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Cibc World Market Inc. purchased a new stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund purchased 1,920,498 shares of the software giant’s stock, valued at approximately $716,384,000. Microsoft accounts for approximately 1.1% of Cibc World Market Inc.’s holdings, making the stock its 18th biggest holding.

A number of other large investors have also recently added to or reduced their stakes in the business. Empirical Financial Services LLC d.b.a. Empirical Wealth Management boosted its stake in Microsoft by 4.0% during the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant’s stock worth $85,604,000 after buying an additional 8,773 shares during the period. Markel Group Inc. increased its position in shares of Microsoft by 0.4% during the first quarter. Markel Group Inc. now owns 537,630 shares of the software giant’s stock valued at $199,014,000 after acquiring an additional 1,950 shares during the last quarter. Bessemer Group Inc. raised its stake 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 valued at $2,562,197,000 after acquiring an additional 537,634 shares during the period. Taylor Securities Services Inc. purchased a new stake in shares of Microsoft in the 4th quarter valued at approximately $2,616,000. Finally, Harel Insurance Investments & Financial Services Ltd. raised its stake in shares of Microsoft by 138.8% in the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,356,359 shares of the software giant’s stock valued at $502,077,000 after acquiring an additional 788,297 shares during the period. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth A number of equities analysts recently weighed in on the stock. Oppenheimer increased their price objective on shares of Microsoft from $515.00 to $570.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 22nd. KeyCorp reiterated an “overweight” rating on shares of Microsoft in a report on Thursday, September 3rd. Sanford C. Bernstein set a $660.00 target price on Microsoft in a research report on Monday, August 10th. JPMorgan Chase & Co. restated a “buy” rating on shares of Microsoft in a research note on Monday, September 28th. Finally, CLSA restated an “outperform” rating on shares of Microsoft in a research note on Thursday, July 30th. Forty-two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $589.71.

Read Our Latest Report on Microsoft Microsoft News Summary Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins. Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure. Insider Buying and Selling at Microsoft In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. This represents a 10.13% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Amy Hood sold 7,305 shares of the firm’s stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the completion of the transaction, the executive vice president directly owned 555,396 shares of the company’s stock, valued at $302,924,086.32. This represents a 1.30% 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 150,314 shares of company stock valued at $75,404,992 in the last quarter. Corporate insiders own 0.03% of the company’s stock.

Microsoft Stock Down 1.9% Shares of NASDAQ:MSFT opened at $529.05 on Friday. The firm has a market capitalization of $3.93 trillion, a PE ratio of 29.46, a price-to-earnings-growth ratio of 1.70 and a beta of 1.10. 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. The firm’s 50-day moving average is $505.53 and its two-hundred day moving average is $440.59.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted 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 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 analyst estimates of $87.62 billion. During the same quarter last year, the firm posted $3.65 earnings per share. The business’s revenue for the quarter was up 17.7% compared to the same quarter last year. Analysts predict that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s payout ratio is currently 20.27%.

About Microsoft (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

See Also Five stocks we like better than Microsoft Rocket Lab’s Neutron Delay Leaves Wall Street Bullish But Raises the Stakes for 2027 ManpowerGroup Stock Sinks on Q3 Results, But Fundamentals Stay Solid Does the AI Selloff Put Alphabet’s Breakout in Doubt? Bank Earnings Are Mixed—These 2 ETFs Offer Very Different Paths to a Recovery Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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

Cullen Capital Management LLC bought a new position in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 292,959 shares of the software giant’s stock, valued at approximately $109,280,000.

Several other institutional investors and hedge funds have also made changes to their positions in MSFT. Whalen Wealth Management Inc. purchased a new stake in Microsoft in the 2nd quarter valued at about $3,863,000. Dearborn Partners LLC bought a new position in Microsoft in the 2nd quarter worth about $70,503,000. Trail Ridge Investment Advisors LLC purchased a new position in shares of Microsoft during the second quarter worth approximately $7,024,000. Algert Global LLC increased its position in shares of Microsoft by 2.5% during the second quarter. Algert Global LLC now owns 89,428 shares of the software giant’s stock worth $33,358,000 after acquiring an additional 2,193 shares during the period. Finally, Ames National Corp purchased a new position in shares of Microsoft during the second quarter worth approximately $5,870,000. 71.13% of the stock is currently owned by institutional investors.

Analyst Ratings Changes Several research firms have recently weighed in on MSFT. Bank of America lifted 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. Tigress Financial increased their price objective on Microsoft from $680.00 to $690.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. UBS Group raised their price objective on Microsoft from $525.00 to $675.00 and gave the stock a “buy” rating in a report on Thursday. Phillip Securities lowered Microsoft from a “moderate buy” rating to a “hold” rating in a research report on Monday, October 12th. Finally, Evercore raised Microsoft from an “underperform” rating to an “outperform” rating in a research report on Monday, October 5th. Forty-two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $589.71.

Get Our Latest Stock Report on Microsoft Microsoft Trading Down 1.9% NASDAQ MSFT opened at $529.05 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 company has a market capitalization of $3.93 trillion, a price-to-earnings ratio of 29.46, a price-to-earnings-growth ratio of 1.70 and a beta of 1.10. The company’s 50-day simple moving average is $505.53 and its two-hundred day simple moving average is $440.59. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. During the same quarter in the prior year, the company earned $3.65 EPS. The company’s revenue was up 17.7% compared to the same quarter last year. Equities analysts forecast that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.7%. Microsoft’s dividend payout ratio is 20.27%.

Insider Buying and Selling at Microsoft In related news, CEO Satya Nadella sold 86,525 shares of the business’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 transaction, 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 sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 41,674 shares of the company’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the sale, the executive vice president owned 533,624 shares of the company’s stock, valued at approximately $265,888,830.48. This represents a 7.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is currently owned by corporate insiders.

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

Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins. Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure. Microsoft Company Profile (Free Report)

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

Further Reading Five stocks we like better than Microsoft Rocket Lab’s Neutron Delay Leaves Wall Street Bullish But Raises the Stakes for 2027 ManpowerGroup Stock Sinks on Q3 Results, But Fundamentals Stay Solid Does the AI Selloff Put Alphabet’s Breakout in Doubt? Bank Earnings Are Mixed—These 2 ETFs Offer Very Different Paths to a Recovery Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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

Microsoft (MSFT.O) has pulled out of a data center deal with ​British cloud provider Nscale, Britain's Telegraph newspaper reported on ‌Sunday.

The US tech giant, one of Nscale's two largest customers, recently terminated its agreement for the data center in Loughton, Essex, according to ​the report.

The newspaper did not specify why Microsoft withdrew ​from the project, and Microsoft did not immediately respond ⁠to Reuters requests for comment outside regular business hours.

The Telegraph ​report said Nscale had faced repeated delays with the project. ​National power grid officials, it reported, had told Nscale they did not expect a power supply for the data center until the 2030s.

"Our relationship ​with Microsoft remains strong and long-term, and this unfortunate London-wide ​grid issue has no impact on our other contracts," an Nscale spokesperson told ‌Reuters.

"We ⁠remain committed to both the Loughton project and the UK, and we are exploring alternative power sources for the site, in addition to other expansion sites in the UK."

Nscale filed for ​an initial public offering ​in the ⁠US last month, with Microsoft and Anthropic expected to be its major customers, according to its ​prospectus.

Nscale provides infrastructure, including compute, power and data centers, ​as ⁠well as software for training and running AI models.

The Nvidia-backed (NVDA.O) AI group, which competes against CoreWeave (CRWV.O), Nebius (NBIS.O), Crusoe and Lambda, has ⁠grown rapidly ​since its launch, scaling from $100 million ​to more than $103 billion in total contracted value in just two-and-a-half years.

Microsoft (MSFT -1.93%) is among the big three cloud computing infrastructure providers and is always included in any list of AI hyperscalers. It's heavily pursuing a massive amount of AI computing power for its internal service, Copilot, while also powering other products like OpenAI's ChatGPT through its cloud computing platform, Azure.

To support this growth, Microsoft is investing heavily in data centers. This year alone, it expects its capital expenditures to hit $175 billion, with most of that going toward constructing and equipping data centers. That is leading to strong growth, but what if this growth is actually hurting its business?

While it may sound odd, Microsoft's business is actually being harmed by the heavy pursuit of its cloud computing empire. Here's why.

Image source: Getty Images.

Microsoft is spending big
At first, you may imagine that the reason that these capital expenditures are hurting Microsoft is that it could be spending that $175 billion in ways that generate a more direct return for shareholders, such as on share buybacks or dividends. But that's not what I'm talking about. In fact, I'm OK with Microsoft spending big on AI because it needs to evolve its business to adapt to the AI age or risk being left behind.

MSFT Microsoft$529.05-$10.39 (-1.93%)

NASDAQ · As of 4:00 PM ET 10/16/26

Moreover, Microsoft's spending is resulting in strong growth. Azure saw its revenue rise 43% during its latest quarter, passing a $100 billion annual run rate. Additionally, Copilot reached 30 million paid seats, indicating strong adoption of the proprietary AI platform. Overall, Microsoft's revenue rose 18% last quarter.

While that's impressive for a company that's as large as Microsoft, there's a major caveat.

Azure's operating margin likely isn't as good as the rest of Microsoft's business
Unfortunately for investors, Microsoft doesn't publicly break out detailed statistics for its individual segments, such as Azure's operating margins. However, Azure's chief competitors, Amazon Web Services (AWS) (AMZN -1.87%) and Google Cloud from Alphabet (GOOG -2.32%) (GOOGL -2.47%), freely share that information. It's unlikely that Microsoft Azure's margins are much different from theirs, since they operate using essentially the same business model. During the most recent quarter, Google Cloud's operating margin was 36% while AWS' was 39%. So, I think it's highly likely that Azure's operating margins are in the high-30% range.

The problem? Microsoft's operating margin as a whole is well above that range.

MSFT Operating Margin (TTM) data by YCharts.

So, what does this mean? The more Microsoft invests in its Azure cloud computing business, the more downward pressure this business unit will apply to Microsoft's overall operating margin picture. Investing $175 billion into AI computing capacity may sound like a smart idea, but it will fundamentally shift how Microsoft's operating picture looks five years from now.

Not all growth is created equal, and this lower-margin growth may cause its profits to grow more slowly than revenue.

However, all of this assumes that Azure's operating margins are in line with those of its industry peers, rather than a higher figure like 45%, which would be on par with its overall business. If this is the case, then all of this spending on data centers makes a lot of sense. But if its margins are similar to those of its peers, then it's hurting Microsoft's business.

Regardless, Microsoft needs to spend this money to keep up; otherwise, its cloud business could lose substantial ground to AWS, Google Cloud, and the other players investing heavily in new compute capacity. This puts Microsoft in a bit of a pickle, and it's why I prefer investing in Amazon and Alphabet instead. This could also help explain why No. 2 cloud player Microsoft is a bit more reserved in its spending, with $175 billion budgeted for capital expenditures this year versus No. 3 Alphabet's $200 billion or No. 1 Amazon's $220 billion.

While Microsoft is still a solid AI pick, AI won't have nearly as much of a positive impact on its business as it will on Alphabet and Amazon. I'd rather own those two.

