Chancellor Financial Group WB LP bought a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 30,780 shares of the software giant’s stock, valued at approximately $11,482,000. Microsoft comprises about 7.1% of Chancellor Financial Group WB LP’s investment portfolio, making the stock its 3rd biggest holding.
Several other large investors have also recently added to or reduced their stakes in the business. Great Lakes Advisors LLC purchased a new position in shares of Microsoft in the 2nd quarter worth $370,802,000. Balanced Wealth Group LLC acquired a new position in Microsoft in the second quarter valued at $692,000. Avaii Wealth Management LLC purchased a new stake in Microsoft during the second quarter valued at about $925,000. Compass Wealth Management LLC purchased a new stake in Microsoft during the second quarter valued at about $4,922,000. Finally, Vista Cima Wealth Management LLC purchased a new stake in Microsoft during the second quarter valued at about $4,226,000. 71.13% of the stock is currently owned by hedge funds and other institutional investors.
Insider Activity In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer directly 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the sale, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 143,009 shares of company stock valued at $71,420,699. Company insiders own 0.03% of the company’s stock.
Microsoft News Summary Here are the key news stories impacting Microsoft this week: Positive Sentiment: Microsoft introduced Microsoft-Decision-1, an AI model it says makes decisions substantially faster than GPT-6 Sol. The launch reinforces Microsoft’s competitive position in enterprise AI and could support demand for Azure and Copilot services. Microsoft launches Microsoft-Decision-1 Positive Sentiment: Analyst and investor commentary remains bullish on Microsoft’s AI stack, Azure acceleration, Copilot adoption and a large reported backlog. Wells Fargo reportedly raised its price target to $725, while Morgan Stanley reaffirmed a Buy rating with a $600 target. Morgan Stanley rating Positive Sentiment: Microsoft is attempting to revive Windows and expand on-device AI with new Nvidia-powered Surface hardware, including the premium Surface Laptop Ultra. Local AI processing could strengthen the Windows ecosystem and stimulate higher-value PC sales. Surface Laptop Ultra Positive Sentiment: The company is nearing a $4 trillion market capitalization after a strong earnings beat, with revenue and earnings growth continuing to support the recent rally. The next major test is Microsoft’s expected October 28 earnings report. Microsoft approaches $4 trillion valuation Neutral Sentiment: Microsoft’s new Xbox division, focused on film, television, events and theme parks, could expand the reach of its gaming franchises, although the strategy is unlikely to materially affect near-term financial results. Microsoft forms new Xbox unit Negative Sentiment: The U.S. suspension of Microsoft’s PERM green-card sponsorship program creates hiring and retention uncertainty, particularly for specialized AI and engineering workers. Investors are weighing potential compliance costs and the risk of an “AI brain drain.” U.S. suspends Microsoft green-card program Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned game companies over virtual currencies, adding regulatory risk to the gaming business. Italy gaming investigation Microsoft Stock Up 2.4% Shares of NASDAQ MSFT opened at $535.07 on Friday. The stock has a market cap of $3.97 trillion, a PE ratio of 29.79, a PEG ratio of 1.72 and a beta of 1.10. The business has a fifty day moving average of $501.15 and a two-hundred day moving average of $434.73. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23.
Microsoft (NASDAQ:MSFT – Get Free Report) last issued its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the previous year, the company earned $3.65 EPS. The firm’s revenue for the quarter was up 17.7% compared to the same quarter last year. As a group, equities research analysts expect that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.
Microsoft Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a dividend of $0.98 per share. This is an increase from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s dividend payout ratio is 20.27%.
Wall Street Analysts Forecast Growth Several equities research analysts have commented on MSFT shares. JPMorgan Chase & Co. restated a “buy” rating on shares of Microsoft in a research note on Monday, September 28th. Piper Sandler lifted their price objective on Microsoft from $550.00 to $610.00 and gave the company an “overweight” rating in a research note on Wednesday, September 30th. Sanford C. Bernstein set a $660.00 price objective on Microsoft in a research note on Monday, August 10th. Melius Research set a $665.00 target price on Microsoft and gave the stock a “buy” rating in a report on Monday, October 5th. Finally, Royal Bank Of Canada reiterated an “outperform” rating on shares of Microsoft in a report on Thursday, September 10th. Forty-two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Microsoft has a consensus rating of “Moderate Buy” and a consensus price target of $578.73.
Get Our Latest Research Report on MSFT
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
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Compass Wealth Management LLC purchased a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 13,195 shares of the software giant’s stock, valued at approximately $4,922,000.
A number of other institutional investors have also recently made changes to their positions in MSFT. Vista Cima Wealth Management LLC bought a new position in shares of Microsoft during the 2nd quarter worth approximately $4,226,000. Pacific Sun Financial Corp acquired a new stake in shares of Microsoft during the 2nd quarter worth approximately $2,132,000. Stevens Capital Partners acquired a new stake in shares of Microsoft during the 2nd quarter worth approximately $2,556,000. Altiora Financial Group LLC bought a new stake in shares of Microsoft in the 2nd quarter valued at $2,626,000. Finally, BOK Financial Private Wealth Inc. bought a new stake in shares of Microsoft in the 2nd quarter valued at $4,647,000. Institutional investors own 71.13% of the company’s stock.
Insider Buying and Selling In other news, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the transaction, the executive vice president owned 533,624 shares of the company’s stock, valued at $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 143,009 shares of company stock worth $71,420,699. Company insiders own 0.03% of the company’s stock.
Analyst Upgrades and Downgrades A number of research firms recently issued reports on MSFT. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Microsoft in a research report on Monday, July 20th. Morgan Stanley cut shares of Microsoft from an “overweight” rating to a “negative” rating in a report on Monday, October 5th. Mizuho decreased their price target on shares of Microsoft from $515.00 to $490.00 and set an “outperform” rating for the company in a research note on Wednesday, July 15th. Rothschild & Co Redburn set a $440.00 price objective on shares of Microsoft in a report on Monday, September 21st. Finally, Truist Financial reiterated a “buy” rating and set a $575.00 price objective on shares of Microsoft in a report on Wednesday, July 22nd. Forty-two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Microsoft has a consensus rating of “Moderate Buy” and a consensus target price of $578.73. Get Our Latest Report on MSFT
Microsoft News Roundup Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft introduced Microsoft-Decision-1, an AI model it says makes decisions substantially faster than GPT-6 Sol. The launch reinforces Microsoft’s competitive position in enterprise AI and could support demand for Azure and Copilot services. Microsoft launches Microsoft-Decision-1 Positive Sentiment: Analyst and investor commentary remains bullish on Microsoft’s AI stack, Azure acceleration, Copilot adoption and a large reported backlog. Wells Fargo reportedly raised its price target to $725, while Morgan Stanley reaffirmed a Buy rating with a $600 target. Morgan Stanley rating Positive Sentiment: Microsoft is attempting to revive Windows and expand on-device AI with new Nvidia-powered Surface hardware, including the premium Surface Laptop Ultra. Local AI processing could strengthen the Windows ecosystem and stimulate higher-value PC sales. Surface Laptop Ultra Positive Sentiment: The company is nearing a $4 trillion market capitalization after a strong earnings beat, with revenue and earnings growth continuing to support the recent rally. The next major test is Microsoft’s expected October 28 earnings report. Microsoft approaches $4 trillion valuation Neutral Sentiment: Microsoft’s new Xbox division, focused on film, television, events and theme parks, could expand the reach of its gaming franchises, although the strategy is unlikely to materially affect near-term financial results. Microsoft forms new Xbox unit Negative Sentiment: The U.S. suspension of Microsoft’s PERM green-card sponsorship program creates hiring and retention uncertainty, particularly for specialized AI and engineering workers. Investors are weighing potential compliance costs and the risk of an “AI brain drain.” U.S. suspends Microsoft green-card program Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned game companies over virtual currencies, adding regulatory risk to the gaming business. Italy gaming investigation Microsoft Trading Up 2.4% Shares of Microsoft stock opened at $535.07 on Friday. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The company’s fifty day simple moving average is $501.15 and its 200-day simple moving average is $434.73. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The stock has a market capitalization of $3.97 trillion, a PE ratio of 29.79, a P/E/G ratio of 1.72 and a beta of 1.10.
Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The firm had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same period in the prior year, the business posted $3.65 EPS. Microsoft’s revenue was up 17.7% on a year-over-year basis. As a group, equities analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current year.
Microsoft Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This is a boost from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s dividend payout ratio is presently 20.27%.
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
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Microsoft Chairman and CEO Satya Nadella on Saturday called for advanced artificial intelligence systems to be built with containment, independent controls and an “emergency brake” that lets authorized people pause or shut a model down mid-task.
“We need to surround non-deterministic models with strong, deterministic system design, human controls, and reliable operating procedures, and establish industry standards where existing ones are insufficient,” Nadella wrote in a post on social media platform X.
“Treating frontier closed and open weight models like insider risks is a way to build such a system,” he said.
Nadella’s comments come amid warnings from top tech executives and researchers — including Microsoft co-founder Bill Gates, Anthropic CEO Dario Amodei, OpenAI CEO Sam Altman and SpaceX CEO Elon Musk — about insufficient AI safety protocols and claims that the technology is moving too fast.
