Track market-moving stories before they get noisy

Microsoft delivered a decisive Q4 and FY2026, accelerating revenue growth to 18% and expanding Azure past $100 billion with 41% growth. MSFT's AI monetization is now proven, with commercial backlog swelling to $678 billion and $2.70 in future revenue booked per $1 of CapEx. Shares remain undervalued at under 21x FY2028 EPS, with projected EPS compounding ~20% annually and a robust, rising dividend supported by a 20% payout ratio.

For a large portion of the year, Microsoft (MSFT +0.90%) and Tesla (TSLA +3.80%) were the two worst-performing "Magnificent Seven" stocks, but they've gone in two different directions since their latest earnings reports. As of market close on Aug. 11, Microsoft is up 6.5% year to date (YTD), and Tesla is down 24% YTD.

One common complaint investors have shared among them is their high capital expenditures (capex). They're not comparable in scale -- Microsoft spent $41 billion in its recent quarter (up 70% year over year), while Tesla spent $5.8 billion (up 142%) -- but they're putting a noticeable dent in both companies' finances.

Even so, Microsoft's high capex is much easier to justify, which is why it's still a buy.

It's hard to overlook free cash flow A company's free cash flow is important because it's money available for things such as dividends, share buybacks, and reinvestment in the business. Capex cuts directly into free cash flow, reducing a company's financial flexibility and ability to put the money to use elsewhere.

Even after spending $41 billion this past quarter, Microsoft's free cash flow was still $19.6 billion. Tesla's free cash flow came in negative, burning through $1.1 billion.

It's much easier to justify Microsoft's capex because it has the cash flow to absorb the costs without jeopardizing its financial health. It might not be ideal from a financial discipline standpoint, but Microsoft is a massive business and cash cow that has much more financial leeway than Tesla.

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Immediate versus future results The spending itself isn't inherently the problem; the issue is when investors can expect to see results from it. Investors are aware that the spending is a means to an end, but it helps when the end is visible or predictable.

In Microsoft's case, concerns were that heavy spending on data centers and AI infrastructure would erode cash flow and profits before a return on investment was seen. However, after its recent earnings report -- which revealed that its cloud platform, Azure, had its first $100 billion year and a $678 billion backlog -- many of those worries have been laid to rest.

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Tesla's spending is mostly going toward much longer-term projects, such as its Optimum robots and robotaxi network. Both are intriguing projects but are realistically very far off from becoming meaningful revenue generators (assuming they do). They're even further from becoming profitable businesses that Tesla can rely on.

As an investor, I'm much more encouraged by Microsoft's spending and direction. It's a stock I would load up on, while Tesla is one I'm avoiding.

Through the end of 2025, Bill Ackman's Pershing Square compounded at a 15.9% annualized return since 2004, comfortably ahead of the S&P 500's 10.7% gomparable gain. His strategy is straightforward: Concentrate on buying stocks of high-quality businesses with dependable cash flows and with low risk of permanent capital loss.

Lately, Ackman has been leaning into megacap tech. Over the last year, Pershing Square Capital Management has almost entirely exited its stake in Alphabet (Google) and started new positions in three other "Magnificent Seven" names: Meta Platforms (META +2.79%), Amazon (AMZN -0.80%), and Microsoft (MSFT +0.90%). Ackman's firm also continues to hold a core stake in Uber Technologies (UBER +0.69%).

Together, those four stocks comprised the majority of Pershing Square's $13.7 billion portfolio in its first-quarter 13F filing. Given their growth potential, the portfolio looks capable of delivering market-beating returns in the coming years, though not without some important caveats.

Bill Ackman. Image source: Getty Images.

A closer look at Meta, Amazon, Microsoft, and Uber
These newer tech positions will do a lot of the heavy lifting. So far, business momentum is on their side.

Meta's trailing-12-month revenue grew 28% year over year. The company is benefiting from AI-driven improvements in ad targeting and content recommendations, which are helping increase engagement and monetization. Even after its run, the stock trades at a reasonable forward price-to-earnings ratio (P/E) of about 19.

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Amazon has accelerated trailing revenue growth to 16%, helped by demand for AI-related cloud services and steadier growth in e-commerce. Amazon Web Services (AWS) remains its primary profit engine with roughly 22.8 times forward earnings. Ackman appears to be betting the market is still underpricing AWS' earnings power.

Microsoft closed fiscal 2026 (ending in June) with revenue up 18%. Demand remains strong across productivity software and Azure, as enterprises continue to modernize IT and add AI capabilities. Shares have rebounded but still trade at a fair 26 times forward earnings.

Uber continues to lead in ride-hailing and delivery. Last quarter, gross bookings rose 24% year over year, while adjusted earnings climbed 35%. The next opportunity is autonomous transportation, where Uber is positioning itself as a distribution platform, but it will compete with players like Alphabet's Waymo and Tesla. Ackman seems to view Uber as undervalued at just 23 times forward earnings.

Can Pershing Square keep winning?
Taken together, these core tech holdings look reasonably priced relative to their growth. Analysts expect earnings to rise anywhere from about 16% annually (Microsoft) to 32% (Uber). If valuations hold roughly steady, the stocks could largely follow earnings over time.

The rest of Ackman's portfolio -- including Hertz, Howard Hughes, and Restaurant Brands -- is more tied to consumer health and the broader economy. Those positions are the bigger wildcards, but a growing economy over the next several years would be a meaningful tailwind.

The main risk for the tech group is that the massive growth in AI infrastructure spending fails to translate into durable profit growth. But it is difficult to see how the big tech companies won't succeed in an AI-driven economy, given their control of substantial compute capacity. With current operating momentum, reasonable valuations, and solid earnings expectations, Pershing Square could be well-positioned to extend its strong run in the years ahead.

John Ballard has positions in Amazon and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Howard Hughes, Meta Platforms, Microsoft, and Tesla. The Motley Fool recommends Restaurant Brands International and Uber Technologies. The Motley Fool has a disclosure policy.

Microsoft (MSFT), the software and cloud giant sitting at the center of the AI buildout, rose approximately 1.3% Thursday morning as Pershing Square laid out wh

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Cardiff Park Advisors LLC decreased its stake in Microsoft Corporation (NASDAQ: MSFT) by 5.9% during the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 23,892 shares of the software giant's stock after selling 1,507 shares during the quarter. Cardiff Park Advisors LLC's

by Todd Bishop on Aug 13, 2026 at 8:28 amAugust 13, 2026 at 8:30 am

Microsoft introduced Mico last October as “your AI companion.” It’s now exiting Copilot’s core voice experience. (Microsoft Image) Microsoft has spent decades putting characters into its software and then sending them off into retirement. Now joining Bob, Clippy and Cortana in the great recycle bin in the sky: Mico. 

The animated artificial intelligence blob (a derivation of “Microsoft Copilot”) arrived last October in Microsoft’s Copilot Fall Release, described as “expressive, customizable, and warm” — an optional presence that “listens, reacts, and even changes colors to reflect your interactions.” 

Less than a year later, Microsoft is pulling Mico from Copilot’s core voice experience as part of the merger of the Copilot consumer and business apps, announced Thursday morning.

But maybe it’s more accurate to call this a semi-retirement, for now: Mico is expected to live on in some of Copilot’s education features, according to the company.

Mico reflected a bet Microsoft made about consumer AI under Mustafa Suleyman, the DeepMind and Inflection co-founder who joined as CEO of Microsoft AI in 2024: that the way to win users away from ChatGPT was warmth and personality, not just raw capability. 

It didn’t turn out that way. In March, Microsoft handed oversight of Copilot to Jacob Andreou, a former Snap executive, and narrowed Suleyman’s role to building AI models. Andreou told his organization in July that Copilot should focus on “real work” and be “optimized for outcomes.”

Microsoft has been here before, repeatedly. 