Barbara Oil Co. bought a new stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm bought 23,220 shares of the software giant’s stock, valued at approximately $8,702,000. Microsoft comprises about 2.9% of Barbara Oil Co.’s investment portfolio, making the stock its 8th largest holding.

A number of other large investors also recently added to or reduced their stakes in MSFT. Frankly Finances LLC bought a new position in Microsoft in the 2nd quarter worth $35,000. Bard Associates Inc. purchased a new stake in shares of Microsoft in the 2nd quarter worth about $37,000. Fiduciary Advisors Inc. boosted its stake in shares of Microsoft by 37.4% during the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock valued at $47,000 after purchasing an additional 34 shares in the last quarter. Persistent Asset Partners Ltd bought a new stake in shares of Microsoft during the 2nd quarter valued at about $60,000. Finally, Glynn Capital Management LLC boosted its stake in shares of Microsoft by 34.2% during the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant’s stock valued at $95,000 after purchasing an additional 65 shares in the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.

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

Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins. Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure. Insider Activity at Microsoft In related news, CEO Judson Althoff sold 10,000 shares of the firm’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 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 trade represents a 9.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 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 transaction of $43,388,826.50. Following the completion of the sale, the chief executive officer owned 486,763 shares in the company, valued at approximately $244,092,173.98. This 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. Over the last ninety days, insiders sold 150,314 shares of company stock valued at $75,404,992. Insiders own 0.03% of the company’s stock. Analysts Set New Price Targets A number of research analysts have weighed in on the company. JPMorgan Chase & Co. reiterated a “buy” rating on shares of Microsoft in a report on Monday, September 28th. UBS Group raised their target price on Microsoft from $525.00 to $675.00 and gave the company a “buy” rating in a research note on Thursday. Morgan Stanley lowered Microsoft from an “overweight” rating to a “negative” rating in a research report on Monday, October 5th. William Blair began coverage on Microsoft in a research note on Monday, October 5th. They issued an “outperform” rating on the stock. Finally, Jefferies Financial Group upped their price target on Microsoft from $575.00 to $650.00 and gave the stock a “buy” rating in a research note on Wednesday. Forty-two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $589.71.

Read Our Latest Stock Report on MSFT

Microsoft Stock Performance NASDAQ:MSFT opened at $529.05 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 12-month low of $349.20 and a 12-month high of $553.72. The stock has a 50-day moving average price of $505.53 and a 200 day moving average price of $440.59. The stock has a market capitalization of $3.93 trillion, a P/E ratio of 29.46, a P/E/G ratio of 1.73 and a beta of 1.10.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion for 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 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 EPS. Equities research analysts forecast that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a dividend of $0.98 per share. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio (DPR) is currently 20.27%.

About Microsoft (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

Further Reading Five stocks we like better than Microsoft Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out? Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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

Clarion Wealth Managment Partners LLC acquired a new position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund acquired 4,249 shares of the software giant’s stock, valued at approximately $1,585,000. Microsoft comprises about 1.3% of Clarion Wealth Managment Partners LLC’s portfolio, making the stock its 16th biggest holding.

Several other institutional investors have also recently made changes to their positions in the company. Auto Owners Insurance Co grew its position in Microsoft by 56,160.8% in the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after purchasing an additional 60,009,531 shares in the last quarter. Amundi increased its stake in Microsoft by 30.8% in the 1st quarter. Amundi now owns 41,675,076 shares of the software giant’s stock valued at $15,426,862,000 after buying an additional 9,814,598 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in Microsoft by 10.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock valued at $10,852,884,000 after buying an additional 2,784,809 shares during the last quarter. Hsbc Holdings PLC lifted its position in shares of Microsoft by 7.8% during the 4th quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant’s stock worth $10,715,379,000 after buying an additional 1,599,412 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of Microsoft by 64.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant’s stock worth $8,982,083,000 after buying an additional 9,493,778 shares in the last quarter. Institutional investors own 71.13% of the company’s stock.

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

Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins. Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure. Insider Buying and Selling In related news, EVP Takeshi Numoto sold 4,810 shares of the 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 sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. The 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 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 sale, the chief executive officer owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 150,314 shares of company stock valued at $75,404,992 over the last ninety days. Insiders own 0.03% of the company’s stock. Analyst Ratings Changes A number of equities analysts have recently weighed in on the company. Citigroup boosted their target price on Microsoft from $600.00 to $636.00 and gave the stock a “buy” rating in a research note on Thursday. Stifel Nicolaus raised Microsoft from a “hold” rating to a “buy” rating and increased their price target for the company from $530.00 to $575.00 in a research report on Tuesday, September 22nd. BMO Capital Markets began coverage on Microsoft in a report on Monday, October 5th. They set an “outperform” rating on the stock. Truist Financial reissued a “buy” rating and issued a $575.00 price objective on shares of Microsoft in a research report on Wednesday, July 22nd. Finally, Jefferies Financial Group upped their price objective on Microsoft from $575.00 to $650.00 and gave the company a “buy” rating in a research note on Wednesday. Forty-two analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $589.71.

Read Our Latest Stock Analysis on MSFT

Microsoft Stock Performance Shares of MSFT stock opened at $529.05 on Friday. The company’s fifty day moving average price is $505.53 and its 200-day moving average price is $440.59. The stock has a market cap of $3.93 trillion, a PE ratio of 29.46, a price-to-earnings-growth ratio of 1.73 and a beta of 1.10. 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 issued its quarterly 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 net margin of 40.31% and a return on equity of 31.98%. The company had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same period last year, the business earned $3.65 EPS. Microsoft’s quarterly revenue was up 17.7% compared to the same quarter last year. On average, equities analysts expect that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio is currently 20.27%.

About Microsoft (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

Featured Articles Five stocks we like better than Microsoft Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out?

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Clal Insurance Enterprises Holdings Ltd purchased a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 665,910 shares of the software giant’s stock, valued at approximately $248,398,000. Microsoft comprises about 1.1% of Clal Insurance Enterprises Holdings Ltd’s investment portfolio, making the stock its 19th biggest position.

Several other hedge funds and other institutional investors also recently bought and sold shares of MSFT. Strategic Wealth Advisors LLC grew its holdings in shares of Microsoft by 1.7% during the second quarter. Strategic Wealth Advisors LLC now owns 1,473 shares of the software giant’s stock worth $549,000 after buying an additional 24 shares during the last quarter. Friedenthal Financial raised its stake in Microsoft by 6.2% during the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant’s stock valued at $160,000 after acquiring an additional 25 shares during the last quarter. Sequent Planning LLC raised its stake in Microsoft by 0.7% during the 1st quarter. Sequent Planning LLC now owns 3,733 shares of the software giant’s stock valued at $1,382,000 after acquiring an additional 25 shares during the last quarter. Lee Johnson Capital Management LLC lifted its position in Microsoft by 3.8% during the 2nd quarter. Lee Johnson Capital Management LLC now owns 687 shares of the software giant’s stock worth $256,000 after acquiring an additional 25 shares during the period. Finally, Riverpoint Wealth Management Holdings LLC lifted its position in Microsoft by 0.5% during the 1st quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant’s stock worth $2,052,000 after acquiring an additional 26 shares during the period. 71.13% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades Several research analysts have weighed in on the company. JPMorgan Chase & Co. reiterated a “buy” rating on shares of Microsoft in a research note on Monday, September 28th. BNP Paribas Exane downgraded Microsoft from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. BMO Capital Markets began coverage on shares of Microsoft in a research report on Monday, October 5th. They issued an “outperform” rating on the stock. Melius Research set a $665.00 price objective on shares of Microsoft and gave the company a “buy” rating in a research note on Monday, October 5th. Finally, Tigress Financial upped their price objective on shares of Microsoft from $680.00 to $690.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Forty-two analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Microsoft has a consensus rating of “Moderate Buy” and a consensus target price of $589.71.

Check Out Our Latest Report on MSFT Microsoft Stock Performance Shares of MSFT opened at $529.05 on Friday. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The company’s 50 day simple moving average is $505.53 and its 200 day simple moving average is $440.59. The company has a market capitalization of $3.93 trillion, a price-to-earnings ratio of 29.46, a PEG ratio of 1.73 and a beta of 1.10. 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 (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results 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 company 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%. Microsoft’s revenue was up 17.7% on a year-over-year basis. During the same period in the previous year, the firm posted $3.65 EPS. On average, sell-side analysts predict that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a $0.98 dividend. This is an increase from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s dividend payout ratio (DPR) is presently 20.27%.

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

Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins. Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure. Insiders Place Their Bets In other Microsoft news, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction dated 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 sale, the chief executive officer owned 100,447 shares in the company, valued at $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 link. Also, 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 directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 150,314 shares of company stock valued at $75,404,992. 0.03% of the stock is owned by company insiders.

Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

Further Reading Five stocks we like better than Microsoft Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out?

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Elefante Mark B purchased a new stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) in the second quarter, according to its most recent filing with the SEC. The firm purchased 21,836 shares of the software giant’s stock, valued at approximately $8,145,000. Microsoft accounts for about 3.5% of Elefante Mark B’s portfolio, making the stock its 9th largest position.

A number of other large investors have also recently added to or reduced their stakes in MSFT. Frankly Finances LLC purchased a new position in Microsoft during the second quarter worth $35,000. Bard Associates Inc. acquired a new position in shares of Microsoft in the second quarter worth $37,000. Fiduciary Advisors Inc. lifted its position in shares of Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock valued at $47,000 after acquiring an additional 34 shares in the last quarter. Persistent Asset Partners Ltd purchased a new stake in shares of Microsoft in the second quarter valued at $60,000. Finally, Glynn Capital Management LLC boosted its stake in shares of Microsoft by 34.2% during the second quarter. Glynn Capital Management LLC now owns 255 shares of the software giant’s stock valued at $95,000 after acquiring an additional 65 shares during the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft Stock Down 1.9%
Shares of NASDAQ:MSFT opened at $529.05 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 company’s fifty day moving average is $505.53 and its two-hundred day moving average is $440.59. 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 $3.93 trillion, a price-to-earnings ratio of 29.46, a price-to-earnings-growth ratio of 1.73 and a beta of 1.10.

Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The 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 business earned $3.65 EPS. The firm’s revenue was up 17.7% on a year-over-year basis. Equities analysts anticipate that Microsoft Corporation will post 19.65 EPS for the current year.
Microsoft Increases Dividend
The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s dividend payout ratio is presently 20.27%.

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

Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive
Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource
Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper
Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins.
Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip
Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure.

Wall Street Analyst Weigh In
MSFT has been the subject of a number of recent research reports. UBS Group lifted their price objective on Microsoft from $525.00 to $675.00 and gave the stock a “buy” rating in a research report on Thursday. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $600.00 target price on shares of Microsoft in a report on Monday. Bank of America raised their price target on shares of Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a research note on Tuesday, September 1st. Evercore upgraded shares of Microsoft from an “underperform” rating to an “outperform” rating in a report on Monday, October 5th. Finally, Weiss Ratings upgraded shares of Microsoft from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Forty-two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Microsoft has an average rating of “Moderate Buy” and a consensus target price of $589.71.