An AI researcher quit Anthropic last month and accused the company, and its chief rival, OpenAI, of “gambling with our lives.” Later that day, an alignment lead at Anthropic focused on AI safety said there’s a greater than 10% chance that the technology could “kill all humans” within the next decade.
Conversely, President Donald Trump has repeatedly dismissed AI extinction risks and has instead emphasized that the industry needs to stay ahead of China. Trump also recently introduced a new “AI Force,” led by Director of National Intelligence Jay Clayton, to help facilitate the industry and root out bad actors.
Microsoft’s Nadella wrote Saturday that AI systems should be designed around “principles of observability.”
They include model diversity; a human-readable footprint of the model’s actions; continuous system testing; independent controls and auditability; containment; and incident disclosure, Nadella wrote.
“The most trustworthy Super Intelligence system will not be the one with the model we trust most,” he wrote. “It will be the one that enables us to trust the model the least.”
Image Credits:Dan DeLong Microsoft CEO Satya Nadella is the latest tech executive to offer lengthy thoughts on how AI safety might be improved.
In a Saturday morning post on X, Nadella wrote that it’s time “to step back and assess the trust architecture” of AI.
“We can’t treat Super Intelligence as a set of nested black boxes and simply accept or reject its recommendations, answers, and actions,” Nadella wrote, using the Trump administration’s preferred term for AI.
As outlined by Nadella, this approach “means separating the model from the harness that orchestrates its work,” as well as “externalizing controls and safeguards.” He also called for “every meaningful model action” to be documented with “tamper-proof human readable evidence,” and for systems where “an authorized person” always has the ability “to pause or shut down a model mid-task.”
“We must assume a model is compromised and contain it from the start,” he said. “Think of it like an emergency brake.”
Nadella’s comments come as leading AI companies acknowledge more and more incidents where they seemed to lose control of their models, and after Anthropic CEO Dario Amodei published a plan for more cautious AI development.
As the Trump administration announced Thursday that it suspended eight tech companies from sponsoring foreign workers for green cards, Vice President JD Vance singled out Microsoft, claiming it replaced the 6,000 workers it laid off in 2025 with people on H-1B work visas.
The suspension of the Labor Department's PERM program for green cards, which grant permanent residency to immigrants, doesn't affect H-1Bs, which are temporary work permits, but H-1B approval data shows how heavily these companies rely on foreign workers.
Data from the U.S. Citizenship and Immigration Services' H-1B Employer Data Hub also shows that Amazon and Meta were the biggest sponsors of H-1B visas, and neither was suspended.
The crackdown went beyond tech. At the same news conference Thursday, the Labor Department's inspector general, Anthony D'Esposito, announced an investigation into alleged J-1 visa fraud involving nine major American universities. Trump supporters have long argued that these programs undercut American workers by incentivizing employers to hire from abroad.
Who's on the listAll eight suspended companies rank among the nation's top 50 H-1B sponsors. Most are IT services and consulting firms. Adobe is the smallest, at No. 45.
The biggest sponsor wasn't suspendedAmazon, with 19,178 H-1B approvals in fiscal 2025, and Meta, with 6,294, were the top two sponsors, and neither was suspended. Microsoft was a close third with 6,258, according to the USCIS data hub. Microsoft out-sponsored Amazon for years. Amazon passed Microsoft in 2017 and now gets about three times as many approvals.
If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants. ... Microsoft is a great American company, and we have a great relationship with them.
JD Vance
Vice President of the United States
What the numbers showThe numbers cut both ways. Microsoft did receive more than 6,000 H-1B approvals last year, as Vance said. But 2 in 3 went to people already working there. Amazon, which brought in nearly four times as many H-1B workers new to the company, was not on the suspension list.
Microsoft (MSFT +2.38%) is starting to show measurable returns from its enormous AI build-out, with Azure demand remaining strong and Copilot adoption expanding. The next test is harder: whether rising utilization and improving efficiency can overcome massive capital spending, margin pressure, and weaker free cash flow to create a durable earnings engine.
Stock prices used were the market prices of Sept. 24, 2026. The video was published on Oct. 9, 2026.
Rick Orford has positions in Microsoft. The Motley Fool has positions in and recommends Microsoft. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Few can dispute the success that Satya Nadella has had as CEO of Microsoft (MSFT +2.38%). Since he took the top job at the company in February 2014, its stock price has increased by about 1,360%. Factor in the value of reinvested dividends during that time, and Microsoft's total return was about 1,670%.
Nonetheless, thanks to the massive capital expenditures required to stay competitive in the AI and cloud computing realms, its near-term outlook seems more unpredictable. Should investors expect lower returns in the years to come, or could that heavy spending maintain or accelerate this cloud stock's gains?
Image source: The Motley Fool.
One need only look at the trend in its capex figures to become concerned about this issue. In Microsoft's fiscal 2026 (which ended June 30), its capex was $116 billion, well above the $65 billion in the prior fiscal year or the $44 billion in fiscal 2024.
This rapidly climbing spending is not unique to Microsoft, which has the second-largest share of the global cloud infrastructure market. Its largest cloud competitor, Amazon, is on track to spend $220 billion in capex in 2026, while Alphabet, owner of third-place player Google Cloud, plans to spend approximately $200 billion.
However, in Microsoft's case, the improvements may be marginal. In fiscal 2026, revenue increased by 17%. That was only slightly above its 15% gain in fiscal 2025.
Moreover, Microsoft Cloud increased revenue by 27% year over year in fiscal 2026, a level unchanged from the prior year. And despite those gains, Microsoft's share price performance is on track to lag the S&P 500 (^GSPC +0.59%) for a third straight year.
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Microsoft's revenue growth also compares unfavorably with its peers, at least so far this fiscal year. In the first half of 2026, Amazon Web Services' revenue grew by 31% year over year, compared with 17% growth in the first two quarters of 2025. During the same periods, Google Cloud experienced a 73% revenue gain, far above its 30% increase in the prior-year period.
To be fair, Microsoft has not published Azure's revenue growth in the past, something it plans to do in the future. Nonetheless, we know that it has surpassed $100 billion for the first time on an annual basis, and in fiscal Q4, it increased by 43%. That indicates its investment may have gained more traction than the Microsoft Cloud numbers imply.
In terms of P/E ratios, Microsoft is the highest, though Amazon's and Alphabet's earnings multiples were skewed lower by one-time benefits relating to their gains on investments in other companies. Microsoft's forward P/E is the lowest at 27, but given the fact that its peers trade at only a slight premium, that may not be enough to lead investors to choose Microsoft stock.
CompanyP/E Ratio (TTM)P/E Ratio (Forward)Microsoft3027Amazon2131Alphabet1829 Data source: YCharts. TTM = trailing 12 months.
Microsoft's AI spending Given the effects of AI spending, investors should probably expect continued increases, though not at the same pace. Indeed, its growth rates remain brisk, and early indications suggest Microsoft has seen some increases.
However, Microsoft has underperformed the S&P 500 in recent years. Additionally, given the numbers revealed to the public, one has to assume Amazon and Alphabet have gained more traction from their AI spending. When their valuations are factored in, Microsoft's largest cloud peers are likely better buys right now.
Alpine Woods Capital Investors LLC boosted its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 19.9% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 22,099 shares of the software giant’s stock after buying an additional 3,671 shares during the period. Microsoft accounts for about 1.8% of Alpine Woods Capital Investors LLC’s investment portfolio, making the stock its 10th biggest holding. Alpine Woods Capital Investors LLC’s holdings in Microsoft were worth $8,243,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other institutional investors and hedge funds have also made changes to their positions in MSFT. Gould Capital LLC raised its stake in Microsoft by 19.9% in the second quarter. Gould Capital LLC now owns 12,223 shares of the software giant’s stock valued at $4,560,000 after buying an additional 2,029 shares during the last quarter. Meeder Advisory Services Inc. grew its stake in shares of Microsoft by 4.6% during the second quarter. Meeder Advisory Services Inc. now owns 169,135 shares of the software giant’s stock worth $63,091,000 after acquiring an additional 7,479 shares during the last quarter. Harborfront Financial Group LLC acquired a new position in shares of Microsoft during the second quarter valued at about $328,000. Meeder Asset Management Inc. increased its holdings in shares of Microsoft by 5.2% during the second quarter. Meeder Asset Management Inc. now owns 273,833 shares of the software giant’s stock valued at $102,145,000 after acquiring an additional 13,583 shares in the last quarter. Finally, Pension & Wealth Management Advisors Inc. raised its position in shares of Microsoft by 4.3% in the 2nd quarter. Pension & Wealth Management Advisors Inc. now owns 6,814 shares of the software giant’s stock valued at $2,542,000 after purchasing an additional 278 shares during the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.
More Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft introduced Microsoft-Decision-1, an AI model it says makes decisions substantially faster than GPT-6 Sol. The launch reinforces Microsoft’s competitive position in enterprise AI and could support demand for Azure and Copilot services. Microsoft launches Microsoft-Decision-1 Positive Sentiment: Analyst and investor commentary remains bullish on Microsoft’s AI stack, Azure acceleration, Copilot adoption and a large reported backlog. Wells Fargo reportedly raised its price target to $725, while Morgan Stanley reaffirmed a Buy rating with a $600 target. Morgan Stanley rating Positive Sentiment: Microsoft is attempting to revive Windows and expand on-device AI with new Nvidia-powered Surface hardware, including the premium Surface Laptop Ultra. Local AI processing could strengthen the Windows ecosystem and stimulate higher-value PC sales. Surface Laptop Ultra Positive Sentiment: The company is nearing a $4 trillion market capitalization after a strong earnings beat, with revenue and earnings growth continuing to support the recent rally. The next major test is Microsoft’s expected October 28 earnings report. Microsoft approaches $4 trillion valuation Neutral Sentiment: Microsoft’s new Xbox division, focused on film, television, events and theme parks, could expand the reach of its gaming franchises, although the strategy is unlikely to materially affect near-term financial results. Microsoft forms new Xbox unit Negative Sentiment: The U.S. suspension of Microsoft’s PERM green-card sponsorship program creates hiring and retention uncertainty, particularly for specialized AI and engineering workers. Investors are weighing potential compliance costs and the risk of an “AI brain drain.” U.S. suspends Microsoft green-card program Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned game companies over virtual currencies, adding regulatory risk to the gaming business. Italy gaming investigation Insiders Place Their Bets In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares in the company, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares of the company’s stock, valued at $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 143,009 shares of company stock worth $71,420,699. 0.03% of the stock is owned by company insiders. Analyst Ratings Changes MSFT has been the topic of several research analyst reports. Needham & Company LLC assumed coverage on shares of Microsoft in a research report on Wednesday, September 23rd. They set a “buy” rating on the stock. Raymond James Financial downgraded shares of Microsoft from a “moderate buy” rating to a “strong sell” rating in a research note on Wednesday, September 23rd. Royal Bank Of Canada restated an “outperform” rating on shares of Microsoft in a research note on Thursday, September 10th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of Microsoft in a research report on Monday, July 20th. Finally, Guggenheim reissued a “buy” rating and issued a $586.00 price objective on shares of Microsoft in a report on Monday, July 27th. Forty-two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $578.73.
Get Our Latest Analysis on Microsoft
Microsoft Trading Up 2.4% Shares of NASDAQ:MSFT opened at $535.07 on Friday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The business has a 50 day moving average of $501.15 and a two-hundred day moving average of $434.73. The company has a market capitalization of $3.97 trillion, a PE ratio of 29.79, a PEG ratio of 1.68 and a beta of 1.10.
Microsoft (NASDAQ:MSFT – Get Free Report) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business’s quarterly revenue was up 17.7% on a year-over-year basis. During the same period in the previous year, the firm earned $3.65 EPS. As a group, analysts forecast that Microsoft Corporation will post 19.65 EPS for the current year.
Microsoft Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio (DPR) is presently 20.27%.
About Microsoft (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Read More Five stocks we like better than Microsoft Alphabet Introduces Gemini Agent—Can It Trigger a Breakout? Palantir’s Rally Puts Wall Street in Catch-Up Mode Ahead of November Earnings Tilray Finds a Path to Growth Without Waiting on U.S. Cannabis Reform Arista Networks Plugs Into All-Time 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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SummaryAzure grew 43%, but Microsoft’s $115.9 billion FY2026 capex increasingly makes AI infrastructure economics the central investment question.Hybrid intelligence could shift inference toward customer-owned hardware while Microsoft monetizes Copilot, identity, security, data, and enterprise workflows.Microsoft’s model-agnostic architecture makes compute increasingly replaceable, potentially improving AI revenue generated per dollar of company-owned infrastructure.At $530, MSFT trades around 26.4 times FY2027 earnings, with my scenarios ranging from approximately $400 to $702. tupungato/iStock Editorial via Getty Images
Microsoft (MSFT) has traditionally been seen as a rather straightforward investment in AI: build expensive infrastructure, grow Azure, generate cash through Copilot, and then let operating leverage do the rest. I believe that recent developments suggest
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President Trump applauds the six recipients of this year’s National Medals of Science and National Medals of Technology and Innovation on Thursday in Washington, D.C. Five were born outside the U.S., including Microsoft’s Satya Nadella, far left. (White House Video Screenshot) Satya Nadella arrived in the U.S. from India in 1988 to study computer science. Over the next three decades, he went from a temporary work visa to permanent residency to American citizenship, and rose up the ranks at Microsoft to become only the third CEO in its history.
“I don’t think my story would be possible anywhere else,” Nadella wrote in his 2017 book, “Hit Refresh.” “I am proud today to call myself an American citizen.”
On Thursday, President Trump personally handed the Microsoft CEO the National Medal of Technology and Innovation. The award cited his “transformative leadership of a critical American technology company, which led to its rejuvenation for a new era of cloud computing.”
Nadella thanked Trump on X, writing that he was “humbled to stand alongside so many giants of American innovation.” The other honorees were Dell Technologies CEO Michael Dell, who also received the technology medal; and Elon Musk, Google co-founder Sergey Brin, Nvidia CEO Jensen Huang and AMD CEO Lisa Su, who received the National Medal of Science.
Five of the six were born outside the country.
Hours earlier, the Trump administration had suspended Microsoft from the federal program it uses to help foreign workers take the same path to permanent residency. Vice President JD Vance said the company had abused the system by laying off American workers while hiring foreign workers, and called H-1B workers “foreign indentured servants.”
Vice President JD Vance speaks at a White House news conference on visa fraud Thursday as White House Deputy Chief of Staff Stephen Miller, center, and Attorney General Todd Blanche, right, look on. (White House Video Screenshot) “Our message to Microsoft is you’re a great American company, but you’ve got to hire great American workers,” Vance said at a White House news conference.
Two different programs: The suspension doesn’t stop Microsoft from hiring foreign workers on H-1B visas. Those are temporary work visas, typically granted for three years at a time and generally limited to six years, with some exceptions. They’re overseen by U.S. Citizenship and Immigration Services.
Amazon is the bigger user of H-1B visas. It received more than 19,000 approvals for H-1B petitions in fiscal 2025, about three times Microsoft’s total, according to an analysis of USCIS data by the National Foundation for American Policy. The totals include renewals and extensions, so they don’t represent individual workers.
The program to which Microsoft lost access comes later in the process.
Known as PERM, it’s run by the Labor Department and is usually the first step when a company sponsors an employee to stay in the U.S. permanently. The employer has to advertise the job and show that no qualified, available U.S. worker can fill it. Most applications are for people already working in the U.S. on H-1B visas.
Microsoft is the biggest user of PERM. The Labor Department ruled on 3,161 of its applications in the fiscal year that ended in September 2025, more than for any other employer in the country, according to a GeekWire analysis of the agency’s data. Microsoft also led in the first nine months of fiscal 2026, with 1,683 applications decided through June.
Amazon and Google filed thousands of PERM applications in 2022 and early 2023, then largely stopped. The Labor Department ruled on 39 applications from Amazon and its subsidiaries last fiscal year, including Whole Foods, Audible and Zappos, and three from Google.
The suspension could hit hardest for Microsoft employees already on H-1B visas. Many count on the company to start the permanent residency process in time to extend their visas past the usual six-year limit, and the Labor Department says it won’t process Microsoft’s pending applications either.
Some Microsoft employees on H-1B visas were surprised by the news and unsure whether it would affect them, The Seattle Times reported. The paper noted that the White House hasn’t provided evidence of fraud by Microsoft.
Microsoft’s response: In a statement posted Thursday, Microsoft pushed back on criticism of its hiring and said it looks forward to “providing the Administration with additional information.” The statement focused on H-1B visas and didn’t address the PERM suspension specifically.
The company said about 80% of the roughly 6,000 H-1B applications it filed last fiscal year were to extend or change the status of people who already work at Microsoft. “These were not to hire new people,” it said.
The rest were for new hires already living in the U.S. legally, a group equal to about 1% of Microsoft’s U.S. workforce. “They are not new arrivals to our country,” the company said.
Microsoft also said it files H-1B petitions only for workers who meet “the rigorous standards of this visa category,” pays them “the same as any other employees doing comparable work,” and offers wages “among the highest of all H-1B filings.”
The vast majority of its U.S. employees are Americans, the company said.
Nadella’s own path: Nadella’s route to citizenship wasn’t a straight line, as he described in “Hit Refresh.” He was working at Microsoft when he married his wife, Anu, in India in December 1992. The next summer, her application for a visa to join him in the U.S. was rejected because she was married to a permanent resident.
Spouses of permanent residents faced long waits, and Microsoft’s immigration lawyer told Nadella it could take five years or more to bring her to the U.S.
Nadella considered quitting Microsoft and moving back to India. Then the lawyer suggested a different approach: give up his permanent residency and go back to a temporary H-1B visa, which would let his wife join him right away.