Microsoft Bob, released in March 1995, replaced the Windows program manager with a cartoon house — click the wall calendar to put something on your schedule, click the pen to write a letter, etc. — guided by a yellow dog named Rover. Clippy, officially Clippit, debuted with Office 97, offering unsolicited help with whatever it thought you were doing, e.g., “It looks like you’re writing a letter. Would you like help?” For many, the answer was no. Microsoft switched the Office Assistant off by default in Office XP and removed it entirely in Office 2007. Cortana, named for the Halo video-game AI and voiced by the same actress, arrived on Windows Phone in 2014 and Windows 10 the following year. Microsoft retired the standalone Cortana app in 2023 to make way for Copilot. That’s not to mention Tay, the chatbot Microsoft pulled within a day in 2016 after users taught it to post racist messages, or the less-official Sydney, the AI alter ego that surfaced during early Bing Chat testing in 2023 and famously told New York Times technology columnist Kevin Roose it loved him and that he should leave his wife. 

So farewell, Mico. It could have been a lot worse.

Previous StoryMicrosoft starts merging its Copilot consumer and business apps in advance of ‘Super App’ rollout Next StoryHow this longtime Google exec fits an insane amount of exercise into his weekly routine

Posted by Defense World Staff on Aug 13th, 2026

Estuary Capital Management LP lessened its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 27.8% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 54,248 shares of the software giant’s stock after selling 20,922 shares during the period. Microsoft makes up 3.4% of Estuary Capital Management LP’s investment portfolio, making the stock its 17th largest holding. Estuary Capital Management LP’s holdings in Microsoft were worth $20,081,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. Longfellow Investment Management Co. LLC lifted its holdings in shares of Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after buying an additional 20 shares during the period. Bernzott Capital Advisors purchased a new position in Microsoft in the fourth quarter worth $34,000. Timmons Wealth Management LLC acquired a new stake in Microsoft in the fourth quarter valued at $36,000. Fairway Wealth LLC boosted its position in shares of Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after purchasing an additional 66 shares in the last quarter. Finally, LSV Asset Management acquired a new position in shares of Microsoft during the 4th quarter worth $44,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft Price Performance MSFT stock opened at $492.43 on Thursday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The company has a market cap of $3.66 trillion, a PE ratio of 27.42, a price-to-earnings-growth ratio of 1.62 and a beta of 1.11. The stock has a 50-day moving average price of $408.32 and a two-hundred day moving average price of $407.67.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion for the quarter, compared to analysts’ expectations of $87.62 billion. During the same period in the previous year, the company posted $3.65 earnings per share. Microsoft’s revenue was up 17.7% compared to the same quarter last year. As a group, research analysts predict that Microsoft Corporation will post 19.58 EPS for the current 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 issued a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a dividend yield of 0.7%. Microsoft’s payout ratio is presently 20.27%.

Insiders Place Their Bets In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president 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 disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 37,310 shares of company stock valued at $17,256,219. 0.03% of the stock is owned by corporate insiders.

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

Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published Analysts Set New Price Targets MSFT has been the subject of several recent analyst reports. CLSA reiterated an “outperform” rating on shares of Microsoft in a research note on Thursday, July 30th. Guggenheim reaffirmed a “buy” rating and issued a $586.00 target price on shares of Microsoft in a report on Monday, July 27th. China Renaissance decreased their price target on Microsoft from $630.00 to $550.00 and set a “buy” rating on the stock in a research note on Monday, May 4th. Benchmark reaffirmed a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. Finally, DZ Bank reaffirmed a “buy” rating on shares of Microsoft 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 company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $560.27.

View 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 GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs 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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NEXT HEADLINE »Microsoft Corporation $MSFT Stake Raised by Evelyn Partners Asset Management Ltd

Evelyn Partners Investment Management Services Ltd increased its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 10.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 117,766 shares of the software giant’s stock after buying an additional 11,123 shares during the period. Microsoft comprises approximately 5.1% of Evelyn Partners Investment Management Services Ltd’s holdings, making the stock its 3rd biggest holding. Evelyn Partners Investment Management Services Ltd’s holdings in Microsoft were worth $43,593,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. WFA Asset Management Corp lifted its stake 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 acquiring an additional 216 shares in the last quarter. Ironwood Wealth Management LLC. grew 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 valued at $5,658,000 after purchasing an additional 38 shares in the last quarter. Discipline Wealth Solutions LLC increased its holdings in Microsoft by 410.4% during the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock worth $1,144,000 after purchasing an additional 2,138 shares during the last quarter. Wealth Group Ltd. raised its position in shares of Microsoft by 1.2% in the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock valued at $1,000,000 after purchasing an additional 28 shares in the last quarter. Finally, Eagle Capital Management LLC raised its position in shares of Microsoft by 0.4% in the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock valued at $9,735,000 after purchasing an additional 96 shares in the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

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

Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published Wall Street Analysts Forecast Growth A number of analysts have recently weighed in on MSFT shares. Phillip Securities downgraded shares of Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 3rd. Evercore set a $528.00 price target on shares of Microsoft in a report on Thursday, July 30th. Truist Financial reiterated a “buy” rating and set a $575.00 price objective on shares of Microsoft in a research note on Wednesday, July 22nd. Barclays decreased their price objective on shares of Microsoft from $545.00 to $512.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Finally, CLSA reissued an “outperform” rating on shares of Microsoft in a research report on Thursday, July 30th. Forty-two analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $560.27.

Check Out Our Latest Stock Report on MSFT

Microsoft Stock Down 2.3% NASDAQ:MSFT opened at $492.43 on Thursday. 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 $408.32 and a 200-day moving average of $407.67. The firm has a market capitalization of $3.66 trillion, a PE ratio of 27.42, a price-to-earnings-growth ratio of 1.62 and a beta of 1.11. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $553.72.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter last year, the business posted $3.65 EPS. The business’s revenue was up 17.7% on a year-over-year basis. Analysts predict that Microsoft Corporation will post 19.58 EPS for the current year.

Microsoft Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be 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 dividend payout ratio (DPR) is presently 20.27%.

Insider Buying and Selling at Microsoft In other news, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the transaction, 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 ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares in the company, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 37,310 shares of company stock valued at $17,256,219. Corporate 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).

Featured Stories Five stocks we like better than Microsoft GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs 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.

Posted by Defense World Staff on Aug 13th, 2026

Castleark Management LLC trimmed its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 28.5% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 264,102 shares of the software giant’s stock after selling 105,358 shares during the period. Microsoft accounts for 3.2% of Castleark Management LLC’s portfolio, making the stock its 3rd largest position. Castleark Management LLC’s holdings in Microsoft were worth $97,763,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors also recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC raised its stake in shares of Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after acquiring an additional 20 shares in the last quarter. Shepherd Kaplan Krochuk LLC boosted its stake in Microsoft by 4.9% in the third quarter. Shepherd Kaplan Krochuk LLC now owns 431 shares of the software giant’s stock valued at $223,000 after acquiring an additional 20 shares in the last quarter. Fischer Investment Strategies LLC boosted its stake in Microsoft by 3.1% in the fourth quarter. Fischer Investment Strategies LLC now owns 697 shares of the software giant’s stock valued at $337,000 after acquiring an additional 21 shares in the last quarter. Pollock Investment Advisors LLC grew its holdings in Microsoft by 0.8% in the third quarter. Pollock Investment Advisors LLC now owns 2,805 shares of the software giant’s stock worth $1,453,000 after purchasing an additional 21 shares during the last quarter. Finally, Better Money Decisions LLC grew its holdings in Microsoft by 0.6% in the second quarter. Better Money Decisions LLC now owns 3,498 shares of the software giant’s stock worth $1,740,000 after purchasing an additional 21 shares during the last quarter. Institutional investors own 71.13% of the company’s stock.