Read Our Latest Report on MSFT

Insider Activity
In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the business’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at $244,092,173.98. The trade was a 15.09% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the business’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 directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is owned by insiders.

Microsoft Profile
(Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

See Also

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Bank of America Stock Sell-Off Looks Like a Buying Opportunity
AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff?
GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking
Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out?

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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Biondo Investment Advisors LLC acquired a new position in Microsoft Corporation (NASDAQ:MSFT – Free Report) in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 45,559 shares of the software giant’s stock, valued at approximately $16,994,000. Microsoft accounts for about 2.1% of Biondo Investment Advisors LLC’s portfolio, making the stock its 15th biggest holding.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Auto Owners Insurance Co increased its holdings in Microsoft by 56,160.8% during the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock valued at $29,073,486,000 after buying an additional 60,009,531 shares during the period. Amundi lifted its holdings in Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant’s stock worth $15,426,862,000 after buying an additional 9,814,598 shares during the period. Dimensional Fund Advisors LP lifted its holdings in Microsoft by 10.5% during the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock worth $10,852,884,000 after buying an additional 2,784,809 shares during the period. Hsbc Holdings PLC boosted its position in Microsoft by 7.8% during the 4th quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant’s stock valued at $10,715,379,000 after acquiring an additional 1,599,412 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership boosted its position in Microsoft by 64.3% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant’s stock valued at $8,982,083,000 after acquiring an additional 9,493,778 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth Several research analysts have recently commented on the company. The Goldman Sachs Group reissued a “buy” rating and issued a $640.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a $600.00 price objective on shares of Microsoft in a research note on Monday. Phillip Securities downgraded Microsoft from a “moderate buy” rating to a “hold” rating in a research report on Monday, October 12th. Barclays lifted their target price on Microsoft from $512.00 to $600.00 and gave the company an “overweight” rating in a research note on Tuesday. Finally, Wolfe Research downgraded shares of Microsoft from an “outperform” rating to a “hold” rating in a report on Wednesday, September 23rd. Forty-two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Microsoft currently has an average rating of “Moderate Buy” and a consensus target price of $589.71.

View Our Latest Stock Report on Microsoft Microsoft News Summary Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins. Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure. Insider Activity at Microsoft In related news, CEO Satya Nadella sold 86,525 shares of the firm’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 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. The sale was disclosed in a filing with the SEC, which can be accessed 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 Microsoft stock in a transaction dated 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 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 150,314 shares of company stock worth $75,404,992 over the last three months. Company insiders own 0.03% of the company’s stock.

Microsoft Price Performance Microsoft stock opened at $529.05 on Friday. The company’s fifty day moving average price is $505.53 and its 200 day moving average price is $440.59. 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 $3.93 trillion, a P/E ratio of 29.46, a P/E/G ratio of 1.73 and a beta of 1.10. 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 (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. 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 period in the prior year, the business posted $3.65 earnings per share. As a group, equities research analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This is an increase from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s dividend payout ratio is presently 20.27%.

About Microsoft (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

Further Reading Five stocks we like better than Microsoft Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out?

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Capital Square LLC purchased a new position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 5,284 shares of the software giant’s stock, valued at approximately $2,035,000.

Other large investors have also bought and sold shares of the company. Auto Owners Insurance Co lifted its stake in Microsoft by 56,160.8% in the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock valued at $29,073,486,000 after buying an additional 60,009,531 shares during the period. Amundi grew its position in shares of Microsoft by 30.8% during the 1st quarter. Amundi now owns 41,675,076 shares of the software giant’s stock worth $15,426,862,000 after buying an additional 9,814,598 shares during the period. Dimensional Fund Advisors LP grew its position in shares of Microsoft by 10.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock worth $10,852,884,000 after buying an additional 2,784,809 shares during the period. Hsbc Holdings PLC increased its stake in shares of Microsoft by 7.8% in the 4th quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant’s stock valued at $10,715,379,000 after acquiring an additional 1,599,412 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its stake in shares of Microsoft by 64.3% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant’s stock valued at $8,982,083,000 after acquiring an additional 9,493,778 shares during the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling In other news, 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 sale, the executive vice president directly owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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 value of $4,878,900.00. Following the sale, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 150,314 shares of company stock worth $75,404,992 in the last quarter. Insiders own 0.03% of the company’s stock.

Microsoft News Roundup Here are the key news stories impacting Microsoft this week: Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins. Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure. Microsoft Stock Down 1.9% MSFT opened at $529.05 on Friday. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. 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 has a fifty day moving average of $505.53 and a 200-day moving average of $440.59. The company has a market capitalization of $3.93 trillion, a P/E ratio of 29.46, a P/E/G ratio of 1.73 and a beta of 1.10.

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 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 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. The business’s revenue was up 17.7% compared to the same quarter last year. On average, equities analysts expect that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. Microsoft’s dividend payout ratio is 20.27%.

Analyst Ratings Changes A number of brokerages recently weighed in on MSFT. Argus cut their price target on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating on the stock in a research report on Friday, July 10th. BNP Paribas Exane lowered shares of Microsoft from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. Rothschild & Co Redburn set a $440.00 price target on shares of Microsoft in a research report on Monday, September 21st. Weiss Ratings raised shares of Microsoft from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Finally, Stifel Nicolaus raised shares of Microsoft from a “hold” rating to a “buy” rating and boosted their price target for the company from $530.00 to $575.00 in a report on Tuesday, September 22nd. Forty-two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $589.71.

View Our Latest Research Report on MSFT

Microsoft Company Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

Featured Articles Five stocks we like better than Microsoft Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out?

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Covington Investment Advisors Inc. acquired a new position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 85,141 shares of the software giant’s stock, valued at approximately $31,759,000. Microsoft makes up about 4.1% of Covington Investment Advisors Inc.’s portfolio, making the stock its 6th largest holding.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Biondo Investment Advisors LLC bought a new stake in Microsoft in the 2nd quarter valued at $16,994,000. Palidye Holdings Caymans Ltd bought a new position in Microsoft during the 2nd quarter worth about $115,071,000. Clal Insurance Enterprises Holdings Ltd bought a new position in Microsoft during the 2nd quarter worth about $248,398,000. Barbara Oil Co. bought a new position in Microsoft during the 2nd quarter worth about $8,702,000. Finally, Saranac Partners Ltd acquired a new stake in shares of Microsoft in the 2nd quarter valued at about $12,339,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling In other Microsoft news, 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 completion of the sale, the chief executive officer 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. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Amy Hood sold 7,305 shares of the stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the sale, the executive vice president directly owned 555,396 shares of the company’s stock, valued at $302,924,086.32. This represents a 1.30% decrease in their position. 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 three months, insiders have sold 150,314 shares of company stock valued at $75,404,992. Insiders own 0.03% of the company’s stock.

Microsoft Stock Down 1.9% Shares of MSFT opened at $529.05 on Friday. The stock’s 50-day moving average price is $505.53 and its two-hundred day moving average price is $440.59. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. The company has a market capitalization of $3.93 trillion, a PE ratio of 29.46, a PEG ratio of 1.73 and a beta of 1.10. 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 (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results 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. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. During the same quarter in the prior year, the firm posted $3.65 earnings per share. The business’s quarterly revenue was up 17.7% on a year-over-year basis. On average, analysts anticipate that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This is a boost from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.7%. Microsoft’s dividend payout ratio (DPR) is currently 20.27%.

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

Positive Sentiment: Analysts expect Microsoft to remain the only major hyperscaler with positive free cash flow over the next year despite heavy AI investment. This reinforces confidence that the company can fund data-center expansion without substantial external financing. Microsoft Free Cash Flow Expected to Remain Positive Positive Sentiment: Microsoft signed a 20-year agreement with NiSource for approximately 1,100 megawatts of power for an Indiana data-center campus beginning in 2028. Securing electricity supports future Azure capacity as grid constraints become a bottleneck for AI expansion. Microsoft Signs Power Deal With NiSource Positive Sentiment: Microsoft’s custom Maia AI chips and reports that a new model achieved comparable or better performance than OpenAI’s system using a fraction of the computing power could eventually reduce reliance on expensive third-party GPUs and improve AI economics. Microsoft Wants to Make AI Cheaper Neutral Sentiment: Investors are focused on Azure growth, Copilot adoption, AI monetization and capital expenditures ahead of earnings. Strong demand could support the shares, but the market wants evidence that revenue growth is translating into sustainable margins. Negative Sentiment: The U.K. Competition and Markets Authority is investigating Microsoft’s grip on business software and says Microsoft and Amazon Web Services may need to do more to address cloud-service barriers. Potential remedies could increase compliance costs or weaken customer-lock-in advantages. UK Regulator Targets Microsoft’s Business Software Grip Negative Sentiment: Questions remain over whether custom chips will deliver meaningful savings: AI infrastructure, power and data-center commitments are rising rapidly, while Microsoft is reportedly seeking substantial cost reductions in Azure. That creates concern about near-term free-cash-flow and margin pressure. Wall Street Analyst Weigh In A number of research analysts recently issued reports on the company. Phillip Securities downgraded Microsoft from a “moderate buy” rating to a “hold” rating in a report on Monday, October 12th. Tigress Financial lifted their price objective on shares of Microsoft from $680.00 to $690.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. UBS Group boosted their price target on shares of Microsoft from $525.00 to $675.00 and gave the stock a “buy” rating in a research report on Thursday. The Goldman Sachs Group restated a “buy” rating and set a $640.00 price objective on shares of Microsoft in a research note on Thursday, July 30th. Finally, Barclays raised their price objective on Microsoft from $512.00 to $600.00 and gave the company an “overweight” rating in a report on Tuesday. Forty-two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $589.71.

Get Our Latest Research Report on Microsoft

Microsoft Company Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

Recommended Stories Five stocks we like better than Microsoft Bank of America Stock Sell-Off Looks Like a Buying Opportunity AST SpaceMobile Is Down 67%—Could SpaceX’s Mobile Push Deepen the Selloff? GlobalFoundries’ $21 Billion Deal Could Change the Economics of Chipmaking Fundamental and Technicals Signals Align for Costco: Is the Stock Finally Breaking Out?

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

Daiichi Life Insurance Co. Ltd. bought a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 390,723 shares of the software giant’s stock, valued at approximately $145,747,000. Microsoft comprises approximately 3.4% of Daiichi Life Insurance Co. Ltd.’s investment portfolio, making the stock its 3rd largest holding.