In June 1994, Nadella went to the U.S. embassy in New Delhi, past the long lines of people hoping to get visas, and told a clerk he wanted to give up his permanent residency. The clerk was dumbfounded, Nadella wrote. The plan worked, and Anu joined him in Seattle, where they started a family. Nadella eventually got back on the path to permanent residency and later became a U.S. citizen.
But in the meantime, back in Redmond, Nadella became known around the Microsoft campus as the guy who gave up his green card. Colleagues called him for advice. One, Kunal Bahl, later left Microsoft when his H-1B ran out before his permanent residency came through. He returned to India and founded the e-commerce company Snapdeal.
“Such is the perverse logic of this immigration law,” Nadella wrote.
Tech StocksMicrosoft is close to reclaiming a $4 trillion market cap — and fresh records are also in sight
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Microsoft is closing in on $4 trillion territory for the first time in nearly a year, helping to cap a wild ride that’s seen the company find its way back into investors’ good graces.
Worth $3.97 trillion as of midday Friday, Microsoft
is not only on the verge of recapturing a $4 trillion market capitalization but it is also within a hair of its highest-ever market value. Microsoft was last worth $4 trillion on Oct. 29, 2025, and it hit a peak market cap of $4.029 trillion the day before that, according to Dow Jones Market Data.Continue reading your article with
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Hannah Pedone is a New York–based technology reporter for MarketWatch.
Investor s Fiduciary Advisor Network LLC cut its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 6.8% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 32,040 shares of the software giant’s stock after selling 2,354 shares during the period. Microsoft makes up about 4.1% of Investor s Fiduciary Advisor Network LLC’s portfolio, making the stock its 3rd biggest holding. Investor s Fiduciary Advisor Network LLC’s holdings in Microsoft were worth $11,951,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
A number of other institutional investors have also recently modified their holdings of MSFT. Auto Owners Insurance Co grew its stake in Microsoft by 56,160.8% during the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after buying an additional 60,009,531 shares in the last quarter. Bank of America Corp DE bought a new position in Microsoft in the 2nd quarter valued at about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Microsoft by 0.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant’s stock valued at $24,013,297,000 after buying an additional 543,172 shares in the last quarter. Legal & General Group Plc acquired a new position in shares of Microsoft in the 2nd quarter valued at approximately $18,306,443,000. Finally, Amundi lifted its holdings in shares of Microsoft by 30.8% during the 1st quarter. Amundi now owns 41,675,076 shares of the software giant’s stock worth $15,426,862,000 after acquiring an additional 9,814,598 shares during the period. 71.13% of the stock is currently owned by institutional investors.
Microsoft Stock Down 1.3% Shares of MSFT opened at $522.61 on Friday. The stock’s 50-day moving average price is $499.74 and its two-hundred day moving average price is $434.03. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. The company has a market capitalization of $3.88 trillion, a PE ratio of 29.10, a PEG ratio of 1.70 and a beta of 1.10. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07.
Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. During the same quarter in the prior year, the firm posted $3.65 earnings per share. The business’s quarterly revenue was up 17.7% on a year-over-year basis. On average, analysts anticipate that Microsoft Corporation will post 19.65 EPS for the current year. Microsoft Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a $0.98 dividend. This is an increase from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. Microsoft’s dividend payout ratio is presently 20.27%.
Insider Activity In related news, 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 transaction of $2,388,068.80. Following the sale, the executive vice president owned 42,677 shares in the company, valued at $21,188,276.96. This represents a 10.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Judson Althoff sold 10,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value 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 disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 143,009 shares of company stock valued at $71,420,699. Company insiders own 0.03% of the company’s stock.
More Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership? Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies Wall Street Analysts Forecast Growth A number of equities research analysts have weighed in on MSFT shares. Guggenheim reaffirmed a “buy” rating and issued a $586.00 target price on shares of Microsoft in a report on Monday, July 27th. Mizuho reduced their price target on shares of Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a research note on Wednesday, July 15th. Argus lowered their price objective on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a research report on Friday, July 10th. Royal Bank Of Canada reissued an “outperform” rating on shares of Microsoft in a research note on Thursday, September 10th. Finally, Morgan Stanley lowered shares of Microsoft from an “overweight” rating to a “negative” rating in a research report on Monday. Forty-one equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $578.73.
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Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
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Microsoft Corporation NASDAQ: MSFT stock is closing in on familiar territory. Shares traded around $530 this week. That puts MSFT within 5% of its 52-week high of $553.72.
Microsoft Today
$534.94 +12.33 (+2.36%)
As of 12:37 PM Eastern
This is a fair market value price provided by Massive. Learn more.
$349.20▼
$553.720.73%
29.78
$578.73
That's a remarkable turnaround. Microsoft gained about 37% in the third quarter of 2026. It was the company's best quarterly performance since 1998. In late June, shares were trading around $372.
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But the easy part of this rally may be over. The next leg is less about Microsoft's business and more about investor psychology.
MSFT peaked near $555 in October 2025. It then spent roughly eight months falling. At the bottom, a $10,000 investment made at the peak was worth about $6,510. Many of those investors are finally close to breaking even.
That creates a different kind of test for MSFT stock. Investors tend to sell winners too early and hold losers too long. When a losing position finally gets back to even, the urge to sell can be overwhelming.
Microsoft's fundamentals have earned this rally. Now the stock has to work through a wall of breakeven sellers. And it has to do that heading into an earnings report where expectations are much higher than they were three months ago.
Q4 Turned a Pariah Into Wall Street's DarlingIt's hard to overstate how fast the narrative changed. Heading into July, the story around Microsoft was capital expenditures (CapEx) fatigue. Investors questioned whether its massive AI spending would ever earn an adequate return.
Then Microsoft reported fiscal fourth-quarter 2026 results on July 29. Revenue came in at $90 billion, up nearly 18% year-over-year. Azure crossed $100 billion in annual revenue for the first time. Earnings per share (EPS) of $4.74 topped the $4.24 consensus estimate.
The stock jumped about 15% the next day. It was Microsoft's biggest single-day gain since 2008.
Analysts have followed the price higher. Stifel upgraded MSFT to Buy in late September. On Oct. 5, Melius Research upgraded the stock to Buy with a $665 price target. Scotiabank raised its target to $615 from $510.
This is the same company, with largely the same AI strategy, that investors were avoiding in the spring. What changed was perception. In other words, the numbers gave investors permission to believe again.
Why $555 Is a Psychological Level, Not Just a Technical OneMost investors will see $553.72 as resistance on a chart. That's true, but it misses the behavioral story behind the number.
Think about who owns MSFT at that level. Many bought during the AI enthusiasm of late 2025. Some added on the way down, convinced the sell-off was overdone. Others simply held through a drawdown of roughly 35%.
Behavioral economists call the tendency to sell winners and hold losers the disposition effect. A related bias, sometimes called "get-evenitis," keeps investors anchored to their purchase price. Once a stock gets back there, the relief of not losing money often beats the hope of more gains.
That doesn't mean Microsoft can't break through. It means the stock needs a reason to absorb that supply. Momentum alone may not be enough. A fresh catalyst usually does the job. For Microsoft, that catalyst is its Q1 earnings report for fiscal year 2027 (FY2027).
Earnings Will Have to Clear a Higher BarMicrosoft hasn't confirmed its next earnings date, but the report date is estimated for Oct. 28. The headline number will be Azure growth. Management guided for growth of about 45% in the quarter.
Three months ago, a number like that would have looked like upside. Now it's closer to the baseline. With the stock up nearly 40% in a quarter, investors may want more than a match.
There's also some fine print in last quarter's beat. The $4.74 EPS figure included a $3.2 billion gain on Microsoft's Anthropic stake. That's a real gain, but it isn't a repeatable operating result.
Spending remains part of the debate, too. Quarterly capital expenditures roughly doubled year-over-year, and free cash flow fell about 23%. Management also expects CapEx to grow again in fiscal 2027.
None of this breaks the bull case. CFO Amy Hood said in July that demand still exceeds available capacity. But it does mean the stock has less room for a merely good quarter.
Chasing MSFT at $530 Is a Different TradeFor long-term investors, Microsoft's story looks stronger than it did six months ago. Its AI investments are showing up in revenue, and Wall Street sentiment has turned firmly bullish.
But buying MSFT at $530 isn't the same trade as buying it at $372. At roughly 30x trailing earnings, the stock is priced for steady execution. The margin for error is thinner.
Investors who want exposure may be better served by scaling in. A pullback toward $500, where the stock consolidated in late September, would offer a more comfortable entry. A decisive close above $553.72 on strong volume would confirm a breakout.
If MSFT stalls near its old high, don't read it as a verdict on the business. It may simply be breakeven investors heading for the exits. Once they're gone, the path higher could get a lot easier.
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Microsoft shares fall as US labor department suspends gaint from PERM green card program Microsoft slides after PERM suspension adds to growing AI sector uncertainty Summary
Microsoft stock slid as a labor department probe into immigration practices compounded investor worries over slowing AI revenue growth
Microsoft MSFT shares slid 1.35% on Thursday after U.S. labor authorities suspended the company from a key immigration program and AI revenue concerns resurfaced.
