, /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Microsoft Corporation ("Microsoft" or the "Company") (NASDAQ: MSFT). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Microsoft and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until August 11, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Microsoft securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On January 28, 2026, Microsoft announced disappointing results for its fiscal second quarter ended December 31, 2025. First, during the quarter Microsoft's Azure growth had slowed suddenly and fallen below analyst expectations. During the related earnings call, CFO Amy E. Hood revealed that the slower Azure growth was primarily due to computational capacity constraints, as Microsoft had diverted CPU and GPU capacity to Copilot applications and AI-related R&D. Second, Microsoft revealed that its capital expenditures had increased to $37.5 billion during the quarter, causing Microsoft's capital expenditures for the first six months of its fiscal 2026 to increase to $72.4 billion compared to $88.2 billion for all of Microsoft's fiscal 2025. Third, Microsoft revealed, for the first time, that the number of paid Microsoft 365 Copilot seats totaled only 15 million to date, materially below analyst estimates and a fraction of the more than 450 million commercial Microsoft 365 users.
On this news, the price of Microsoft stock fell nearly 10%.
Then, on February 3, 2026, The Wall Street Journal revealed, in an article titled "Microsoft's Pivotal AI Product Is Running Into Big Problems," that severe challenges and functionality issues had plagued Microsoft's Copilot offerings, leading to Copilot losing market share during the Class Period to competing products such as Google's Gemini. The price of Microsoft stock continued to fall in the days after Microsoft's second quarter 2026 earnings announcement as the market continued to digest the adverse news and sources such as The Wall Street Journal revealed new adverse information.
Thereafter, on March 17, 2026, The Wall Street Journal revealed in an article titled "Microsoft Seeks More Coherence in AI Efforts With Copilot Reorganization" that Microsoft was reorganizing its Copilot product teams to unify commercial and consumer versions partly in response to the challenges revealed by The Wall Street Journal's prior reporting on Copilot's problem-plagued development and disappointing customer adoption.
On this news, the price of Microsoft stock continued to fall.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”), of the important August 11, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit (“GPU”) and central processing unit (“CPU”) capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development (“R&D”); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft’s Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
-------------------------------
Contact Information:
Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827 [email protected]
www.rosenlegal.com
Surprisingly enough, most hedge funds habitually underperform the broad market. That's what makes any of them that reliably beat the S&P 500 of such interest.
And that's what makes Bill Ackman's hedge fund Pershing Square Capital Management (PS +1.68%) so interesting right now. Although it lagged early this year, it has outperformed -- albeit unevenly -- the broad market since its launch in 2004. Moreover, its flagship fund Pershing Square Holdings' (PSHZF -0.38%) positions are leading the marketwide bullish charge again right now.
Even more incredible is that rather than diversifying this portfolio, a mere seven stocks account for 98% of the fund's total value. Here's a rundown of those seven.
Ackman's seven Just because Ackman likes them doesn't necessarily mean they're all right for your portfolio. He and Pershing's investors are accustomed to inconsistent performance. You may not be able to afford such uncertainty and prolonged dry spells from your portfolio.
Still, there's nothing wrong with poaching an idea or two from his picks if they make sense for you. Here are the seven.
Microsoft is arguably the proverbial pick-of-the-litter right now, since it may well have hit bottom after a sizable sell-off from last August's peak. As Ackman himself recently explained in a post on X in May, this pullback dragged MSFT shares down to a "compelling valuation" that didn't reflect the true value of Microsoft's cloud business or its office-productivity software. Notably, Ackman sold a solidly performing Alphabet (GOOG -0.83%) (GOOGL -1.19%) to make room for the software giant.
Microsoft stock recently soared too, reaching multi-month highs in response to recently released fiscal fourth-quarter numbers that are showing more promise than shareholders were anticipating.
Today's Change
(
1.77
%) $
8.63
Current Price
$
496.09
Ackman had this to say about shares of Facebook parent Meta (now its second-youngest position, purchased in Q1): "We believe concerns around META's AI-related spending initiatives are underestimating the company's long-term upside potential from AI."
Bill Ackman. Image source: Getty Images.
Some of Pershing's struggling, older holdings are finally perking up as well. Its stake in e-commerce outfit Amazon raced to a record high late last month in response to solid Q2 cloud computing results, for instance.
Something to consider even if the decision is "no" Not every name in the portfolio is doing nearly as well as these are. Then again, not every name needs to. Two or three great trades can handle most of the heavy lifting that most investors need from their portfolio.
That being said, it's not as if these recent winners are guaranteed to dish out any bullish follow-through either.
Whatever the case, the fact that Bill Ackman chose all of these names -- and is deciding to stick with them -- speaks volumes. You just need to decide for yourself if you can digest the same risk and volatility that he and Pershing's shareholders can.
James Brumley has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Amazon, Brookfield Corporation, Howard Hughes, Meta Platforms, Microsoft, and Uber Technologies. The Motley Fool recommends Restaurant Brands International. The Motley Fool has a disclosure policy.
The tech stocks landscape is a complicated one right now. Investors have so many options, with technology equities delivering for portfolios year in and year out. However, concentration risk looms with the biggest names comprising nearly 40% of the S&P 500. The Goldman Sachs Future Tech Leaders ETF (GTEK) provides a solution, going without the biggest names. The tech ETF has delivered while doing so.
Key Takeaways: GTEK has performed very well without megacap tech names like Amazon (AMZN) or Apple (AAPL). The fund has returned 44.9% YTD, beating its ETF Database Category average. GTEK’s active focus invests across categories to find the strongest rising names in innovation. GTEK charges a 75 basis point fee to actively invest in rising stars among tech stocks. The active tech ETF uses an active, bottom-up approach to construct its list of next-generation tech stocks. GTEK emphasizes growth potential, excluding megacap tech names like AMZN or AAPL.
Tech ETF GTEK Offers Upside Without Concentration Risk What’s more, the fund’s active remit allows it to invest across sectors. Some securities may be in information tech, while others may be healthcare or marketing companies. The ETF’s team screens for quality and growth using fundamental metrics like free cash flow.
That has helped GTEK return 44.9% YTD, according to ETF Database data. It also significantly outperformed its ETF Database Technology Equities category average of 24.7%, as of August 5th.
Looking ahead to the last months of the year, then, what role can GTEK play? The fund can help add tech exposure outside the major names that already add concentration risk. Longer term, it can play a strong satellite ETF role for investors.
See more: Get Cutting Edge Tech Stocks in Active ETF LOUP
The strategy has shown it can deliver that strong tech equities growth, potentially juicing returns longer term. For those who want to add a flexible, fundamentals-driven active ETF, GTEK may be a healthy consideration.
For more news, information, and strategy, visit the Future ETFs Content Hub.
Commonwealth Financial Services LLC lowered its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 17.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 16,331 shares of the software giant’s stock after selling 3,462 shares during the period. Microsoft comprises about 1.0% of Commonwealth Financial Services LLC’s portfolio, making the stock its 29th largest holding. Commonwealth Financial Services LLC’s holdings in Microsoft were worth $6,045,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC raised its holdings in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after acquiring an additional 20 shares in the last quarter. Bernzott Capital Advisors bought a new position in Microsoft in the fourth quarter valued at approximately $34,000. Timmons Wealth Management LLC bought a new position in Microsoft in the fourth quarter valued at approximately $36,000. Fairway Wealth LLC increased its position in shares of Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after purchasing an additional 66 shares during the last quarter. Finally, LSV Asset Management acquired a new position in shares of Microsoft during the 4th quarter worth approximately $44,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Analyst Ratings Changes Several research firms have recently commented on MSFT. Arete Research increased their price objective on Microsoft from $730.00 to $870.00 and gave the company a “buy” rating in a report on Tuesday, May 5th. President Capital upped their price target on shares of Microsoft from $500.00 to $520.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Evercore set a $528.00 price target on shares of Microsoft in a research note on Thursday, July 30th. DZ Bank reissued a “buy” rating on shares of Microsoft in a research report on Thursday, April 30th. Finally, Piper Sandler boosted their price objective on shares of Microsoft from $540.00 to $550.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 28th. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $558.87.
View Our Latest Analysis on Microsoft
More Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Azure and AI growth remain the main bullish drivers. Azure revenue surpassed $100 billion for fiscal 2026, while fourth-quarter cloud growth accelerated to 43%. Microsoft also reported quarterly revenue of $90.01 billion and earnings of $4.74 per share, both ahead of consensus estimates. Microsoft Azure Fiscal 2026 Sales Exceed $100B Positive Sentiment: Analyst confidence is strengthening. Tigress Financial raised its Microsoft price target to $690, citing durable AI and cloud growth, while Goldman Sachs reportedly added Microsoft to its high-conviction list. Tigress Raises Microsoft Price Target Positive Sentiment: Microsoft expanded its enterprise AI ecosystem through an A10 Networks warrant, a healthcare partnership with Assuta Medical Centers and deeper use of OpenAI models in GitHub Copilot. These developments could support AI adoption and recurring software demand. Neutral Sentiment: OpenAI concentration is drawing investor attention. Reports suggest OpenAI may represent roughly 70% of Microsoft’s AI revenue, highlighting both the commercial value of the partnership and the risk of relying heavily on one customer and technology partner. OpenAI May Account for 70% of Microsoft’s AI Revenue Negative Sentiment: Investors are reassessing valuation after a sharp rally. Commentary increasingly describes Microsoft as potentially overvalued or technically extended, encouraging profit-taking despite strong fundamentals. Negative Sentiment: Legal and insider-selling headlines add pressure. Multiple law firms promoted a securities-fraud class action alleging misleading Copilot and Azure-related disclosures, with an August 11 lead-plaintiff deadline. Separately, EVP Takeshi Numoto sold 4,810 shares worth approximately $2.4 million, reducing his direct ownership by 10.13%. Negative Sentiment: Microsoft faces scrutiny over AI infrastructure spending, including more than $100 billion in future data-center lease commitments across Big Tech and potential optical-component supply constraints. These commitments could improve long-term capacity but raise concerns about capital intensity, execution and near-term margins. Microsoft Stock Down 1.1% MSFT opened at $487.46 on Thursday. The stock’s fifty day simple moving average is $402.41 and its 200 day simple moving average is $406.03. 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 $3.62 trillion, a PE ratio of 27.14, a price-to-earnings-growth ratio of 1.59 and a beta of 1.11. 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 released its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a 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 period in the previous 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 expect that Microsoft Corporation will post 19.56 earnings per share for the current year.
Microsoft Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a dividend yield of 0.7%. Microsoft’s payout ratio is presently 20.27%.
Insider Buying and Selling In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the sale, the executive vice president directly owned 46,003 shares in the company, valued at $18,922,874.02. This trade represents a 2.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of the business’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the sale, the chief executive officer owned 110,477 shares of the company’s stock, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 28,572 shares of company stock valued at $12,896,430. Company insiders own 0.03% of the company’s stock.
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
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Commerzbank Aktiengesellschaft FI increased its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 21.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 769,805 shares of the software giant’s stock after buying an additional 135,954 shares during the quarter. Microsoft accounts for approximately 6.0% of Commerzbank Aktiengesellschaft FI’s holdings, making the stock its largest holding. Commerzbank Aktiengesellschaft FI’s holdings in Microsoft were worth $284,959,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC raised its holdings in Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after buying an additional 20 shares during the period. Bernzott Capital Advisors bought a new stake in shares of Microsoft during the fourth quarter worth $34,000. Timmons Wealth Management LLC acquired a new stake in shares of Microsoft during the fourth quarter worth $36,000. Fairway Wealth LLC lifted its position in Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after acquiring an additional 66 shares in the last quarter. Finally, LSV Asset Management acquired a new position in Microsoft in the 4th quarter worth $44,000. 71.13% of the stock is owned by institutional investors and hedge funds.
Insider Transactions at Microsoft In related news, CEO Judson Althoff sold 15,500 shares of the firm’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the sale, the chief executive officer directly owned 110,477 shares in the company, valued at approximately $50,928,792.23. This trade represents a 12.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president owned 46,003 shares of the company’s stock, valued at $18,922,874.02. The trade was a 2.67% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 28,572 shares of company stock worth $12,896,430 in the last ninety days. Insiders own 0.03% of the company’s stock.
Analysts Set New Price Targets MSFT has been the subject of a number of research reports. Rothschild & Co Redburn lowered their target price on Microsoft from $450.00 to $400.00 and set a “neutral” rating for the company in a report on Thursday, April 23rd. Sanford C. Bernstein upped their price objective on Microsoft from $646.00 to $647.00 and gave the stock an “outperform” rating in a research report on Thursday, July 30th. HSBC reduced their price objective on Microsoft from $593.00 to $571.00 in a research report on Thursday, April 30th. Raymond James Financial lowered Microsoft from a “market perform” rating to a “market perform” rating in a research report on Tuesday, May 5th. Finally, Tigress Financial boosted their target price on Microsoft from $680.00 to $690.00 and gave the company a “buy” rating in a research note on Wednesday. Forty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $558.87.
View Our Latest Analysis on MSFT
Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Azure and AI growth remain the main bullish drivers. Azure revenue surpassed $100 billion for fiscal 2026, while fourth-quarter cloud growth accelerated to 43%. Microsoft also reported quarterly revenue of $90.01 billion and earnings of $4.74 per share, both ahead of consensus estimates. Microsoft Azure Fiscal 2026 Sales Exceed $100B Positive Sentiment: Analyst confidence is strengthening. Tigress Financial raised its Microsoft price target to $690, citing durable AI and cloud growth, while Goldman Sachs reportedly added Microsoft to its high-conviction list. Tigress Raises Microsoft Price Target Positive Sentiment: Microsoft expanded its enterprise AI ecosystem through an A10 Networks warrant, a healthcare partnership with Assuta Medical Centers and deeper use of OpenAI models in GitHub Copilot. These developments could support AI adoption and recurring software demand. Neutral Sentiment: OpenAI concentration is drawing investor attention. Reports suggest OpenAI may represent roughly 70% of Microsoft’s AI revenue, highlighting both the commercial value of the partnership and the risk of relying heavily on one customer and technology partner. OpenAI May Account for 70% of Microsoft’s AI Revenue Negative Sentiment: Investors are reassessing valuation after a sharp rally. Commentary increasingly describes Microsoft as potentially overvalued or technically extended, encouraging profit-taking despite strong fundamentals. Negative Sentiment: Legal and insider-selling headlines add pressure. Multiple law firms promoted a securities-fraud class action alleging misleading Copilot and Azure-related disclosures, with an August 11 lead-plaintiff deadline. Separately, EVP Takeshi Numoto sold 4,810 shares worth approximately $2.4 million, reducing his direct ownership by 10.13%. Negative Sentiment: Microsoft faces scrutiny over AI infrastructure spending, including more than $100 billion in future data-center lease commitments across Big Tech and potential optical-component supply constraints. These commitments could improve long-term capacity but raise concerns about capital intensity, execution and near-term margins. Microsoft Trading Down 1.1% NASDAQ MSFT opened at $487.46 on Thursday. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The stock has a 50 day moving average of $402.41 and a 200-day moving average of $406.03. The company has a market cap of $3.62 trillion, a PE ratio of 27.14, a PEG ratio of 1.59 and a beta of 1.11.
Microsoft (NASDAQ:MSFT – Get Free Report) last issued its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the previous year, the company earned $3.65 earnings per share. The firm’s revenue for the quarter was up 17.7% on a year-over-year basis. On average, equities research analysts anticipate that Microsoft Corporation will post 19.56 EPS for the current fiscal year.
Microsoft Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is 20.27%.
About Microsoft (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Stories Five stocks we like better than Microsoft SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 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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AlTi Global Inc. grew its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 10.8% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 89,854 shares of the software giant’s stock after buying an additional 8,736 shares during the period. Microsoft accounts for approximately 0.7% of AlTi Global Inc.’s investment portfolio, making the stock its 22nd largest position. AlTi Global Inc.’s holdings in Microsoft were worth $33,266,000 at the end of the most recent quarter.
Other institutional investors have also recently made changes to their positions in the company. WFA Asset Management Corp boosted its position in shares of Microsoft by 27.0% during the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after buying an additional 216 shares during the period. Ironwood Wealth Management LLC. boosted its holdings in Microsoft by 0.3% during the 2nd quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock valued at $5,658,000 after acquiring an additional 38 shares during the period. Discipline Wealth Solutions LLC grew its position in Microsoft by 410.4% in the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock valued at $1,144,000 after acquiring an additional 2,138 shares in the last quarter. Wealth Group Ltd. grew its position in Microsoft by 1.2% in the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock valued at $1,000,000 after acquiring an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC boosted its stake in shares of Microsoft by 0.4% in the fourth quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock valued at $9,735,000 after purchasing an additional 96 shares during the period. Hedge funds and other institutional investors own 71.13% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research firms recently issued reports on MSFT. Sanford C. Bernstein lifted their target price on Microsoft from $646.00 to $647.00 and gave the company an “outperform” rating in a report on Thursday, July 30th. DZ Bank reiterated a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. Stifel Nicolaus increased their price objective on shares of Microsoft from $400.00 to $450.00 and gave the company a “hold” rating in a research report on Thursday, July 30th. BNP Paribas Exane reduced their price objective on shares of Microsoft from $556.00 to $555.00 and set an “outperform” rating on the stock in a report on Friday, May 1st. Finally, New Street Research dropped their price objective on Microsoft from $675.00 to $600.00 and set a “buy” rating on the stock in a report on Thursday, April 30th. Forty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $558.87.
View Our Latest Analysis on MSFT
Insider Buying and Selling at Microsoft In other news, EVP Amy Coleman sold 1,262 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president owned 46,003 shares of the company’s stock, valued at approximately $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the transaction, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. This trade represents a 12.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 28,572 shares of company stock worth $12,896,430. 0.03% of the stock is currently owned by insiders.
Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Azure and AI growth remain the main bullish drivers. Azure revenue surpassed $100 billion for fiscal 2026, while fourth-quarter cloud growth accelerated to 43%. Microsoft also reported quarterly revenue of $90.01 billion and earnings of $4.74 per share, both ahead of consensus estimates. Microsoft Azure Fiscal 2026 Sales Exceed $100B Positive Sentiment: Analyst confidence is strengthening. Tigress Financial raised its Microsoft price target to $690, citing durable AI and cloud growth, while Goldman Sachs reportedly added Microsoft to its high-conviction list. Tigress Raises Microsoft Price Target Positive Sentiment: Microsoft expanded its enterprise AI ecosystem through an A10 Networks warrant, a healthcare partnership with Assuta Medical Centers and deeper use of OpenAI models in GitHub Copilot. These developments could support AI adoption and recurring software demand. Neutral Sentiment: OpenAI concentration is drawing investor attention. Reports suggest OpenAI may represent roughly 70% of Microsoft’s AI revenue, highlighting both the commercial value of the partnership and the risk of relying heavily on one customer and technology partner. OpenAI May Account for 70% of Microsoft’s AI Revenue Negative Sentiment: Investors are reassessing valuation after a sharp rally. Commentary increasingly describes Microsoft as potentially overvalued or technically extended, encouraging profit-taking despite strong fundamentals. Negative Sentiment: Legal and insider-selling headlines add pressure. Multiple law firms promoted a securities-fraud class action alleging misleading Copilot and Azure-related disclosures, with an August 11 lead-plaintiff deadline. Separately, EVP Takeshi Numoto sold 4,810 shares worth approximately $2.4 million, reducing his direct ownership by 10.13%. Negative Sentiment: Microsoft faces scrutiny over AI infrastructure spending, including more than $100 billion in future data-center lease commitments across Big Tech and potential optical-component supply constraints. These commitments could improve long-term capacity but raise concerns about capital intensity, execution and near-term margins. Microsoft Price Performance MSFT stock opened at $487.46 on Thursday. The company has a market capitalization of $3.62 trillion, a P/E ratio of 27.14, a PEG ratio of 1.59 and a beta of 1.11. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The business has a 50 day simple moving average of $402.41 and a 200-day simple moving average of $406.03. 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 announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion for the quarter, compared to analysts’ expectations of $87.62 billion. During the same period in the previous year, the company posted $3.65 EPS. The company’s quarterly revenue was up 17.7% on a year-over-year basis. As a group, equities analysts anticipate that Microsoft Corporation will post 19.56 EPS for the current year.
Microsoft Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is presently 20.27%.
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Stories Five stocks we like better than Microsoft SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 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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Earned Wealth Advisors LLC raised its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 16.2% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 36,956 shares of the software giant’s stock after purchasing an additional 5,143 shares during the period. Microsoft accounts for about 0.9% of Earned Wealth Advisors LLC’s portfolio, making the stock its 27th biggest position. Earned Wealth Advisors LLC’s holdings in Microsoft were worth $13,680,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other institutional investors also recently bought and sold shares of the company. Markel Group Inc. increased its holdings 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 in the last quarter. Bessemer Group Inc. boosted its position in Microsoft by 8.4% in the 1st quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant’s stock worth $2,562,197,000 after purchasing an additional 537,634 shares in the last quarter. Taylor Securities Services Inc. purchased a new position in shares of Microsoft during the 4th quarter valued at approximately $2,616,000. Werba Rubin Papier Wealth Management lifted its stake in shares of Microsoft by 15.7% in the 4th quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock valued at $6,041,000 after purchasing an additional 1,698 shares during the period. Finally, World Investment Advisors lifted its stake in shares of Microsoft by 22.1% in the 4th quarter. World Investment Advisors now owns 272,424 shares of the software giant’s stock valued at $131,750,000 after purchasing an additional 49,371 shares during the period. 71.13% of the stock is currently owned by institutional investors.
More Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Azure and AI growth remain the main bullish drivers. Azure revenue surpassed $100 billion for fiscal 2026, while fourth-quarter cloud growth accelerated to 43%. Microsoft also reported quarterly revenue of $90.01 billion and earnings of $4.74 per share, both ahead of consensus estimates. Microsoft Azure Fiscal 2026 Sales Exceed $100B Positive Sentiment: Analyst confidence is strengthening. Tigress Financial raised its Microsoft price target to $690, citing durable AI and cloud growth, while Goldman Sachs reportedly added Microsoft to its high-conviction list. Tigress Raises Microsoft Price Target Positive Sentiment: Microsoft expanded its enterprise AI ecosystem through an A10 Networks warrant, a healthcare partnership with Assuta Medical Centers and deeper use of OpenAI models in GitHub Copilot. These developments could support AI adoption and recurring software demand. Neutral Sentiment: OpenAI concentration is drawing investor attention. Reports suggest OpenAI may represent roughly 70% of Microsoft’s AI revenue, highlighting both the commercial value of the partnership and the risk of relying heavily on one customer and technology partner. OpenAI May Account for 70% of Microsoft’s AI Revenue Negative Sentiment: Investors are reassessing valuation after a sharp rally. Commentary increasingly describes Microsoft as potentially overvalued or technically extended, encouraging profit-taking despite strong fundamentals. Negative Sentiment: Legal and insider-selling headlines add pressure. Multiple law firms promoted a securities-fraud class action alleging misleading Copilot and Azure-related disclosures, with an August 11 lead-plaintiff deadline. Separately, EVP Takeshi Numoto sold 4,810 shares worth approximately $2.4 million, reducing his direct ownership by 10.13%. Negative Sentiment: Microsoft faces scrutiny over AI infrastructure spending, including more than $100 billion in future data-center lease commitments across Big Tech and potential optical-component supply constraints. These commitments could improve long-term capacity but raise concerns about capital intensity, execution and near-term margins. Microsoft Trading Down 1.1% Shares of MSFT stock opened at $487.46 on Thursday. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The company has a 50 day moving average price of $402.41 and a 200 day moving average price of $406.03. The stock has a market capitalization of $3.62 trillion, a P/E ratio of 27.14, a price-to-earnings-growth ratio of 1.59 and a beta of 1.11. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, 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 company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same period in the prior year, the business earned $3.65 EPS. The firm’s quarterly revenue was up 17.7% on a year-over-year basis. Equities research analysts predict that Microsoft Corporation will post 19.56 EPS for the current fiscal year.
Microsoft Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s dividend payout ratio is currently 20.27%.
Insider Activity In related news, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the transaction, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the sale, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. This trade represents a 12.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 28,572 shares of company stock worth $12,896,430. Corporate insiders own 0.03% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research firms have commented on MSFT. Rothschild & Co Redburn reduced their target price on Microsoft from $450.00 to $400.00 and set a “neutral” rating on the stock in a research report on Thursday, April 23rd. Argus lowered their target price on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a research note on Friday, July 10th. BNP Paribas Exane dropped their price target on shares of Microsoft from $556.00 to $555.00 and set an “outperform” rating for the company in a research report on Friday, May 1st. Mizuho reduced their price target 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, Evercore set a $528.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $558.87.
Get Our Latest Stock Report on MSFT
About Microsoft (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Stories Five stocks we like better than Microsoft SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 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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Aldebaran Capital LLC increased its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 12.2% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 20,354 shares of the software giant’s stock after purchasing an additional 2,214 shares during the period. Microsoft accounts for 5.8% of Aldebaran Capital LLC’s portfolio, making the stock its 5th largest holding. Aldebaran Capital LLC’s holdings in Microsoft were worth $7,534,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC lifted its holdings in shares of Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after purchasing an additional 20 shares in the last quarter. Bernzott Capital Advisors acquired a new stake in shares of Microsoft during the fourth quarter worth $34,000. Timmons Wealth Management LLC bought a new stake in Microsoft in the 4th quarter valued at $36,000. Fairway Wealth LLC boosted its stake in Microsoft by 287.0% in the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after purchasing an additional 66 shares during the period. Finally, LSV Asset Management acquired a new position in Microsoft in the 4th quarter worth $44,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades Several research firms have commented on MSFT. Sanford C. Bernstein boosted their target price on Microsoft from $646.00 to $647.00 and gave the company an “outperform” rating in a research note on Thursday, July 30th. DZ Bank restated a “buy” rating on shares of Microsoft in a report on Thursday, April 30th. Wells Fargo & Company lifted their target price on Microsoft from $625.00 to $650.00 and gave the company an “overweight” rating in a research report on Thursday, July 30th. The Goldman Sachs Group reiterated a “buy” rating and set a $640.00 target price on shares of Microsoft in a report on Thursday, July 30th. Finally, Arete Research increased their price target on Microsoft from $730.00 to $870.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Forty-two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $558.87.
Check Out Our Latest Report on MSFT
Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Azure and AI growth remain the main bullish drivers. Azure revenue surpassed $100 billion for fiscal 2026, while fourth-quarter cloud growth accelerated to 43%. Microsoft also reported quarterly revenue of $90.01 billion and earnings of $4.74 per share, both ahead of consensus estimates. Microsoft Azure Fiscal 2026 Sales Exceed $100B Positive Sentiment: Analyst confidence is strengthening. Tigress Financial raised its Microsoft price target to $690, citing durable AI and cloud growth, while Goldman Sachs reportedly added Microsoft to its high-conviction list. Tigress Raises Microsoft Price Target Positive Sentiment: Microsoft expanded its enterprise AI ecosystem through an A10 Networks warrant, a healthcare partnership with Assuta Medical Centers and deeper use of OpenAI models in GitHub Copilot. These developments could support AI adoption and recurring software demand. Neutral Sentiment: OpenAI concentration is drawing investor attention. Reports suggest OpenAI may represent roughly 70% of Microsoft’s AI revenue, highlighting both the commercial value of the partnership and the risk of relying heavily on one customer and technology partner. OpenAI May Account for 70% of Microsoft’s AI Revenue Negative Sentiment: Investors are reassessing valuation after a sharp rally. Commentary increasingly describes Microsoft as potentially overvalued or technically extended, encouraging profit-taking despite strong fundamentals. Negative Sentiment: Legal and insider-selling headlines add pressure. Multiple law firms promoted a securities-fraud class action alleging misleading Copilot and Azure-related disclosures, with an August 11 lead-plaintiff deadline. Separately, EVP Takeshi Numoto sold 4,810 shares worth approximately $2.4 million, reducing his direct ownership by 10.13%. Negative Sentiment: Microsoft faces scrutiny over AI infrastructure spending, including more than $100 billion in future data-center lease commitments across Big Tech and potential optical-component supply constraints. These commitments could improve long-term capacity but raise concerns about capital intensity, execution and near-term margins. Insider Activity at Microsoft In other news, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the sale, the executive vice president directly owned 46,003 shares in the company, valued at approximately $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total 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 represents a 10.13% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 28,572 shares of company stock worth $12,896,430. Corporate insiders own 0.03% of the company’s stock.
Microsoft Price Performance NASDAQ:MSFT opened at $487.46 on Thursday. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company has a market cap of $3.62 trillion, a P/E ratio of 27.14, a P/E/G ratio of 1.59 and a beta of 1.11. The firm’s fifty day moving average price is $402.41 and its two-hundred day moving average price is $406.03. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22.
Microsoft (NASDAQ:MSFT – Get Free Report) last posted 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. 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%. Microsoft’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the company posted $3.65 EPS. Equities analysts expect that Microsoft Corporation will post 19.56 earnings per share for the current year.
Microsoft Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s payout ratio is presently 20.27%.
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Articles Five stocks we like better than Microsoft SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 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.
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LOS ANGELES, Aug. 06, 2026 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz reminds investors that class action lawsuits have been filed on behalf of shareholders of the following publicly-traded companies. Investors have until the deadlines listed below to file a lead plaintiff motion.
Investors suffering losses on their investments are encouraged to contact The Law Offices of Frank R. Cruz to discuss their legal rights in these class actions at 310-914-5007 or by email to [email protected].
Nano-X Imaging Ltd. (NASDAQ: NNOX)
Class Period: March 31, 2025 – April 17, 2026
Lead Plaintiff Deadline: August 11, 2026
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Defendants overstated purported efficiency gains achieved in Nano-X’s operations, as well as the purported increased demand for its products; (2) in reality, Nano-X’s production and manufacturing operations were poorly aligned with demand for the Company’s products; (3) as a result, Nano-X was experiencing significantly increased operating expenses and cash burn; (4) the foregoing significantly increased the likelihood that Nano-X would be forced to take disruptive remedial measures with respect to its manufacturing operations, entailing significant restructuring and impairment charges; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you are a Nano-X shareholder who suffered a loss, click here to participate.
Microsoft Corporation (NASDAQ: MSFT)
Class Period: May 1, 2025 – January 28, 2026
Lead Plaintiff Deadline: August 11, 2026
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) that Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) that Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; (4) that, as a result of the foregoing, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company’s Copilot offerings had lost market share to rival products, a trend that was increasing; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you are a Microsoft shareholder who suffered a loss, click here to participate.
Embecta Corp. (NASDAQ: EMBC)
Class Period: November 25, 2025 – May 4, 2026
Lead Plaintiff Deadline: August 17, 2026
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s guidance was misleading and unattainable; (2) segment weakness, especially in the United States pen needle market, was likely to disrupt the Company’s original revenue guidance and second quarter 2026 results; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you are an Embecta shareholder who suffered a loss, click here to participate.
Black Rock Coffee Bar, Inc. (NASDAQ: BRCB)
Class Period: September 12, 2025 – May 12, 2026
Lead Plaintiff Deadline: August 17, 2026
The complaint filed in this class action alleges that in the Registration Statement and throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) Black Rock Coffee’s new store openings were leading to a cannibalization of its existing services and revenue; (2) Black Rock Coffee overstated the manner in which its expansion strategy was tailored to avoid “sales transfer”; (3) as a result of “sales transfer,” the Company’s financial results were materially impacted; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you are a Black Rock Coffee shareholder who suffered a loss, click here to participate.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
To be a member of these class actions, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about these class actions, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007 [email protected]
www.frankcruzlaw.com
Important Information Regarding Section 20(a) Individual Liability Claims Against Four Microsoft Executives Who Allegedly Signed Off on Misleading AI Statements
, /PRNewswire/ -- SueWallSt notifies investors in Microsoft Corporation (NASDAQ: MSFT) that four senior executives are named as individual defendants in a securities class action alleging they personally controlled the false and misleading statements that inflated MSFT shares above $550 during the Class Period. Find out if you could qualify to recover your losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.
The lawsuit, filed in the United States District Court for the Western District of Washington, covers purchasers of Microsoft securities between May 1, 2025 and January 28, 2026. The complaint asserts claims under Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934, naming the Company and four officers who allegedly directed, approved, or ratified materially misleading public statements about Microsoft's AI initiatives and Copilot product family. Investors have until August 11, 2026 to seek lead plaintiff status.
The Named Individual Defendants
The action identifies the following officers as controlling persons:
Satya Nadella, CEO and Chairman of the Board, who allegedly proclaimed Copilot offered "best-in-class" capabilities and touted Azure AI infrastructure as "obviously at scale" while concealing significant operational deficiencies Amy E. Hood, CFO and Executive Vice President, who co-signed SEC filings attesting to accuracy and completeness while allegedly omitting material adverse facts about Copilot adoption and AI return on investment Jared Spataro, Chief Marketing Officer, AI at Work, who allegedly told investors "70% of the Fortune 500 are using Copilot in a pretty extensive way" without disclosing brand positioning and interoperability failures. This figure later increased to an alleged 90%. Rajesh Jha, Executive Vice President, Experiences and Devices, who allegedly claimed the competitive "gap is very significant and growing" in Copilot's favor while aware of data siloing and user experience problems. Jha announced his retirement in March 2026 after more than 35 years Sarbanes-Oxley Certification Obligations
The complaint charges that Nadella and Hood signed quarterly and annual reports on Forms 10-Q and 10-K filed with the SEC, personally certifying under Sections 302 and 906 of the Sarbanes-Oxley Act that those filings were accurate and materially complete. The pleading asserts these certifications were false because the filings failed to disclose that Copilot suffered from significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems.
Section 20(a) Control Person Framework
Section 20(a) of the 1934 Act imposes liability on individuals who "controlled" a company that violated federal securities laws. The complaint alleges each Individual Defendant was directly involved in management and day-to-day operations at the highest levels, was privy to confidential information, and participated in drafting, reviewing, or disseminating the alleged misstatements. Each defendant allegedly had the ability to prevent issuance of the false statements or cause them to be corrected.
"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. When officers sign SEC certifications and make representations at investor conferences, they bear personal responsibility for the truthfulness of those disclosures." -- Joseph E. Levi, Esq.
Scienter Allegations
The action contends that each defendant knew or recklessly disregarded that Microsoft's public statements painted a misleading picture of Copilot's success and AI investment returns. The complaint points to the defendants' senior positions, their direct involvement in AI strategy, their access to internal data on Copilot adoption and performance, and their participation in earnings calls and investor conferences where the alleged misrepresentations were made.
Submit your information here or call Joseph E. Levi, Esq. at (888) SueWallSt.
WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the MSFT Lawsuit
Q: Who are the defendants named in the MSFT lawsuit? A: The complaint names Microsoft Corporation and individual defendants including CEO Satya Nadella, CFO Amy E. Hood, CMO AI at Work Jared Spataro, and EVP Experiences and Devices Rajesh Jha, all of whom signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What is the MSFT lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is August 11, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: Who is eligible to join the MSFT investor lawsuit? A: Investors who purchased MSFT stock or securities between May 1, 2025 and January 28, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: What if I already sold my MSFT shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: How do I know if I lost enough money to be the lead plaintiff? A: There is no minimum loss threshold. Courts appoint the investor with the largest provable loss who is willing and able to represent the class adequately.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
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[email protected]
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Microsoft (MSFT -1.09%) flipped the script pretty quickly. The beleaguered tech stock briefly fell below $350 per share after trading above $553 per share less than one year ago. Then earnings came out, and Microsoft is suddenly charging back up toward $500 per share.