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

Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published Analysts Set New Price Targets MSFT has been the subject of several analyst reports. Dbs Bank decreased their price objective on Microsoft from $678.00 to $573.00 in a report on Thursday, May 7th. Wolfe Research reaffirmed an “outperform” rating and set a $550.00 target price on shares of Microsoft in a research report on Thursday, July 30th. DZ Bank reiterated a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. The Goldman Sachs Group reissued a “buy” rating and issued a $640.00 price target on shares of Microsoft in a report on Thursday, July 30th. Finally, Phillip Securities lowered Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research note on Monday, August 3rd. Forty-two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $560.27.

Read Our Latest Report on Microsoft

Insider Activity at Microsoft In other news, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. This represents a 10.13% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 transaction of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares in the company, valued at $50,928,792.23. The trade was a 12.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 37,310 shares of company stock worth $17,256,219. 0.03% of the stock is owned by corporate insiders.

Microsoft Stock Performance Shares of MSFT opened at $492.43 on Thursday. The stock has a 50-day moving average of $408.32 and a two-hundred day moving average of $407.67. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock has a market cap of $3.66 trillion, a P/E ratio of 27.42, a P/E/G ratio of 1.62 and a beta of 1.11.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same period in the prior year, the company earned $3.65 earnings per share. The company’s revenue was up 17.7% on a year-over-year basis. As a group, research analysts predict that Microsoft Corporation will post 19.58 EPS for the current year.

Microsoft Announces Dividend The company 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 $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. Microsoft’s dividend payout ratio is currently 20.27%.

About Microsoft (Free Report)

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

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

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Family Manage LLC grew its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 9.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 55,128 shares of the software giant’s stock after acquiring an additional 4,987 shares during the period. Microsoft accounts for approximately 2.4% of Family Manage LLC’s portfolio, making the stock its 10th largest holding. Family Manage LLC’s holdings in Microsoft were worth $20,407,000 as of its most recent SEC filing.

A number of other large investors have also recently made changes to their positions in MSFT. Norges Bank purchased a new position in Microsoft during the 4th quarter valued at about $50,664,631,000. Auto Owners Insurance Co lifted its holdings in shares of Microsoft by 56,160.8% in the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after buying an additional 60,009,531 shares in the last quarter. Nuveen LLC purchased a new stake in shares of Microsoft in the first quarter worth about $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of Microsoft by 500.0% in the third 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 acquiring an additional 49,618,571 shares during the period. Finally, Laurel Wealth Advisors LLC boosted its position in shares of Microsoft by 49,640.3% in 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 acquiring an additional 29,906,791 shares during the period. 71.13% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In MSFT has been the subject of a number of recent analyst reports. Benchmark restated a “buy” rating on shares of Microsoft in a research report on Friday, July 24th. BNP Paribas Exane dropped their price objective on Microsoft from $556.00 to $555.00 and set an “outperform” rating for the company in a research note on Friday, May 1st. Mizuho reduced their target price on Microsoft from $515.00 to $490.00 and set an “outperform” rating for the company in a research report on Wednesday, July 15th. Arete Research upped their target price on Microsoft from $730.00 to $870.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. Finally, Morgan Stanley reaffirmed an “overweight” rating 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 stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $560.27.

Read Our Latest Report on MSFT

Microsoft Stock Performance Microsoft stock opened at $492.43 on Thursday. The firm’s fifty day moving average price is $408.32 and its 200-day moving average price is $407.67. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock has a market cap of $3.66 trillion, a P/E ratio of 27.42, a price-to-earnings-growth ratio of 1.62 and a beta of 1.11. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the previous year, the business earned $3.65 earnings per share. On average, equities research analysts expect that Microsoft Corporation will post 19.58 earnings per share for the current fiscal year.

Microsoft Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be paid a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.7%. Microsoft’s payout ratio is 20.27%.

Insider Transactions at Microsoft In related news, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 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 completion of the sale, the chief executive officer owned 110,477 shares of the company’s stock, valued at $50,928,792.23. The trade was a 12.30% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 37,310 shares of company stock valued at $17,256,219 over the last quarter. Company insiders own 0.03% of the company’s stock.

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

Positive Sentiment: Strong quarterly results remain the primary bullish catalyst. Microsoft reported revenue growth of 17.7% and earnings of $4.74 per share, well above consensus, reinforcing confidence in Azure, cloud demand and AI monetization. Magnificent Seven Earnings Remain Robust: MSFT, AAPL Positive Sentiment: Analyst sentiment remains supportive. Wells Fargo raised its Microsoft price target to a Street-high $700 from $650 and maintained an overweight rating, citing the company’s growth prospects and ecosystem strength. Wells Fargo Raises Microsoft Price Target Positive Sentiment: Microsoft is expanding its AI and cloud ecosystem through partnerships, including S&P Global data in Microsoft 365 Copilot, broader enterprise adoption in Brazil and Sionic’s instant-payment service on Microsoft Marketplace. These initiatives could support platform usage and recurring revenue over time. S&P Global Expands Collaboration with Microsoft Neutral Sentiment: Reports that Microsoft may introduce another Maia AI processor as early as September highlight its strategy to use custom chips to improve Azure AI efficiency. The move could reduce costs and reliance on outside suppliers, but the financial benefits will depend on successful scaling. Microsoft Stock Drops While Maia Chip Ambitions Expand Negative Sentiment: Investors are concerned that Microsoft’s rapidly rising AI infrastructure spending could pressure margins, cash flow and returns before new capacity generates sufficient revenue. The stock’s sharp rally since the earnings report also increases profit-taking and valuation sensitivity. Microsoft’s AI Data Center Push: Growth Engine or Capex Trap? Negative Sentiment: A newly disclosed Windows zero-day vulnerability that may enable system-wide access adds reputational, remediation and potential liability concerns. Separate reports of pending investor lawsuits contribute to a cautious tone, although neither issue has yet altered Microsoft’s fundamental earnings outlook. New Windows Zero-Day Bug Published 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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Microsoft (NASDAQ:MSFT | MSFT Price Prediction) trades at $492.43 while the consensus Wall Street price target sits at $567.20, an implied upside of roughly 15%. One firm sees significantly more room. Arete Research recently lifted its target to $870 from $730, a Street-high call that pencils out to about 76% upside from here.

Microsoft is the world’s second-largest company by market value at $3.741 trillion, and its Azure cloud franchise has become the primary vehicle through which Wall Street underwrites the enterprise AI story. When a mega-cap this widely owned trades meaningfully below where analysts price it, it usually signals either a fundamental thesis crack or a market that has temporarily lost the plot.

A Year of Underperformance in an AI Bull Market Microsoft is down 6.21% over the past year while the S&P 500 gained 20.2%. The stock slid steadily through fiscal 2026, from $517.85 at the Q1 filing in October 2025 to $395.50 by the Q4 filing on July 29, 2026.

The catalyst was capital intensity, not results. Microsoft posted a 5th consecutive EPS beat, with Q4 revenue of $90.01 billion (+17.8% YoY) and Azure growth of 43%. The pain point was capital intensity. Full-year capex hit $115.95 billion, up 79.62%, pushing free cash flow down 6.46% to $66.99 billion. Investors also punished the More Personal Computing segment, which fell 4% in Q4.

Why the Analyst Community Is Doubling Down Coverage has not budged. Of 57 analysts, 14 rate Microsoft Strong Buy, 40 rate Buy, 3 rate Hold, and none rate Sell. That is a 95% bullish consensus holding through a year of price weakness, with recent revisions skewing toward upgrades rather than cuts.

The bull case rests on three pillars:

Contracted revenue visibility: Commercial remaining performance obligations surged 84% to $678 billion, a backlog that dwarfs annual revenue. Monetization: Azure crossed $100 billion in full-year revenue for the first time, and Microsoft 365 Copilot passed 30 million paid seats. Capex converting to yield: FY26 net income rose 31.34% to $133.75 billion, showing the infrastructure bet is earning. Arete’s $870 street-high target models sustained double-digit Azure AI growth as enterprise workloads shift from experimentation to core operations, plus Copilot enterprise pull-through. That 76% implied upside captures where the bull tail lives. A 76% call requires several years of clean execution.

