to train and operate products including ChatGPT, Microsoft Copilot and Bing's AI features.
The newspapers, based in Seattle and Long Island, New York, said the companies' AI products can reproduce passages from their reporting, closely paraphrase articles and provide users with answers that reduce the need to visit their websites or buy subscriptions.
"We feel strongly that we must defend our content - which we spend millions of dollars a year to produce - from being used without our consent or compensation," Seattle Times President and CEO Alan Fisco wrote to employees, according to the newspaper.
A spokesperson for San Francisco-based OpenAI said its models are trained on publicly available data and grounded in fair use, without commenting specifically on the lawsuit.
A spokesperson for Microsoft, based near Seattle in Washington state, said in an email: "While we’re surprised by the lawsuit, we appreciate the importance of local journalism and we’re always happy to sit down and explore solutions to this type of dispute."
The Seattle Times and Newsday are seeking an order requiring the destruction of copies of their works as well as training datasets or AI models incorporating them.
The lawsuit echoes a case filed by the New York Times (NYT.N) in 2023, which accused OpenAI and Microsoft (MSFT.O) of using millions of newspaper articles without permission to train OpenAI's popular chatbot. The case is ongoing, and is one of dozens brought by copyright holders against tech companies such as OpenAI, Anthropic and Meta for what they say is misuse of their material to train AI systems.
(This story has been refiled to say 'a,' not 'an' spokesperson, in the fourth bullet point.)
Microsoft MSFT has won a price-target increase from Stifel, but the analyst behind it is not ready to recommend buying the stock.
Stifel analyst Brad Reback raised his Microsoft MSFT target to $530 from $450 following meetings with executives, an increase of nearly 18%. He kept a Neutral rating, creating a split: the operating outlook is improving, but the risk-reward case remains insufficient for a Buy.
Reback’s optimism centers on Copilot. Management described the second half of 2026 as a “step change” in deployment. Weekly active engagement is now “on par with Outlook and Teams,” suggesting Copilot is moving from an add-on toward habitual workplace use.
Quality matters as much as adoption. Customer complaints that dominated conversations a year ago have largely eased following frequent product improvements, according to Reback. That removes a barrier to paid conversions across Microsoft’s enterprise base.
Monetization is following. Microsoft is seeing “moderate acceleration” in premium upgrades to E5, Microsoft 365 Copilot and E7. Because much of the new seat growth comes from lower-priced segments, average revenue per user, rather than volume, is becoming the main growth lever.
Azure provides a second pillar. Reback expects efficiency gains to unlock capacity, sustain business upside and reduce margin drag compared with earlier expectations. That matters because cloud AI growth is constrained not only by customer demand but also by infrastructure and servicing costs.
Microsoft is remaining model-agnostic, combining proprietary and open large language models across Azure, GitHub and Copilot. That approach reduces dependence on one provider while giving customers broader choice.
For investors, the $530 target validates Microsoft’s AI momentum, but the Neutral rating remains a caution signal. Microsoft must now prove that higher Copilot engagement produces durable revenue while Azure efficiencies protect margins. The product direction looks stronger; the question is whether the valuation already reflects it.
Microsoft (MSFT -2.04%) and Apple (AAPL -2.51%) generate hundreds of billions in revenue.
*Stock prices used were the afternoon prices of Sept. 2, 2026. The video was published on Sept. 4, 2026.
Parkev Tatevosian, CFA has positions in Microsoft. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
A $43.9 million insider stock sale by Microsoft Corp (NASDAQ:MSFT) CEO Satya Nadella would normally be enough to unsettle investors.
Instead, Microsoft shares haven’t moved much, with the stock holding comfortably above key technical support levels. A sign the market may have viewed the transaction as routine rather than a warning about the company’s prospects.
• Microsoft stock is trading near recent highs. Where are MSFT shares going?
Microsoft Stock: The Insider SaleA Form 144 filed with the U.S. SEC shows Nadella intends to sell 86,525 Microsoft shares. The proposed transaction is valued at approximately $43.9 million, or about $44 million, based on the market price at the time of filing.
The filing also contains an important detail that helps explain the muted market reaction. The proposed sale is being made under a Rule 10b5-1 trading plan adopted on March 8, 2026.