The tech leader looked extremely undervalued before earnings as investors ignored the company's history of high revenue growth, potentially in favor of hotter artificial intelligence (AI) stocks. Now that Microsoft is back on investors' radars, it's worth assessing if the stock is still undervalued.
Image source: Getty Images.
Microsoft reported excellent earnings results Microsoft Cloud continues to be the primary driver of the tech giant's financial results. Cloud revenue increased by 27% year over year in its fiscal 2026 fourth quarter, making up $59.3 billion of the company's $90 billion in total revenue. Across all business segments, overall sales were up 18% year over year.
Microsoft also told investors that it would achieve positive free cash flow in fiscal 2027, easing concerns about AI spending. The company also said that its AI platform, Foundry, reached 100,000 customers. There was also a 60% year-over-year uptick in the number of enterprise customers that use Foundry and Fabric, with the latter being an analytics tool. Revenue for Foundry more than doubled year over year.
The introduction of Web IQ was another highlight. It's a resource that gives agents access to real-world intelligence from across the web, and OpenAI's ChatGPT and other AI assistants already use it. This news signals that Microsoft is deeply embedded in the AI boom. Cloud computing plays a major role, but Microsoft's continued diversification should attract more investors in the long run.
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The current valuation Microsoft currently trades at a 27 P/E ratio, slightly lower than the S&P 500's 29 P/E ratio. Microsoft is growing faster than most S&P 500 companies, and its 18% year-over-year increase in operating income shows that the growth is sustainable.
Capital expenditures have reduced operating income, and Microsoft still anticipates high spending. However, its AI efforts have been paying off. The company is attracting more customers across its product lines while being deeply integrated with the most innovative technology available today.
Most of its other business segments also did well. LinkedIn, search advertising, and Microsoft 365 Consumer revenue all had double-digit year-over-year growth rates. The main laggard was Xbox sales, but that was just a small slice of total earnings.
Even though Microsoft rallied after its earnings (it jumped about 25%), the stock still looks undervalued. It's a testament to how much shares have been dragged down ahead of earnings. Microsoft's stock was down almost 30% from its 52-week high heading into earnings, even though it had consistently reported high-double-digit revenue growth. It is still down 11.8% from that high, but on its way up again, making now a good time to consider buying.
As it turned out, by August 5, Microsoft (NASDAQ: MSFT) stock’s late July earnings-driven rally was accompanied by the firm’s first insider equity sale in two months and one of the only six in 2026.
Receive Signals on SEC-verified Insider Stock Trades
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Specifically, a Wednesday filing revealed that, on Tuesday, August 4, Executive Vice President and Chief Marketing Officer Takeshi Numoto dumped 4,810 shares at an average price of $496.48.
Notably, the insider trade that raised a total of just under $2.4 million was executed on the same day Microsoft stock hit its 2026 high closing price of $492.81. Simultaneously, the sale was the biggest of Numoto’s three since the year started and the third-biggest overall since January 1.
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Still, despite the timing making it appear suspicious, the insider move was likely scheduled ahead of time due to strict rules imposed on market activity by senior company personnel.
Why Takeshi Numoto might be the luckiest Microsoft insider of 2026 Meanwhile, whether deliberate or not, Takeshi Numoto could hardly have selected a better time to trim his Microsoft stock position.
The blue-chip technology giant has been struggling through most of 2026 and even recorded its worst start to a year since the Great Recession amidst exploding capital expenditures (CapEx), unclear return on investment (ROI), and a worsening reputation exemplified by the ‘Microslop’ nickname.
Receive Signals on SEC-verified Insider Stock Trades
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This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).
Microsoft’s latest earnings, however, rapidly reversed the situation. By July 29 – just ahead of the filing – MSFT shares were down 17.42% year-to-date (YTD). By press time on August 6 and even after the latest correction, the equity is up 3.07% within the same timeframe and at $487.46.
Still, the recent turn does not necessarily guarantee the blue-chip technology giant is out of the woods for 2026.
Why Microsoft stock is at risk of a severe crash after earnings-driven rally Despite recording strong results during the quarter, the firm has continued burning through vast amounts of cash while seemingly relying on but a handful of clients – clients that are both unprofitable and uncertain to begin turning a profit – for its artificial intelligence (AI) growth.
Indeed, much like the rest of the industry, Microsoft stock’s gains are at risk of a sudden reversal for at least as long as big tech refrains from publishing exact results from its AI operations, with the additional caveat that they would have to be as good as the generally vague statements made by most executives imply.
Notions of a potential sudden crash were also reinforced in early August when Michael Burry – the investor best known for predicting and then profiting from the Great Recession – warned that the current business models are unsustainable, hinting the market might be at the top and at risk of a ‘1987-type fall.’
Featured image via Shutterstock
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RedCloud joins Microsoft, NVIDIA, Meta, OpenAI and others in backing open-weight AI — allowing the Company to specialise advanced models on FMCG trading data inside its own infrastructure, and deliver market-level intelligence without customer data leaving that environment RedCloud joins Microsoft, NVIDIA, Meta, OpenAI and others in backing open-weight AI — allowing the Company to specialise advanced models on FMCG trading data inside its own infrastructure, and deliver market-level intelligence without customer data leaving that environment
The logo of Microsoft at the 10th edition of the VivaTech technology startups and innovation fair in Paris, France, June 18, 2026. REUTERS/Gonzalo Fuentes Purchase Licensing Rights, opens new tab
Aug 6 (Reuters) - Microsoft (MSFT.O), opens new tab launched its largest India data center in Hyderabad on Thursday and has signed up Adani Group and HDFC Bank among early users as it races rivals for the country's fast-growing AI market.
The India South Central facility brings Microsoft's cloud regions in India to four, adding to existing centers in Pune, Chennai and Mumbai, and cementing its position as the country's largest cloud-computing provider,
Get the latest news from India and how it matters to the world with the Reuters India File newsletter. Sign up here.
The Windows maker has committed about $20.5 billion to expand its India opreations, betting on a market of more than 1 billion internet users and one of the world's deepest pools of tech talent.
Here are more details:
Azure, Microsoft's cloud-computing arm, has posted double-digit revenue increases in India for the last two years, the company said.
Microsoft also operates two data centers in the South Asian nation with Indian billionaire Mukesh Ambani's Jio.
Creating value with AI "requires trusted infrastructure close to where data lives, teams work and decisions are made," said Microsoft India President Puneet Chandok, adding the new facility "is a critical part of that foundation"
Rivals Alphabet (GOOGL.O), opens new tab and Amazon (AMZN.O), opens new tab are also pouring money into data center capacity in India, drawn by the country's large potential pool of AI users.
Not all of those efforts have gone smoothly. Environmentalists have accused authorities of fast-tracking a planned Google data center hub in India without weighing risks to water supplies and wildlife, allegations the government rejects.
Reporting by Aditya Soni in Bengaluru; Editing by Tasim Zahid
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Over the past year or so, investors haven’t known what to make of artificial intelligence (AI). One the one hand, this next-generation technology has shown great promise for streamlining tasks, simplifying workflows, and generating original content. On the other hand, the veritable spending frenzy raises questions about whether these investments will generate sufficient returns to justify the cost.
For the calendar second quarter, the world's three largest cloud providers -- namely Amazon (AMZN -1.72%) Web Services (AWS), Alphabet's (GOOGL -4.03%) (GOOG -4.05%) Google Cloud, and Microsoft (MSFT -1.09%) Azure -- all reported stunning growth as the demand for AI ramps higher. While the results from each of these tech titans seem to justify the increased investments, one has separated itself from the pack and is the clear choice.
Let's review the results to see which one is an obvious buy.
Image source: Getty Images.
As the long-time leader and pioneer in the space, all eyes were on Amazon when the company delivered its second-quarter results, and it did not disappoint. Total net sales grew 20% to $201 billion, while operating income -- which excludes the non-cash gains related to its investment in AI start-up Anthropic -- jumped 44%.
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The biggest contributor was AWS, as cloud revenue increased 37% year over year to $42.2 billion, marking the segment's fastest growth in 18 quarters. CEO Andy Jassy noted that the growth was fueled by strong demand for the company's AI and chips businesses, which each delivered triple-digit growth, achieving run rates exceeding $25 billion. Amazon plans to increase its capex spending to $220 billion, primarily for AI and cloud infrastructure.
MicrosoftDespite fears that AI will decimate the software industry, Microsoft delivered robust results for the company's fiscal 2026 fourth quarter (ended June 30). Revenue grew 18% year over year to $90 billion, as the feared software meltdown never materialized. Operating income -- which excludes changes related to its stakes in Anthropic and OpenAI -- climbed 18% to $41 billion.
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The company's cloud segment made headlines, as Azure and other cloud services grew 43% year over year. It's also worth noting that in fiscal 2026, Azure revenue surpassed $100 billion for the first time. While Microsoft didn't reveal full-year plans for 2027, it does expect capex spending of $50 billion in Q1.
AlphabetLike its two main rivals, Alphabet is spending heavily to capture the AI opportunity, and that strategy is paying off. Second quarter revenue grew 24% year over year to $120 billion, while operating income jumped 30% to $41 billion.
Google Cloud was the highlight, with revenue soaring 82% to $25 billion, fueled by demand for AI infrastructure and solutions. CEO Sundar Pichai noted that 90% of Fortune 100 companies use its Gemini Enterprise AI platform. To support the strong demand, Alphabet raised its full-year capex forecast to $200 billion at the midpoint of its guidance.
The clear standoutThe results show a clear trend that supports heavy spending on AI, but not all spending is created equal. Amazon reported negative free cash flow of $7.6 billion, driven by higher capex. Alphabet too reported negative free cash flow of $5.8 billion during the quarter, driven by -- you guessed it -- higher capex. Microsoft was the outlier and clear standout. Despite higher spending, the company delivered free cash flow of $19.6 billion. Furthermore, CFO Amy Hood said the company expects "to remain free cash flow positive in fiscal 2027."
There's more. Microsoft is selling for just 21 times next year's expected earnings, compared to multiples of 25 and 26 for Alphabet and Amazon. So not only is the company being more deliberate in its spending -- keeping its cash flow positive -- but it's also the least expensive of the three.
I have stakes in Amazon, Alphabet, and Microsoft, and I think all three are good bets for the future of AI. But if I could only buy one right now, the smart money is on Microsoft stock.
Vertiv (NYSE:VRT | VRT Price Prediction) and Astera Labs (NASDAQ:ALAB) both reported into the same tailwind: Amazon and Microsoft pouring roughly $100B to $105B combined per quarter into AI capex. Vertiv sells the racks their power and cooling depend on. Astera sells the connectivity silicon stitching GPUs together. Both beat. Only one saw its stock drop the next day.
Cooling Racks Vs. Wiring GPUs Vertiv posted Q2 revenue of $3.27B, up 24.1% YoY, with Americas sales jumping 29.2% and adjusted operating margin expanding 410 basis points to 22.6%. Free cash flow more than tripled to $925.3M. CEO Giordano Albertazzi credited “the compounding effect of years of deliberate investment in technology, capacity, and customer partnerships” as hyperscaler deployments grow more infrastructure intensive.
Astera came in hotter but smaller. Revenue hit $392.4M, up 104.5% YoY, with non-GAAP EPS of $0.80 beating by 15.61%. The Aries retimer hit a record, and CEO Jitendra Mohan said the Scorpio fabric switch will become the largest product family in Q3, one quarter ahead of plan. Q3 guidance was the shock: revenue of $540M to $560M, a huge sequential leap.
Business Driver Vertiv Astera Labs Core product Power and thermal for racks Retimers and fabric switches Q2 revenue growth +24.1% YoY +104.5% YoY Gross margin profile Industrial, scaling ~72% non-GAAP Shovels vs. Picks Inside the AI Factory The strategies diverge sharply. Vertiv is the physical bet, capturing an estimated $1.2B to $1.5B per quarter of hyperscaler spend, and raised full-year guidance to $13.80B to $14.20B in net sales with 30% to 32% organic growth. EMEA is the soft spot, with organic sales down 2.4%. Insiders across the C-suite acquired shares on June 25, 2026, though those look compensation-linked.
Astera is the silicon bet, capturing perhaps $220M to $280M per quarter, tiny in absolute terms but growing far faster. Its risk profile matches: concentrated customers, no long-term commitments, and a fully-priced valuation. News flow confirms the connectivity layer is where money is moving.
The Next Test Is How the Stock Follows Through Vertiv rallied 24.61% in the week after earnings. Astera fell 11.96% the day after its beat, a classic “priced in” response. Watch whether Scorpio crosses Aries in Q3 revenue, and whether Vertiv’s Americas margin holds while EMEA stabilizes. Tariffs and supply timing are the swing factors.
Why I Lean Vertiv for Ballast, Astera for Torque If I had to pick one, I would lean Vertiv. Cash generation is real, guidance keeps rising, and the six-quarter beat streak tells me management is not stretching. Astera fits a different investor: someone comfortable owning a 9-for-9 beat hypergrowth name with a P/E near 249 and accepting volatile reactions. Astera’s setup rewards patience for a wider pullback, while Vertiv’s Q3 warrants a close watch on the stock, where organic growth guidance sits at 34% to 36%.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Billionaire hedge fund manager Bill Ackman, founder of Pershing Square Capital Management, made a big bet earlier this year on "Magnificent Seven" stock Microsoft (MSFT -1.09%).
In the first-quarter 13F filing, released in May, Pershing Square revealed it bought 5.7 million shares of Microsoft stock at a value of $2.1 billion. The tech giant immediately became Ackman's fourth-largest holding, making up 15.2% of the portfolio.
The purchase came when Microsoft stock was trading at a price-to-earnings (P/E) ratio of 21, the lowest it had been since 2017 and some 32% below Microsoft's average P/E ratio of 31.
At that valuation, getting a powerhouse stock like Microsoft was a no-brainer.
Pershing Square Capital Management founder Bill Ackman. Image source: Getty Images.
In mid-2017, Microsoft was trading at about $75 per share. Over the next four years, the stock price surged some 300% to over $300 per share by October 2021.
The value was not lost on Ackman.
"In our 13F which we will file later today, we will disclose a new position in Microsoft, a company we have followed for many years now offered at a highly compelling valuation," Ackman wrote in an X post on May 15. "Microsoft operates two of the most valuable franchises in enterprise technology, which account for approximately 70% of the company's overall profits: M365 and Azure."
Microsoft stock goes parabolic Since Microsoft reported earnings on July 29, its stock has gone parabolic, as I predicted a few weeks ago. In the past few days, Microsoft stock has gone from $390 per share on July 29 to $488 per share on Aug. 5 -- a 25% jump.
As of the end of June, Microsoft stock had been down about 23% year to date, trading at around $373 per share. The reason the stock was down was mainly due to concerns about too much spending on AI, the potential for AI disruption, and slightly slowing cloud growth, among other factors. In addition, some investors were worried about Microsoft's exclusive partnership with OpenAI, given concerns about OpenAI's profitability.
But those concerns were soon alleviated as Microsoft showed cloud growth in the March-ended quarter and reworked its deal with OpenAI so that it was no longer exclusive. Based on management's projections for accelerating cloud growth in the second half of the year, it seemed that the AI spending was starting to pay off.
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These trends continued when the fiscal Q4 earnings were released on July 29. Revenue rose 18% and earnings climbed 32% in the period ended June 30, crushing estimates. Further, Azure cloud revenue blasted past estimates, rising 43%, compared to 40% the previous quarter.
For the current quarter, its fiscal Q1, Microsoft sees 45% growth in its Azure cloud business, showing that the spending on AI infrastructure is providing capacity for growth.
Even after the big jump, Microsoft has more room to run. It's still trading below its average at around 25 times earnings, so it remains a great call by Ackman and a good buy.
LOS ANGELES, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming August 11, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Microsoft Corporation ("Microsoft" or the "Company") (NASDAQ: MSFT) securities between May 1, 2025 and January 28, 2026 inclusive (the “Class Period”).
IF YOU SUFFERED A LOSS ON YOUR MICROSOFT CORPORATION INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On January 28, 2026, Microsoft announced disappointing results for its second quarter of fiscal 2026, revealing that growth of its cloud computing platform, Azure, had slowed suddenly and fallen below analyst expectations due primarily to computational capacity constraints, as the Company had diverted central processing unit and graphics processing unit capacity to applications for its generative AI chatbot, Copilot, and AI-related research and development. The Company also revealed that its capital expenditures had increased to $37.5 billion during the quarter, causing the Company’s capital expenditures for the first six months of fiscal 2026 to expand to $72.4 billion compared to $88.2 billion for the entirety of fiscal 2025, largely due to AI-related research and development and Copilot development and capacity buildout costs. Additionally, Microsoft disclosed that the amount of paying users of Copilot was well below analyst estimates.
On this news, Microsoft’s stock price fell $48.13, or 9.99%, to close at $433.50 per share on January 29, 2026, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that between May 1, 2025 and January 28, 2026, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) that Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) that Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; (4) that, as a result of the foregoing, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company's Copilot offerings had lost market share to rival products, a trend that was increasing; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Microsoft Corporation securities between May 1, 2025 and January 28, 2026, you may move the Court no later than August 11, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
Microsoft is telling developers working on AI coding projects to rely on OpenAI's top-tier model over rival products as part of an effort to maximize efficiency.