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

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

Positive Sentiment: UBS raised its price target to $675 from $525 and reiterated a Buy rating, citing accelerating Azure and Microsoft 365 growth driven by artificial intelligence. The firm believes Microsoft’s valuation remains reasonable despite its recent rally. UBS raises Microsoft price target Positive Sentiment: Multiple Wall Street firms have lifted their targets, with analysts highlighting Azure momentum, approximately 30 million Copilot seats, Microsoft’s commercial backlog and the potential for a larger-than-usual earnings beat. The October 28 results will provide an important test of whether AI spending is translating into revenue and profit. Positive Sentiment: Microsoft’s Maia 300 custom AI accelerator is expected to scale across Azure data centers and reportedly deliver more tokens per megawatt than conventional GPU systems. The chip could reduce inference costs and Microsoft’s dependence on Nvidia and AMD hardware. Microsoft Maia 300 AI chip Positive Sentiment: AI care-management company Tucuvi joined Microsoft’s Pegasus startup program, potentially expanding Microsoft’s enterprise AI pipeline and go-to-market reach in healthcare. Microsoft also increased its quarterly dividend to $0.98 from $0.91, signaling continued confidence in cash generation. Tucuvi joins Microsoft Pegasus Program Neutral Sentiment: Reports that Azure management is seeking roughly 20% cost reductions could improve efficiency and margins, but also underscore the pressure created by Microsoft’s substantial AI data-center investments. Neutral Sentiment: Microsoft’s $10 million contribution to a White House ballroom project is unlikely to affect near-term financial results, though it could attract political or reputational scrutiny. Microsoft White House ballroom contribution Negative Sentiment: Higher inflation and bond yields have pressured AI valuations and raised concerns about the financing cost and returns of large infrastructure projects. Microsoft’s strong balance sheet makes it less vulnerable than smaller AI companies, but valuation sensitivity remains a risk. Negative Sentiment: Phillip Securities downgraded Microsoft to Hold, while reports of security vulnerabilities, executive share sales and intense competition from rapidly growing AI companies add caution. Amy Hood’s sale was made under a pre-arranged Rule 10b5-1 plan, limiting its significance. Wall Street Analysts Forecast Growth A number of equities analysts have issued reports on MSFT shares. CLSA reaffirmed an “outperform” rating on shares of Microsoft in a research note on Thursday, July 30th. Cantor Fitzgerald upped their price target on Microsoft from $522.00 to $608.00 and gave the company an “overweight” rating in a report on Monday, September 21st. Morgan Stanley downgraded Microsoft from an “overweight” rating to a “negative” rating in a research report on Monday, October 5th. Jefferies Financial Group raised their price objective on Microsoft from $575.00 to $650.00 and gave the stock a “buy” rating in a research note on Wednesday. Finally, Stifel Nicolaus upgraded shares of Microsoft from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $530.00 to $575.00 in a research report on Tuesday, September 22nd. Forty-two research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Microsoft presently has a consensus rating of “Moderate Buy” and a consensus price target of $589.71. Check Out Our Latest Stock Report on Microsoft

Insider Activity at Microsoft In other news, 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 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 transaction was disclosed in a document filed with the SEC, which is accessible 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 business’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 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. The disclosure for this sale is available in the SEC filing. Insiders sold 150,314 shares of company stock valued at $75,404,992 in the last quarter. Company insiders own 0.03% of the company’s stock.

Microsoft Price Performance NASDAQ MSFT opened at $539.44 on Friday. The firm has a market cap of $4.01 trillion, a P/E ratio of 30.04, a price-to-earnings-growth ratio of 1.71 and a beta of 1.10. 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’s 50-day moving average is $504.95 and its two-hundred day moving average is $439.96. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced 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 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% compared to the same quarter last year. During the same quarter last year, the company posted $3.65 earnings per share. On average, analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio is presently 20.27%.

Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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George Kaiser Family Foundation purchased a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 6,062 shares of the software giant’s stock, valued at approximately $2,261,000. Microsoft makes up about 0.2% of George Kaiser Family Foundation’s portfolio, making the stock its 19th largest position.

Other hedge funds also recently modified their holdings of the company. Frankly Finances LLC bought a new stake in Microsoft in the 2nd quarter valued at $35,000. Bard Associates Inc. bought a new stake in shares of Microsoft in the 2nd quarter valued at about $37,000. Fiduciary Advisors Inc. increased its stake in shares of Microsoft by 37.4% in the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock valued at $47,000 after acquiring an additional 34 shares during the last quarter. Persistent Asset Partners Ltd acquired a new stake in shares of Microsoft in the 2nd quarter valued at approximately $60,000. Finally, Lifetime Wealth Management P.C. acquired a new stake in shares of Microsoft in the 4th quarter valued at approximately $101,000. Institutional investors own 71.13% of the company’s stock.

Analyst Ratings Changes Several research analysts recently weighed in on the stock. JPMorgan Chase & Co. reissued a “buy” rating on shares of Microsoft in a research note on Monday, September 28th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $640.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Evercore raised shares of Microsoft from an “underperform” rating to an “outperform” rating in a research note on Monday, October 5th. Melius Research set a $665.00 target price on shares of Microsoft and gave the stock a “buy” rating in a report on Monday, October 5th. Finally, Benchmark reissued a “buy” rating on shares of Microsoft in a research report on Friday, July 24th. Forty-two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Microsoft currently has a consensus rating of “Moderate Buy” and a consensus target price of $589.71.

Read Our Latest Analysis on Microsoft Microsoft Price Performance NASDAQ MSFT opened at $539.44 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. The stock has a market cap of $4.01 trillion, a price-to-earnings ratio of 30.04, a PEG ratio of 1.71 and a beta of 1.10. The business has a 50 day simple moving average of $504.95 and a 200 day simple moving average of $439.96. 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 announced its quarterly 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. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business’s revenue was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.65 earnings per share. Analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.

Microsoft Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio is 20.27%.

Insider Buying and Selling at Microsoft In related news, CEO Satya Nadella sold 86,525 shares of the firm’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 in the company, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible 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 Microsoft 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 transaction, the executive vice president directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 150,314 shares of company stock valued at $75,404,992 over the last quarter. 0.03% of the stock is currently owned by corporate insiders.

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

Positive Sentiment: UBS raised its price target to $675 from $525 and reiterated a Buy rating, citing accelerating Azure and Microsoft 365 growth driven by artificial intelligence. The firm believes Microsoft’s valuation remains reasonable despite its recent rally. UBS raises Microsoft price target Positive Sentiment: Multiple Wall Street firms have lifted their targets, with analysts highlighting Azure momentum, approximately 30 million Copilot seats, Microsoft’s commercial backlog and the potential for a larger-than-usual earnings beat. The October 28 results will provide an important test of whether AI spending is translating into revenue and profit. Positive Sentiment: Microsoft’s Maia 300 custom AI accelerator is expected to scale across Azure data centers and reportedly deliver more tokens per megawatt than conventional GPU systems. The chip could reduce inference costs and Microsoft’s dependence on Nvidia and AMD hardware. Microsoft Maia 300 AI chip Positive Sentiment: AI care-management company Tucuvi joined Microsoft’s Pegasus startup program, potentially expanding Microsoft’s enterprise AI pipeline and go-to-market reach in healthcare. Microsoft also increased its quarterly dividend to $0.98 from $0.91, signaling continued confidence in cash generation. Tucuvi joins Microsoft Pegasus Program Neutral Sentiment: Reports that Azure management is seeking roughly 20% cost reductions could improve efficiency and margins, but also underscore the pressure created by Microsoft’s substantial AI data-center investments. Neutral Sentiment: Microsoft’s $10 million contribution to a White House ballroom project is unlikely to affect near-term financial results, though it could attract political or reputational scrutiny. Microsoft White House ballroom contribution Negative Sentiment: Higher inflation and bond yields have pressured AI valuations and raised concerns about the financing cost and returns of large infrastructure projects. Microsoft’s strong balance sheet makes it less vulnerable than smaller AI companies, but valuation sensitivity remains a risk. Negative Sentiment: Phillip Securities downgraded Microsoft to Hold, while reports of security vulnerabilities, executive share sales and intense competition from rapidly growing AI companies add caution. Amy Hood’s sale was made under a pre-arranged Rule 10b5-1 plan, limiting its significance. Microsoft Company Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

See Also Five stocks we like better than Microsoft ASML Can’t Keep Up With AI Demand—Why That’s a Good Thing Enovix’s 100,000-Battery Drone Order Sets Up a Test of Its Production Plans AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle Beyond the GPU: Credo Paves the Next AI Data Superhighway

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Greenland Capital Management LP bought a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm bought 2,225 shares of the software giant’s stock, valued at approximately $830,000.

Several other institutional investors and hedge funds have also bought and sold shares of the company. Empirical Financial Services LLC d.b.a. Empirical Wealth Management increased its stake in 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. lifted its stake in shares of Microsoft by 0.4% during the first quarter. Markel Group Inc. now owns 537,630 shares of the software giant’s stock worth $199,014,000 after buying an additional 1,950 shares during the period. Bessemer Group Inc. grew its holdings in shares of Microsoft by 8.4% during the first quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant’s stock valued at $2,562,197,000 after buying an additional 537,634 shares during the last quarter. Taylor Securities Services Inc. purchased a new stake in shares of Microsoft during the fourth quarter valued at $2,616,000. Finally, Harel Insurance Investments & Financial Services Ltd. grew its holdings in shares of Microsoft by 138.8% during the first quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,356,359 shares of the software giant’s stock valued at $502,077,000 after buying an additional 788,297 shares during the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Microsoft Trading Up 1.1% Shares of Microsoft stock opened at $539.44 on Friday. 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 firm has a fifty day moving average price of $504.95 and a 200 day moving average price of $439.96. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The stock has a market cap of $4.01 trillion, a PE ratio of 30.04, a price-to-earnings-growth ratio of 1.71 and a beta of 1.10.

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, 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 company 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. The firm’s quarterly revenue was up 17.7% on a year-over-year basis. Equities research analysts predict that Microsoft Corporation will post 19.65 earnings per share for the current year. Microsoft Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Thursday, November 19th. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio (DPR) is 20.27%.

Insider Buying and Selling In other news, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction dated 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 in the company, valued at $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available 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 firm’s stock in a transaction dated 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 directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 150,314 shares of company stock worth $75,404,992. Corporate insiders own 0.03% of the company’s stock.

Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week:

Positive Sentiment: UBS raised its price target to $675 from $525 and reiterated a Buy rating, citing accelerating Azure and Microsoft 365 growth driven by artificial intelligence. The firm believes Microsoft’s valuation remains reasonable despite its recent rally. UBS raises Microsoft price target Positive Sentiment: Multiple Wall Street firms have lifted their targets, with analysts highlighting Azure momentum, approximately 30 million Copilot seats, Microsoft’s commercial backlog and the potential for a larger-than-usual earnings beat. The October 28 results will provide an important test of whether AI spending is translating into revenue and profit. Positive Sentiment: Microsoft’s Maia 300 custom AI accelerator is expected to scale across Azure data centers and reportedly deliver more tokens per megawatt than conventional GPU systems. The chip could reduce inference costs and Microsoft’s dependence on Nvidia and AMD hardware. Microsoft Maia 300 AI chip Positive Sentiment: AI care-management company Tucuvi joined Microsoft’s Pegasus startup program, potentially expanding Microsoft’s enterprise AI pipeline and go-to-market reach in healthcare. Microsoft also increased its quarterly dividend to $0.98 from $0.91, signaling continued confidence in cash generation. Tucuvi joins Microsoft Pegasus Program Neutral Sentiment: Reports that Azure management is seeking roughly 20% cost reductions could improve efficiency and margins, but also underscore the pressure created by Microsoft’s substantial AI data-center investments. Neutral Sentiment: Microsoft’s $10 million contribution to a White House ballroom project is unlikely to affect near-term financial results, though it could attract political or reputational scrutiny. Microsoft White House ballroom contribution Negative Sentiment: Higher inflation and bond yields have pressured AI valuations and raised concerns about the financing cost and returns of large infrastructure projects. Microsoft’s strong balance sheet makes it less vulnerable than smaller AI companies, but valuation sensitivity remains a risk. Negative Sentiment: Phillip Securities downgraded Microsoft to Hold, while reports of security vulnerabilities, executive share sales and intense competition from rapidly growing AI companies add caution. Amy Hood’s sale was made under a pre-arranged Rule 10b5-1 plan, limiting its significance. Analysts Set New Price Targets A number of equities analysts recently issued reports on the company. BNP Paribas Exane lowered Microsoft from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. CLSA reiterated an “outperform” rating on shares of Microsoft in a research note on Thursday, July 30th. KeyCorp reiterated an “overweight” rating on shares of Microsoft in a research note on Thursday, September 3rd. Wolfe Research lowered Microsoft from an “outperform” rating to a “hold” rating in a report on Wednesday, September 23rd. Finally, DA Davidson restated a “buy” rating and issued a $550.00 price objective on shares of Microsoft in a research note on Thursday, July 30th. Forty-two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $589.71.