The Department of Labor removed Microsoft and several IT services firms from the Permanent Labor Certification program, or PERM, amid probes into possible misuse of employment-based immigration rules. The suspension affects a common route to employer-sponsored green cards but does not block H-1B work visas.
Microsoft said roughly 80% of its about 6,000 H-1B applications in the prior fiscal year were to extend or change the status of current employees, not hire new ones. The company said it files petitions only for workers meeting visa rules and pays H-1B employees the same as comparable staff. Vice President JD Vance criticized Microsoft over foreign workers while U.S. employees were laid off.
Separately, reports that OpenAI's annualized revenue hit $50 billion in September, about $20 billion below earlier projections, pressured AI-linked shares. The Nasdaq 100 fell 1.4%. Analysts keep a Strong Buy consensus on Microsoft, with an average target implying 12.2% upside.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
GitHub COO Kyle Daigle, who now also leads developer marketing for all of Microsoft, speaks at GitHub Universe last year. (Microsoft Photo) GeekWire is profiling over the next few weeks some of the people and teams that are shaping the evolution of Microsoft in what we’re calling its “Microsoft 2.5” era.
A delicate dance: In August 2025, Microsoft moved to integrate GitHub into the mothership, under its CoreAI division, after having allowed it to run as a quasi-independent entity since acquiring it in 2018. At the same time, GitHub CEO Thomas Dohmke announced he would leave the company at the end of the year.
A number of developers feared the worst: GitHub would become just another arm of Microsoft and lose the community-mindedness that had made it attractive to developers of all stripes, and especially open-source ones.
GitHub Chief Operating Officer Kyle Daigle — a 13-plus-year GitHub veteran — had been one of the main champions of the need to “keep GitHub GitHub.” He maintained that stance even after he added the “Chief Marketing Officer of Developer” title for all of Microsoft to his COO role in January 2026.
So, how has Microsoft done this past year with managing GitHub? In an interview with GeekWire, Daigle acknowledged that GitHub’s relationship with Microsoft has changed since the end of the standalone CEO era. But the goal is no longer just “don’t break GitHub.” It’s to export GitHub’s community, developer-first ethos and learnings across Microsoft.
GitHub has influence beyond just the GitHub product set now, Daigle said. And the fact that Microsoft opted to consolidate its developer-facing messaging and community outreach under Daigle, someone who came from GitHub, not from Microsoft’s traditional DevDiv organization, gives weight to his claim.
“Bringing teams together — engineering teams and marketing teams and everyone that wasn’t talking to each other before — has been a really big part of the work,” Daigle said. “I see all these opportunities for GitHub to directly help and impact the overall mission of Microsoft versus keeping it cloistered in a way that isn’t helping either GitHub’s mission or Microsoft’s mission.”
These days, developer teams across Microsoft and GitHub are sharing foundations and the GitHub Copilot software development kit across organizations “in a way that would have seemed improbable before,” he said.
As Microsoft historians know, “Microsoft’s challenge isn’t creating products. It’s connecting them,” Daigle said.
Growing pains: At the same time, the rise of AI agents has strained GitHub’s infrastructure. Over the past few months, GitHub has experienced some significant outages, including one in August that lasted nearly eight hours.
GitHub officials have said they are migrating from their own datacenters to Azure to try to ease some of the capacity issues. Daigle said it’s not a simple lift-and-shift process; rather, it’s a major re-architecture for the platform.
GitHub is roughly 60% through its Azure migration as of early October, he said.
It’s working with Azure storage teams on separating compute and storage for the Git distributed version control system to help alleviate bottlenecks caused by developers and agents working concurrently in the same repositories. Developers and agents made 7.38 billion commits on GitHub in September alone, according to the company.
GitHub’s recent growth would not have been manageable without Microsoft scaling expertise and Azure support, Daigle said. GitHub is in a unique position of being able to request major additional capacity, such as millions of CPUs, and work with Microsoft teams to provision it, he said.
The GitHub app and agent store: GitHub got its start as a platform for source control and collaboration. But its role is evolving as part of its Microsoft integration. In addition to developing and supporting Microsoft’s most successful Copilot, GitHub Copilot, GitHub has an important place in Microsoft’s agent-centric strategy.
GitHub is becoming “the store for anything that needs to be coded and needs some verification,” Daigle said. “We’ll connect you to whatever the right tool inside of Microsoft is for you to run that or whatever tool you’re using, not just (from) the Microsoft product suite.”
In the new world order, GitHub isn’t just the store for apps. Increasingly, it’s also the store for agents, which means GitHub is acting as the developer layer for Microsoft’s “agent factory” strategy.
(Microsoft co-founder Bill Gates envisioned Microsoft as a “software factory” that could produce software at scale. These days, CEO Satya Nadella and team talk about Microsoft as an “agent factory,” helping customers create agents at scale.)
GitHub currently serves more than 200 million developers, plus an unknown but quickly growing number of agents.
Developers need to be thinking in new ways when it comes to agents, Daigle said. They need to consider ideas such as scaling application programming interfaces (APIs) for agents separately from humans, creating APIs designed specifically for agents, rewriting documentation and tooling so agents can consume GitHub efficiently, and treating agent access as a fundamentally different workload from human access.
In the longer term, Daigle said he expects AI to make software economically viable for smaller audiences, such as a family, an individual or a single team. The app-store model may change substantially in the coming years, as people create highly specialized applications. GitHub could help like-minded users discover software for specific interests, such as a narrowly focused household or community use case.
GitHub historically has considered anyone who has seen or touched code to be part of the developer community. Daigle’s vision is for GitHub and Microsoft to let both professional developers and newer builders create and run software and agents without needing to manage token costs, uptime, monitoring or operational overhead.
GitHub will have more to say about its plans at the GitHub Universe conference in San Francisco, Oct. 28-29. The event won’t focus on code generation alone; it will include information on tools covering the full lifecycle, proactive security approaches and how to determine whether software is working well after deployment.
“We’re looking to solve the core parts of the platform, like Git, like Actions, in a way that I hope will make people excited and feel like they can absolutely trust GitHub for the next decade to come,” Daigle said.
Texas Capital Bank Wealth Management Services Inc boosted its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 2.8% in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 63,007 shares of the software giant’s stock after purchasing an additional 1,691 shares during the period. Microsoft accounts for about 1.3% of Texas Capital Bank Wealth Management Services Inc’s investment portfolio, making the stock its 11th biggest holding. Texas Capital Bank Wealth Management Services Inc’s holdings in Microsoft were worth $23,503,000 as of its most recent filing with the SEC.
A number of other hedge funds have also recently bought and sold shares of MSFT. Auto Owners Insurance Co grew its stake in shares of Microsoft by 56,160.8% in the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock valued at $29,073,486,000 after buying an additional 60,009,531 shares in the last quarter. Corient Private Wealth LLC raised its position in Microsoft by 234.5% during the fourth quarter. Corient Private Wealth LLC now owns 17,822,280 shares of the software giant’s stock worth $8,619,211,000 after acquiring an additional 12,493,786 shares in the last quarter. Amundi raised its position in Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant’s stock worth $15,426,862,000 after acquiring an additional 9,814,598 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in Microsoft by 64.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant’s stock valued at $8,982,083,000 after acquiring an additional 9,493,778 shares during the last quarter. Finally, Diamant Asset Management Inc. grew its position in shares of Microsoft by 38,442.1% in the 1st quarter. Diamant Asset Management Inc. now owns 6,810,388 shares of the software giant’s stock valued at $2,521,001,000 after acquiring an additional 6,792,718 shares during the period. 71.13% of the stock is currently owned by institutional investors.
Microsoft News Roundup Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership? Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies Insider Transactions at Microsoft In related news, CEO Judson Althoff sold 10,000 shares of the company’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the transaction, the executive vice president directly owned 533,624 shares in the company, valued at approximately $265,888,830.48. This represents a 7.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 143,009 shares of company stock worth $71,420,699 over the last quarter. 0.03% of the stock is currently owned by corporate insiders. Analyst Upgrades and Downgrades Several research analysts have recently weighed in on MSFT shares. William Blair initiated coverage on shares of Microsoft in a research note on Monday. They set an “outperform” rating on the stock. Evercore upgraded Microsoft from an “underperform” rating to an “outperform” rating in a report on Monday. Piper Sandler boosted their price target on Microsoft from $550.00 to $610.00 and gave the stock an “overweight” rating in a research report on Wednesday, September 30th. CLSA reissued an “outperform” rating on shares of Microsoft in a research report on Thursday, July 30th. Finally, Argus dropped their price objective on Microsoft from $620.00 to $510.00 and set a “buy” rating on the stock in a research note on Friday, July 10th. Forty-one investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $578.73.
View Our Latest Stock Report on MSFT
Microsoft Trading Down 1.3% Shares of NASDAQ:MSFT opened at $522.61 on Friday. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The business has a 50 day moving average of $499.74 and a 200-day moving average of $434.03. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The stock has a market cap of $3.88 trillion, a PE ratio of 29.10, a P/E/G ratio of 1.70 and a beta of 1.10.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the company earned $3.65 earnings per share. As a group, equities research analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current year.
Microsoft Increases Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 0.8%. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio (DPR) is 20.27%.