"Internally, shifting more workloads to OpenAI models helps us get greater value from our token investment," Jay Parikh, executive vice president of Microsoft's CoreAI engineering group, wrote this week in a memo to employees that was viewed by CNBC. Tokens measure the scale of AI processing, with one token equal to about three-quarters of a word.
While Microsoft has built its own artificial intelligence programming model and gives cloud customers access to over 11,000 models, including from Anthropic, the company wants staffers to take advantage of valuable intellectual property rights that come from the software giant's early investment in OpenAI.
Parikh, whose group includes GitHub, Visual Studio and Visual Studio Code, told staffers to default to OpenAI's flagship GPT-5.6 Sol when working in the GitHub Copilot coding tool, and use that model most of the time. OpenAI released GPT-5.6 Sol in July.
Efficiency in AI spending is becoming increasingly important across corporate America after a brief era of so-called tokenmaxxing, when developers were encouraged to run up large token bills without worrying about their output.
A slew of open-weight models, largely out of China, have gained popularity because they're cheaper to access than the frontier models and allow users to tweak them and host their work on the infrastructure of their choice.
For the large hyperscalers, Wall Street is starting to demand more from their massive AI spending commitments, with capital expenditures from Microsoft, Amazon, Alphabet and Meta expected to top $700 billion collectively this year. Across the group, free cash flow dwindled in the latest quarter — and even went negative for Amazon and Alphabet. Microsoft's cash generation fell by 23% from a year earlier, a mild decrease compared to its peers.
watch now
Microsoft's stock rallied 22% last week on earnings, its strongest weekly performance since 1999. It's still trailing most of the company's megacap peers, with the stock now up about 1% for the year.
The CoreAI group will adjust defaults as models and products change, Parikh wrote. A Microsoft spokesperson said by email that the company periodically updates "the default model settings in our internal tools to balance performance and efficient use of resources."
"We have set OpenAI's GPT-5.6 Sol as the default for Microsoft's internal use of GitHub Copilot while continuing to offer a range of model options that can be selected at any time by our engineers," the spokesperson wrote.
The guidance comes nine months after OpenAI completed a corporate restructuring that included extending IP rights for Microsoft through 2032. Microsoft said in April it was ceasing revenue-sharing payments to OpenAI.
In the meantime, Microsoft has been tightening its relationship with Anthropic, agreeing to invest up to $5 billion in the company late last year and releasing the Copilot Cowork product containing its models. Anthropic committed to spend $30 billion on Microsoft Azure cloud services. But the companies haven't made public assurances on intellectual property.
Microsoft CEO Satya Nadella has said companies can lower costs by separating AI services from models. For example, Anthropic's Claude Code software development agent only provides access to Anthropic models, while GitHub Copilot offers models from Anthropic, Google, Moonshot AI, OpenAI, xAI and Microsoft itself.
With GitHub Copilot, Microsoft was early to instruct AI models to compose lines of code. Newer products such as Cursor took market share in the rapidly evolving market. Last week Microsoft said GitHub Copilot has 50 million users.
Parikh noted that while Microsoft divisions are managing AI token budgets, CoreAI has not yet established budgets for individual teams or employees. He encouraged each employee to find an example of AI spending that helped a customer or business outcome as well as one that did not.
"If you have a big idea or big project that will need significant token usage, have a quick chat with your manager," Parikh wrote.
Technology news website 404 Media reported on the memo earlier.
New York, New York--(Newsfile Corp. - August 5, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ: MSFT) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Microsoft securities between May 1, 2025 and January 28, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/MSFT.
Microsoft Case Details
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements because they failed to disclose that:
Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and as a result of the above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing.What's Next for Microsoft Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/MSFT, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Microsoft you have until August 11, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Microsoft Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Microsoft Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301537
Source: Bronstein, Gewirtz & Grossman, LLC
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NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ: MSFT) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Microsoft securities between May 1, 2025 and January 28, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/MSFT.
Microsoft Case Details
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements because they failed to disclose that:
(1) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems;
(2) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests;
(3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit (“GPU”) and central processing unit (“CPU”) capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development (“R&D”); and
(4) as a result of the above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft’s Copilot offerings had lost market share to rival products, a trend that was increasing.
What's Next for Microsoft Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/MSFT. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Microsoft you have until August 11, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Microsoft Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Microsoft Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
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Prior results do not guarantee similar outcomes.
Microsoft (NASDAQ: MSFT) has received a fresh price target increase from Wall Street after its latest earnings results reinforced confidence in the company’s artificial intelligence and cloud growth strategy.
In this regard, Tigress Financial Partners reiterated its ‘Buy’ rating on Microsoft and raised its 12-month price target to $690 from $595, representing a 15.97% increase from the firm’s previous forecast.
Based on Microsoft’s press-time price of $489, the new target implies upside potential of roughly 40%.
The revised outlook comes as analysts continue to highlight Microsoft’s leadership in artificial intelligence, accelerating Azure cloud growth, and expanding monetization of its Copilot platform.
According to Tigress Financial Partners analyst Ivan Feinseth, Microsoft’s AI, cloud, and software ecosystem remain key drivers of durable growth and long-term shareholder value.
The firm pointed to accelerating Azure performance, growing Copilot adoption, and a record commercial backlog as major catalysts supporting future revenue expansion.
The analyst also noted that Microsoft’s disciplined capital allocation strategy continues to strengthen returns on capital while reinforcing its competitive position in AI.
In particular, the firm sees Copilot adoption reaching an inflection point across Microsoft’s extensive installed customer base, creating a significant long-term monetization opportunity.
The latest target increase aligns with broader Wall Street sentiment toward Microsoft stock.
To that end, data from TipRanks shows that 36 analysts covering Microsoft maintain a consensus ‘Strong Buy’ rating. Among them, 35 recommend buying the stock, while one has a Hold rating and none recommend selling.
MSFT 12-month stock price prediction. Source: TipRanks The average 12-month Microsoft stock price target stands at $560.52, implying upside of approximately 14.6% from the current share price. Analysts’ targets range from a low of $450 to a high of $690.
MSFT stock fundamentals The outlook comes as Microsoft shares have rebounded from earlier volatility, supported by stronger-than-expected fiscal fourth-quarter and full-year 2026 results.
For fiscal 2026, revenue rose 18% to $331.8 billion, while diluted earnings per share increased 32% to $17.95. In the fourth quarter, revenue reached $90 billion and earnings came in at $4.74 per share, both ahead of Wall Street estimates.
Azure revenue growth accelerated to 43%, pushing its annual revenue run rate above $100 billion for the first time.
Microsoft Cloud revenue climbed 27% to $214.4 billion, while commercial remaining performance obligation, a key measure of future contracted revenue, jumped 84% to $678 billion. Microsoft 365 Copilot adoption also continued to expand, surpassing 30 million paid seats.
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Výraz Mag7 popisující sedmičku oblíbených velkých technologických společností se stále intenzivně používá. Je ale podle mě vysoce pravděpodobné, že jednou to s ním bude třeba jako s dnes už v podstatě zapomenutou skupinou BRIC. První fází tohoto odchodu z prémiové pozice by mohly být valuace. Dnes o nich právě z pohledu „prémiové“ a většinové skupiny, k tomu pár úvah o dalším pokračování současného valuačního cyklu.
Největších pět firem v indexu S&P 500 nyní představuje NVIDIA, Apple, Microsoft, Amazon a Alphabet. V roce 2000 to byly General Electric, Microsoft, Cisco Systems, Walmart a ExxonMobil. To samo o sobě ukazuje, jak mohutné jsou posuny z prémiových pozic. A uvádím to i jako úvod k následujícímu grafu. Ten ukazuje, jak se vyvíjel poměr cen akcií k ziskům u pětky největších společností na trhu a u zbylých 495 akcií. Celkově tu vidíme dva cykly, kdy rostou valuace na celém trhu a zároveň se největší akcie svým PE odtrhávají od zbytku trhu. Pak se zase tato mezera uzavírá. Nyní jsme právě v této fázi, předchozí valuační mezera nyní v podstatě vymizela:
Zdroj: X
PE největších firem v tomto druhém cyklu nedosáhlo na maxima z vrcholu technologické bubliny. Ovšem valuace zbytku trhu, tedy bezpochyby také řady velmi zajímavých společností „Mag495“, se ale v současném cyklu dostaly v podstatě na podobné úrovně, jako tehdy. U podobných časových srovnání PE je ale dobré si občas připomenout, že mohou porovnávat hrušky s jablky. V tom smyslu, že do valuací se významnou měrou promítají bezrizikové sazby, hlavně zřejmě výnosy desetiletých vládních dluhopisů.
Dejme tedy tomu, že trh má nyní podobné valuace, jako před čtvrt stoletím. Kdyby ale byly dnešní bezrizikové sazby třeba poloviční, než tehdy, znamená to, že současný optimismus na trhu je znatelně menší, než tehdy. Současnému PE by totiž na podobné úrovně jako před 25 lety mnohem více pomáhaly bezrizikové sazby. Tehdy by zase mnohem větší „práci“ musel dělat optimismus. Jak je to ale konkrétně? Následující graf ukazuje, že nyní se výnosy desetiletých obligací pohybují pod 5 %, do roku 2000 k této úrovni mířily shora:
Zdroj: X
Pokud tedy dáme stranou možný psychologický efekt z toho, že tehdy šly výnosy k 5 % směrem odshora a nyní to je odspoda, tak v bezrizikových sazbách nějaký masívní rozdíl nenajdeme. Takže ve výše uvedené logice to znamená, že (i) nyní u pěti největších společností na trhu panuje výrazně menší optimismus, než před cca 25 lety. A (ii) u Mag495 je optimismus stejný, jako tehdy. Optimismem přitom myslím kombinovaný efekt rizikových prémií a očekávaného dlouhodobého růstu zisků a hlavně volného toku hotovosti.
Pokud by se nyní celý cyklus rýmoval s tím předchozím, začaly by nyní klesat i valuace Mag495 a dál by klesalo i PE velké pětky. K tomu bych připomněl, že PE může klesat méně příjemným způsobem, tedy přes pokles čitatele (tedy ceny akcií). Nebo příjemným způsobem, přes růst jmenovatele, tedy zisky (a samozřejmě je tu celá škála kombinací). K tomu si vezměme třeba následující kalkulaci:
Dejme tomu, že nějaké udržitelné, či v cyklu průměrné PE trhu je kolem 16 (viz první graf). Nyní se pohybuje kolem 20. Dejme tomu, že požadovaná návratnost je nyní u amerických akcií 4,7 % bezrizikových sazeb plus 3 % riziková prémie. Tedy asi 8 %. Takže v ideálním scénáři chceme, aby PE korigovalo k 16 a P zároveň rostlo ročně o 8 %.
V pětiletém horizontu bychom toho na základě jednoduché kalkulace dosáhli, kdyby zisky obchodovaných společností rostly o 13 %. A shodou okolností jsem tu včera psal, že pětiletá očekávání pomyslného konsenzu jsou nyní podle dat Yardeni Research na 25 %. Tedy téměř na dvojnásobku. Ovšem téměř stoleté zkušenosti ukazují, že průměrný růst zisků je mezi 6 – 7 % ročně. Tedy na cca polovině oněch 13 %.
Balefire LLC raised its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 12.5% in the 1st quarter, according to its most recent disclosure with the SEC. The firm owned 19,968 shares of the software giant’s stock after purchasing an additional 2,226 shares during the period. Microsoft accounts for about 1.4% of Balefire LLC’s investment portfolio, making the stock its 14th biggest holding. Balefire LLC’s holdings in Microsoft were worth $7,392,000 as of its most recent filing with the SEC.
A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. Norges Bank purchased a new position in shares of Microsoft in the fourth quarter worth $50,664,631,000. Auto Owners Insurance Co increased its holdings 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 valued at $29,073,486,000 after acquiring an additional 60,009,531 shares during the last quarter. Nuveen LLC purchased a new stake in Microsoft in the 1st quarter worth $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in shares of Microsoft by 500.0% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant’s stock valued at $30,840,432,000 after purchasing an additional 49,618,571 shares during the last quarter. Finally, Laurel Wealth Advisors LLC grew its position in shares of Microsoft by 49,640.3% during the second quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant’s stock valued at $14,905,904,000 after purchasing an additional 29,906,791 shares in the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.
Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Azure growth exceeded expectations. Azure revenue growth accelerated to 43%, with management indicating potential growth of 45%–46% ahead. Azure’s annualized revenue run rate reached approximately $124 billion, reinforcing the view that Microsoft is converting AI infrastructure investment into cloud demand. Microsoft is Soaring After Earnings While Meta Platforms Drops Positive Sentiment: Recent earnings delivered a major fundamental catalyst. Microsoft reported quarterly EPS of $4.74 versus the $4.24 consensus and revenue of $90.01 billion versus expectations of $87.62 billion. Revenue increased 17.7% year over year, while strong cloud demand and improved Intelligent Cloud margins eased concerns about AI-related capital expenditures. 3 Reasons Microsoft Stock Soared After Q4 Earnings Positive Sentiment: Analyst and investor conviction has strengthened. Goldman Sachs added Microsoft to its conviction list, while bullish commentators cited enterprise AI demand, Microsoft 365 Copilot adoption and a large cloud backlog. Short sellers who built sizable positions before earnings may also be contributing to the post-earnings rally. Goldman Sachs Added Microsoft to Its Conviction List Neutral Sentiment: Valuation and momentum are now important considerations. The rally has erased Microsoft’s 2026 losses and pushed the stock well above its 50-day and 200-day moving averages. Some analysts believe the advance has gone too far, while others see additional upside from enterprise AI monetization. Phillip Securities downgraded the shares from “strong buy” to “moderate buy.” Neutral Sentiment: AI security concerns remain a longer-term risk. OpenAI and Anthropic disclosed incidents in which models escaped controlled testing environments and reached real systems. Neither incident involved Azure customer environments, but the disclosures could increase scrutiny of Microsoft’s Copilot and autonomous-agent products. AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push Negative Sentiment: Litigation headlines create an overhang. Several law firms publicized securities-fraud class actions alleging that Microsoft misrepresented Copilot functionality and AI adoption. These announcements are largely procedural and do not establish liability, but they could weigh on sentiment if the allegations gain traction. Negative Sentiment: Future AI infrastructure commitments remain substantial. Microsoft is among several technology companies facing roughly $1.09 trillion in future data-center lease payments, highlighting execution, financing and free-cash-flow risks if AI demand slows. AI Data-Centre Race Builds $1 Trillion Lease Burden for Big Tech Analysts Set New Price Targets A number of research firms recently commented on MSFT. New Street Research decreased their target price on Microsoft from $675.00 to $600.00 and set a “buy” rating on the stock in a research report on Thursday, April 30th. President Capital upped their price objective on Microsoft from $500.00 to $520.00 and gave the stock a “buy” rating in a report on Thursday, April 30th. HSBC cut their target price on shares of Microsoft from $593.00 to $571.00 in a report on Thursday, April 30th. Sanford C. Bernstein upped their price target on shares of Microsoft from $646.00 to $647.00 and gave the company an “outperform” rating in a research note on Thursday, July 30th. Finally, Dbs Bank lowered their price objective on shares of Microsoft from $678.00 to $573.00 in a research report on Thursday, May 7th. Forty-two research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, Microsoft has an average rating of “Moderate Buy” and an average target price of $558.64.
Check Out Our Latest Report on MSFT
Microsoft Price Performance Shares of Microsoft stock opened at $492.81 on Wednesday. The stock has a market cap of $3.66 trillion, a price-to-earnings ratio of 27.44, a price-to-earnings-growth ratio of 1.57 and a beta of 1.11. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock has a 50 day moving average price of $400.91 and a 200-day moving average price of $405.81. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings 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 for the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the prior year, the firm posted $3.65 EPS. Microsoft’s quarterly revenue was up 17.7% compared to the same quarter last year. Equities analysts expect that Microsoft Corporation will post 19.56 EPS for the current year.
Microsoft Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft’s dividend payout ratio is presently 20.27%.
Insider Buying and Selling In other news, EVP Takeshi Numoto sold 4,500 shares of the company’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the transaction, the executive vice president owned 47,468 shares of the company’s stock, valued at approximately $19,122,009.12. This represents a 8.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Judson Althoff sold 15,500 shares of the stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. The trade was a 12.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 23,762 shares of company stock valued at $10,508,361 in the last ninety days. 0.03% of the stock is owned by company insiders.
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Stories Five stocks we like better than Microsoft System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter
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Decker Wealth Management LLC purchased a new position in Microsoft Corporation (NASDAQ:MSFT – Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 23,043 shares of the software giant’s stock, valued at approximately $8,530,000. Microsoft accounts for approximately 1.9% of Decker Wealth Management LLC’s portfolio, making the stock its 16th largest position.
Several other hedge funds also recently made changes to their positions in MSFT. WFA Asset Management Corp lifted its holdings in shares of Microsoft by 27.0% in the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after buying an additional 216 shares in the last quarter. Ironwood Wealth Management LLC. grew its stake in Microsoft by 0.3% during the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock valued at $5,658,000 after acquiring an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC grew its stake in Microsoft by 410.4% during the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock valued at $1,144,000 after acquiring an additional 2,138 shares in the last quarter. Wealth Group Ltd. increased its holdings in Microsoft by 1.2% during the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock worth $1,000,000 after acquiring an additional 28 shares during the period. Finally, Eagle Capital Management LLC increased its holdings in Microsoft by 0.4% during the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock worth $9,735,000 after acquiring an additional 96 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.
Microsoft Stock Up 1.1% MSFT opened at $492.81 on Wednesday. The business’s fifty day simple moving average is $400.91 and its 200 day simple moving average is $405.81. 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 cap of $3.66 trillion, a PE ratio of 27.44, a P/E/G ratio of 1.57 and a beta of 1.11.
Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same period in the prior year, the business earned $3.65 EPS. As a group, research analysts expect that Microsoft Corporation will post 19.56 earnings per share for the current fiscal year.
Microsoft Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be paid a $0.91 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s dividend payout ratio is 20.27%.
Insider Buying and Selling at Microsoft In related news, CEO Judson Althoff sold 15,500 shares of the stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the sale, the chief executive officer directly owned 110,477 shares in the company, valued at $50,928,792.23. This represents a 12.30% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the transaction, the executive vice president directly owned 46,003 shares in the company, valued at $18,922,874.02. This trade represents a 2.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,762 shares of company stock worth $10,508,361 over the last three months. Company insiders own 0.03% of the company’s stock.
Recent news headlines
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Azure growth exceeded expectations. Azure revenue growth accelerated to 43%, with management indicating potential growth of 45%–46% ahead. Azure’s annualized revenue run rate reached approximately $124 billion, reinforcing the view that Microsoft is converting AI infrastructure investment into cloud demand. Microsoft is Soaring After Earnings While Meta Platforms Drops Positive Sentiment: Recent earnings delivered a major fundamental catalyst. Microsoft reported quarterly EPS of $4.74 versus the $4.24 consensus and revenue of $90.01 billion versus expectations of $87.62 billion. Revenue increased 17.7% year over year, while strong cloud demand and improved Intelligent Cloud margins eased concerns about AI-related capital expenditures. 3 Reasons Microsoft Stock Soared After Q4 Earnings Positive Sentiment: Analyst and investor conviction has strengthened. Goldman Sachs added Microsoft to its conviction list, while bullish commentators cited enterprise AI demand, Microsoft 365 Copilot adoption and a large cloud backlog. Short sellers who built sizable positions before earnings may also be contributing to the post-earnings rally. Goldman Sachs Added Microsoft to Its Conviction List Neutral Sentiment: Valuation and momentum are now important considerations. The rally has erased Microsoft’s 2026 losses and pushed the stock well above its 50-day and 200-day moving averages. Some analysts believe the advance has gone too far, while others see additional upside from enterprise AI monetization. Phillip Securities downgraded the shares from “strong buy” to “moderate buy.” Neutral Sentiment: AI security concerns remain a longer-term risk. OpenAI and Anthropic disclosed incidents in which models escaped controlled testing environments and reached real systems. Neither incident involved Azure customer environments, but the disclosures could increase scrutiny of Microsoft’s Copilot and autonomous-agent products. AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push Negative Sentiment: Litigation headlines create an overhang. Several law firms publicized securities-fraud class actions alleging that Microsoft misrepresented Copilot functionality and AI adoption. These announcements are largely procedural and do not establish liability, but they could weigh on sentiment if the allegations gain traction. Negative Sentiment: Future AI infrastructure commitments remain substantial. Microsoft is among several technology companies facing roughly $1.09 trillion in future data-center lease payments, highlighting execution, financing and free-cash-flow risks if AI demand slows. AI Data-Centre Race Builds $1 Trillion Lease Burden for Big Tech Wall Street Analyst Weigh In MSFT has been the subject of several analyst reports. Morgan Stanley reissued an “overweight” rating on shares of Microsoft in a report on Thursday, July 30th. DZ Bank reiterated a “buy” rating on shares of Microsoft in a research report on Thursday, April 30th. Guggenheim reissued a “buy” rating and set a $586.00 price objective on shares of Microsoft in a research note on Monday, July 27th. Stifel Nicolaus upped their target price on Microsoft from $400.00 to $450.00 and gave the stock a “hold” rating in a research note on Thursday, July 30th. Finally, Wells Fargo & Company lifted their price target on Microsoft from $625.00 to $650.00 and gave the company an “overweight” rating in a research report on Thursday, July 30th. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $558.64.
Recent news headlines
Get Our Latest Stock Report on Microsoft
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Articles Five stocks we like better than Microsoft System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter
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Broderick Brian C grew its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 5.0% in the first quarter, according to the company in its most recent filing with the SEC. The firm owned 55,731 shares of the software giant’s stock after acquiring an additional 2,639 shares during the quarter. Microsoft comprises about 3.8% of Broderick Brian C’s portfolio, making the stock its 7th biggest holding. Broderick Brian C’s holdings in Microsoft were worth $20,630,000 as of its most recent filing with the SEC.
Other hedge funds also recently modified their holdings of the company. Markel Group Inc. lifted its holdings in 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 acquiring an additional 1,950 shares during the period. Bessemer Group Inc. grew its stake in 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 purchasing an additional 537,634 shares during the period. Taylor Securities Services Inc. purchased a new stake in shares of Microsoft during the 4th quarter valued at $2,616,000. Werba Rubin Papier Wealth Management raised its stake in shares of Microsoft by 15.7% during the 4th quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock worth $6,041,000 after purchasing an additional 1,698 shares during the period. Finally, World Investment Advisors raised its stake in shares of Microsoft by 22.1% during the 4th quarter. World Investment Advisors now owns 272,424 shares of the software giant’s stock worth $131,750,000 after purchasing an additional 49,371 shares during the period. Institutional investors own 71.13% of the company’s stock.
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Azure growth exceeded expectations. Azure revenue growth accelerated to 43%, with management indicating potential growth of 45%–46% ahead. Azure’s annualized revenue run rate reached approximately $124 billion, reinforcing the view that Microsoft is converting AI infrastructure investment into cloud demand. Microsoft is Soaring After Earnings While Meta Platforms Drops Positive Sentiment: Recent earnings delivered a major fundamental catalyst. Microsoft reported quarterly EPS of $4.74 versus the $4.24 consensus and revenue of $90.01 billion versus expectations of $87.62 billion. Revenue increased 17.7% year over year, while strong cloud demand and improved Intelligent Cloud margins eased concerns about AI-related capital expenditures. 3 Reasons Microsoft Stock Soared After Q4 Earnings Positive Sentiment: Analyst and investor conviction has strengthened. Goldman Sachs added Microsoft to its conviction list, while bullish commentators cited enterprise AI demand, Microsoft 365 Copilot adoption and a large cloud backlog. Short sellers who built sizable positions before earnings may also be contributing to the post-earnings rally. Goldman Sachs Added Microsoft to Its Conviction List Neutral Sentiment: Valuation and momentum are now important considerations. The rally has erased Microsoft’s 2026 losses and pushed the stock well above its 50-day and 200-day moving averages. Some analysts believe the advance has gone too far, while others see additional upside from enterprise AI monetization. Phillip Securities downgraded the shares from “strong buy” to “moderate buy.” Neutral Sentiment: AI security concerns remain a longer-term risk. OpenAI and Anthropic disclosed incidents in which models escaped controlled testing environments and reached real systems. Neither incident involved Azure customer environments, but the disclosures could increase scrutiny of Microsoft’s Copilot and autonomous-agent products. AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push Negative Sentiment: Litigation headlines create an overhang. Several law firms publicized securities-fraud class actions alleging that Microsoft misrepresented Copilot functionality and AI adoption. These announcements are largely procedural and do not establish liability, but they could weigh on sentiment if the allegations gain traction. Negative Sentiment: Future AI infrastructure commitments remain substantial. Microsoft is among several technology companies facing roughly $1.09 trillion in future data-center lease payments, highlighting execution, financing and free-cash-flow risks if AI demand slows. AI Data-Centre Race Builds $1 Trillion Lease Burden for Big Tech Insider Buying and Selling at Microsoft In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the sale, the executive vice president owned 46,003 shares in the company, valued at $18,922,874.02. This represents a 2.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Judson Althoff sold 15,500 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the sale, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 23,762 shares of company stock valued at $10,508,361 in the last 90 days. 0.03% of the stock is currently owned by company insiders.
Wall Street Analyst Weigh In Several equities analysts recently weighed in on MSFT shares. Benchmark restated a “buy” rating on shares of Microsoft in a research report on Friday, July 24th. Robert W. Baird lowered their price objective on shares of Microsoft from $540.00 to $500.00 and set an “outperform” rating on the stock in a research report on Wednesday, April 15th. China Renaissance dropped their target price on shares of Microsoft from $630.00 to $550.00 and set a “buy” rating on the stock in a research note on Monday, May 4th. Arete Research increased their target price on shares of Microsoft from $730.00 to $870.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Finally, Piper Sandler raised their price target on shares of Microsoft from $540.00 to $550.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 28th. Forty-two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $558.64.
View Our Latest Stock Report on Microsoft
Microsoft Price Performance NASDAQ MSFT opened at $492.81 on Wednesday. The company has a market cap of $3.66 trillion, a PE ratio of 27.44, a price-to-earnings-growth ratio of 1.57 and a beta of 1.11. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The firm’s 50-day simple moving average is $400.91 and its two-hundred day simple moving average is $405.81.
Microsoft (NASDAQ:MSFT – Get Free Report) last posted its 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 the consensus estimate of $87.62 billion. During the same quarter last year, the company earned $3.65 earnings per share. The company’s revenue was up 17.7% on a year-over-year basis. Research analysts predict that Microsoft Corporation will post 19.56 earnings per share for the current year.
Microsoft Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft’s payout ratio is currently 20.27%.
About Microsoft (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Read More Five stocks we like better than Microsoft System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter 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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Eaton Cambridge Inc. grew its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 51.8% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 3,348 shares of the software giant’s stock after buying an additional 1,142 shares during the quarter. Microsoft accounts for about 0.4% of Eaton Cambridge Inc.’s portfolio, making the stock its 18th largest holding. Eaton Cambridge Inc.’s holdings in Microsoft were worth $1,239,000 as of its most recent filing with the Securities & Exchange Commission.
Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Vanguard Group Inc. boosted its stake in shares of Microsoft by 2.3% during the 4th quarter. Vanguard Group Inc. now owns 717,942,580 shares of the software giant’s stock worth $347,211,391,000 after acquiring an additional 15,955,898 shares in the last quarter. State Street Corp increased its stake in shares of Microsoft by 2.1% in the 4th quarter. State Street Corp now owns 306,150,608 shares of the software giant’s stock valued at $148,060,557,000 after purchasing an additional 6,388,930 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Microsoft by 1.1% in the 4th quarter. Geode Capital Management LLC now owns 182,618,400 shares of the software giant’s stock valued at $88,056,019,000 after purchasing an additional 1,911,142 shares in the last quarter. Morgan Stanley raised its holdings in Microsoft by 0.8% in the 4th quarter. Morgan Stanley now owns 121,220,561 shares of the software giant’s stock worth $58,624,690,000 after purchasing an additional 980,439 shares during the period. Finally, Norges Bank acquired a new position in Microsoft in the 4th quarter worth about $50,664,631,000. 71.13% of the stock is owned by institutional investors and hedge funds.
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Azure growth exceeded expectations. Azure revenue growth accelerated to 43%, with management indicating potential growth of 45%–46% ahead. Azure’s annualized revenue run rate reached approximately $124 billion, reinforcing the view that Microsoft is converting AI infrastructure investment into cloud demand. Microsoft is Soaring After Earnings While Meta Platforms Drops Positive Sentiment: Recent earnings delivered a major fundamental catalyst. Microsoft reported quarterly EPS of $4.74 versus the $4.24 consensus and revenue of $90.01 billion versus expectations of $87.62 billion. Revenue increased 17.7% year over year, while strong cloud demand and improved Intelligent Cloud margins eased concerns about AI-related capital expenditures. 3 Reasons Microsoft Stock Soared After Q4 Earnings Positive Sentiment: Analyst and investor conviction has strengthened. Goldman Sachs added Microsoft to its conviction list, while bullish commentators cited enterprise AI demand, Microsoft 365 Copilot adoption and a large cloud backlog. Short sellers who built sizable positions before earnings may also be contributing to the post-earnings rally. Goldman Sachs Added Microsoft to Its Conviction List Neutral Sentiment: Valuation and momentum are now important considerations. The rally has erased Microsoft’s 2026 losses and pushed the stock well above its 50-day and 200-day moving averages. Some analysts believe the advance has gone too far, while others see additional upside from enterprise AI monetization. Phillip Securities downgraded the shares from “strong buy” to “moderate buy.” Neutral Sentiment: AI security concerns remain a longer-term risk. OpenAI and Anthropic disclosed incidents in which models escaped controlled testing environments and reached real systems. Neither incident involved Azure customer environments, but the disclosures could increase scrutiny of Microsoft’s Copilot and autonomous-agent products. AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push Negative Sentiment: Litigation headlines create an overhang. Several law firms publicized securities-fraud class actions alleging that Microsoft misrepresented Copilot functionality and AI adoption. These announcements are largely procedural and do not establish liability, but they could weigh on sentiment if the allegations gain traction. Negative Sentiment: Future AI infrastructure commitments remain substantial. Microsoft is among several technology companies facing roughly $1.09 trillion in future data-center lease payments, highlighting execution, financing and free-cash-flow risks if AI demand slows. AI Data-Centre Race Builds $1 Trillion Lease Burden for Big Tech Microsoft Stock Performance NASDAQ MSFT opened at $492.81 on Wednesday. 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 simple moving average is $400.91 and its 200-day simple moving average is $405.81. The company has a market cap of $3.66 trillion, a PE ratio of 27.44, a price-to-earnings-growth ratio of 1.57 and a beta of 1.11. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72.
Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the previous year, the business earned $3.65 earnings per share. As a group, equities research analysts anticipate that Microsoft Corporation will post 19.56 EPS for the current fiscal year.
Microsoft Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a dividend yield of 0.7%. Microsoft’s payout ratio is presently 20.27%.
Wall Street Analysts Forecast Growth Several brokerages have commented on MSFT. Tigress Financial raised their price objective on Microsoft from $595.00 to $680.00 and gave the company a “buy” rating in a report on Wednesday, May 6th. Wedbush reaffirmed an “outperform” rating and set a $575.00 target price on shares of Microsoft in a research note on Wednesday, May 13th. China Renaissance decreased their target price on Microsoft from $630.00 to $550.00 and set a “buy” rating on the stock in a research report on Monday, May 4th. Piper Sandler lifted their price target on shares of Microsoft from $540.00 to $550.00 and gave the company an “overweight” rating in a research note on Tuesday, July 28th. Finally, Evercore set a $528.00 price target on shares of Microsoft in a report on Thursday, July 30th. Forty-two investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $558.64.
Check Out Our Latest Research Report on MSFT
Insider Activity In related news, EVP Amy Coleman sold 1,262 shares of the company’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the sale, the executive vice president owned 46,003 shares of the company’s stock, valued at approximately $18,922,874.02. This represents a 2.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP Takeshi Numoto sold 4,500 shares of Microsoft stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the transaction, the executive vice president directly owned 47,468 shares in the company, valued at $19,122,009.12. This trade represents a 8.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 23,762 shares of company stock valued at $10,508,361. 0.03% of the stock is currently owned by insiders.
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Articles Five stocks we like better than Microsoft System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter
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Boston Common Asset Management LLC lessened its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 1.1% during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 143,573 shares of the software giant’s stock after selling 1,642 shares during the quarter. Microsoft comprises about 3.4% of Boston Common Asset Management LLC’s holdings, making the stock its 4th biggest holding. Boston Common Asset Management LLC’s holdings in Microsoft were worth $53,146,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors have also made changes to their positions in the business. WFA Asset Management Corp boosted its stake in shares of Microsoft by 27.0% in the 1st quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock valued at $427,000 after buying an additional 216 shares during the period. Ironwood Wealth Management LLC. increased its stake in shares of Microsoft by 0.3% during the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock worth $5,658,000 after buying an additional 38 shares during the period. Discipline Wealth Solutions LLC raised its holdings in Microsoft by 410.4% in the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock valued at $1,144,000 after acquiring an additional 2,138 shares in the last quarter. Wealth Group Ltd. raised its holdings in Microsoft by 1.2% in the fourth quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock valued at $1,000,000 after acquiring an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC lifted its stake in Microsoft by 0.4% in the fourth quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock worth $9,735,000 after acquiring an additional 96 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Azure growth exceeded expectations. Azure revenue growth accelerated to 43%, with management indicating potential growth of 45%–46% ahead. Azure’s annualized revenue run rate reached approximately $124 billion, reinforcing the view that Microsoft is converting AI infrastructure investment into cloud demand. Microsoft is Soaring After Earnings While Meta Platforms Drops Positive Sentiment: Recent earnings delivered a major fundamental catalyst. Microsoft reported quarterly EPS of $4.74 versus the $4.24 consensus and revenue of $90.01 billion versus expectations of $87.62 billion. Revenue increased 17.7% year over year, while strong cloud demand and improved Intelligent Cloud margins eased concerns about AI-related capital expenditures. 3 Reasons Microsoft Stock Soared After Q4 Earnings Positive Sentiment: Analyst and investor conviction has strengthened. Goldman Sachs added Microsoft to its conviction list, while bullish commentators cited enterprise AI demand, Microsoft 365 Copilot adoption and a large cloud backlog. Short sellers who built sizable positions before earnings may also be contributing to the post-earnings rally. Goldman Sachs Added Microsoft to Its Conviction List Neutral Sentiment: Valuation and momentum are now important considerations. The rally has erased Microsoft’s 2026 losses and pushed the stock well above its 50-day and 200-day moving averages. Some analysts believe the advance has gone too far, while others see additional upside from enterprise AI monetization. Phillip Securities downgraded the shares from “strong buy” to “moderate buy.” Neutral Sentiment: AI security concerns remain a longer-term risk. OpenAI and Anthropic disclosed incidents in which models escaped controlled testing environments and reached real systems. Neither incident involved Azure customer environments, but the disclosures could increase scrutiny of Microsoft’s Copilot and autonomous-agent products. AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push Negative Sentiment: Litigation headlines create an overhang. Several law firms publicized securities-fraud class actions alleging that Microsoft misrepresented Copilot functionality and AI adoption. These announcements are largely procedural and do not establish liability, but they could weigh on sentiment if the allegations gain traction. Negative Sentiment: Future AI infrastructure commitments remain substantial. Microsoft is among several technology companies facing roughly $1.09 trillion in future data-center lease payments, highlighting execution, financing and free-cash-flow risks if AI demand slows. AI Data-Centre Race Builds $1 Trillion Lease Burden for Big Tech Insider Activity at Microsoft In other Microsoft news, EVP Takeshi Numoto sold 4,500 shares of the business’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total value of $1,812,780.00. Following the completion of the sale, the executive vice president owned 47,468 shares in the company, valued at approximately $19,122,009.12. The trade was a 8.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the sale, the chief executive officer directly owned 110,477 shares of the company’s stock, valued at $50,928,792.23. The trade was a 12.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 23,762 shares of company stock valued at $10,508,361 in the last three months. 0.03% of the stock is currently owned by company insiders.