Get Our Latest Stock Report on MSFT

About Microsoft (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

Recommended Stories Five stocks we like better than Microsoft ASML Can’t Keep Up With AI Demand—Why That’s a Good Thing Enovix’s 100,000-Battery Drone Order Sets Up a Test of Its Production Plans AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle Beyond the GPU: Credo Paves the Next AI Data Superhighway

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SummaryMicrosoft is rated a Buy, driven by underappreciated revenue upside from usage-based billing in Microsoft 365 Copilot.Azure's rapid growth set a high baseline, but future upgrades hinge on new billing models and Copilot monetization, not just cloud acceleration.Cloud gross margin and Microsoft 365 commercial growth are key metrics; a margin above 65% and >18% commercial growth signal successful execution.Capex inflation, especially $25B in higher memory costs, is a real risk, but MSFT's pricing power and profit base provide resilience if Copilot usage ramps. tupungato/iStock Editorial via Getty Images

On July 30, Microsoft Corporation (MSFT) added nearly $450 billion in market value in a single trading day, the biggest one-day gain any company has ever posted, and Azure deserved most of the credit

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Mustafa Suleyman, the CEO of Microsoft AI.

Stephen Brashear/Getty Images

Microsoft AI CEO Mustafa Suleyman told employees an in-house model was better than a similar offering from OpenAI, one of the software giant's biggest customers and partners.

"We now have a stronger pre-trained base model than the model that currently powers GPT 5.6 Sol," Suleyman said during a town hall meeting with employees on Thursday. "And in fact, we used one-quarter of the compute that OpenAI used to train their model."

Pre-training is the first stage of building an AI model, when it learns patterns from huge amounts of text, images, and other information. This takes massive amounts of expensive computing power, so Microsoft could save money if it's worked out a way to do this more efficiently.

Microsoft announced the model, MAI-Base-2, earlier on Thursday.

Suleyman said Microsoft privately tested this model against OpenAI models, including one nicknamed "Spud" that powers GPT-5.6. He added that Microsoft's model performed better on tests measuring how well AI can understand and predict patterns in information.

The comparisons are based on technical information Microsoft has about OpenAI's models, Suleyman said.

"Privately and confidentially, we've also compared it to the OpenAI models," Suleyman told employees, while suggesting that Microsoft has special access to information on how OpenAI models perform.

It's notable that Suleyman would choose to highlight limitations of OpenAI models, even in private discussions. Microsoft has invested billions of dollars in OpenAI, and owns a stake in the startup that is likely worth more than $100 billion. Any criticism of OpenAI could potentially dent the value of this huge investment.

The two companies also have a major partnership, with Microsoft offering OpenAI models to its Azure cloud customers. Microsoft has used OpenAI models for its own products such as Copilot, too.

But the relationship between the two companies has frayed in the past year or so. Increasingly, Microsoft has tried to branch out from OpenAI, including by working on its own models.

Suleyman also said Microsoft's new AI model used "12 times less computation than was used for DeepSeek, for example, on compute efficiency."

Suleyman didn't specify which DeepSeek model, but a public blog post described the pre-training of MAI-Base-2 being a lot more efficient than a similar offering from the Chinese lab, called DeepSeek-V4-Pro-Base.

Microsoft in March created a new combined team for its commercial and consumer Copilot products and reassigned Suleyman to focus on building AI models in the company's superintelligence unit.

Microsoft declined to comment and OpenAI did not respond to a request for comment on Thursday.

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Azure is booking revenue faster than almost any cloud business in history, yet its leadership reportedly just told team heads to slash costs by a fifth. Something about the math behind that explosive growth is not adding up.

Azure group at Microsoft (NASDAQ:MSFT | MSFT Price Prediction) was told to cut costs by at least 20%, and Microsoft denied it the same day. The stock closed down 1.80% at $533.69. That left a $3.96 trillion market value, back below $4 trillion after a $4.04 trillion close on October 13.

The report, which cited people familiar with the plans, said Girish Bablani, head of the Azure group that builds software for Microsoft’s cloud servers, asked team leaders for the cuts. That group has about 11,500 staff.

Azure brought in $101.9 billion in revenue in the 12 months ending in June, up 40% from a year earlier. A business growing that fast seldom goes looking for a fifth of its cost base unless the growth costs more than it appears to or the money is needed for something bigger, and at Microsoft both may be true.

Reported Target Versus Company Denial
The reported savings would help pay for AI data center spending and for higher pay to keep engineers that rivals such as Anthropic are trying to hire. Ending contracts with outside vendors was one possible step.

The report did not say whether it would cut jobs. A spokesperson said “Azure leadership has not directed teams to develop cost-cutting plans,” and added, “Every responsible company prepares for a range of scenarios and market dynamics, both positive and negative.”

Capex, meaning money spent on data centers and chips, reached $115.95 billion in fiscal 2026. Management expects it to reach about $175 billion in fiscal 2027.

That spending has to come out of the operating business. In the June quarter, free cash flow fell 23.19% to $19.64 billion, and Microsoft has guided fiscal 2027 operating margins down less than a point. Cutting costs inside Azure is the most direct way to hold that margin while the capex bill keeps climbing.

Talent and Leadership Signals
If Microsoft pays more to keep engineers and still cuts costs by a fifth, the savings would have to come from contractors, vendors, and projects. Those suppliers are the first places to look for any effect.

Cloud chief Scott Guthrie is also reshaping Azure’s leadership, and Arun Ulag is set to manage Bablani. A reorganization that arrives with a cost push points to closer control of the unit.

Chief financial officer Amy Hood addressed capacity on the July 29 call. She said, “demand continues to exceed available supply.”

Commercial remaining performance obligations, which measure signed revenue Microsoft has not yet recognized, rose 84% to $678 billion. Given the backlog and a record-high close on October 13, a small dip on a denied report looks reasonable.

What MSFT Investors Should Watch Next
If the reported cuts are real, they target overhead so Microsoft can pay for capacity customers have already signed up for, and that is a funding decision tied to strong demand. The shares are up 11.06% year to date and trade at about 30 times earnings, a multiple investors can weigh against this growth.

For comparison, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has posted faster cloud growth, with Google Cloud’s growth running from 32% to 63% over recent quarters. Both companies report after the close on October 28. If Microsoft keeps its margin outlook and its approximately $175 billion capex plan, the report likely carries little weight for the outlook. A lower margin outlook or disclosed restructuring charges would change that view.

Contact [email protected] for any questions or corrections.

Causey Wealth LLC purchased a new position in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the 2nd quarter, according to its most recent disclosure with the SEC. The fund purchased 4,527 shares of the software giant’s stock, valued at approximately $1,689,000. Microsoft accounts for 0.7% of Causey Wealth LLC’s holdings, making the stock its 17th largest position.

A number of other institutional investors and hedge funds have also bought and sold shares of MSFT. Frankly Finances LLC acquired a new position in shares of Microsoft during the second quarter valued at about $35,000. Fiduciary Advisors Inc. increased its holdings in Microsoft by 37.4% in the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock valued at $47,000 after buying an additional 34 shares during the period. Persistent Asset Partners Ltd acquired a new position in shares of Microsoft in the 2nd quarter valued at $60,000. Lifetime Wealth Management P.C. bought a new position in shares of Microsoft during the 4th quarter worth about $101,000. Finally, Glynn Capital Management LLC lifted its holdings in shares of Microsoft by 34.2% during the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant’s stock worth $95,000 after acquiring an additional 65 shares during the period. Institutional investors own 71.13% of the company’s stock.

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

Positive Sentiment: Microsoft unveiled its Maia 300 custom AI accelerator, designed for multi-gigawatt deployment across Azure data centers. Management says it can deliver 40% more tokens per megawatt than a GPU-based system, potentially lowering inference costs and reducing reliance on Nvidia and AMD hardware. What Could Microsoft Gain From Its Maia 300 AI Chip Rollout? Positive Sentiment: Investor optimism remains focused on Azure growth, Microsoft’s AI backlog, and more than $130 billion in reported data-center leases. The scale of commitments supports long-term demand for Azure and Copilot, although it also raises capital-spending risks. Microsoft Reports $130 Billion in Data Center Leases Positive Sentiment: Barclays raised its Microsoft price target to $600 from $512 and expects the upcoming fiscal first-quarter report to show improving differentiation in software. Earnings are scheduled for October 28. Microsoft Price Target Raised by Barclays Neutral Sentiment: Microsoft’s Azure chief reportedly seeks at least 20% cost cuts in an effort to offset soaring AI data-center expenses. The move could improve efficiency and margins, but it also highlights pressure from the company’s aggressive investment cycle. Microsoft Weighs 20% Cost Cuts in Azure Neutral Sentiment: Microsoft is introducing new AI-enabled Surface devices and an Xbox Nano Controller, supporting its broader push to put generative AI into consumer hardware. These products are strategically relevant but are unlikely to materially affect near-term results. Negative Sentiment: Hot inflation data pushed bond yields higher and triggered a broad selloff in AI-related shares, increasing concern that expensive AI infrastructure projects may face higher financing costs and tougher valuation scrutiny. Negative Sentiment: Phillip Securities downgraded Microsoft to “hold,” while Erste Group made a minor reduction to its FY2028 earnings forecast. These actions add to near-term caution following the stock’s strong run. Negative Sentiment: EVP Amy Hood sold 7,305 shares worth approximately $4.0 million under a pre-arranged Rule 10b5-1 plan. Because the sale was scheduled in advance and represents only 1.3% of her holdings, it is a limited bearish signal. Negative Sentiment: Reports that Microsoft issued security updates addressing more than 1,400 vulnerabilities could renew concerns about cybersecurity exposure, though patching the flaws is ultimately protective. Microsoft Stock Down 1.8% NASDAQ MSFT opened at $533.69 on Thursday. The stock has a fifty day moving average of $504.15 and a 200-day moving average of $438.68. The stock has a market capitalization of $3.96 trillion, a P/E ratio of 29.72, a price-to-earnings-growth ratio of 1.74 and a beta of 1.10. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. 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 (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 firm had revenue of $90.01 billion during 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 company’s revenue was up 17.7% on a year-over-year basis. During the same period last year, the company earned $3.65 earnings per share. On average, equities research analysts forecast that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio (DPR) is presently 20.27%.