The Hyperscaler That Fell Alone Microsoft’s two closest hyperscaler peers ran higher while it slid, so the weakness was stock-specific rather than sector-wide.

Alphabet (NASDAQ:GOOGL) trades at $343.54, up 69.43% over the past year. Google Cloud accelerated to 82% revenue growth in Q2 2026, and analyst sentiment has ridden that momentum.

Amazon (NASDAQ:AMZN) sits at $267.28, up 20.68% over one year. AWS grew 37% YoY in Q2 2026, its fastest pace in 18 quarters. Amazon roughly tracked the S&P 500 while Microsoft lagged badly.

Across this trio, the largest analyst-implied upside sits with Microsoft. It stood alone on the way down, and the setup is now the most stretched.

What the Numbers Actually Say Microsoft currently trades at $492.43 against a $567.20 consensus target drawn from 57 covering analysts. Implied upside to consensus is roughly 15%, and to the Arete high of $870 it is about 76%.

Recent action tells the recovery story. Microsoft is up 25.94% over the past month off the July low, and 2.28% YTD. The S&P 500 is up 13.28% YTD, so Microsoft remains a laggard on the year even after the sharp bounce.

Ratings distribution:

Strong Buy: 14 Buy: 40 Hold: 3 Sell: 0 My Take: The Setup Favors the Bulls, With Guardrails The bull thesis holds if you believe Azure’s 43% growth and the $678 billion cRPO backlog translate into free cash flow re-acceleration once the capex wave normalizes. The path back to $567 needs one or two more quarters of Azure holding above 40%, evidence that Copilot seat expansion is compounding, and any softening in capex growth pace. Hitting Arete’s $870 requires a multi-year re-rating on enterprise AI monetization.

The bear case gains weight if the market’s real message is that AI capex returns are structurally lower than the models assume. Free cash flow already contracted 6.46% in FY26. If Azure decelerates or Copilot attach rates plateau, the stock has room to retest the July lows before the thesis resets.

I lean bullish here. Microsoft is the only one of the three hyperscalers still trading below where it was a year ago, despite beating repeatedly. That is a setup analysts rarely misread all at once.

Contact [email protected] for any questions or corrections.

As Microsoft Corp. (NASDAQ: MSFT) stock rallied more than 27% since reporting a strong fourth quarter of its 2026 fiscal year, Samik Chatterjee, an analyst at JPMorgan Chase & Co. (NYSE: JPM), expects this company’s share price to hit a new all-time high (ATH) over the next 12 months. 

Chatterjee reiterated a ‘Buy’ rating for Microsoft stock, according to a note sent to the bank’s clients on August 13. He also raised his 12-month price target for MSFT to $625 from $550, which represents a 13.64% uplift.

With Microsoft stock trading at approximately $492.43 at press time, this analyst suggests a possible 26.92% upside. This bullish outlook was favored by the company’s growth prospects.

Furthermore, JPMorgan sees Microsoft experiencing a growth acceleration in Azure and M365 Commercial Cloud. Additionally, this analyst noted that the company’s AI infrastructure buildout would be the key underlying driver for acceleration in its businesses.

Most importantly, Chatterjee believes that Microsoft’s combination of high revenue and earnings growth as well as lower capital needs than its peers should justify a return to the historical premium for MSFT shares relative to the broader market.

Wall analysts signal bullish outlook for Microsoft stock  Following Chatterjee’s ‘Overweight’, 34 Wall Street analysts surveyed by TipRanks have set an average 12-month price target of $564.49, which implies a potential 14.63% upside. Worth noting that 33 of these surveyed analysts having issued a ‘Buy’ rating for Microsoft stock, and the highest target is roughly $700, while the lowest is $450.

Over the past 30 days, MSFT stock price rallied over 27%, hence closing above June’s peak of near $466.36. As such, Microsoft stock has confirmed an end to its 2026 correction. Microsoft had a market capitalization of $3.7 trillion at the time of publication.

MSFT’s 30D chart. Source: Finbold  If MSFT’s stock price continues its recent uptrend, the analysts’ target of an ATH over the next 12 months could happen.

Featured image via Shutterstock

SummaryCompaniesMicrosoft shut at least 15 China branch offices and joint ventures in past five years, filings showTech firm badly hit by Beijing's push for domestic software, as well as U.S. export restrictionsCompany considered quitting China in 2023 but has no current exit plans, source saysMicrosoft has found a profitable line servicing Chinese companies going globalBEIJING/SHANGHAI, Aug 13 (Reuters) - Microsoft once regarded the idea of quitting China as unthinkable.

The year was 2010 and Google was about to exit due to concerns over censorship and cyberattacks. That decision was lauded by democracy activists, but not Bill Gates and Microsoft's then-CEO Steve Ballmer, who suggested Google ​was overreacting.

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In the past five years, however, at least 15 Microsoft branch offices and joint ventures in China have been shut, corporate filings show, and Microsoft is pursuing what five company sources described as a strategy of retreat.

The firm considered quitting the market in ‌2023 because some executives felt it took on too much geopolitical risk for too little economic return, one of them said, while stressing Microsoft has no current plans to exit. China accounted for just 1.5% of global revenue, Microsoft said in 2024.

Microsoft took a major hit from the erosion of trust between Washington and Beijing, the five people said. China has since 2017 pushed the use of domestic software, which Beijing sees as more secure and whose quality is increasingly competitive with Windows and Office. U.S. restrictions, including export controls on advanced technology, have meanwhile hindered efforts to scale Microsoft's lucrative AI and cloud businesses in China.

Details of Microsoft's internal deliberations about its future in China have not previously been reported.

Other U.S. tech giants with large China ​businesses are also reconsidering their exposure amid geopolitical tensions. Apple plans to manufacture in India most iPhones sold to Americans by the end of 2026, while Elon Musk last month denied reports that Tesla is debating separating its China business.

Microsoft ultimately decided to remain because it had carved out a profitable ​business servicing Chinese companies like TikTok owner ByteDance, which need Western technology to manage overseas operations, according to three people familiar with the matter. The company also believed that it needed a presence to maintain access to China's world-class ⁠engineering talent, two of them said.

Microsoft had also cultivated a relationship with the government that is among the deepest of any tech company, its former China head Alain Crozier told Reuters. "Because of the geopolitics … some days it's a little bit harder, but we never had a crisis," he said.

A Microsoft spokesperson did not ​address questions about the firm's deliberations on its China business but said it operates in a regulatory "environment that applies to every international supplier" and that it remains committed to the Chinese market.

The state of Microsoft's China business reflects market competition, regulatory demands and technological trends, the company said.

ByteDance did not respond to questions about its ​relationship with Microsoft.

FILE PHOTO: Microsoft Chairman and founder Bill Gates pauses to read a sign while touring Coal Hill in Beijing, China, March 23, 1994. REUTERS/Dennis Owen Purchase Licensing Rights, opens new tab

CHINA BLUESMicrosoft's engagement with the highest levels of China's government dates back to the early 1990s. Gates made the first of his many visits in 1994 and was received by President Jiang Zemin, who advised the Microsoft co-founder to study Chinese history.

The company has since made various efforts to build a relationship with the ruling Communist Party. Microsoft co-invested in startup incubators with the government and complied with censorship requirements that Google — now part of Alphabet — could not countenance.

By the mid-2010s, however, China had become increasingly suspicious of Western technology after revelations that U.S. firms had helped Washington spy on foreign governments. That was problematic for Microsoft as China's largest companies are either state-owned or maintain close government ties.

Microsoft's response was Windows 10 China ​Government Edition, whose release was personally negotiated between chief executive Satya Nadella and finance ministry officials, according to a person familiar with the matter.

The product was adopted by several government agencies, but did not take off as Microsoft hoped, said Crozier, who ran China operations through 2021.