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Featured Stories Five stocks we like better than Microsoft Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push 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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Meeder Asset Management Inc. grew its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 5.2% in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 273,833 shares of the software giant’s stock after buying an additional 13,583 shares during the period. Microsoft accounts for about 5.2% of Meeder Asset Management Inc.’s holdings, making the stock its 4th biggest holding. Meeder Asset Management Inc.’s holdings in Microsoft were worth $102,145,000 as of its most recent SEC filing.
Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Auto Owners Insurance Co lifted its stake in Microsoft by 56,160.8% in the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after purchasing an additional 60,009,531 shares in the last quarter. Corient Private Wealth LLC grew its position in shares of Microsoft by 234.5% in the fourth quarter. Corient Private Wealth LLC now owns 17,822,280 shares of the software giant’s stock valued at $8,619,211,000 after purchasing an additional 12,493,786 shares in the last quarter. Amundi increased its holdings in shares of Microsoft by 30.8% in the first quarter. Amundi now owns 41,675,076 shares of the software giant’s stock valued at $15,426,862,000 after purchasing an additional 9,814,598 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its position in Microsoft by 64.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant’s stock worth $8,982,083,000 after buying an additional 9,493,778 shares in the last quarter. Finally, Diamant Asset Management Inc. lifted its position in Microsoft by 38,442.1% during the first quarter. Diamant Asset Management Inc. now owns 6,810,388 shares of the software giant’s stock worth $2,521,001,000 after buying an additional 6,792,718 shares in the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.
Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership? Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies Insider Activity at Microsoft In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the transaction, the executive vice president owned 533,624 shares of the company’s stock, valued at approximately $265,888,830.48. This represents a 7.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 143,009 shares of company stock worth $71,420,699. Company insiders own 0.03% of the company’s stock. Microsoft Stock Down 1.3% Shares of MSFT opened at $522.61 on Friday. The company’s 50-day moving average price is $499.74 and its 200 day moving average price is $434.03. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The firm has a market cap of $3.88 trillion, a P/E ratio of 29.10, a price-to-earnings-growth ratio of 1.70 and a beta of 1.10.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same quarter last year, the firm posted $3.65 earnings per share. Microsoft’s revenue was up 17.7% compared to the same quarter last year. On average, sell-side analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current year.
Microsoft Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio (DPR) is currently 20.27%.
Analysts Set New Price Targets Several analysts have issued reports on the company. William Blair started coverage on Microsoft in a report on Monday. They issued an “outperform” rating for the company. Guggenheim reiterated a “buy” rating and set a $586.00 price target on shares of Microsoft in a report on Monday, July 27th. Mizuho lowered their price target on shares of Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 15th. Melius Research set a $665.00 price objective on shares of Microsoft and gave the stock a “buy” rating in a research report on Monday. Finally, BMO Capital Markets started coverage on shares of Microsoft in a research note on Monday. They set an “outperform” rating on the stock. Forty-one research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $578.73.
Read Our Latest Report on Microsoft
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Featured Stories Five stocks we like better than Microsoft Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push
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UNIVEST FINANCIAL Corp raised its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 4.1% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 183,288 shares of the software giant’s stock after buying an additional 7,239 shares during the quarter. Microsoft makes up approximately 3.4% of UNIVEST FINANCIAL Corp’s investment portfolio, making the stock its 7th largest position. UNIVEST FINANCIAL Corp’s holdings in Microsoft were worth $68,370,000 as of its most recent filing with the Securities & Exchange Commission.
Several other institutional investors have also modified their holdings of MSFT. Frankly Finances LLC acquired a new position in Microsoft in the 2nd quarter valued at about $35,000. Fiduciary Advisors Inc. increased its holdings in shares of Microsoft by 37.4% during the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock worth $47,000 after buying an additional 34 shares during the last quarter. Persistent Asset Partners Ltd purchased a new stake in shares of Microsoft during the 2nd quarter valued at approximately $60,000. Lifetime Wealth Management P.C. acquired a new position in Microsoft in the fourth quarter valued at approximately $101,000. Finally, Glynn Capital Management LLC grew its position in Microsoft by 34.2% in the second quarter. Glynn Capital Management LLC now owns 255 shares of the software giant’s stock worth $95,000 after acquiring an additional 65 shares during the period. Hedge funds and other institutional investors own 71.13% of the company’s stock.
Insider Buying and Selling at Microsoft In related news, EVP Takeshi Numoto sold 4,810 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. This represents a 10.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Amy Hood sold 41,674 shares of the stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the sale, the executive vice president owned 533,624 shares in the company, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 143,009 shares of company stock worth $71,420,699 over the last ninety days. Company insiders own 0.03% of the company’s stock.
Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week: Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership? Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies Microsoft Trading Down 1.3% Shares of NASDAQ MSFT opened at $522.61 on Friday. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The stock has a fifty day simple moving average of $499.74 and a 200-day simple moving average of $434.03. The stock has a market capitalization of $3.88 trillion, a PE ratio of 29.10, a PEG ratio of 1.70 and a beta of 1.10.
Microsoft (NASDAQ:MSFT – Get Free Report) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the prior year, the company earned $3.65 EPS. Microsoft’s revenue was up 17.7% on a year-over-year basis. On average, equities analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current year.
Microsoft Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a yield of 0.8%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft’s payout ratio is currently 20.27%.
Wall Street Analyst Weigh In Several equities research analysts have issued reports on the company. Mizuho cut their target price on Microsoft from $515.00 to $490.00 and set an “outperform” rating for the company in a research note on Wednesday, July 15th. William Blair began coverage on Microsoft in a report on Monday. They set an “outperform” rating for the company. Stifel Nicolaus upgraded Microsoft from a “hold” rating to a “buy” rating and increased their price target for the stock from $530.00 to $575.00 in a report on Tuesday, September 22nd. Guggenheim reissued a “buy” rating and set a $586.00 price objective on shares of Microsoft in a research report on Monday, July 27th. Finally, The Goldman Sachs Group restated a “buy” rating and issued a $640.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Forty-one investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Microsoft currently has an average rating of “Moderate Buy” and an average target price of $578.73.
View Our Latest Stock Report on MSFT
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Featured Stories Five stocks we like better than Microsoft Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push 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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K.J. Harrison & Partners Inc increased its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 25.2% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 42,540 shares of the software giant’s stock after acquiring an additional 8,569 shares during the period. Microsoft comprises approximately 2.2% of K.J. Harrison & Partners Inc’s holdings, making the stock its 6th largest position. K.J. Harrison & Partners Inc’s holdings in Microsoft were worth $15,868,000 at the end of the most recent quarter.
Several other hedge funds have also recently modified their holdings of the business. Frankly Finances LLC purchased a new stake in shares of Microsoft during the 2nd quarter valued at about $35,000. Fiduciary Advisors Inc. raised its holdings in shares of Microsoft by 37.4% during the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock valued at $47,000 after purchasing an additional 34 shares during the last quarter. Persistent Asset Partners Ltd bought a new position in Microsoft during the second quarter valued at approximately $60,000. Lifetime Wealth Management P.C. bought a new position in Microsoft during the fourth quarter valued at approximately $101,000. Finally, Glynn Capital Management LLC boosted its holdings in Microsoft by 34.2% in the second quarter. Glynn Capital Management LLC now owns 255 shares of the software giant’s stock worth $95,000 after purchasing an additional 65 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.
Analyst Upgrades and Downgrades A number of equities research analysts have commented on the stock. Bank of America lifted their target price on shares of Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a research report on Tuesday, September 1st. Barclays lowered their price target on Microsoft from $545.00 to $512.00 and set an “overweight” rating on the stock in a report on Thursday, July 30th. Citizens Jmp restated a “market outperform” rating and issued a $550.00 price target on shares of Microsoft in a research note on Tuesday, September 15th. Wolfe Research lowered Microsoft from an “outperform” rating to a “hold” rating in a report on Wednesday, September 23rd. Finally, Truist Financial reiterated a “buy” rating and set a $575.00 price objective on shares of Microsoft in a research report on Wednesday, July 22nd. Forty-one equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $578.73.
View Our Latest Research Report on MSFT Microsoft Trading Down 1.3% NASDAQ:MSFT opened at $522.61 on Friday. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The business has a fifty day moving average price of $499.74 and a 200-day moving average price of $434.03. The firm has a market capitalization of $3.88 trillion, a price-to-earnings ratio of 29.10, a price-to-earnings-growth ratio of 1.70 and a beta of 1.10. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same period in the previous year, the business earned $3.65 earnings per share. Microsoft’s quarterly revenue was up 17.7% compared to the same quarter last year. Sell-side analysts forecast that Microsoft Corporation will post 19.65 EPS for the current year.
Microsoft Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. Microsoft’s dividend payout ratio is presently 20.27%.
Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership? Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies Insider Activity In related news, CEO Judson Althoff sold 10,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the sale, the chief executive officer directly owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their position. 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 firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is owned by insiders.