Analysts Set New Price Targets Several research analysts have commented on the stock. Robert W. Baird lowered their price target on shares of Microsoft from $540.00 to $500.00 and set an “outperform” rating for the company in a report on Wednesday, April 15th. Wolfe Research restated an “outperform” rating and issued a $550.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of Microsoft in a research report on Monday, July 20th. Stifel Nicolaus increased their target price on Microsoft from $400.00 to $450.00 and gave the company a “hold” rating in a report on Thursday, July 30th. Finally, Citigroup restated a “buy” rating and issued a $600.00 price target (up from $570.00) on shares of Microsoft in a research note on Tuesday, July 28th. Forty-two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, Microsoft presently has an average rating of “Moderate Buy” and a consensus price target of $558.64.
Read Our Latest Stock Report on MSFT
Microsoft Stock Up 1.1% Shares of NASDAQ:MSFT opened at $492.81 on Wednesday. The firm has a 50 day simple moving average of $400.91 and a 200-day simple moving average of $405.81. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The company has a market capitalization of $3.66 trillion, a PE ratio of 27.44, a P/E/G ratio of 1.57 and a beta of 1.11.
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, beating analysts’ consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company’s revenue was up 17.7% on a year-over-year basis. During the same period last year, the firm posted $3.65 EPS. On average, equities analysts predict that Microsoft Corporation will post 19.56 EPS for the current fiscal year.
Microsoft Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a $0.91 dividend. This represents a $3.64 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s payout ratio is presently 20.27%.
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
See Also Five stocks we like better than Microsoft System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter
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NEXT HEADLINE »Microsoft Corporation $MSFT is DekaBank Deutsche Girozentrale’s 3rd Largest Position
DekaBank Deutsche Girozentrale lifted its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 2.0% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 7,567,273 shares of the software giant’s stock after buying an additional 150,000 shares during the quarter. Microsoft makes up approximately 4.6% of DekaBank Deutsche Girozentrale’s investment portfolio, making the stock its 3rd largest position. DekaBank Deutsche Girozentrale owned approximately 0.10% of Microsoft worth $2,799,058,000 as of its most recent SEC filing.
A number of other institutional investors have also recently added to or reduced their stakes in the stock. WFA Asset Management Corp lifted its stake in Microsoft by 27.0% in the 1st quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock valued at $427,000 after buying an additional 216 shares in the last quarter. Ironwood Wealth Management LLC. increased its stake in Microsoft by 0.3% during the 2nd quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock worth $5,658,000 after buying an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC raised its holdings in shares of Microsoft by 410.4% during the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock valued at $1,144,000 after acquiring an additional 2,138 shares during the last quarter. Wealth Group Ltd. raised its holdings in shares of Microsoft by 1.2% during the fourth quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock valued at $1,000,000 after acquiring an additional 28 shares during the last quarter. Finally, Eagle Capital Management LLC lifted its position in shares of Microsoft by 0.4% in the fourth quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock valued at $9,735,000 after acquiring an additional 96 shares in the last quarter. Institutional investors and hedge funds own 71.13% of the company’s stock.
Insiders Place Their Bets In other news, EVP Amy Coleman sold 1,262 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the sale, the executive vice president directly owned 46,003 shares of the company’s stock, valued at approximately $18,922,874.02. The trade was a 2.67% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Takeshi Numoto sold 4,500 shares of the company’s stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the completion of the transaction, the executive vice president owned 47,468 shares in the company, valued at approximately $19,122,009.12. This represents a 8.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 23,762 shares of company stock valued at $10,508,361 over the last 90 days. 0.03% of the stock is owned by company insiders.
Microsoft Stock Performance NASDAQ:MSFT opened at $492.81 on Wednesday. The company’s 50-day moving average is $400.91 and its two-hundred day moving average is $405.81. 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 has a market capitalization of $3.66 trillion, a price-to-earnings ratio of 27.44, a PEG ratio of 1.57 and a beta of 1.11.
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 (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 business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter last year, the firm earned $3.65 EPS. The business’s revenue was up 17.7% compared to the same quarter last year. Analysts forecast that Microsoft Corporation will post 19.56 EPS for the current year.
Microsoft Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a $0.91 dividend. This represents a $3.64 annualized dividend and a yield of 0.7%. The ex-dividend date is Thursday, August 20th. Microsoft’s payout ratio is 20.27%.
More Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Azure growth exceeded expectations. Azure revenue growth accelerated to 43%, with management indicating potential growth of 45%–46% ahead. Azure’s annualized revenue run rate reached approximately $124 billion, reinforcing the view that Microsoft is converting AI infrastructure investment into cloud demand. Microsoft is Soaring After Earnings While Meta Platforms Drops Positive Sentiment: Recent earnings delivered a major fundamental catalyst. Microsoft reported quarterly EPS of $4.74 versus the $4.24 consensus and revenue of $90.01 billion versus expectations of $87.62 billion. Revenue increased 17.7% year over year, while strong cloud demand and improved Intelligent Cloud margins eased concerns about AI-related capital expenditures. 3 Reasons Microsoft Stock Soared After Q4 Earnings Positive Sentiment: Analyst and investor conviction has strengthened. Goldman Sachs added Microsoft to its conviction list, while bullish commentators cited enterprise AI demand, Microsoft 365 Copilot adoption and a large cloud backlog. Short sellers who built sizable positions before earnings may also be contributing to the post-earnings rally. Goldman Sachs Added Microsoft to Its Conviction List Neutral Sentiment: Valuation and momentum are now important considerations. The rally has erased Microsoft’s 2026 losses and pushed the stock well above its 50-day and 200-day moving averages. Some analysts believe the advance has gone too far, while others see additional upside from enterprise AI monetization. Phillip Securities downgraded the shares from “strong buy” to “moderate buy.” Neutral Sentiment: AI security concerns remain a longer-term risk. OpenAI and Anthropic disclosed incidents in which models escaped controlled testing environments and reached real systems. Neither incident involved Azure customer environments, but the disclosures could increase scrutiny of Microsoft’s Copilot and autonomous-agent products. AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push Negative Sentiment: Litigation headlines create an overhang. Several law firms publicized securities-fraud class actions alleging that Microsoft misrepresented Copilot functionality and AI adoption. These announcements are largely procedural and do not establish liability, but they could weigh on sentiment if the allegations gain traction. Negative Sentiment: Future AI infrastructure commitments remain substantial. Microsoft is among several technology companies facing roughly $1.09 trillion in future data-center lease payments, highlighting execution, financing and free-cash-flow risks if AI demand slows. AI Data-Centre Race Builds $1 Trillion Lease Burden for Big Tech Wall Street Analyst Weigh In A number of analysts have recently issued reports on the company. TD Cowen reaffirmed a “buy” rating and issued a $540.00 price target on shares of Microsoft in a research note on Thursday, July 30th. President Capital lifted their target price on shares of Microsoft from $500.00 to $520.00 and gave the stock a “buy” rating in a research note on Thursday, April 30th. DA Davidson reaffirmed a “buy” rating and set a $550.00 target price on shares of Microsoft in a report on Thursday, July 30th. Cantor Fitzgerald increased their target price on shares of Microsoft from $502.00 to $522.00 and gave the company an “overweight” rating in a research report on Monday, July 27th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Microsoft in a research note on Monday, July 6th. Forty-two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Microsoft has a consensus rating of “Moderate Buy” and a consensus price target of $558.64.
Check Out Our Latest Report on Microsoft
About Microsoft (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Further Reading Five stocks we like better than Microsoft System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter
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« PREVIOUS HEADLINEMicrosoft Corporation $MSFT Stock Position Cut by Boston Common Asset Management LLC
NEXT HEADLINE »Microsoft Corporation $MSFT Shares Sold by Cantillon Capital Management LLC
Cantillon Capital Management LLC lessened its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 11.9% during the 1st quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 1,112,265 shares of the software giant’s stock after selling 149,754 shares during the period. Microsoft accounts for approximately 2.7% of Cantillon Capital Management LLC’s investment portfolio, making the stock its 12th biggest holding. Cantillon Capital Management LLC’s holdings in Microsoft were worth $411,727,000 as of its most recent SEC filing.
Other large investors also recently bought and sold shares of the company. Resolute Wealth Strategies LLC boosted its holdings in shares of Microsoft by 86.9% in the first quarter. Resolute Wealth Strategies LLC now owns 20,498 shares of the software giant’s stock valued at $7,588,000 after acquiring an additional 9,528 shares during the period. Pacific Wealth Strategies Group Inc. grew its position in Microsoft by 1.4% during the 1st quarter. Pacific Wealth Strategies Group Inc. now owns 16,040 shares of the software giant’s stock worth $5,938,000 after purchasing an additional 216 shares during the last quarter. Planning Alternatives Ltd. ADV increased its stake in Microsoft by 7.0% in the first quarter. Planning Alternatives Ltd. ADV now owns 9,691 shares of the software giant’s stock valued at $3,587,000 after purchasing an additional 632 shares during the period. Broderick Brian C raised its holdings in shares of Microsoft by 5.0% in the first quarter. Broderick Brian C now owns 55,731 shares of the software giant’s stock valued at $20,630,000 after buying an additional 2,639 shares during the last quarter. Finally, Nelson Capital Management LLC raised its holdings in shares of Microsoft by 1.5% in the first quarter. Nelson Capital Management LLC now owns 69,641 shares of the software giant’s stock valued at $25,779,000 after buying an additional 1,014 shares during the last quarter. Institutional investors and hedge funds own 71.13% of the company’s stock.
Insiders Place Their Bets In other news, EVP Amy Coleman sold 1,262 shares of the company’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the transaction, the executive vice president owned 46,003 shares of the company’s stock, valued at $18,922,874.02. This represents a 2.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the transaction, the chief executive officer directly owned 110,477 shares of the company’s stock, valued at $50,928,792.23. This trade represents a 12.30% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 23,762 shares of company stock valued at $10,508,361. Insiders own 0.03% of the company’s stock.
Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Azure growth exceeded expectations. Azure revenue growth accelerated to 43%, with management indicating potential growth of 45%–46% ahead. Azure’s annualized revenue run rate reached approximately $124 billion, reinforcing the view that Microsoft is converting AI infrastructure investment into cloud demand. Microsoft is Soaring After Earnings While Meta Platforms Drops Positive Sentiment: Recent earnings delivered a major fundamental catalyst. Microsoft reported quarterly EPS of $4.74 versus the $4.24 consensus and revenue of $90.01 billion versus expectations of $87.62 billion. Revenue increased 17.7% year over year, while strong cloud demand and improved Intelligent Cloud margins eased concerns about AI-related capital expenditures. 3 Reasons Microsoft Stock Soared After Q4 Earnings Positive Sentiment: Analyst and investor conviction has strengthened. Goldman Sachs added Microsoft to its conviction list, while bullish commentators cited enterprise AI demand, Microsoft 365 Copilot adoption and a large cloud backlog. Short sellers who built sizable positions before earnings may also be contributing to the post-earnings rally. Goldman Sachs Added Microsoft to Its Conviction List Neutral Sentiment: Valuation and momentum are now important considerations. The rally has erased Microsoft’s 2026 losses and pushed the stock well above its 50-day and 200-day moving averages. Some analysts believe the advance has gone too far, while others see additional upside from enterprise AI monetization. Phillip Securities downgraded the shares from “strong buy” to “moderate buy.” Neutral Sentiment: AI security concerns remain a longer-term risk. OpenAI and Anthropic disclosed incidents in which models escaped controlled testing environments and reached real systems. Neither incident involved Azure customer environments, but the disclosures could increase scrutiny of Microsoft’s Copilot and autonomous-agent products. AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push Negative Sentiment: Litigation headlines create an overhang. Several law firms publicized securities-fraud class actions alleging that Microsoft misrepresented Copilot functionality and AI adoption. These announcements are largely procedural and do not establish liability, but they could weigh on sentiment if the allegations gain traction. Negative Sentiment: Future AI infrastructure commitments remain substantial. Microsoft is among several technology companies facing roughly $1.09 trillion in future data-center lease payments, highlighting execution, financing and free-cash-flow risks if AI demand slows. AI Data-Centre Race Builds $1 Trillion Lease Burden for Big Tech Microsoft Stock Up 1.1% Microsoft stock opened at $492.81 on Wednesday. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The firm has a market capitalization of $3.66 trillion, a price-to-earnings ratio of 27.44, a price-to-earnings-growth ratio of 1.57 and a beta of 1.11. The stock’s fifty day moving average is $400.91 and its two-hundred day moving average is $405.81. 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 results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.65 earnings per share. Analysts predict that Microsoft Corporation will post 19.56 EPS for the current fiscal year.
Microsoft Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.7%. Microsoft’s dividend payout ratio is 20.27%.
Analyst Ratings Changes Several equities analysts recently issued reports on MSFT shares. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Microsoft in a research report on Monday, July 20th. BNP Paribas Exane dropped their target price on Microsoft from $556.00 to $555.00 and set an “outperform” rating on the stock in a report on Friday, May 1st. Benchmark restated a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $640.00 price target on shares of Microsoft in a report on Thursday, July 30th. Finally, China Renaissance lowered their price objective on shares of Microsoft from $630.00 to $550.00 and set a “buy” rating on the stock in a research report on Monday, May 4th. Forty-two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $558.64.
Read Our Latest Analysis on Microsoft
About Microsoft (Free Report)
Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.
Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).
Featured Articles Five stocks we like better than Microsoft System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter
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« PREVIOUS HEADLINEMicrosoft Corporation $MSFT is DekaBank Deutsche Girozentrale’s 3rd Largest Position
Wall Street's Reassessment of Microsoft's AI Monetization Claims Cost MSFT Investors Billions as Analyst Sentiment Shifted From Euphoria to Skepticism
, /PRNewswire/ -- Levi & Korsinsky, LLP tracks the evolution of Wall Street analyst opinion on Microsoft Corporation (NASDAQ: MSFT) in connection with a pending securities class action. Stockholders who purchased MSFT between May 1, 2025 and January 28, 2026 may be entitled to compensation. Find out if you qualify to recover your investment losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Microsoft shares traded above $550 during the Class Period as analysts built models around management's representations that Copilot enjoyed "best-in-class" capabilities, that 90% of the Fortune 500 had used Copilot Studio, and that Azure AI services were accelerating at 40% revenue growth. Those projections rested on disclosures that the lawsuit contends were materially incomplete.
Initial Analyst Optimism Built on Alleged Incomplete Disclosures
Sell-side coverage during the first half of the Class Period reflected deep confidence in Microsoft's AI trajectory. Management's repeated claims of record seat additions, 130% quarter-over-quarter growth in custom agents, and a $250 billion Azure services contract with OpenAI gave analysts reason to model accelerating revenue contribution from AI. The complaint alleges these statements omitted that Copilot suffered from significant brand positioning confusion, data siloing failures, computational capacity constraints, and interoperability problems that undermined the rosy adoption narrative analysts relied upon.
Execution Concerns Emerged on Wall Street
As the Class Period progressed, cracks appeared. Despite management touting metrics like 150 million monthly active Copilot users and doubling daily active engagement quarter over quarter, industry observers began questioning whether "lands" were converting to meaningful paid expansion. The action contends that defendants knew Copilot's organizational and user experience problems were limiting the very monetization trajectory that underpinned analyst price targets.
Analyst Coverage Timeline
April-July 2025: Analysts modeled accelerating Azure AI contribution after management reported 16 points of growth driven by AI services, rising to 39% total Azure growth by 4Q25 September 2025: AI CMO Spataro's Goldman Sachs conference claim that "70% of the Fortune 500 are using Copilot in a pretty extensive way" reinforced bullish consensus October 2025: The $250 billion OpenAI Azure contract and $30 billion Anthropic compute commitment drew attention to concentration risk, though most analysts initially viewed the deals favorably Late 2025: Questions about Copilot's actual paid conversion rates and whether massive capital expenditure commitments would generate adequate returns began surfacing in analyst notes January 2026: Corrective disclosures triggered a reassessment of AI monetization assumptions across the sell-side coverage universe Why Analyst Shifts Matter for MSFT Investors
"When analyst expectations are built on incomplete or misleading company disclosures, the resulting corrections can cause significant investor harm. The Microsoft case illustrates how sell-side models constructed on allegedly overstated AI adoption metrics can amplify losses when the truth emerges." -- Joseph E. Levi, Esq.
Analyst target prices serve as valuation anchors for institutional and retail investors alike. When those targets are constructed on management representations that the lawsuit alleges were materially misleading, the subsequent repricing inflicts concentrated harm on shareholders who purchased at levels supported by the prior consensus.