At around the time of the Windows ​announcement in 2017, the Chinese government introduced new procurement guidelines that it billed as a framework for purchasing "safe and reliable" services. No foreign operating system, including Windows, has been regarded by the government as compliant with those policies, Microsoft said.

Non-compliance did not mean products were banned but it subjected tech administrators who used such services to scrutiny, including having ‌to run more security ⁠checks and seek additional approval, said Paul Triolo, a Washington-based China tech policy expert at DGA-Albright Stonebridge Group.

Reuters reviewed six Chinese government computer-system procurement guides published between December 2023 and May 2026. Five did not recommend Microsoft. The sixth included Windows 10 China Government Edition but said its usage was subject to "additional management requirements," without elaborating.

The Chinese tech and finance ministries did not respond to questions about the effect of regulations on Microsoft's business.

U.S. businesses operating in China, which have long complained about an uneven playing field, have had their confidence further dented by deteriorating Sino-American ties. Just 52% of respondents to the American Chamber of Commerce in China's latest business climate survey said China was a top global investment priority, down from 62% in 2019.

While its efforts to become the Chinese state's tech vendor of choice did not pay off, Microsoft found a second wind with the private sector.

Firms like ByteDance and ultra-fast-fashion retailer Shein have key businesses serving Western customers and rely on ​Microsoft's Azure cloud to manage data in compliance with foreign regulations, two company ​sources said. Microsoft also offers Chinese enterprise clients exclusive access via Azure ⁠to Western AI models from providers like OpenAI, which do not serve China.

By the mid-2020s, helping Chinese firms go global had become Microsoft's largest China-linked business, three people said. Two of them stressed that sales remained small by the firm's global standards.

Analysts have additionally questioned the sustainability of that AI business, which relies on third-party suppliers like OpenAI. Chinese businesses also do not need Azure if they use domestic AI models like Kimi, which are increasingly competitive with Western alternatives while being far ​cheaper.

OpenAI and Shein did not respond to questions.

HUMAN CAPITALMicrosoft has since the 1990s played a central role in building China's tech talent base.

Alongside hiring commercially focused engineers, it also established Microsoft Research China, which concentrates on advanced ​technologies. The lab's alumni include senior leaders at ⁠AI pioneers SenseTime and DeepSeek.

But the recent political pressures have affected Microsoft's ability to retain talent.

U.S. export controls on chips and AI models have restricted the access of Microsoft's China-based engineers to cutting-edge technology. The firm doesn't conduct research on quantum computing and other sensitive technologies in China, Microsoft president Brad Smith told U.S. lawmakers in 2023.

Microsoft considered shutting the lab down but ultimately decided to relocate some top talent, according to two people familiar with the matter. Since the U.S. began restricting AI exports, Microsoft Research China — now known as Microsoft Research Asia — has opened labs in Vancouver, Singapore and Tokyo.

The firm has, however, struggled to convince developers to leave China. It offered 1,000 top ⁠engineers relocation to the ​U.S. and three other Western countries in 2024, but only about a third accepted, the sources said.

Microsoft confirmed it offered transfer opportunities that year but declined to provide more details.

Many senior engineers ​instead left for Chinese universities and tech firms, where they can conduct top-level research while remaining close to family, both sources said.

Microsoft had previously warded off poaching efforts by domestic rivals. The firm had an attrition rate of roughly 17% in the mid-2010s, though Crozier said Microsoft reduced it to under 10% by growing new businesses, like servicing ByteDance, and offering staff global opportunities.

There is "up and ​down in terms of the number of people and maybe some of the things that were developed over there," he said. "But we never change one inch of the fact that we will bring technology into China… for China, for Chinese companies."

Reporting by Eduardo Baptista in Beijing and Casey Hall in Shanghai; Editing by Katerina Ang

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Eduardo Baptista is Chief Technology Correspondent, Greater China, for Reuters, based in Beijing. He covers artificial intelligence, semiconductors and emerging technologies. He holds a BA in History from the University of Cambridge.

Casey is the Shanghai bureau chief and a senior correspondent covering companies in China, reporting on the biggest issues facing local and global businesses operating in the world's second largest economy. The Australian-born journalist has been based in Shanghai since 2007.

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August is a natural checkpoint for long-term portfolios. Positions get reviewed, winners and laggards get weighed against multi-year theses, and investors ask a simple question: which mega-caps still have room to compound meaningfully from here? A double by 2030 requires roughly a 16% annualized return, which sits at the upper end of what mature large-caps can deliver. It is a scenario with conditions attached. But three Nasdaq stalwarts have the earnings power, backlog visibility, and platform economics to make the math plausible.

Each of the names below carries a mega-cap footprint (all above $3.7 trillion in market value), pays a dividend, and generates the kind of margins that fund both AI capex and shareholder returns. The bull path is quantifiable.

Apple (AAPL) Apple (NASDAQ:AAPL | AAPL Price Prediction) trades at $304.91 as of August 11, 2026, with a market cap of roughly $4.5 trillion and a forward P/E of 33x. The stock is up 34.71% over the past year and 12.47% year to date.

The bull case rests on three planks. First, iPhone 17 demand: Q3 FY26 revenue hit $109.42 billion, up 16.4% YoY, with iPhone revenue climbing to $54.25 billion from $44.58 billion a year earlier. Second, Services, a high-margin recurring engine, grew to $30.74 billion. Third, capital returns: management authorized a fresh $100 billion buyback and hiked the dividend 4% to $0.27 quarterly. Tim Cook called it the "strongest June quarter ever, with double-digit revenue growth across iPhone, Mac and Services, and in every geographic segment."

Analysts skew constructive: 61% bullish with a target of $322.82. Risk: Q3 gross margin got roughly 2 points of benefit from one-time tariff refunds, and a premium P/E leaves thin cushion if China exposure flares. The base 5-year projection points to $521.08, roughly a 70.9% total return, meaning buybacks and Services need to accelerate for a full double.

Microsoft (MSFT) Microsoft (NASDAQ:MSFT) closed at $503.81, up 30.83% in the past month after a knockout Q4. Forward P/E sits at 25x, and the stock still trades 2% below its 52-week high of $550.24.

Q4 FY26 revenue reached $90.01 billion, up 17.8% YoY, 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. Commercial remaining performance obligations expanded 84% to $678 billion, a contracted backlog that provides remarkable revenue visibility deep into the decade. Copilot passed 30 million paid seats. Satya Nadella framed the year plainly: "This year, Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats."

Analyst sentiment is emphatic: 95% bullish with a target of $563.84. Risk: FY26 CapEx hit $115.95 billion, up 79.6%, pressuring free cash flow (down 6.5% to $66.99 billion), and Q4 EPS was aided by a $3.2 billion Anthropic gain. A double by 2030 requires AI ROI to translate into durable operating leverage.

Alphabet (GOOGL) Alphabet (NASDAQ:GOOGL) is the cleanest math of the three. At $343.80, shares are up 71.53% over the past year, yet the forward P/E is still just 17x. That is the lowest multiple in the group despite the fastest revenue growth.

Q2 FY26 revenue landed at $119.80 billion, up 24.2%. Google Cloud grew 82% to $24.77 billion, accelerating rather than decelerating, with nearly 90% of the Fortune 100 using Gemini Enterprise. The Gemini app reached 950 million monthly active users, and Waymo hit 500,000+ fully autonomous rides per week. Sundar Pichai summarized: "Q2 was an amazing quarter… Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions."

Analyst consensus is 91% bullish with a target of $428.04. Base case 5-year projection points to $726.95, a 111.45% total return that clears the doubling bar. Risk: Q2 CapEx of $44.92 billion pushed free cash flow to negative $5.86 billion, buybacks were suspended, and long-term debt more than doubled to $98.2 billion. Earnings volatility from unrealized equity gains adds noise.