Wall Street Analysts Forecast Growth Several brokerages have recently weighed in on MSFT. Rothschild & Co Redburn set a $440.00 target price on shares of Microsoft in a research report on Monday, September 21st. Truist Financial reissued a “buy” rating and issued a $575.00 price target on shares of Microsoft in a research report on Wednesday, July 22nd. JPMorgan Chase & Co. reissued a “buy” rating on shares of Microsoft in a research report on Monday, September 28th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $600.00 price target on shares of Microsoft in a research note on Monday. Finally, Stifel Nicolaus upgraded Microsoft from a “hold” rating to a “buy” rating and upped their price target for the company from $530.00 to $575.00 in a research report on Tuesday, September 22nd. Forty-one research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $581.24.

View Our Latest Research Report on MSFT

Insider Buying and Selling In related news, EVP Takeshi Numoto sold 4,810 shares of the 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 sale, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. This trade represents a 10.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Satya Nadella sold 86,525 shares of Microsoft 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 transaction, the chief executive officer directly owned 486,763 shares in the company, valued at $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 three months, insiders sold 150,314 shares of company stock worth $75,404,992. Corporate insiders own 0.03% of the company’s stock.

About Microsoft (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

Further Reading Five stocks we like better than Microsoft Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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

Expressive Wealth LLC acquired a new position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 5,078 shares of the software giant’s stock, valued at approximately $1,894,000. Microsoft accounts for approximately 1.8% of Expressive Wealth LLC’s portfolio, making the stock its 11th biggest holding.

Several other institutional investors and hedge funds also recently bought and sold shares of the business. Frankly Finances LLC purchased a new position in Microsoft during the second quarter valued at approximately $35,000. Fiduciary Advisors Inc. increased its stake in Microsoft by 37.4% in the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock valued at $47,000 after buying an additional 34 shares during the period. Persistent Asset Partners Ltd purchased a new stake in Microsoft in the 2nd quarter worth approximately $60,000. Lifetime Wealth Management P.C. purchased a new stake in Microsoft in the 4th quarter worth approximately $101,000. Finally, Glynn Capital Management LLC lifted its position in Microsoft by 34.2% in the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant’s stock worth $95,000 after buying an additional 65 shares in the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.

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

Positive Sentiment: Microsoft unveiled its Maia 300 custom AI accelerator, designed for multi-gigawatt deployment across Azure data centers. Management says it can deliver 40% more tokens per megawatt than a GPU-based system, potentially lowering inference costs and reducing reliance on Nvidia and AMD hardware. What Could Microsoft Gain From Its Maia 300 AI Chip Rollout? Positive Sentiment: Investor optimism remains focused on Azure growth, Microsoft’s AI backlog, and more than $130 billion in reported data-center leases. The scale of commitments supports long-term demand for Azure and Copilot, although it also raises capital-spending risks. Microsoft Reports $130 Billion in Data Center Leases Positive Sentiment: Barclays raised its Microsoft price target to $600 from $512 and expects the upcoming fiscal first-quarter report to show improving differentiation in software. Earnings are scheduled for October 28. Microsoft Price Target Raised by Barclays Neutral Sentiment: Microsoft’s Azure chief reportedly seeks at least 20% cost cuts in an effort to offset soaring AI data-center expenses. The move could improve efficiency and margins, but it also highlights pressure from the company’s aggressive investment cycle. Microsoft Weighs 20% Cost Cuts in Azure Neutral Sentiment: Microsoft is introducing new AI-enabled Surface devices and an Xbox Nano Controller, supporting its broader push to put generative AI into consumer hardware. These products are strategically relevant but are unlikely to materially affect near-term results. Negative Sentiment: Hot inflation data pushed bond yields higher and triggered a broad selloff in AI-related shares, increasing concern that expensive AI infrastructure projects may face higher financing costs and tougher valuation scrutiny. Negative Sentiment: Phillip Securities downgraded Microsoft to “hold,” while Erste Group made a minor reduction to its FY2028 earnings forecast. These actions add to near-term caution following the stock’s strong run. Negative Sentiment: EVP Amy Hood sold 7,305 shares worth approximately $4.0 million under a pre-arranged Rule 10b5-1 plan. Because the sale was scheduled in advance and represents only 1.3% of her holdings, it is a limited bearish signal. Negative Sentiment: Reports that Microsoft issued security updates addressing more than 1,400 vulnerabilities could renew concerns about cybersecurity exposure, though patching the flaws is ultimately protective. Microsoft Stock Performance MSFT stock opened at $533.69 on Thursday. 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 capitalization of $3.96 trillion, a price-to-earnings ratio of 29.72, a P/E/G ratio of 1.74 and a beta of 1.10. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. The firm has a 50 day moving average of $504.15 and a two-hundred day moving average of $438.68. Microsoft (NASDAQ:MSFT – Get Free Report) last announced 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 analyst estimates 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% on a year-over-year basis. During the same quarter in the prior year, the business posted $3.65 EPS. As a group, equities analysts anticipate that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a $0.98 dividend. This is a boost from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio is currently 20.27%.

Insider Buying and Selling at Microsoft In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Amy Hood sold 7,305 shares of the company’s stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total value of $3,984,293.10. Following the sale, the executive vice president owned 555,396 shares of the company’s stock, valued at approximately $302,924,086.32. This trade represents a 1.30% decrease in their position. 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 three months, insiders have sold 150,314 shares of company stock valued at $75,404,992. Company insiders own 0.03% of the company’s stock.

Analysts Set New Price Targets A number of equities research analysts have issued reports on MSFT shares. Piper Sandler lifted their target price on shares of Microsoft from $550.00 to $610.00 and gave the company an “overweight” rating in a research note on Wednesday, September 30th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $650.00 price target on shares of Microsoft in a research note on Wednesday. Wells Fargo & Company increased their price objective on Microsoft from $700.00 to $725.00 and gave the stock an “overweight” rating in a report on Thursday, October 1st. Needham & Company LLC initiated coverage on Microsoft in a research report on Wednesday, September 23rd. They set a “buy” rating for the company. Finally, Sanford C. Bernstein set a $660.00 price objective on Microsoft in a research report on Monday, August 10th. Forty-one equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $581.24.

Read Our Latest Analysis on Microsoft

Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

Featured Articles Five stocks we like better than Microsoft Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know 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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Cauble & Harre Wealth Management Inc. bought a new position in Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 5,410 shares of the software giant’s stock, valued at approximately $2,018,000. Microsoft comprises 1.6% of Cauble & Harre Wealth Management Inc.’s portfolio, making the stock its 12th biggest position.

A number of other hedge funds have also recently modified their holdings of the business. C M Bidwell & Associates Ltd. purchased a new position in Microsoft in the second quarter worth $1,815,000. Causey Wealth LLC acquired a new position in shares of Microsoft during the second quarter valued at about $1,689,000. Keebeck Wealth Management acquired a new position in shares of Microsoft during the second quarter valued at about $18,389,000. Blue Capital Inc. purchased a new position in shares of Microsoft in the 2nd quarter valued at approximately $708,000. Finally, Keating Financial Advisory Services Inc. purchased a new position in shares of Microsoft in the 2nd quarter valued at approximately $8,307,000. Institutional investors own 71.13% of the company’s stock.

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 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 directly 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 document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at $244,092,173.98. The trade was a 15.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 150,314 shares of company stock valued at $75,404,992 in the last quarter. Corporate insiders own 0.03% of the company’s stock.

Key Microsoft News Here are the key news stories impacting Microsoft this week: Positive Sentiment: Microsoft unveiled its Maia 300 custom AI accelerator, designed for multi-gigawatt deployment across Azure data centers. Management says it can deliver 40% more tokens per megawatt than a GPU-based system, potentially lowering inference costs and reducing reliance on Nvidia and AMD hardware. What Could Microsoft Gain From Its Maia 300 AI Chip Rollout? Positive Sentiment: Investor optimism remains focused on Azure growth, Microsoft’s AI backlog, and more than $130 billion in reported data-center leases. The scale of commitments supports long-term demand for Azure and Copilot, although it also raises capital-spending risks. Microsoft Reports $130 Billion in Data Center Leases Positive Sentiment: Barclays raised its Microsoft price target to $600 from $512 and expects the upcoming fiscal first-quarter report to show improving differentiation in software. Earnings are scheduled for October 28. Microsoft Price Target Raised by Barclays Neutral Sentiment: Microsoft’s Azure chief reportedly seeks at least 20% cost cuts in an effort to offset soaring AI data-center expenses. The move could improve efficiency and margins, but it also highlights pressure from the company’s aggressive investment cycle. Microsoft Weighs 20% Cost Cuts in Azure Neutral Sentiment: Microsoft is introducing new AI-enabled Surface devices and an Xbox Nano Controller, supporting its broader push to put generative AI into consumer hardware. These products are strategically relevant but are unlikely to materially affect near-term results. Negative Sentiment: Hot inflation data pushed bond yields higher and triggered a broad selloff in AI-related shares, increasing concern that expensive AI infrastructure projects may face higher financing costs and tougher valuation scrutiny. Negative Sentiment: Phillip Securities downgraded Microsoft to “hold,” while Erste Group made a minor reduction to its FY2028 earnings forecast. These actions add to near-term caution following the stock’s strong run. Negative Sentiment: EVP Amy Hood sold 7,305 shares worth approximately $4.0 million under a pre-arranged Rule 10b5-1 plan. Because the sale was scheduled in advance and represents only 1.3% of her holdings, it is a limited bearish signal. Negative Sentiment: Reports that Microsoft issued security updates addressing more than 1,400 vulnerabilities could renew concerns about cybersecurity exposure, though patching the flaws is ultimately protective. Analysts Set New Price Targets A number of equities research analysts have recently weighed in on the stock. Bank of America boosted their price objective on shares of Microsoft from $500.00 to $600.00 and gave the company a “buy” rating in a report on Tuesday, September 1st. Mizuho cut their price objective on Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a report on Wednesday, July 15th. Morgan Stanley lowered Microsoft from an “overweight” rating to a “negative” rating in a report on Monday, October 5th. Citizens Jmp reissued a “market outperform” rating and set a $550.00 target price on shares of Microsoft in a report on Tuesday, September 15th. Finally, William Blair started coverage on shares of Microsoft in a report on Monday, October 5th. They set an “outperform” rating for the company. Forty-one investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $581.24.

Read Our Latest Stock Report on MSFT

Microsoft Stock Down 1.8% Shares of NASDAQ MSFT opened at $533.69 on Thursday. The company’s 50-day simple moving average is $504.15 and its 200-day simple moving average is $438.68. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The firm has a market cap of $3.96 trillion, a price-to-earnings ratio of 29.72, a price-to-earnings-growth ratio of 1.74 and a beta of 1.10. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The 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 company’s quarterly revenue 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. Equities analysts predict that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s payout ratio is currently 20.27%.

Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

See Also Five stocks we like better than Microsoft Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know

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

Iyo Bank Ltd. bought a new position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 77,222 shares of the software giant’s stock, valued at approximately $28,805,000. Microsoft makes up approximately 8.7% of Iyo Bank Ltd.’s investment portfolio, making the stock its 2nd largest holding.

A number of other institutional investors have also recently added to or reduced their stakes in MSFT. Auto Owners Insurance Co lifted its holdings in shares of Microsoft by 56,160.8% in the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock valued at $29,073,486,000 after buying an additional 60,009,531 shares during the period. Amundi grew its holdings in Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant’s stock worth $15,426,862,000 after acquiring an additional 9,814,598 shares during the period. Dimensional Fund Advisors LP raised its position in Microsoft by 10.5% in the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock worth $10,852,884,000 after acquiring an additional 2,784,809 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its position in Microsoft by 64.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant’s stock worth $8,982,083,000 after acquiring an additional 9,493,778 shares in the last quarter. Finally, Hsbc Holdings PLC raised its position in Microsoft by 7.8% in the fourth quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant’s stock worth $10,715,379,000 after acquiring an additional 1,599,412 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the firm’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 transaction, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available 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 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 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. This trade represents a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 150,314 shares of company stock valued at $75,404,992. Corporate insiders own 0.03% of the company’s stock.

Microsoft Trading Down 1.8% Shares of NASDAQ MSFT opened at $533.69 on Thursday. 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 12 month low of $349.20 and a 12 month high of $553.72. The company has a market cap of $3.96 trillion, a price-to-earnings ratio of 29.72, a P/E/G ratio of 1.74 and a beta of 1.10. The business has a fifty day simple moving average of $504.15 and a 200-day simple moving average of $438.68. 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 for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. Microsoft’s revenue was up 17.7% on a year-over-year basis. During the same quarter last year, the business posted $3.65 EPS. Sell-side analysts predict that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. Microsoft’s dividend payout ratio is 20.27%.

Wall Street Analysts Forecast Growth Several equities analysts have recently weighed in on the stock. Oppenheimer raised their price objective on shares of Microsoft from $515.00 to $570.00 and gave the company an “outperform” rating in a research report on Tuesday, September 22nd. Melius Research set a $665.00 target price on shares of Microsoft and gave the stock a “buy” rating in a report on Monday, October 5th. Stifel Nicolaus upgraded shares of Microsoft from a “hold” rating to a “buy” rating and boosted their target price for the stock from $530.00 to $575.00 in a report on Tuesday, September 22nd. Royal Bank Of Canada reissued an “outperform” rating on shares of Microsoft in a research note on Thursday, September 10th. Finally, Wolfe Research cut shares of Microsoft from an “outperform” rating to a “hold” rating in a report on Wednesday, September 23rd. Forty-one equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $581.24.

View Our Latest Stock Analysis on MSFT

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

Positive Sentiment: Microsoft unveiled its Maia 300 custom AI accelerator, designed for multi-gigawatt deployment across Azure data centers. Management says it can deliver 40% more tokens per megawatt than a GPU-based system, potentially lowering inference costs and reducing reliance on Nvidia and AMD hardware. What Could Microsoft Gain From Its Maia 300 AI Chip Rollout? Positive Sentiment: Investor optimism remains focused on Azure growth, Microsoft’s AI backlog, and more than $130 billion in reported data-center leases. The scale of commitments supports long-term demand for Azure and Copilot, although it also raises capital-spending risks. Microsoft Reports $130 Billion in Data Center Leases Positive Sentiment: Barclays raised its Microsoft price target to $600 from $512 and expects the upcoming fiscal first-quarter report to show improving differentiation in software. Earnings are scheduled for October 28. Microsoft Price Target Raised by Barclays Neutral Sentiment: Microsoft’s Azure chief reportedly seeks at least 20% cost cuts in an effort to offset soaring AI data-center expenses. The move could improve efficiency and margins, but it also highlights pressure from the company’s aggressive investment cycle. Microsoft Weighs 20% Cost Cuts in Azure Neutral Sentiment: Microsoft is introducing new AI-enabled Surface devices and an Xbox Nano Controller, supporting its broader push to put generative AI into consumer hardware. These products are strategically relevant but are unlikely to materially affect near-term results. Negative Sentiment: Hot inflation data pushed bond yields higher and triggered a broad selloff in AI-related shares, increasing concern that expensive AI infrastructure projects may face higher financing costs and tougher valuation scrutiny. Negative Sentiment: Phillip Securities downgraded Microsoft to “hold,” while Erste Group made a minor reduction to its FY2028 earnings forecast. These actions add to near-term caution following the stock’s strong run. Negative Sentiment: EVP Amy Hood sold 7,305 shares worth approximately $4.0 million under a pre-arranged Rule 10b5-1 plan. Because the sale was scheduled in advance and represents only 1.3% of her holdings, it is a limited bearish signal. Negative Sentiment: Reports that Microsoft issued security updates addressing more than 1,400 vulnerabilities could renew concerns about cybersecurity exposure, though patching the flaws is ultimately protective. Microsoft Company Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

Featured Articles Five stocks we like better than Microsoft Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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

Concord Investment Counsel Inc. acquired a new position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm acquired 30,114 shares of the software giant’s stock, valued at approximately $10,742,000. Microsoft makes up 2.9% of Concord Investment Counsel Inc.’s portfolio, making the stock its 14th largest holding.

A number of other hedge funds have also bought and sold shares of the company. Korea Investment CORP acquired a new stake in shares of Microsoft during the 2nd quarter worth approximately $1,873,752,000. EP Wealth Advisors LLC acquired a new position in Microsoft during the 2nd quarter valued at approximately $350,329,000. Heartland Bank & Trust Co acquired a new position in Microsoft during the 2nd quarter valued at approximately $10,934,000. M1 Capital Management LLC acquired a new position in Microsoft during the 2nd quarter valued at approximately $2,062,000. Finally, Rakuten Securities Inc. bought a new position in Microsoft during the 2nd quarter worth $12,688,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades Several equities research analysts have weighed in on the company. BMO Capital Markets initiated coverage on Microsoft in a research report on Monday, October 5th. They issued an “outperform” rating on the stock. Sanford C. Bernstein set a $660.00 target price on Microsoft in a research note on Monday, August 10th. BNP Paribas Exane downgraded shares of Microsoft from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. Oppenheimer upped their price target on shares of Microsoft from $515.00 to $570.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 22nd. Finally, Scotiabank increased their price objective on shares of Microsoft from $510.00 to $615.00 and gave the stock an “outperform” rating in a report on Monday, October 5th. Forty-one research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $581.24.

Read Our Latest Stock Analysis on Microsoft Microsoft Stock Down 1.8% Shares of Microsoft stock opened at $533.69 on Thursday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The business’s fifty day moving average price is $504.15 and its two-hundred day moving average price is $438.68. The company has a market capitalization of $3.96 trillion, a P/E ratio of 29.72, a PEG ratio of 1.74 and a beta of 1.10.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly 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 company had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. During the same quarter in the prior year, the business posted $3.65 earnings per share. The company’s revenue for the quarter was up 17.7% compared to the same quarter last year. As a group, research analysts forecast that Microsoft Corporation will post 19.65 EPS for the current year.

Microsoft Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s payout ratio is currently 20.27%.

Insider Activity at Microsoft In other Microsoft news, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the transaction, the executive vice president owned 533,624 shares of the company’s stock, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, 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 ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 150,314 shares of company stock worth $75,404,992 in the last 90 days. Corporate insiders own 0.03% of the company’s stock.

Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Microsoft unveiled its Maia 300 custom AI accelerator, designed for multi-gigawatt deployment across Azure data centers. Management says it can deliver 40% more tokens per megawatt than a GPU-based system, potentially lowering inference costs and reducing reliance on Nvidia and AMD hardware. What Could Microsoft Gain From Its Maia 300 AI Chip Rollout? Positive Sentiment: Investor optimism remains focused on Azure growth, Microsoft’s AI backlog, and more than $130 billion in reported data-center leases. The scale of commitments supports long-term demand for Azure and Copilot, although it also raises capital-spending risks. Microsoft Reports $130 Billion in Data Center Leases Positive Sentiment: Barclays raised its Microsoft price target to $600 from $512 and expects the upcoming fiscal first-quarter report to show improving differentiation in software. Earnings are scheduled for October 28. Microsoft Price Target Raised by Barclays Neutral Sentiment: Microsoft’s Azure chief reportedly seeks at least 20% cost cuts in an effort to offset soaring AI data-center expenses. The move could improve efficiency and margins, but it also highlights pressure from the company’s aggressive investment cycle. Microsoft Weighs 20% Cost Cuts in Azure Neutral Sentiment: Microsoft is introducing new AI-enabled Surface devices and an Xbox Nano Controller, supporting its broader push to put generative AI into consumer hardware. These products are strategically relevant but are unlikely to materially affect near-term results. Negative Sentiment: Hot inflation data pushed bond yields higher and triggered a broad selloff in AI-related shares, increasing concern that expensive AI infrastructure projects may face higher financing costs and tougher valuation scrutiny. Negative Sentiment: Phillip Securities downgraded Microsoft to “hold,” while Erste Group made a minor reduction to its FY2028 earnings forecast. These actions add to near-term caution following the stock’s strong run. Negative Sentiment: EVP Amy Hood sold 7,305 shares worth approximately $4.0 million under a pre-arranged Rule 10b5-1 plan. Because the sale was scheduled in advance and represents only 1.3% of her holdings, it is a limited bearish signal. Negative Sentiment: Reports that Microsoft issued security updates addressing more than 1,400 vulnerabilities could renew concerns about cybersecurity exposure, though patching the flaws is ultimately protective. Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

Recommended Stories Five stocks we like better than Microsoft Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know

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

Satya Nadella pitched an AI killswitch as a safety measure, but the real beneficiary of that idea may surprise you. Here is why one investor keeps adding to his Microsoft position every quarter.

My Microsoft (NASDAQ:MSFT | MSFT Price Prediction) position grew again, and I expect to add more. Each quarter brings me another reason to keep buying. The latest one showed me that the AI governance debate works in Microsoft’s favor.

How a Killswitch Pitch Pays Off for Microsoft On the fiscal Q4 call, Satya Nadella described what I would call a killswitch for any single AI model: “You’ve got to keep your harness separate from the model. And the harness will ensure that your memory, your context, all of that is external. That means any given model at any given time is swappable.” Setting the good press aside, that design directs every model decision through Microsoft. Azure’s catalog carries over 11,000 models from OpenAI, Anthropic, Mistral, xAI and Microsoft’s own MAI family. Agent 365, the governance and security control plane, had nearly 40 million agents registered within two months of launch. A company that wants the power to switch off or swap a model buys that power from Microsoft, and the workload stays on Azure whichever model wins.

Three Numbers That Keep Me Buying First, growth at scale. Revenue for fiscal 2026 reached $331.84B, up 17.79%, and Azure passed $100B in annual revenue for the first time. Management guided to about 45% constant-currency Azure growth for the next quarter.

Second, profitability. Operating margin stands at 46.78% and return on equity at 34.04%. Q4 non-GAAP EPS of $4.74 beat the $4.24 consensus, the fifth consecutive beat.