Rule 10b5-1 plans allow corporate insiders to schedule future stock sales in advance, helping insulate those transactions from concerns that executives are trading based on material, non-public information. Investors generally view these pre-arranged sales as routine financial planning rather than a fresh signal about management’s confidence in the business.
The filing also notes that the shares being sold were acquired through the vesting of restricted stock units (RSUs) on Aug. 31, 2026. It reports no Microsoft shares sold by Nadella during the preceding three months, suggesting this is not part of a broader pattern of insider selling.
What the Microsoft Stock Chart SaysThe technical picture tells a similar story.
Chart created using Benzinga Pro
Microsoft continues to trade comfortably above its 20-day, 50-day and 200-day moving averages. The stock is preserving the longer-term uptrend that has defined the stock’s performance in recent months. While the MACD momentum indicator has begun to flatten following the summer rally, it remains in positive territory. The Relative Strength Index (RSI) is hovering around 66 — a level that points to continued buying interest without entering deeply overbought territory.
Just as importantly, the insider filing failed to trigger a meaningful spike in selling volume or a decisive break below key support levels. That suggests the market has largely interpreted the proposed sale as an administrative event rather than a change in Microsoft’s underlying investment story.
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What Investors Should WatchInsider transactions often attract attention, but context matters as much as the dollar amount. Investors typically place less weight on sales made under pre-arranged Rule 10b5-1 plans than on discretionary trades because executives schedule those transactions months in advance.
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For Microsoft investors, the bigger variables remain the company’s AI execution, Azure cloud growth and whether the stock can maintain its constructive technical trend.
As long as those fundamentals remain intact and the shares continue holding above key moving averages, a pre-planned insider sale — even one approaching $44 million — is unlikely to alter the broader investment thesis.
Microsoft's (MSFT -1.94%) run under CEO Satya Nadella has been one of the great turnaround stories in the history of tech. While the technology company still had a great many strengths when Nadella took the reins from Steve Ballmer in 2014, the business was facing some significant challenges at the time of the leadership change. Microsoft had largely missed out on benefiting from the mobile revolution, Windows and Office were seemingly stagnating, and the company's growth bets weren't panning out.
Thankfully for Microsoft shareholders, Nadella's assumption of the CEO role marked a major turning point for the business. Since he took over as the company's top executive in February 2014, the company's stock has delivered a dividend-adjusted total return of roughly 1,570% -- working out to a compound annual growth rate of 29.7%. Is it possible the company could continue delivering that rate of return over the next 12 years?
Image source: Getty Images.
Microsoft is a great company, but investors should manage their expectations Microsoft's successes during Nadella's tenure are undeniably impressive. Under his leadership, the company's business became heavily cloud-focused -- and the evolution of its Azure cloud infrastructure service helped transform the business and position it to capitalize on artificial intelligence (AI) trends. Growth for other subscription-based products also helped boost sales and earnings.
On the other hand, it's probably not reasonable to expect the stock to replicate that incredible run over the next 12 years. When Nadella took over, the company had a market capitalization of roughly $300 billion -- and its share price had been depressed by stagnant business performance, failed growth bets, and rising competitive pressures from rivals including Alphabet and Apple.
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Today, Microsoft has a market cap of roughly $3.69 trillion and ranks as the world's fourth-largest company. While it's not impossible that the stock could continue to deliver nearly 30% average annual returns over a significant period of time, typically, the larger a company gets, the more difficult it becomes for it to deliver rapid growth.
Nadella took over at a time when Microsoft was struggling and its stock had fallen out of favor with investors. The turnaround that he helped to engineer and execute reinvigorated the business's growth engines, addressed competitive weaknesses, and positioned the company to drive and benefit from emerging tech trends. However, the incredible average annualized stock gains under his leadership are at least partially a result of the company having been in a relatively weak position when he became CEO.
Microsoft is looking much stronger today. Windows and Office continue to be solid performance drivers, the cloud business is growing at an impressive clip, and the company has a multitude of ways to profit from the AI trend. With those dynamics in mind, there's a good chance that the stock can continue to be a market-beating investment -- but expecting it to keep delivering annualized returns of nearly 30% in perpetuity isn't reasonable.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft. The Motley Fool has a disclosure policy.