What Investors Should Watch The doubling thesis varies by name. Alphabet’s model math already gets there in the base case; Apple and Microsoft need continued execution against ambitious AI and services roadmaps. Watch Azure growth durability, Apple Services margin, and Google Cloud backlog conversion. Those three variables will determine whether 2030 delivers a double or a respectable but shorter climb.

Contact [email protected] for any questions or corrections.

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SummaryMicrosoft delivered robust Q4 results, with 18% YoY revenue growth and a strong performance from Intelligent Cloud and Productivity & Business Processes.Intelligent Cloud segment accelerated to 31% constant currency growth, with Azure up 43%, justifying elevated CapEx.Guidance for Q1 implies continued strength, with revenue growth expected to be at 33% for Intelligent Cloud, reinforcing the bullish outlook.I reaffirm my strong buy rating on Microsoft, citing attractive valuation, resilient fundamentals, and a favorable risk/reward profile despite regulatory and supply chain risks. wellesenterprises/iStock Editorial via Getty Images

Introduction In mid May, I reiterated my strong buy rating on Microsoft Corporation (MSFT) and called the stock a table-pounding buy. I cited overblown SaaSpocalypse fears, strong performance in Azure, and an attractive valuation. I believe

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

Analyst's family has a beneficial long position in the shares of SPCX.

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Key Takeaways The 2026 Q2 earnings season has remained highly positive. The Mag 7 members have nearly all reported, with MSFT and AAPL delivering solid results. Of the seven members, NVIDIA remains the only one yet to report. Six of the beloved members of the Magnificent Seven have delivered their Q2 results, with only the most polarizing of the bunch, NVIDIA (NVDA - Free Report) , reflecting the last on the schedule. NVIDIA will report on August 26th.  

Several members of the group, including Microsoft (MSFT - Free Report) and Apple (AAPL - Free Report) , posted solid results overall, though the post-earnings reaction was much stronger for MSFT.

Apple Breaks RecordsApple’s results reflected its strongest June-quarter period ever, with quarterly revenue of $109.4 billion growing 16% year-over-year. Adjusted EPS came in at $2.02, growing an even stronger 29% from the year-ago period.

It also reported double-digit revenue growth across iPhone, Mac, and Services, with similar gains in every geographic segment. Its installed base of active devices reached an all-time high across its major product categories, with its overall gross margin seeing a benefit from tariff refunds.

As usual, the iPhone reflected the mega-cap tech giant’s biggest source of revenue, with sales coming in at $54.3 billion and growing by 21.6% year-over-year.

Image Source: Zacks Investment Research

Though iPhone reflects the greatest portion of sales, the Services category has quickly grown to be another big top line contributor over recent years, with quarterly sales of $30.7 billion reflecting a 12% YoY increase.

Apple’s cash-generating abilities have always been a critical part of investor sentiment surrounding the stock, with it also reporting record operating cash flow for its June-quarter period. The strong cash-generating abilities have allowed shares to trade at a premium, with its dividend payouts pleasing investors looking to obtain top-tier tech exposure paired with paydays.

Microsoft Posts Huge Cloud Growth Microsoft posted a double-beat relative to our consensus expectations, with sales growing by 18% YoY alongside 23% YoY growth in earnings. Most importantly, the mega-cap heavyweight delivered favorable Intelligent Cloud results, a key benchmark the market has consistently scrutinized amid the billions it’s been investing in AI infrastructure.

Microsoft’s Intelligent Cloud results include Azure, its cloud computing platform that provides AI computing power to businesses. Intelligent Cloud revenue came in at $39.3 billion, beating our consensus estimate handily and growing 32% YoY. The growth rate here is mightily important from a sentiment standpoint, showing an acceleration relative to recent periods.

Image Source: Zacks Investment Research

Enterprise adoption of Copilot surged throughout its FY26 to over 30 million paid seats, further underpinning the momentum the company is enjoying thanks to its AI-related investments.

Bottom Line

Six of beloved Mag 7 members have delivered their results, with just NVIDIA (NVDA - Free Report) the lone player yet to report. Both Microsoft (MSFT - Free Report) and Apple (AAPL - Free Report) posted solid results, with each again seeing strong growth.

Microsoft Corp. shares MSFT fell 2% in Wednesday morning trading as investors weighed fresh speculation about the company's in-house Maia AI chips against its rapidly rising infrastructure spending.

While the software giant has not confirmed reports that another Maia processor could launch as early as September, analysts increasingly view Microsoft's custom silicon strategy as a key component of its long-term artificial intelligence ambitions.

The pullback comes despite continued optimism around Microsoft's AI business following its strong fiscal fourth-quarter results, with investors focusing on whether massive capital investments can translate into sustained earnings growth and stronger Azure economics.

According to a Barron's report, Microsoft may unveil another Maia AI processor as early as September, although the company has not confirmed that timeline.

Microsoft already offers the Maia 200, a three-nanometer AI inference chip featuring more than 140 billion transistors and 216GB of high-bandwidth memory.

The processor is designed to handle AI workloads across Azure AI services and Microsoft 365 Copilot.

Rather than replacing chips supplied by Nvidia and AMD, Microsoft's custom silicon strategy is aimed at improving the economics of its AI infrastructure.

By shifting more AI inference workloads onto internally designed processors, the company could lower operating costs, optimize data center performance, and gain greater control over its AI technology stack.

Microsoft is investing tens of billions of dollars in AI infrastructure as the company looks to be independent of outside chipmakers.

Capital spending remains in focus despite strong AI demandMicrosoft has forecast Azure revenue growth of roughly 45% while quarterly capital expenditure is running at approximately $50 billion, underscoring the scale of its AI investment.

Microsoft's balance sheet remains healthy despite elevated investment levels.

Debt accounts for 7.5% of total assets compared with a historical average of 19%, indicating the company is financing its expansion from a position of financial strength rather than excessive leverage.

Management has also indicated that capital expenditures will continue increasing during fiscal 2027, reflecting its commitment to expanding AI infrastructure.

Microsoft shares have climbed 26% since the company reported fiscal fourth-quarter earnings on July 29, prompting some investors to question whether much of the optimism is already reflected in the stock price.

However, analysts argue that Microsoft's spending is directly tied to strong demand.

Azure demand exceeded available capacity during fiscal Q4 2026, while management expects Azure revenue growth of approximately 45% in constant currency during the first quarter of fiscal 2027.

Analysts said that investors should relook at Microsoft's investment case, instead of viewing higher spending as a wanring sign, view it as company preapring aggresively to support increasing AI demand.

Although Microsoft has underperformed the broader market over the past 12 months and remains about 6.5% below its 52-week high, analysts continue to view the company's AI investments and custom chip strategy as central to its long-term growth outlook.

Microsoft Corp. (NASDAQ:MSFT) shares are pulling back Wednesday, giving back some ground after an extended run higher that followed the company’s fourth-quarter earnings report.

Microsoft stock is under selling pressure. Why are MSFT shares declining? MSFT Stock Pulls Back After Strong EarningsMicrosoft reported fourth-quarter revenue of $90.01 billion, up 18% year-over-year and ahead of the $87.62 billion analysts had expected, according to Benzinga Pro data. Earnings per share came in at $4.74, topping the $4.24 consensus estimate.

Growth was broad-based across the business. Intelligent Cloud revenue rose 32% year-over-year to $39.3 billion, with Azure and other cloud services revenue climbing 43%. Total cloud revenue across segments reached $59.3 billion, up 27% from a year earlier. For the full fiscal year, revenue totaled $331.8 billion, also up 18%.

CEO Satya Nadella pointed to two milestones from the year: Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot topped 30 million paid seats, which he said reflects growing customer confidence in Microsoft’s ability to power their AI initiatives.

MSFT Stock Looks Overextended After its RunThat divergence points to profit-taking after a sharp run. Even with today’s pullback, Microsoft remains 11.9% above its 20-day moving average of $440.39 and 13.9% above its 200-day moving average of $432.80, an extended setup that often invites buyers to wait for a better entry point rather than chase the stock higher. Momentum indicators aren’t flashing a warning sign, though: the MACD line remains above its signal line with a positive histogram, suggesting the stock’s recent upward pressure has yet to break down.