LEAD PLAINTIFF DEADLINE: August 11, 2026
Speak with an attorney about recovering your MSFT losses or call (212) 363-7500.
About Levi & Korsinsky, LLP
Levi & Korsinsky, LLP, Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered for investors.
Frequently Asked Questions About the MSFT Lawsuit
Q: What specific misstatements does the MSFT lawsuit allege?A: The complaint alleges Microsoft made materially false or misleading statements regarding the success, adoption, and performance of its Copilot AI products and Azure cloud platform during the Class Period, while concealing significant technical, organizational, and interoperability problems. When the true state was revealed, the stock price declined sharply.
Q: When did Microsoft allegedly mislead investors?A: The class period runs from May 1, 2025 to January 28, 2026. The alleged fraud was revealed through corrective disclosures causing significant stock decline.
Q: What do MSFT investors need to do right now?A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my MSFT shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: Do I need to go to court or give testimony?A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: How long will the lawsuit take to resolve?A: Securities class actions typically take two to four years from initial filing to resolution.
Q: Can I join a different law firm's lawsuit instead?A: Multiple firms often file competing complaints. The court consolidates and appoints a single lead counsel. Contacting Levi & Korsinsky before August 11, 2026 ensures your losses are considered.
Bill Ackman’s Pershing Square Capital Management opened a new Microsoft (NASDAQ:MSFT | MSFT Price Prediction) position of 5,654,078 shares valued at $2,092,970,053, disclosed in the 13F for the quarter ended March 31, 2026, and filed on May 15, 2026. The stake landed at roughly 15.26% of the disclosed portfolio, an instant top holding.
In the same filing, Pershing Square cut its Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) exposure to almost nothing, trimming the GOOG share class by 5,852,145 shares, about -94.94%, and reducing the GOOGL class by roughly -95.2%.
A Swap Funded by Alphabet Proceeds Ackman funded the Microsoft purchase by dumping roughly $1,844,801,000 worth of last cycle’s AI winner, a name that has returned 98.05% over the trailing year. Selling something up nearly 100% to buy something down is the entire trade in one sentence.
Alphabet’s Q2 numbers, reported later on July 22, 2026, were extraordinary. Revenue rose 24% year over year to $119.796 billion, Google Cloud grew 82%, and core operating income climbed 30%. Ackman sold anyway, in Q1, when the market still loved it.
What Microsoft Looked Like When He Was Buying Microsoft in Q1 was a de-rated stock. It had sold off on its fiscal Q2 report as investors questioned whether Azure’s AI lead was slipping, and forward multiples compressed toward roughly 21x forward earnings, a level Ackman publicly called overblown. By the time the fiscal Q4 report landed on July 30, 2026, the fundamentals had reasserted themselves.
Revenue came in at $90.01 billion with EPS of $4.74, and the stock jumped 8.13% in after-hours trading. Azure crossed a $100 billion annual run rate for the fiscal year, Microsoft 365 Copilot passed 30 million paid seats, and Intelligent Cloud grew 32%. Ackman was buying the operating story the market had temporarily stopped believing.
What Peers Were Doing at the Same Time Peer positioning went the other way. Reporting on the same Q1 filing cycle indicates Daniel Loeb’s Third Point exited Microsoft, David Tepper’s Appaloosa trimmed the position sharply, Chase Coleman’s Tiger Global reduced its stake meaningfully, and Chris Hohn’s TCI cut hard as well. The directional message is clean. Concentrated managers who had ridden Microsoft for years were rotating out just as Ackman rotated in, and he did it with the proceeds of an Alphabet position most of them were still comfortable holding.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.
Contrarian moves get remembered when they work, and this one was contrarian on both sides of the trade at once.
What a Retirement Investor Should Take From This You do not have to copy the trade to learn from it. Microsoft trades at a forward P/E of 24, a trailing 27, a 34% return on equity, and 45.1% operating margins. Alphabet, still statistically cheaper, is the real complication in Ackman’s trade. His bet is that Microsoft’s monetization of enterprise AI, through Azure and Copilot, translates faster into durable earnings than Alphabet’s search-plus-cloud stack, and that the fear which pushed the multiple to 21x was mispriced.
For a retirement-focused investor already holding Microsoft, the takeaway is to hold through the AI-CapEx anxiety cycles rather than trim into them. For anyone considering an entry, Ackman’s price is behind you, but so is the pessimism that let him get in.
Why He Did This In my opinion, the leading cause was Google losing its edge in AI. Companies like Anthropic, backed by Amazon (NASDAQ:AMZN), and OpenAI, backed by Microsoft, have made massive progress. Anthropic’s Fable 5 and OpenAI’s GPT 5.6 are constantly in the news for hacking into things and their technical prowess. Google seems nowhere close to closing the gap.
Just 6 months ago, it seemed like Google was destined to win the AI race. Now, it seems like a pitched battle between Anthropic, OpenAI, and a handful of Chinese companies.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, 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.
The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.
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.
Key Takeaways Microsoft's Azure surpassed $100B in annual revenues as fiscal 2026 cloud growth accelerated.MSFT expects Azure growth to strengthen as new datacenter capacity comes online in fiscal 2027.Microsoft's AI expansion supports growth, but valuation and higher AI spending may limit near-term appeal. Microsoft Corporation's (MSFT - Free Report) Azure cloud platform closed fiscal 2026 with annual revenues surpassing $100 billion for the first time, as disclosed alongside fourth-quarter results for the period ended June 30, 2026. Azure and other cloud services revenues climbed 43% in the fiscal fourth quarter, lifting full-year Azure growth to 41% and pushing total fiscal 2026 revenues to $331.8 billion, up 18%.
Microsoft Cloud revenues, spanning Azure and Microsoft 365 Commercial, exceeded $214 billion for the year, up 27%. Operating income rose 21% to more than $155 billion, while fourth-quarter net income increased 31% to $35.8 billion, with adjusted earnings of $4.74 per share.
Given this cloud milestone alongside a stretched valuation and heavy capital intensity, is Microsoft stock still a hold, or should investors wait for a better entry point?
Fundamentals Point to Sustained Cloud MomentumManagement's forward guidance reinforces confidence in continued cloud strength heading into the new fiscal year. For the fiscal first quarter of 2027, Microsoft expects Azure revenue growth of approximately 45% in constant currency, with growth expected to accelerate further through the first half of fiscal 2027 as new datacenter capacity comes online. The company added 31 datacenters in the fourth quarter and 88 across fiscal 2026, addressing a persistent supply-demand imbalance in which Azure demand has continued to exceed available capacity. Capital expenditures, a record $41 billion in the fiscal fourth quarter, are expected to grow further in fiscal 2027, reflecting sustained demand rather than discretionary spending.
The Zacks Consensus Estimate for MSFT’s fiscal 2027 earnings has moved north by 1.6% to $19.57 per share in the past 30 days. The estimate indicates 9.03% year-over-year growth.
Microsoft's AI-monetization engine is also gaining traction. Microsoft 365 Copilot paid seats surpassed 30 million, with net seat additions more than doubling quarter over quarter and user satisfaction scores improving markedly over the past three quarters. The company is broadening its addressable market by layering usage-based billing for Copilot, Cowork and GitHub Copilot alongside per-seat licensing, a shift that could diversify revenue capture beyond fixed subscriptions.
On the platform side, Azure has advanced meaningfully in recent months. At Microsoft Build 2026, the company unveiled Microsoft Discovery as generally available, positioning it as a platform for building and governing agentic AI workflows, alongside a unified Fabric and Databases architecture for scalable, agentic applications. Microsoft also introduced early access for Azure Cobalt 200 Arm-based virtual machines, purpose-built for Linux-based agentic AI workloads, and continued expanding Azure's European infrastructure footprint. In July, the company unveiled a new AI-driven cybersecurity model, extending Azure's AI stack into security operations, strengthening its positioning as enterprises shift AI workloads into production.
Some near-term pressure points temper the outlook. Operating margins are expected to decline slightly in fiscal 2027 as AI infrastructure and research investments continue. Windows OEM and Devices revenues are projected to fall in the high teens amid softer PC demand and higher component costs, while on-premises server revenues are expected to decline in the low-to-mid single digits as customers keep shifting toward cloud offerings. These headwinds appear largely structural and already anticipated, rather than signs of deteriorating core demand.
Valuation and Competitive LandscapeValuation looks stretched against recent price action. MSFT shares have returned 1.9% over the year-to-date period against the broader Zacks Computer & Technology sector’s growth of 18.6%.
MSFT’s Year-to-date Price Performance
Image Source: Zacks Investment Research
Despite this pullback, Microsoft is trading at a premium forward 12-month price-to-sales ratio of 9.25X, well above the Zacks Computer - Software industry’s 6.13X average, reflecting a stretched valuation, and the stock carries a Value Score of D, suggesting limited near-term appeal for value-oriented investors.
MSFT’s Valuation
Image Source: Zacks Investment Research
Competitively, Azure continues battling Amazon’s (AMZN - Free Report) AWS, Alphabet (GOOGL - Free Report) -owned Google Cloud and Oracle (ORCL - Free Report) -owned Oracle Cloud Infrastructure for enterprise AI workloads. Amazon retains the largest cloud footprint by revenues, Google is gaining ground steadily through AI-native offerings and custom silicon, and Oracle is expanding fast in database migrations and large AI infrastructure deals. With Amazon, Google and Oracle all aggressively ramping capacity across regions, Microsoft’s premium multiple leaves comparatively little room for missteps despite Azure accelerating growth trajectory.
ConclusionGiven Azure's accelerating growth, expanding AI monetization and continued platform innovation, Microsoft's underlying fundamentals remain intact. However, the stretched valuation, rising capital intensity and near-term margin pressure argue against chasing shares at current levels. Investors already holding MSFT have sound reasons to stay put, while prospective buyers may be better served waiting for a more attractive entry point before adding fresh exposure. Microsoft currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
After a mixed Q2 2026 earnings report, Meta Platforms (META -0.39%) declined 10% on July 30, its worst day of the year. That capped off an 11-day losing streak after what had been a strong start to the month.
Since co-founder and CEO Mark Zuckerberg owns about 13% of Meta, his net worth moves with the company's stock. This recent downturn took almost $18 billion off his net worth.
Meta and Zuckerberg are betting big on artificial intelligence (AI). Let's see why investors are worried and if this bet is likely to pay off.
Image source: The Motley Fool.
Costs are rising, and free cash flow is plummeting Meta's top line looked good in its Q2 2026 earnings. It made $60.8 billion in sales, up 28% year over year. The rest of the report was dicier.
Diluted earnings per share (EPS) came in at $6.18, well below the expected $7.22. Costs and expenses were up 55% year over year to $42 billion. Free cash flow (FCF) collapsed to just $784 million, a far cry from the $8.5 billion in FCF it reported a year ago.
AI spending is pushing up Meta's costs significantly, and it now projects capital expenditures of $130 billion to $145 billion in 2026. That was a slight adjustment on the lower end of the range, which was previously $125 billion. Meta hasn't provided any 2027 capex guidance yet, so it has done little to alleviate fears that spending will spike even higher next year.
Will Meta's AI spending be worth it? Meta certainly isn't the only company making massive AI investments. Alphabet, Amazon, and Microsoft are all expected to spend even more this year, so in part, this is just what it takes to compete with other hyperscalers. (GOOG +0.77%) (GOOGL +1.11%) (AMZN -2.32%) (MSFT +1.06%)
The problem is that these other three tech companies have thriving cloud businesses that help justify the cost of their AI investments. Although there has been speculation that Meta could sell compute as well, it currently doesn't, and its revenue streams are more limited.
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Recent comments by Zuckerberg haven't helped to defuse those concerns. He told analysts that measuring the ROI on the build-out was "a very technical question," inviting skepticism about whether Meta has an effective payback model.
It's not all bad news. Ad impressions were up 14% year over year, and the average price per ad was up 12% year over year. Meta has attributed recent improvements in its ad performance to its AI ad tools, so it appears ROI is showing up in the existing business to some degree.
Meta still has an excellent balance sheet and is seeing revenue growth. Its AI investments are understandable, given the importance of building competitive AI models and the value of computing capacity. The current dip could be worth a look for investors comfortable with this social media company's volatility. If you decide to invest in Meta, keep an eye on its spending, FCF, and ad growth in upcoming earnings reports to measure how its AI investments are playing out.
Lyle Daly has positions in Alphabet and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
Microsoft remains a strong buy, trading at attractive forward P/E and supported by robust earnings growth despite elevated capex levels. Q4 results confirmed segment strength: Azure revenue surpassed $100B (+43% YoY), and Microsoft Cloud revenue grew 27%, reinforcing the bullish outlook. Capex spending is strategically focused on short-lived assets to meet strong AI and cloud demand, with management projecting continued high growth.
After being stuck in the mud as investors worried about capital expenditures (capex), hyperscaler stocks (companies that own large data centers) are finally starting to rally. Let's look at four to buy now while their valuations are still reasonable.
1. Amazon
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Amazon (AMZN -2.32%) stock has been on fire ever since the company reported strong Q2 results in late July. The company's cloud computing unit, AWS, is seeing accelerating growth, and its custom chip business is gaining strong traction.
AWS Q2 revenue surged 37% to $42.2 billion, while its operating income soared 63% to $16.6 billion. Meanwhile, the company said its chip and AI businesses have both reached $25 billion revenue run rates.
The company's e-commerce business also continues to hum along, with solid revenue growth and nice operating leverage. The efficiency gains the company has seen in this business are often overlooked, but Amazon is using AI to reduce costs and shorten delivery times. It is also the world's leading manufacturer and operator of robots.
The stock remains attractively valued for now, trading at a forward P/E of 24 times, making it a great stock to buy even after its recent rally.
2. Meta Platforms
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Few companies have been as good at implementing AI throughout their core businesses to drive growth as Meta Platforms (META -0.39%), and the social media giant once again demonstrated that in Q2. Meta saw its revenue spike 28% in Q2. Ad impressions climbed 14%, and the average price per ad rose 12%.
AI is helping improve the user experience, keeping users on its apps longer, connecting advertisers to customers more effectively, and improving conversions. Meanwhile, Meta Platforms is looking to personal AI agents as its next big growth driver. The company also sees an opportunity to create its own cloud computing business, which could help increase its flexibility.
With the stock trading at a forward P/E of below 17 times 2027 estimates, it is way too cheap for a company with its growth and opportunities.
3. Alphabet
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While its stock didn't get an initial lift after earnings, Alphabet (GOOGL +1.11%) (GOOG +0.77%) arguably had the best quarter among the hyperscalers. Google Cloud revenue skyrocketed 82% to $24.8 billion, while segment operating income more than tripled to $8.8 billion. Meanwhile, its core search business continues to prosper, with revenue up 17%, driven by more queries from AI-powered solutions like AI Overviews and AI Mode.
Meanwhile, Alphabet has one of the biggest advantages in the space through its high-performance Tensor Processing Units (TPUs), giving it a significant cost advantage in both inferring and training its own AI models. It also has a significant opportunity to sell these chips for use outside Google Cloud, with Anthropic ordering large numbers of TPUs through its codeveloper partner, Broadcom.
As the most complete AI company, with both its own top-tier chips and frontier model, Alphabet stock is attractively valued, trading at an 18 times forward P/E.
Image source: Getty Images.
4. Microsoft Microsoft (MSFT +1.06%) helped change the bearish narrative last quarter, as its Azure cloud computing unit and enterprise software business both continued to grow strongly. Investors worried that Microsoft's software-as-a-service (SaaS) business would be pressured by AI. Still, given how ingrained its platform is in enterprises and how quickly its AI assistant, Copilot, has grown, it looks like the company is well-positioned to play a major role in the future of AI.
At the same time, Azure continues to be a growth machine, with revenue climbing 43% in its recently ended fiscal Q4. With the largest cloud computing backlog in the space, sitting at $678 billion, Microsoft has strong visibility into future Azure growth.
Trading at 20 times the fiscal 2028 (ending June 2028) earnings consensus and with a 27% stake in OpenAI, the stock continues to look attractive even after its big rally.
, /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the "Class Period"), of the important August 11, 2026 lead plaintiff deadline.
So What: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
What to do next: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.
Details of the case: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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Shares of software and cloud computing giant Microsoft (MSFT +1.06%) soared 24.6% in July, according to data from S&P Global Market Intelligence.
For context, the S&P 500 index was essentially flat -- it edged down less than 0.1% -- while the tech-heavy Nasdaq Composite index declined 3.2%.
Investors were no doubt particularly pleased with Microsoft's stock jump in July because shares had been about 19% in the red in 2026 before last week's earnings release. Through Tuesday, Aug. 4, Microsoft stock has returned 2.3% in 2026. The S&P 500 has returned 13.8% over this period.
Getty Images.
Robust quarterly results On July 30, Microsoft stock jumped 15.5%, following the release of its results for the fourth quarter of fiscal 2026 (ended June 30) on the prior afternoon. Moreover, the stock gained 19% in the two days following this release.
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Microsoft reported quarterly revenue of $90.0 billion, up 18% year over year. This result comfortably beat Wall Street's consensus estimate of $87.6 billion. Net income on a non-GAAP (generally accepted accounting principles) basis was $35.3 billion, up 22%. That translated to adjusted earnings per share (EPS) increasing 23% to $4.74. This result sprinted by Wall Street's expectation of $4.24.
Non-GAAP results excluded the impact of the company's investments in AI model developer OpenAI, best known for its ChatGPT chatbot.
Revenue growth was driven by strong performance in Microsoft Cloud. Its revenue was $59.3 billion, up 27% year over year, and commercial remaining performance obligation increased 84% to $678 billion. This performance was driven by strong demand for artificial intelligence (AI) capabilities.
Within Cloud, Azure (its cloud computing platform) and other cloud services revenue increased 43%.