Third, visibility. Commercial remaining performance obligations reached $678B, up 84%. Microsoft 365 Copilot passed 30 million paid seats, and pricing is moving to seat plus usage.

Why I Keep Passing on Alphabet and Amazon Alphabet (NASDAQ:GOOGL) trades at a P/E of 15, compared with Microsoft’s 30. However, its Q2 free cash flow came in at -$5.855B. It also suspended buybacks, and its long-term debt rose from $46.5 billion to $98.2 billion.

Amazon (NASDAQ:AMZN) grew AWS 37%. Even so, it trades at a P/E of 35, pays no dividend, and its trailing free cash flow turned negative at -$7.6 billion. Microsoft generated $66.99B in free cash flow and returned more than $43 billion to shareholders.

Risk That Keeps Me Disciplined The biggest risk is how much Microsoft is spending. Capex reached $115.95B in fiscal 2026, and Microsoft expects about $175 billion in fiscal 2027. OpenAI concentration adds to that risk. Excluding OpenAI, RPO grew only 25%, and Microsoft’s OpenAI investment losses reached $3.1B in Q1 FY26.

The case remains sound. Amy Hood explained that much of the spending goes to shorter-lived CPUs and GPUs, which Microsoft can slow down if demand shifts. Nearly 90% of Microsoft Cloud revenue came from customers outside the frontier model companies. Interest coverage of 50.88 and debt-to-equity of 0.29 give me comfort, and executives see free cash flow staying positive in FY27.

What Keeps My Buy Button Active Demand still exceeds supply. Microsoft remains on track to roughly double its capacity in two years, and its in-house chip returns 30% better performance per dollar. Every new AI governance rule makes the control layer more valuable, and Microsoft sells that layer. That is why I keep buying.

Contact [email protected] for any questions or corrections.

NFJ Investment Group LLC acquired a new position in Microsoft Corporation (NASDAQ:MSFT – Free Report) in the second quarter, according to the company in its most recent disclosure with the SEC. The firm acquired 213,856 shares of the software giant’s stock, valued at approximately $79,773,000. Microsoft accounts for 2.7% of NFJ Investment Group LLC’s investment portfolio, making the stock its 8th largest position.

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

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

Positive Sentiment: Maia 300 strengthens Microsoft’s AI strategy. Microsoft unveiled its third-generation Maia 300 custom AI processor, which it says can deliver approximately 40% more AI-generated tokens per megawatt or dollar than leading GPU-based systems. The company plans multi-gigawatt deployments beginning in 2027, potentially lowering inference costs, improving Azure margins and reducing reliance on Nvidia and AMD. Microsoft Reveals Next-Gen Maia 300 Custom AI Chip For Widespread Deployment Positive Sentiment: AI infrastructure demand remains exceptionally strong. Microsoft reportedly signed more than $130 billion in data-center leases during the quarter, signaling aggressive capacity expansion to meet demand for Azure and AI services. Management has also indicated that demand continues to exceed available capacity, while its commercial backlog has reached a record level. Microsoft Reports $130 Billion in Data Center Leases Positive Sentiment: Analyst sentiment is supportive ahead of earnings. Barclays raised its Microsoft price target to $600 from $512 and expects greater differentiation in software results. Microsoft is scheduled to report fiscal first-quarter 2027 results on October 28, with consensus estimates of approximately $4.72 in earnings per share and $90.4 billion in revenue. Microsoft price target raised to $600 from $512 at Barclays Positive Sentiment: New AI products broaden Microsoft’s growth opportunities. The Decision-1 model is described as faster and cheaper to operate than competing systems, while new Surface Pro and Surface Laptop devices add AI features, 5G connectivity and improved battery efficiency. Neutral Sentiment: Investors are weighing AI growth against spending. The Maia rollout could improve long-term economics, but Microsoft is committing substantial capital to data centers and chips. Analysts are monitoring whether shrinking free cash flow and high infrastructure costs offset Azure and Copilot growth. Negative Sentiment: Regulatory and execution risks remain. Microsoft is conducting another round of layoffs in Israel, its research chief Peter Lee is leaving for Mercedes’ Formula 1 team, and Norway fined subsidiary Xandr €8.6 million over Grindr data sharing. Nadella and President Brad Smith are also calling for stronger AI safeguards, highlighting potential compliance costs and liability risks. Insider Buying and Selling In related news, EVP Amy Hood sold 41,674 shares of the business’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the sale, the executive vice president directly owned 533,624 shares in the company, valued at approximately $265,888,830.48. The trade was a 7.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 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 directly owned 100,447 shares of the company’s stock, valued at $49,007,086.83. The trade was a 9.05% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 143,009 shares of company stock worth $71,420,699. Insiders own 0.03% of the company’s stock. Wall Street Analysts Forecast Growth A number of analysts have recently issued reports on MSFT shares. Royal Bank Of Canada reissued an “outperform” rating on shares of Microsoft in a research report on Thursday, September 10th. Stifel Nicolaus raised shares of Microsoft from a “hold” rating to a “buy” rating and boosted their price objective for the company from $530.00 to $575.00 in a research report on Tuesday, September 22nd. Guggenheim reiterated a “buy” rating and issued a $586.00 price objective on shares of Microsoft in a research note on Monday, July 27th. KeyCorp reiterated an “overweight” rating on shares of Microsoft in a research note on Thursday, September 3rd. Finally, Wells Fargo & Company increased their target price on shares of Microsoft from $700.00 to $725.00 and gave the stock an “overweight” rating in a research report on Thursday, October 1st. Forty-two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $581.80.

Check Out Our Latest Research Report on Microsoft

Microsoft Price Performance Shares of MSFT opened at $543.45 on Wednesday. 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 has a market cap of $4.04 trillion, a PE ratio of 30.26, a PEG ratio of 1.74 and a beta of 1.10. The firm’s 50 day moving average price is $503.23 and its 200 day moving average price is $437.50. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its 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 during 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 for the quarter was up 17.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.65 earnings per share. As a group, research analysts expect that Microsoft Corporation will post 19.65 EPS for the current fiscal year.

Microsoft Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. Microsoft’s dividend payout ratio is currently 20.27%.

Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

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OneAscent Financial Services LLC acquired a new stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 33,166 shares of the software giant’s stock, valued at approximately $12,372,000. Microsoft comprises approximately 0.6% of OneAscent Financial Services LLC’s investment portfolio, making the stock its 22nd largest position.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Empirical Financial Services LLC d.b.a. Empirical Wealth Management lifted its stake in shares of Microsoft by 4.0% in the 2nd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant’s stock worth $85,604,000 after purchasing an additional 8,773 shares during the period. Markel Group Inc. lifted its position in Microsoft by 0.4% during 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 in the last quarter. Bessemer Group Inc. grew its holdings in Microsoft by 8.4% during the first quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant’s stock valued at $2,562,197,000 after purchasing an additional 537,634 shares during the period. Taylor Securities Services Inc. bought a new stake in Microsoft during the fourth quarter valued at about $2,616,000. Finally, Harel Insurance Investments & Financial Services Ltd. grew its holdings in Microsoft by 138.8% during the first quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,356,359 shares of the software giant’s stock valued at $502,077,000 after purchasing an additional 788,297 shares during the period. Institutional investors own 71.13% of the company’s stock.

Microsoft Stock Performance Shares of NASDAQ:MSFT opened at $543.45 on Wednesday. The firm has a fifty day simple moving average of $503.23 and a two-hundred day simple moving average of $437.50. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The stock has a market capitalization of $4.04 trillion, a P/E ratio of 30.26, a PEG ratio of 1.74 and a beta of 1.10.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly 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 firm had revenue of $90.01 billion during 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 firm’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter last year, the firm earned $3.65 EPS. On average, analysts expect that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year. Microsoft Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio is 20.27%.

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

Positive Sentiment: Maia 300 strengthens Microsoft’s AI strategy. Microsoft unveiled its third-generation Maia 300 custom AI processor, which it says can deliver approximately 40% more AI-generated tokens per megawatt or dollar than leading GPU-based systems. The company plans multi-gigawatt deployments beginning in 2027, potentially lowering inference costs, improving Azure margins and reducing reliance on Nvidia and AMD. Microsoft Reveals Next-Gen Maia 300 Custom AI Chip For Widespread Deployment Positive Sentiment: AI infrastructure demand remains exceptionally strong. Microsoft reportedly signed more than $130 billion in data-center leases during the quarter, signaling aggressive capacity expansion to meet demand for Azure and AI services. Management has also indicated that demand continues to exceed available capacity, while its commercial backlog has reached a record level. Microsoft Reports $130 Billion in Data Center Leases Positive Sentiment: Analyst sentiment is supportive ahead of earnings. Barclays raised its Microsoft price target to $600 from $512 and expects greater differentiation in software results. Microsoft is scheduled to report fiscal first-quarter 2027 results on October 28, with consensus estimates of approximately $4.72 in earnings per share and $90.4 billion in revenue. Microsoft price target raised to $600 from $512 at Barclays Positive Sentiment: New AI products broaden Microsoft’s growth opportunities. The Decision-1 model is described as faster and cheaper to operate than competing systems, while new Surface Pro and Surface Laptop devices add AI features, 5G connectivity and improved battery efficiency. Neutral Sentiment: Investors are weighing AI growth against spending. The Maia rollout could improve long-term economics, but Microsoft is committing substantial capital to data centers and chips. Analysts are monitoring whether shrinking free cash flow and high infrastructure costs offset Azure and Copilot growth. Negative Sentiment: Regulatory and execution risks remain. Microsoft is conducting another round of layoffs in Israel, its research chief Peter Lee is leaving for Mercedes’ Formula 1 team, and Norway fined subsidiary Xandr €8.6 million over Grindr data sharing. Nadella and President Brad Smith are also calling for stronger AI safeguards, highlighting potential compliance costs and liability risks. Wall Street Analyst Weigh In Several research firms have recently commented on MSFT. Benchmark reaffirmed a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. Bank of America increased their target price on shares of Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a report on Tuesday, September 1st. KeyCorp restated an “overweight” rating on shares of Microsoft in a research note on Thursday, September 3rd. Mizuho decreased their target price on shares of Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a research note on Wednesday, July 15th. Finally, Raymond James Financial downgraded shares of Microsoft from a “moderate buy” rating to a “strong sell” rating in a report on Wednesday, September 23rd. Forty-two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $581.80.

Check Out Our Latest Report on MSFT

Insider Buying and Selling In other news, EVP Amy Hood sold 41,674 shares of the business’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the transaction, the executive vice president owned 533,624 shares of the company’s stock, valued at approximately $265,888,830.48. The trade was a 7.24% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed 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 stock in a transaction 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 sale, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 143,009 shares of company stock valued at $71,420,699 over the last quarter. Company insiders own 0.03% of the company’s stock.

Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.

Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.

Featured Stories Five stocks we like better than Microsoft A Chinese Rival Just Spooked Memory Stocks—How Worried Should Micron Investors Be? Could T-Mobile’s Satellite Competition Fears Create a Buying Opportunity? Surgical Precision, Sustainable Returns: Johnson & Johnson Secures Its Cash Flow Runway Tesla’s Robotaxi Lands in Paris—But Europe’s Real Fight Is Over Cheap EVs

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