The moving-average picture carries a mixed signal further out. The 20-day average sitting above the 50-day average is a near-term positive, but the 50-day average has remained below the 200-day average since a January death cross, a longer-term caution flag that can keep larger investors from chasing strength at current levels.

Traders are watching $493.50 as resistance, just above the current price, and $409.50 as support, a level that lines up with the 50-day moving average zone if the pullback extends. Traders are watching $493.50 as resistance, just above the current price, and $409.50 as support, a level that lines up with the 50-day moving average zone if the pullback extends.

MSFT Shares Are FallingMSFT Price Action: Microsoft shares were down 1.96% at $493.96 at the time of publication on Wednesday, according to Benzinga Pro.

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Microsoft (MSFT -2.28%) stock has been on quite a run since the company reported its results for the fourth quarter of its fiscal 2026 (which ended June 30). Microsoft delivered those results after the close of trading on July 29, and investors sent the stock skyrocketing the following day. They have continued bidding the stock higher, and it's now up by an impressive 26% since the report came out.

That's a huge run in a short time frame, and for a company as large as Microsoft, it may make investors feel like they've missed the boat. So, is it too late to buy shares for now? Or is this rally an indication of something new?

Image source: Getty Images.

Microsoft's rally takes it back to the top of big tech Microsoft is a major software company that is also diving deep into AI. It is exposed to AI in two ways: its internal products and its cloud computing business. Microsoft Copilot is its in-house AI tool meant to provide general AI use and also interface with the Office suite of productivity titles. This product reached over 30 million paid seats in the quarter, showcasing strong growth.

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However, cloud computing is more of a focus area for investors. Microsoft Azure continued to grow rapidly, with revenue rising 43% year over year. To make money, though, it must build cloud computing capacity and infrastructure, which is why Microsoft is spending hundreds of billions of dollars on data centers. While some of Microsoft's hyperscaler competitors, like Amazon (AMZN -1.43%) and Alphabet (GOOG -0.56%) (GOOGL -0.53%), recently increased their already lofty spending capex expectations for 2026, Microsoft left its capex guidance unchanged. The market is worried that the AI hyperscalers may be overspending on their data center build-outs, so the news that Microsoft was not planning to further accelerate its outlays this year likely helped bolster its share price.

Still, the biggest reason why Microsoft had such a rapid rise following its earnings report was how cheap the stock was ahead of it. At the start of July and leading up to the release date, Microsoft stock traded for less than 20 times forward earnings -- its cheapest valuation in a long time. Considering how strong a business Microsoft is, this valuation level made no sense.

MSFT PE Ratio (Forward) data by YCharts.

Microsoft now trades at a far more reasonable level. It's still on the low end of its recent levels, but it is also at the higher end of the valuation spectrum compared to some of its big tech peers.

MSFT PE Ratio (Forward) data by YCharts.

In short, many investors have missed their opportunity to buy Microsoft at the dirt cheap levels it traded at earlier this summer. While I still think Microsoft can be a successful and market-beating investment over the next few years, a lot of the growth the stock had coming was delivered in just a few days.

Keithen Drury has positions in Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

I think the primary reason everyone is talking about Microsoft (MSFT -0.45%) is its cloud segment growth.

*Stock prices used were the afternoon prices of Aug. 7, 2026. The video was published on Aug.9, 2026.

Parkev Tatevosian, CFA has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

ATLANTA--(BUSINESS WIRE)--Sionic, a leader in real-time, bank-to-bank payments at the point of sale, today announced the availability launch of its Instant Bank Pay service alongside Fraud Detection Service in Microsoft Marketplace, the unified online destination for customers to buy trusted cloud solutions, AI apps, and agents to meet their business needs. Sionic customers can now discover and deploy trusted solutions through Microsoft Marketplace, with smooth integration and streamlined manag.

Posted by Defense World Staff on Aug 12th, 2026

Cooper Creek Partners Management LLC grew its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 12.0% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 38,561 shares of the software giant’s stock after acquiring an additional 4,117 shares during the quarter. Cooper Creek Partners Management LLC’s holdings in Microsoft were worth $14,274,000 at the end of the most recent quarter.

A number of other institutional investors have also recently modified their holdings of MSFT. Longfellow Investment Management Co. LLC increased its stake in 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 bought a new position in shares of Microsoft in the fourth quarter worth approximately $34,000. Timmons Wealth Management LLC bought a new position in shares of Microsoft in the fourth quarter worth approximately $36,000. Fairway Wealth LLC grew its holdings in shares of Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after buying an additional 66 shares during the last quarter. Finally, LSV Asset Management purchased a new stake in shares of Microsoft during the fourth quarter valued at approximately $44,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Amy Coleman sold 1,262 shares of the business’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the sale, the executive vice president owned 46,003 shares 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 SEC filing for this sale provides additional information. Over the last three months, insiders have sold 38,572 shares of company stock valued at $17,775,330. Insiders own 0.03% of the company’s stock.

Analyst Upgrades and Downgrades A number of equities analysts recently weighed in on MSFT shares. China Renaissance decreased their price objective on shares of Microsoft from $630.00 to $550.00 and set a “buy” rating for the company in a report on Monday, May 4th. Cantor Fitzgerald increased their target price on Microsoft from $502.00 to $522.00 and gave the company an “overweight” rating in a research note on Monday, July 27th. Wells Fargo & Company lifted their target price on Microsoft from $625.00 to $650.00 and gave the stock an “overweight” rating in a report on Thursday, July 30th. 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, Mizuho dropped their price objective on Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 15th. Forty-two research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $559.16.

View Our Latest Analysis on Microsoft

Microsoft Trading Down 0.4% NASDAQ:MSFT opened at $503.81 on Wednesday. The company has a market cap of $3.74 trillion, a PE ratio of 28.05, a price-to-earnings-growth ratio of 1.63 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. The company has a 50 day simple moving average of $407.02 and a two-hundred day simple moving average of $407.37. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings 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 firm had revenue of $90.01 billion for the quarter, compared to analysts’ expectations of $87.62 billion. During the same period in the prior year, the firm earned $3.65 EPS. The company’s revenue was up 17.7% compared to the same quarter last year. Research analysts forecast that Microsoft Corporation will post 19.58 earnings per share for the current year.

Microsoft Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be issued a $0.91 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. Microsoft’s dividend payout ratio is currently 20.27%.

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

Positive Sentiment: Microsoft’s latest earnings showed stronger-than-expected profitability and revenue, with Azure growth and Copilot adoption reinforcing the view that substantial AI investment is beginning to generate returns. Hedge funds and institutional investors continue to favor Microsoft over some other mega-cap technology names. Hedge Funds Favor Microsoft Over Meta Positive Sentiment: Bernstein raised its Microsoft price target to $660 and maintained an Outperform rating, arguing that Microsoft’s data-center expansion is measured, flexible, and supported by durable cloud demand. Other analysts also identified Azure growth, backlog, and institutional buying as potential catalysts for a year-end rally. Bernstein Raises Microsoft Target Positive Sentiment: Reports that Microsoft may unveil its Maia 300 AI chip as early as September and secure production capacity for more than 300,000 units could reduce reliance on Nvidia processors, lower long-term AI costs, and support Microsoft’s cloud strategy. Microsoft Maia 300 Chip Report 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).

Further Reading Five stocks we like better than Microsoft Atlassian Just Pulled Off the Software Comeback Wall Street Wanted AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be NVIDIA’s Rally Sets Up a Bigger Test Ahead of Earnings Apple’s Next iPhone Could Test How Much Pricing Power Is Left

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« PREVIOUS HEADLINEBank of America Corp DE Purchases 767,913 Shares of JPMorgan International Bond Opportunities ETF $JPIB

NEXT HEADLINE »Bank of America Corp DE Sells 48,564 Shares of Pentair plc $PNR

Posted by Defense World Staff on Aug 12th, 2026

Cumberland Partners Ltd reduced its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 21.9% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 149,757 shares of the software giant’s stock after selling 41,879 shares during the quarter. Microsoft makes up 4.2% of Cumberland Partners Ltd’s portfolio, making the stock its 3rd biggest holding. Cumberland Partners Ltd’s holdings in Microsoft were worth $55,436,000 as of its most recent SEC filing.