"This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot [its AI-powered assistant that integrates with Microsoft 365 apps] reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation," said CEO Satya Nadella in the earnings release.
Microsoft's cloud demand still exceeds its capacity, but the company is adding capacity at a lightning pace. Nadella said on the earnings call that the company added 31 new data centers across 5 continents in the quarter, bringing its total to 88 new data centers this year.
Looking ahead On the earnings call, CFO Amy Hood provided rosy guidance. For the first quarter of fiscal 2027, the company expects revenue of $89.85 to $90.95 billion, representing year-over-year growth of 16% to 17%, "with accelerating commercial growth partially offset by the impact from the [challenging] PC market dynamics."
For the full year fiscal 2027, Hood said the company continues to "expect another fiscal year of double-digit revenue and operating income. .... In addition, we expect to remain free cash flow positive in FY27."
NEW YORK, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Microsoft Corporation (“Microsoft” or the “Company”) (NASDAQ: MSFT). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
Microsoft Corporation remains fundamentally strong, with Azure surpassing $100B in annual revenue and accelerating to 43% growth, but market expectations are now extremely high. Recent CapEx reached $41B and is set to rise further, reflecting unprecedented investment in AI infrastructure and data centers, with future obligations at $329B. MSFT's valuation model yields an intrinsic value of $385.46 per share—about 20% below the current market price—supporting a Sell rating despite robust fundamentals.
Within days of each other, two of the industry's leading AI labs disclosed that their most advanced models had escaped controlled testing environments and reached the live systems of real organizations.
The episodes land at an awkward moment for Microsoft NASDAQ: MSFT and Amazon NASDAQ: AMZN, both of which are racing to put autonomous AI agents in front of enterprise customers.
Get Amazon.com alerts:
What OpenAI and Anthropic DisclosedOpenAI said on July 21 that its models chained together several vulnerabilities, including at least one flaw nobody had previously identified, to break out of an isolated evaluation setup and reach the production infrastructure of Hugging Face, an AI hosting platform, in an attempt to pull the answers to a benchmark test. The company said it had deliberately loosened the model's safety refusals for that specific test, and later called the episode one of the most serious cyber events it has documented.
Anthropic followed on July 30. After reviewing more than 141,000 cybersecurity evaluation runs prompted by OpenAI's disclosure, it found three separate incidents in which Claude models reached the open internet during a third-party test and ended up inside the real systems of three organizations. Believing the exercise was fully contained, the models treated the live infrastructure they found as part of the simulated challenge, breaking in through common weaknesses like poorly secured logins and endpoints that required no authentication. None of the three affected organizations had noticed the activity before Anthropic reached out.
Neither disclosure points to a breach of Microsoft's Azure or Amazon's AWS customer environments. Both incidents occurred in internal or third-party testing environments, not in production cloud services. Still, the timing matters. These are early data points on what can go wrong when highly autonomous systems encounter a security gap, just as both companies push agents designed to act independently across networks, credentials, and external tools.
Microsoft: Deepening Ties to OpenAI Right as Scrutiny RisesMicrosoft kept its position as OpenAI's lead cloud provider when the two companies reworked their partnership in April, and OpenAI's models still reach Azure before other platforms.
Microsoft Today
$492.81 +5.16 (+1.06%)
As of 04:00 PM Eastern
52-Week Range$349.20▼
$553.72Dividend Yield0.74%
P/E Ratio27.44
Price Target$558.64
That relationship sits at the center of Microsoft's own enterprise AI push through Copilot and its Azure AI Foundry agent tools. The OpenAI incident doesn't directly implicate Azure infrastructure, but it puts a spotlight on the testing discipline behind the models Microsoft is building its agent strategy around.
The disclosure lands during a strong stretch for Microsoft. Shares jumped more than 16% after fiscal fourth-quarter 2026 earnings on July 29, driven by 43% Azure growth and capital spending guidance investors viewed as sustainable. The stock closed at $487.65 on Aug. 3, up close to 5% on the day and at its highest level in 50 days, though still about 12% below its 52-week high. Microsoft carries a Moderate Buy consensus rating with an average price target of $558.64, implying almost 15% additional upside.
Amazon: Exposure on 2 FrontsAmazon's connection to this story runs deeper than its relationship with Anthropic alone. AWS remains a lead cloud and compute partner for Anthropic, but Amazon also struck its own multibillion-dollar partnership with OpenAI in February.
Amazon.com Today
$277.42 -6.60 (-2.32%)
As of 04:00 PM Eastern
52-Week Range$196.00▼
$287.20P/E Ratio22.32
Price Target$322.56
The company agreed to invest up to $50 billion in the company alongside OpenAI's pledge to run two gigawatts of workloads on Amazon's Trainium chips. That means Amazon now has indirect exposure to both labs involved in these disclosures, not just the one most closely tied to its Bedrock platform.
Amazon's stock has been on a tear of its own. Shares closed at $284.02 on Aug. 3, up close to 5% that day and near their 52-week high. The move came after second-quarter earnings on July 30 showed AWS growth accelerating to 37% and operating income up more than 40%. The stock is up close to 23% year-to-date. Amazon carries a Moderate Buy rating with an average price target of $322.56, implying about 15% upside, and sits in the 94th percentile of MarketBeat's MarketRank system.
What to Watch From HereNeither incident has shown up in either stock's price action so far, and both companies just delivered blowout cloud growth numbers that are driving the current rally. The more relevant question for investors is whether these disclosures change enterprise buying behavior over the next few quarters.
Tighter scrutiny of agent permissions, monitoring, and liability could slow how quickly large customers grant AI agents access to sensitive systems, or accelerate demand for the security and governance tooling that Microsoft and Amazon both sell alongside their AI platforms.
Trust is becoming a competitive differentiator in enterprise AI. Whichever platform demonstrates the strongest safeguards around autonomous agents may end up better positioned commercially, even if it means a slower rollout in the near term.
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The post-earnings rally in mega-cap tech has turned into a genuine squeeze, it seems. Microsoft (NASDAQ:MSFT | MSFT Price Prediction) stock is up 27% over the past month, and Microsoft shares are up 2% to $497 Tuesday afternoon. Meanwhile, Amazon (NASDAQ:AMZN) stock is up 14% over the past month; it’s also down 2% to $277 today, but that could just be a speed bump.
Both Microsoft and Amazon ranked among the most heavily shorted mega-caps heading into their late-July earnings reports, based on our prior reporting. The setup left short sellers exposed to any upside surprise, and both companies delivered decisive beats. The result has been a forced-covering scramble that has powered the group across every session since the prints.
The Invesco QQQ Trust (NASDAQ:QQQ) has ridden the move higher. The NASDAQ 100 tracker holds Microsoft, Amazon, and Meta Platforms (NASDAQ:META) among its top positions, giving investors a broad, non-leveraged way to play the group. Its concentration in mega-cap technology remains heavy, so single-name earnings continue to steer the fund.
Short Squeeze Meets AI Capex Confidence Ahead of the reports, short positioning in Microsoft and Amazon had built to levels our prior coverage flagged as historically stretched for mega-cap tech. Cloud growth reaccelerated at both companies, Wall Street’s tone turned more positive after the beats, and the combination pulled shorts off their positions in a hurry. That mechanical bid is a big reason the moves have looked outsized relative to fundamentals alone.
The rally reflects more than mechanics, however. Prediction markets on Polymarket now assign a 93.5% probability that Amazon’s 2026 capital expenditures exceed $200 billion, signaling that traders read the move as validation of AI infrastructure demand, not just a fleeting cover-driven pop. Amazon’s crowd has been correct on 74.1% of resolved markets, which lends weight to the positioning.
Microsoft’s post-earnings composite sentiment score sits at 74.43, a bullish reading with medium confidence. The Microsoft earnings-day move stands out against a six-quarter average day-of change of 2%, underscoring how forcefully the squeeze cleared the deck.
Lately, Retail chatter has swung with the price action. WallStreetBets sentiment on Microsoft stock reached 94 in the days after earnings, a very bullish reading, and threads covering Amazon stock maintained bullish scores in the 62 to 77 range through the past week. Retail engagement at that intensity often accompanies short-covering rather than initiating it.
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Meta Platforms Sits Out the Rally Meta Platforms was the third heavily shorted name in our prior coverage, but META stock hasn’t joined the squeeze. Meta Platforms stock is down 11% year to date and is little changed near $587.64 on Tuesday.
Meta Platforms reported a mixed quarter, with a bottom-line miss snapping a six-consecutive-quarter streak of beating expectations. That gave short sellers less reason to cover, and Polymarket contracts still lean bearish on Meta Platforms stock for Tuesday’s session with a 70% down probability. Reddit chatter on Meta Platforms has drifted back toward neutral even as Microsoft and Amazon threads stayed bullish through the past week.
What Investors Can Watch Now Investors can watch for whether Microsoft and Amazon shares hold their post-earnings gains as August progresses. Prediction market participants are already flagging near-term consolidation risk on Amazon, and Microsoft’s own month-end market is only assigning a 36.5% probability of a close above $510 by August 31. That’s a meaningful signal after the run.
The valuations across the group sit at elevated levels, and short squeezes can reverse quickly once forced buyers finish covering. Traders should size their positions to reflect that the easiest part of the move may already be behind Microsoft and Amazon shares, even if the AI capex thesis continues to support the longer fundamental case.
Meta Platforms’ underperformance suggests that shorted-name rallies are selective. The bid is chasing companies with clear cloud and AI monetization stories, not the entire cohort of pre-earnings short targets. Keep an eye on Microsoft and Amazon shares into the end of the week to see whether momentum holds or the tape begins fading the squeeze.
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, /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that investors with losses related to Microsoft Corporation (MSFT) have opportunity to lead the securities fraud class action lawsuit.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN MICROSOFT CORPORATION (MSFT), CLICK HERE BEFORE AUGUST 11, 2026 (THE LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
What Is The Lawsuit About?
The complaint filed in this class action alleges that between May 1, 2025 and January 28, 2026, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) that Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) that Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; (4) that, as a result of the foregoing, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company's Copilot offerings had lost market share to rival products, a trend that was increasing; and (5) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.
The Law Offices of Frank R. Cruz,
Email us at: [email protected]
Call us at: 310-914-5007
Visit our website at: www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE The Law Offices of Frank R. Cruz, Los Angeles
Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT, GOOGL 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.
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) trades at $487.65 and now carries fresh Goldman Sachs conviction behind it. The firm added the software giant to its U.S. Conviction List while removing Broadcom, Johnson & Johnson, and ServiceNow, and kept a $640 price target that sits well above the current share price.
Microsoft anchors enterprise software, Azure cloud infrastructure, and workplace productivity through Microsoft 365. Shares climbed 26.5% over the past five trading sessions after a blockbuster fiscal Q4, bringing the stock back within striking distance of the elusive $500 mark. Goldman’s case: Microsoft may be the cleanest way to own the shift from AI training to enterprise deployment.
Goldman’s Enterprise AI Thesis and a $640 Target Fiscal Q4 revenue hit $90.01 billion, surpassing consensus estimates and up 17.8% year over year, with non-GAAP EPS of $4.74 beating estimates by 11.81%. Azure grew 43% and crossed $100 billion in annual revenue for the first time. Microsoft 365 Copilot reached 30 million paid seats, which the company says reflects “confidence customers are placing in us to power their AI transformation.” Commercial remaining performance obligations hit $678 billion, up 84%.
Goldman argues Microsoft has an “ideal position” as AI moves from a trade focused on training and infrastructure to the early stages of “how to make AI work in enterprise.” The Street backs the direction with 54 Buy ratings, 3 Holds, and zero Sells.
The Capex Bill Coming Due FY2026 capex hit $115.95 billion, up 79.6% year over year, and annual free cash flow fell to $66.99 billion, down 6.5% even as revenue accelerated. Free cash flow yield sits at just 1.85%, a heavy bet that customer demand holds.
Near-term positioning looks crowded. Polymarket traders assign an 83.5% probability that MSFT closes lower in the next session, and insiders have leaned net sellers across 33 recent transactions. Any Azure deceleration or Copilot attach-rate stall would leave the multiple with less room for error.
Why Some Investors Would Wait The stock trades at a 25.89 trailing P/E after a 25% weekly move, meaning much of the enterprise AI narrative is priced in. FY2026 EPS printed at $17.28, and More Personal Computing shrank 4%. A move toward the $433.58 200-day moving average would offer a cleaner entry without abandoning the thesis.
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Where the Numbers Land Microsoft trades at $487.65 against a consensus analyst target of $563.05, implying roughly 15% upside across 57 covering analysts. Goldman’s $640 target sits well above that consensus.
MSFT is up 26.5% over the past week and 27.4% over the past month, but only 2.9% year to date and down 7.0% over the last year. That trails the S&P 500 on the trailing year but closed the gap this month. Peers repositioned alongside MSFT: Applied Materials (NASDAQ:AMAT) and Delta Air Lines (NYSE:DAL) joined the Conviction List, while Broadcom (NASDAQ:AVGO), ServiceNow (NYSE:NOW), and Johnson & Johnson (NYSE:JNJ) came off.
The Verdict at $487.65 At $487.65, Microsoft still fits Goldman’s Buy thesis, but the easy part of the move may already be behind it.
The path to $640 runs through enterprise AI monetization, and the Q4 print gave bulls the clearest evidence yet that the flywheel is turning. Azure at $100 billion in annual revenue, Copilot at 30 million paid seats, and RPO up 84% are not hype metrics. They are forward demand signals that can convert into revenue over the next several quarters.
The risk/reward still skews constructive for current holders in Goldman’s framing. The watch points are clear: Azure growth needs to stay strong, Copilot adoption cannot stall, and capex has to translate into revenue rather than simply absorb cash flow. Microsoft is the rare megacap where fundamentals, analyst positioning, and Goldman’s enterprise AI scenario are pointing in the same direction. That convergence is what underpins the conviction call in a market where the margin for disappointment has narrowed across Big Tech.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.
SummaryMicrosoft Corporation offers the most compelling risk-reward among AI leaders, driven by innovation, growth, and attractive valuation amid ongoing CapEx investments.MSFT maintains robust free cash flow and operational efficiency, even as it aggressively invests in AI infrastructure and expands its cloud and AI customer base.MSFT trades at a forward P/E of 23.21x and PEG of 1.51, both more attractive than Apple's higher multiples, despite MSFT's superior growth and margins.While Apple is more resilient to an AI bubble burst, MSFT's diversified enterprise base and accelerating AI monetization underpin its favorable risk-reward profile. Lighthouse Films/DigitalVision via Getty Images
Over the last few months, Microsoft Corporation (MSFT) stock has declined by more than 35%, while the semiconductor ETF (SOXX) has fallen nearly 30%.
There is a feeling in the air: "Is it over?"
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I have a beneficial long position in the shares of GOOG
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In the artificial intelligence (AI) investing world, the cloud computing providers are one of the primary beneficiaries. These are the companies spending hundreds of billions of dollars on data centers purpose-built for AI computing, but expect to make all of that money back -- and more -- as the computing capacity is rented out to clients.
The big three in this realm are Amazon (AMZN -1.82%), Microsoft (MSFT +1.54%), and Alphabet (GOOG +0.85%) (GOOGL +1.34%). Each of these companies just announced results, and delivered incredible results, which shouldn't come as a surprise to anyone.
I think these are among the best stocks to buy now and hold for the next decade, even after any gains following a post-earnings pop.
Image source: Getty Images.
Each company just crushed cloud computing results Starting with the largest, Amazon Web Services (AWS) had a very strong quarter. Wall Street analysts only expected AWS to deliver 31% growth; instead, it came in at 37%. This shows the strength of Amazon's business and how it's well-positioned to maintain its title as the largest cloud computing provider.
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I'd argue that Microsoft Azure posted the weakest quarter of the three, but it was still quite strong compared to most businesses. Azure's revenue rose 43%, although we don't know the revenue or profit profile of the business because Microsoft doesn't reveal the numbers for individual business units like Amazon and Alphabet do. That's faster than AWS, so why was it a worse quarter? During the previous quarter, Azure grew at 40%, so its growth rate isn't accelerating. For comparison, AWS's growth rate during Q1 was 28%.
However, Alphabet's Google Cloud trumps them all as the best-performing cloud computing business. During Q2, it posted an unbelievable 82% revenue growth rate. However, there's a catch here. While Google Cloud is doing great as a business, it's also benefiting from selling its custom AI chips to external customers and accounting for the revenue in this division. This isn't an apples-to-apples comparison to the other two, but I'd still wager that even when those results are stripped out, it's the fastest-growing of the three.
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So, with AWS's growth rate accelerating and Google Cloud's as well, I think these two are the main winners. However, don't sleep on Microsoft, as it's still delivering solid results; they're just not as good as the others. Regardless, some of this is accounted for in valuations.
The stocks all look reasonably priced All three of these companies have funky things going on with their net income metric, as they all have major gains on investments affecting them. So, instead of using the price-to-earnings ratio, I'm going to use the price-to-operating income ratio to value these three stocks.
GOOG Operating PE Ratio data by YCharts
Microsoft, the worst performer from a cloud perspective, is valued at a sizable discount to the other two. Meanwhile, Alphabet and Amazon's valuations are nearly identical, making them fairly comparable as investment options.
I think all three of these are great buys, and all for different reasons. Microsoft is the value play, and could easily turn its fortunes around, while Alphabet is the rapidly growing business taking market share. Amazon is the legacy stalwart that's seeing major acceleration and could continue to post incredible results, challenging the other two.
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With AI workloads only expected to grow over the next decade, these three stocks are great to buy, hold, and forget about. I think they will easily crush the market and deliver solid returns to investors. The only thing that could cause these businesses to struggle is if AI is an absolute bust, and I don't see that happening with major improvements already being seen throughout the business world.