Blue Zone Wealth Advisors LLC grew its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 1.7% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 61,308 shares of the software giant’s stock after acquiring an additional 1,006 shares during the quarter. Microsoft accounts for 4.0% of Blue Zone Wealth Advisors LLC’s portfolio, making the stock its 8th biggest holding. Blue Zone Wealth Advisors LLC’s holdings in Microsoft were worth $22,869,000 at the end of the most recent quarter.
A number of other hedge funds and other institutional investors have also recently modified their holdings of MSFT. Longfellow Investment Management Co. LLC increased its holdings 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 worth $29,000 after buying an additional 20 shares during the last quarter. Bernzott Capital Advisors purchased a new stake in shares of Microsoft during the 4th quarter valued at about $34,000. Frankly Finances LLC bought a new position in shares of Microsoft in the 2nd quarter valued at about $35,000. Timmons Wealth Management LLC purchased a new position in Microsoft in the fourth quarter worth about $36,000. Finally, Fairway Wealth LLC grew its position in Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after acquiring an additional 66 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors.
Microsoft News Summary Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft will begin reporting quarterly Azure revenue in fiscal 2027 and reorganize its financial reporting from three segments into two AI-focused categories. Azure generated approximately $29.4 billion in quarterly revenue and $101.9 billion for fiscal 2026, providing investors with more visibility into cloud growth and AI demand. Microsoft to reveal Azure cloud sales in financial reporting shift Positive Sentiment: Citi reaffirmed a Buy rating and $600 price target, while other analysts cited Microsoft’s large AI backlog, Azure’s more than $100 billion annual revenue and the potential for improved AI economics. The company’s latest earnings also showed strong momentum, with revenue up 17.7% year over year and a substantial earnings beat. Analyst reaffirms Buy on Microsoft Positive Sentiment: Microsoft-backed OpenAI launched GPT-6 Astra, potentially strengthening Microsoft’s AI ecosystem and demand for Azure infrastructure. Microsoft is also securing long-term power capacity for data centers and expanding Microsoft 365 Copilot integrations. OpenAI launches GPT-6 Astra Neutral Sentiment: CEO Satya Nadella sold 86,525 shares worth about $43.4 million under a pre-arranged Rule 10b5-1 plan. The scheduled nature of the sale limits its significance, although it reduced his holdings by 15.09% and adds to recent insider selling. Negative Sentiment: Microsoft will impose monthly limits on Xbox cloud-gaming hours for Game Pass subscribers beginning in November as service costs rise. The change may improve economics but could hurt consumer sentiment and gaming engagement. Microsoft to impose time limits on Xbox cloud gaming Negative Sentiment: Investors continue to weigh Microsoft’s roughly $116 billion AI infrastructure spending plan, rising data-center costs and pressure on cloud margins. The key risk is whether the large backlog converts into profitable cash flow rather than simply future revenue. Microsoft Trading Up 2.7% MSFT opened at $510.12 on Friday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock’s 50 day moving average price is $441.99 and its 200-day moving average price is $415.21. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The stock has a market cap of $3.79 trillion, a price-to-earnings ratio of 28.40, a P/E/G ratio of 1.60 and a beta of 1.11. Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same period last year, the company earned $3.65 EPS. Microsoft’s quarterly revenue was up 17.7% compared to the same quarter last year. On average, equities analysts forecast that Microsoft Corporation will post 19.59 EPS for the current year.
Microsoft Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is 20.27%.
Insider Activity In other news, CEO Satya Nadella sold 86,525 shares of the business’s stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the sale, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the company’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 108,335 shares of company stock valued at $53,499,700. 0.03% of the stock is currently owned by company insiders.
Wall Street Analyst Weigh In MSFT has been the topic of a number of recent research reports. Oppenheimer restated an “outperform” rating and set a $515.00 price objective on shares of Microsoft in a research report on Wednesday, July 22nd. DA Davidson reiterated a “buy” rating and issued a $550.00 target price on shares of Microsoft in a report on Thursday, July 30th. Citizens Jmp reissued a “market outperform” rating and set a $550.00 target price on shares of Microsoft in a research report on Tuesday, July 28th. Weiss Ratings upgraded Microsoft from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 27th. Finally, Mizuho lowered their price target on Microsoft from $515.00 to $490.00 and set an “outperform” rating for the company in a research report on Wednesday, July 15th. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $562.49.
Get Our Latest Stock Analysis on MSFT
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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