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Featured Stories Five stocks we like better than Microsoft Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push
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Meeder Advisory Services Inc. lifted its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 4.6% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 169,135 shares of the software giant’s stock after purchasing an additional 7,479 shares during the quarter. Microsoft makes up about 2.3% of Meeder Advisory Services Inc.’s holdings, making the stock its 7th biggest position. Meeder Advisory Services Inc.’s holdings in Microsoft were worth $63,091,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds have also modified their holdings of MSFT. Harborfront Financial Group LLC bought a new stake in Microsoft in the second quarter worth $328,000. Meeder Asset Management Inc. raised its holdings in Microsoft by 5.2% during the second quarter. Meeder Asset Management Inc. now owns 273,833 shares of the software giant’s stock valued at $102,145,000 after buying an additional 13,583 shares in the last quarter. Pension & Wealth Management Advisors Inc. raised its holdings in Microsoft by 4.3% during the second quarter. Pension & Wealth Management Advisors Inc. now owns 6,814 shares of the software giant’s stock valued at $2,542,000 after buying an additional 278 shares in the last quarter. Graney & King LLC lifted its position in shares of Microsoft by 2.0% in the second quarter. Graney & King LLC now owns 1,870 shares of the software giant’s stock worth $698,000 after buying an additional 37 shares during the last quarter. Finally, Citizens Financial Group Inc. RI boosted its stake in shares of Microsoft by 1.8% during the 2nd quarter. Citizens Financial Group Inc. RI now owns 600,539 shares of the software giant’s stock worth $224,013,000 after acquiring an additional 10,905 shares in the last quarter. Institutional investors and hedge funds own 71.13% of the company’s stock.
More Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership? Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies Microsoft Stock Performance MSFT opened at $522.61 on Friday. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The stock’s 50 day moving average price is $499.74 and its two-hundred day moving average price is $434.03. The firm has a market capitalization of $3.88 trillion, a P/E ratio of 29.10, a price-to-earnings-growth ratio of 1.70 and a beta of 1.10. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same period in the previous year, the company earned $3.65 earnings per share. The company’s quarterly revenue was up 17.7% compared to the same quarter last year. On average, equities analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current year.
Microsoft Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a yield of 0.8%. The ex-dividend date is Thursday, November 19th. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio is currently 20.27%.
Analysts Set New Price Targets A number of research analysts have recently commented on MSFT shares. Benchmark reissued a “buy” rating on shares of Microsoft in a report on Friday, July 24th. William Blair assumed coverage on Microsoft in a research report on Monday. They set an “outperform” rating for the company. Evercore upgraded Microsoft from an “underperform” rating to an “outperform” rating in a report on Monday. Raymond James Financial lowered shares of Microsoft from a “moderate buy” rating to a “strong sell” rating in a research report on Wednesday, September 23rd. Finally, Tigress Financial boosted their price objective on shares of Microsoft from $680.00 to $690.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Forty-one analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $578.73.
Read Our Latest Research Report on Microsoft
Insider Activity at Microsoft In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the sale, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at $244,092,173.98. This represents a 15.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the sale, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 143,009 shares of company stock valued at $71,420,699 in the last 90 days. 0.03% of the stock is owned by company insiders.
About Microsoft (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
See Also Five stocks we like better than Microsoft Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push
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Focused Alpha LLC grew its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 8.8% during the second quarter, according to the company in its most recent disclosure with the SEC. The fund owned 34,522 shares of the software giant’s stock after buying an additional 2,781 shares during the quarter. Microsoft accounts for about 3.3% of Focused Alpha LLC’s investment portfolio, making the stock its 4th biggest position. Focused Alpha LLC’s holdings in Microsoft were worth $12,877,000 at the end of the most recent quarter.
Other hedge funds and other institutional investors have also recently modified their holdings of the company. Auto Owners Insurance Co increased its stake in Microsoft by 56,160.8% in the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after purchasing an additional 60,009,531 shares during the period. Amundi boosted its stake in shares of Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant’s stock valued at $15,426,862,000 after purchasing an additional 9,814,598 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of Microsoft by 10.5% in the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock worth $10,852,884,000 after purchasing an additional 2,784,809 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Microsoft by 64.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant’s stock worth $8,982,083,000 after purchasing an additional 9,493,778 shares during the last quarter. Finally, Hsbc Holdings PLC increased its stake in Microsoft by 7.8% in the 4th quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant’s stock worth $10,715,379,000 after buying an additional 1,599,412 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.
Insiders Place Their Bets In other news, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 143,009 shares of company stock valued at $71,420,699. Company insiders own 0.03% of the company’s stock.
Microsoft Stock Down 1.3% NASDAQ:MSFT opened at $522.61 on Friday. The company’s 50-day simple moving average is $499.74 and its 200-day simple moving average is $434.03. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The stock has a market capitalization of $3.88 trillion, a P/E ratio of 29.10, a P/E/G ratio of 1.70 and a beta of 1.10. Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the previous year, the business posted $3.65 EPS. Microsoft’s revenue was up 17.7% on a year-over-year basis. On average, equities analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.
Microsoft Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This is a boost from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. Microsoft’s payout ratio is currently 20.27%.
Wall Street Analysts Forecast Growth Several research firms have issued reports on MSFT. Cantor Fitzgerald boosted their price objective on shares of Microsoft from $522.00 to $608.00 and gave the company an “overweight” rating in a research report on Monday, September 21st. Bank of America raised their target price on shares of Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a research report on Tuesday, September 1st. The Goldman Sachs Group reaffirmed a “buy” rating and set a $640.00 price target on shares of Microsoft in a research note on Thursday, July 30th. BNP Paribas Exane lowered Microsoft from a “strong-buy” rating to a “hold” rating in a report on Monday. Finally, TD Cowen restated a “buy” rating and set a $540.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Forty-one analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $578.73.
Read Our Latest Stock Report on MSFT
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership? Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies About Microsoft (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Read More Five stocks we like better than Microsoft Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push
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Occidental Asset Management LLC increased its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 43.0% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 85,268 shares of the software giant’s stock after purchasing an additional 25,650 shares during the period. Microsoft makes up 3.2% of Occidental Asset Management LLC’s holdings, making the stock its 5th biggest position. Occidental Asset Management LLC’s holdings in Microsoft were worth $31,807,000 as of its most recent SEC filing.
Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Auto Owners Insurance Co lifted its holdings in Microsoft by 56,160.8% in the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock valued at $29,073,486,000 after acquiring an additional 60,009,531 shares during the period. Amundi increased its holdings in shares of Microsoft by 30.8% during the 1st quarter. Amundi now owns 41,675,076 shares of the software giant’s stock valued at $15,426,862,000 after purchasing an additional 9,814,598 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of Microsoft by 10.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock valued at $10,852,884,000 after purchasing an additional 2,784,809 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its stake in shares of Microsoft by 64.3% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant’s stock valued at $8,982,083,000 after purchasing an additional 9,493,778 shares during the period. Finally, Hsbc Holdings PLC grew its position in Microsoft by 7.8% during the fourth quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant’s stock valued at $10,715,379,000 after buying an additional 1,599,412 shares during the period. 71.13% of the stock is owned by institutional investors and hedge funds.
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership? Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies Analyst Ratings Changes A number of brokerages have weighed in on MSFT. BMO Capital Markets began coverage on shares of Microsoft in a research report on Monday. They issued an “outperform” rating for the company. Oppenheimer lifted their price target on Microsoft from $515.00 to $570.00 and gave the company an “outperform” rating in a research note on Tuesday, September 22nd. Benchmark reaffirmed a “buy” rating on shares of Microsoft in a report on Friday, July 24th. DA Davidson reiterated a “buy” rating and set a $550.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Finally, Needham & Company LLC began coverage on Microsoft in a report on Wednesday, September 23rd. They issued a “buy” rating on the stock. Forty-one equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Microsoft has an average rating of “Moderate Buy” and an average target price of $578.73. Read Our Latest Stock Report on MSFT
Microsoft Stock Performance Shares of NASDAQ:MSFT opened at $522.61 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The firm has a market capitalization of $3.88 trillion, a PE ratio of 29.10, a P/E/G ratio of 1.70 and a beta of 1.10. The business’s 50 day moving average price is $499.74 and its 200-day moving average price is $434.03.
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 company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same quarter last year, the firm posted $3.65 EPS. The firm’s revenue for the quarter was up 17.7% on a year-over-year basis. As a group, equities research analysts expect that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.
Microsoft Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. This is an increase from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s payout ratio is 20.27%.
Insider Buying and Selling at Microsoft In related news, CEO Satya Nadella sold 86,525 shares of the business’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 143,009 shares of company stock valued at $71,420,699. Insiders own 0.03% of the company’s stock.
About Microsoft (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Read More Five stocks we like better than Microsoft Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push 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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Gould Capital LLC boosted its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 19.9% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 12,223 shares of the software giant’s stock after purchasing an additional 2,029 shares during the quarter. Microsoft comprises 2.5% of Gould Capital LLC’s investment portfolio, making the stock its 9th biggest position. Gould Capital LLC’s holdings in Microsoft were worth $4,560,000 as of its most recent filing with the Securities & Exchange Commission.