Other large investors have also recently added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC increased its position in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after purchasing an additional 20 shares during the last quarter. Bernzott Capital Advisors purchased a new position in shares of Microsoft in the 4th quarter worth $34,000. Timmons Wealth Management LLC purchased a new position in shares of Microsoft in the 4th quarter worth $36,000. Fairway Wealth LLC boosted its holdings in Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after acquiring an additional 66 shares during the last quarter. Finally, LSV Asset Management acquired a new position in Microsoft in the fourth quarter valued at $44,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth Several brokerages have commented on MSFT. Raymond James Financial lowered Microsoft from a “market perform” rating to a “market perform” rating in a research note on Tuesday, May 5th. DZ Bank reaffirmed a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. Piper Sandler boosted their target price on Microsoft from $540.00 to $550.00 and gave the stock an “overweight” rating in a report on Tuesday, July 28th. Mizuho dropped their target price on shares of Microsoft from $515.00 to $490.00 and set an “outperform” rating for the company in a research report on Wednesday, July 15th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Microsoft in a report on Monday, July 6th. Forty-two investment 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.com, Microsoft presently has a consensus rating of “Moderate Buy” and an average price target of $559.16.

Read Our Latest Stock Analysis on MSFT

Microsoft Trading Down 0.4% MSFT opened at $503.81 on Wednesday. The firm’s 50 day moving average is $407.02 and its 200-day moving average is $407.37. 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 has a market capitalization of $3.74 trillion, a P/E ratio of 28.05, a P/E/G ratio of 1.63 and a beta of 1.11.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating the consensus estimate of $4.24 by $0.50. The business had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.65 earnings per share. Analysts expect that Microsoft Corporation will post 19.58 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. Shareholders of record on Thursday, August 20th will be given a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s dividend payout ratio is presently 20.27%.

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

Positive Sentiment: Microsoft’s latest earnings showed stronger-than-expected profitability and revenue, with Azure growth and Copilot adoption reinforcing the view that substantial AI investment is beginning to generate returns. Hedge funds and institutional investors continue to favor Microsoft over some other mega-cap technology names. Hedge Funds Favor Microsoft Over Meta Positive Sentiment: Bernstein raised its Microsoft price target to $660 and maintained an Outperform rating, arguing that Microsoft’s data-center expansion is measured, flexible, and supported by durable cloud demand. Other analysts also identified Azure growth, backlog, and institutional buying as potential catalysts for a year-end rally. Bernstein Raises Microsoft Target Positive Sentiment: Reports that Microsoft may unveil its Maia 300 AI chip as early as September and secure production capacity for more than 300,000 units could reduce reliance on Nvidia processors, lower long-term AI costs, and support Microsoft’s cloud strategy. Microsoft Maia 300 Chip Report Insider Buying and Selling at Microsoft In related news, EVP Amy Coleman sold 1,262 shares of the business’s 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 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 legal filing with the SEC, which can be accessed through this link. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the transaction, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. This represents a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 38,572 shares of company stock valued at $17,775,330 in the last ninety days. Insiders own 0.03% of the company’s stock.

About Microsoft (Free Report)

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

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

See Also Five stocks we like better than Microsoft Atlassian Just Pulled Off the Software Comeback Wall Street Wanted AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be NVIDIA’s Rally Sets Up a Bigger Test Ahead of Earnings Apple’s Next iPhone Could Test How Much Pricing Power Is Left

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« PREVIOUS HEADLINEBank of America Corp DE Has $50.03 Million Stake in Rubrik, Inc. $RBRK

NEXT HEADLINE »Bank of America Corp DE Has $52.43 Million Stake in Dimensional US High Profitability ETF $DUHP

Posted by Defense World Staff on Aug 12th, 2026

Cypress Capital Group trimmed its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 2.4% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 82,840 shares of the software giant’s stock after selling 2,027 shares during the period. Microsoft accounts for about 3.4% of Cypress Capital Group’s holdings, making the stock its 3rd biggest holding. Cypress Capital Group’s holdings in Microsoft were worth $30,665,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Longfellow Investment Management Co. LLC grew its position in shares of Microsoft by 51.3% in the second 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 purchased a new position in Microsoft during the fourth quarter worth approximately $34,000. Timmons Wealth Management LLC acquired a new position in Microsoft during the fourth quarter worth $36,000. Fairway Wealth LLC boosted its stake in Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after buying an additional 66 shares during the last quarter. Finally, University of Illinois Foundation purchased a new stake in Microsoft in the 2nd quarter valued at $50,000. 71.13% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth A number of analysts have issued reports on MSFT shares. Arete Research raised their target price on Microsoft from $730.00 to $870.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. The Goldman Sachs Group reissued a “buy” rating and issued a $640.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Oppenheimer reaffirmed an “outperform” rating and set a $515.00 target price on shares of Microsoft in a research note on Wednesday, July 22nd. BMO Capital Markets upped their price objective on Microsoft from $500.00 to $515.00 and gave the company an “outperform” rating in a report on Thursday, July 30th. Finally, Rothschild & Co Redburn lowered their price target on Microsoft from $450.00 to $400.00 and set a “neutral” rating for the company in a report on Thursday, April 23rd. Forty-two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $559.16.

Read Our Latest Report on Microsoft

Insider Activity at Microsoft In other Microsoft news, 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 completion of the transaction, the executive vice president directly 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 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 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 sale, the chief executive officer owned 110,477 shares in the company, valued at $50,928,792.23. This trade represents a 12.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 38,572 shares of company stock worth $17,775,330 in the last three months. 0.03% of the stock is owned by company insiders.

Microsoft Stock Down 0.4% Shares of NASDAQ MSFT opened at $503.81 on Wednesday. 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 business’s 50 day moving average is $407.02 and its two-hundred day moving average is $407.37. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The firm has a market cap of $3.74 trillion, a price-to-earnings ratio of 28.05, a PEG ratio of 1.63 and a beta of 1.11.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The business had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same period last year, the business posted $3.65 earnings per share. The company’s quarterly revenue was up 17.7% on a year-over-year basis. Research analysts predict that Microsoft Corporation will post 19.58 EPS for the current year.

Microsoft Dividend Announcement The company 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. 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 dividend payout ratio (DPR) is 20.27%.

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

Positive Sentiment: Microsoft’s latest earnings showed stronger-than-expected profitability and revenue, with Azure growth and Copilot adoption reinforcing the view that substantial AI investment is beginning to generate returns. Hedge funds and institutional investors continue to favor Microsoft over some other mega-cap technology names. Hedge Funds Favor Microsoft Over Meta Positive Sentiment: Bernstein raised its Microsoft price target to $660 and maintained an Outperform rating, arguing that Microsoft’s data-center expansion is measured, flexible, and supported by durable cloud demand. Other analysts also identified Azure growth, backlog, and institutional buying as potential catalysts for a year-end rally. Bernstein Raises Microsoft Target Positive Sentiment: Reports that Microsoft may unveil its Maia 300 AI chip as early as September and secure production capacity for more than 300,000 units could reduce reliance on Nvidia processors, lower long-term AI costs, and support Microsoft’s cloud strategy. Microsoft Maia 300 Chip Report 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).

Further Reading Five stocks we like better than Microsoft Atlassian Just Pulled Off the Software Comeback Wall Street Wanted AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be NVIDIA’s Rally Sets Up a Bigger Test Ahead of Earnings Apple’s Next iPhone Could Test How Much Pricing Power Is Left

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