A number of other large investors have also recently bought and sold shares of the company. Frankly Finances LLC acquired a new stake in shares of Microsoft during the 2nd quarter worth approximately $35,000. Fiduciary Advisors Inc. increased its stake in Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock valued at $47,000 after acquiring an additional 34 shares during the last quarter. Persistent Asset Partners Ltd acquired a new position in Microsoft during the second quarter valued at approximately $60,000. Glynn Capital Management LLC raised its position in Microsoft by 34.2% during the second quarter. Glynn Capital Management LLC now owns 255 shares of the software giant’s stock valued at $95,000 after purchasing an additional 65 shares in the last quarter. Finally, Lifetime Wealth Management P.C. bought a new stake in Microsoft during the fourth quarter worth $101,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth A number of brokerages have weighed in on MSFT. BMO Capital Markets assumed coverage on Microsoft in a report on Monday. They issued an “outperform” rating on the stock. BNP Paribas Exane cut Microsoft from a “strong-buy” rating to a “hold” rating in a report on Monday. Barclays dropped their price objective on Microsoft from $545.00 to $512.00 and set an “overweight” rating for the company in a research report on Thursday, July 30th. Evercore upgraded Microsoft from an “underperform” rating to an “outperform” rating in a research report on Monday. Finally, Melius Research set a $665.00 target price on Microsoft and gave the stock a “buy” rating in a research note on Monday. Forty-one investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $578.73.
Check Out Our Latest Report on Microsoft Insider Buying and Selling at Microsoft In other Microsoft news, EVP Amy Hood sold 41,674 shares of the company’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the transaction, the executive vice president directly owned 533,624 shares in the company, valued at approximately $265,888,830.48. This represents a 7.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the transaction, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is owned by insiders.
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership? Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies Microsoft Price Performance Shares of MSFT opened at $522.61 on Friday. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The stock has a market cap of $3.88 trillion, a PE ratio of 29.10, a PEG ratio of 1.70 and a beta of 1.10. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The business has a 50-day simple moving average of $499.74 and a two-hundred day simple moving average of $434.03.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same period last year, the firm posted $3.65 earnings per share. The business’s revenue for the quarter was up 17.7% on a year-over-year basis. Analysts anticipate that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year.
Microsoft Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This represents a $3.92 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s payout ratio is presently 20.27%.
About Microsoft (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
See Also Five stocks we like better than Microsoft Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push
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Aegis Wealth Management LLC bought a new position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 3,422 shares of the software giant’s stock, valued at approximately $1,276,000. Microsoft comprises approximately 0.6% of Aegis Wealth Management LLC’s investment portfolio, making the stock its 19th largest holding.
A number of other large investors also recently bought and sold shares of the stock. UNIVEST FINANCIAL Corp raised its position in Microsoft by 4.1% in the second quarter. UNIVEST FINANCIAL Corp now owns 183,288 shares of the software giant’s stock valued at $68,370,000 after purchasing an additional 7,239 shares during the period. K.J. Harrison & Partners Inc lifted its stake in Microsoft by 25.2% during the 2nd quarter. K.J. Harrison & Partners Inc now owns 42,540 shares of the software giant’s stock worth $15,868,000 after acquiring an additional 8,569 shares in the last quarter. Lee Johnson Capital Management LLC boosted its holdings in Microsoft by 3.8% during the 2nd quarter. Lee Johnson Capital Management LLC now owns 687 shares of the software giant’s stock valued at $256,000 after acquiring an additional 25 shares during the period. Auxano Advisors LLC grew its position in Microsoft by 13.1% in the 2nd quarter. Auxano Advisors LLC now owns 131,823 shares of the software giant’s stock valued at $49,173,000 after acquiring an additional 15,275 shares in the last quarter. Finally, Argyle Capital Partners LLC grew its position in Microsoft by 6.4% in the 2nd quarter. Argyle Capital Partners LLC now owns 11,456 shares of the software giant’s stock valued at $4,273,000 after acquiring an additional 690 shares in the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.
Microsoft Stock Down 1.3% Microsoft stock opened at $522.61 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The company has a market cap of $3.88 trillion, a PE ratio of 29.10, a price-to-earnings-growth ratio of 1.70 and a beta of 1.10. The stock’s 50 day moving average price is $499.74 and its 200 day moving average price is $434.03.
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, beating the consensus estimate of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same period in the prior year, the business earned $3.65 earnings per share. The company’s quarterly revenue was up 17.7% on a year-over-year basis. On average, sell-side analysts predict that Microsoft Corporation will post 19.65 EPS for the current fiscal year. Microsoft Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 19th. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio (DPR) is 20.27%.
Insider Activity In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the sale, the chief executive officer owned 486,763 shares in the company, valued at $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is currently owned by company insiders.
Key Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership? Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies Analyst Upgrades and Downgrades MSFT has been the subject of several recent research reports. UBS Group lowered shares of Microsoft from a “buy” rating to a “market perform” rating in a research note on Monday. Royal Bank Of Canada reiterated an “outperform” rating on shares of Microsoft in a research note on Thursday, September 10th. Needham & Company LLC started coverage on shares of Microsoft in a report on Wednesday, September 23rd. They set a “buy” rating for the company. Bank of America increased their price objective on shares of Microsoft from $500.00 to $600.00 and gave the company a “buy” rating in a research report on Tuesday, September 1st. Finally, Stifel Nicolaus upgraded Microsoft from a “hold” rating to a “buy” rating and increased their price objective for the company from $530.00 to $575.00 in a report on Tuesday, September 22nd. Forty-one analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $578.73.
Read Our Latest Stock Report on MSFT
About Microsoft (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Recommended Stories Five stocks we like better than Microsoft Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push 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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Two Sigma Securities LLC purchased a new position in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 6,019 shares of the software giant’s stock, valued at approximately $2,245,000.
A number of other hedge funds have also recently modified their holdings of MSFT. Empirical Financial Services LLC d.b.a. Empirical Wealth Management lifted its holdings in shares of Microsoft by 4.0% during the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant’s stock valued at $85,604,000 after purchasing an additional 8,773 shares in the last quarter. Markel Group Inc. increased its holdings in Microsoft by 0.4% in the 1st quarter. Markel Group Inc. now owns 537,630 shares of the software giant’s stock worth $199,014,000 after buying an additional 1,950 shares in the last quarter. Bessemer Group Inc. raised its position in Microsoft by 8.4% in the 1st quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant’s stock worth $2,562,197,000 after buying an additional 537,634 shares during the last quarter. Taylor Securities Services Inc. purchased a new position in Microsoft in the 4th quarter worth about $2,616,000. Finally, Harel Insurance Investments & Financial Services Ltd. boosted its holdings in shares of Microsoft by 138.8% during the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,356,359 shares of the software giant’s stock valued at $502,077,000 after acquiring an additional 788,297 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.
Analysts Set New Price Targets A number of brokerages have recently commented on MSFT. UBS Group lowered shares of Microsoft from a “buy” rating to a “market perform” rating in a research note on Monday. KeyCorp restated an “overweight” rating on shares of Microsoft in a report on Thursday, September 3rd. Melius Research set a $665.00 target price on shares of Microsoft and gave the stock a “buy” rating in a research report on Monday. Citizens Jmp reiterated a “market outperform” rating and set a $550.00 target price on shares of Microsoft in a research note on Tuesday, September 15th. Finally, Benchmark reissued a “buy” rating on shares of Microsoft in a report on Friday, July 24th. Forty-one equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Microsoft has a consensus rating of “Moderate Buy” and a consensus price target of $578.73.
Get Our Latest Report on MSFT Insider Buying and Selling In related news, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. The sale 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 that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 143,009 shares of company stock worth $71,420,699 over the last ninety days. 0.03% of the stock is owned by corporate insiders.
Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: Microsoft expanded its AI relationship with Nvidia and introduced the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX technology. The device is designed to run AI models and agents locally, potentially strengthening Windows’ role in the emerging “agentic” PC market. Is Microsoft Stock a Buy After Expanding Its Nvidia Partnership? Positive Sentiment: Analysts continue to cite Azure momentum, Copilot demand and Microsoft’s large backlog as evidence that its more than $175 billion AI infrastructure investment could generate sustainable returns. Morgan Stanley reaffirmed a Buy rating with a $600 price target, while other analysts have issued targets as high as $635. Microsoft’s Integrated AI Stack and Enterprise Copilot Flywheel Justify Buy Rating Neutral Sentiment: Microsoft announced that fiscal 2027 first-quarter results will be released after the market closes on October 28. Investors are likely to focus on Azure growth, Copilot adoption, AI capital expenditures, free cash flow and forward guidance. Microsoft Announces Quarterly Earnings Release Date Negative Sentiment: The Labor Department suspended Microsoft from the Permanent Labor Certification program used to help foreign workers obtain U.S. permanent residency, alleging misuse of worker programs. The restriction could raise hiring costs and, over time, make it harder to retain specialized AI talent, although the near-term earnings impact is expected to be limited. U.S. Suspends Microsoft, Adobe From Green-Card Labor Program Negative Sentiment: Investors are increasingly concerned that Microsoft’s valuation is less attractive after its strong run, while heavy AI data-center spending may pressure free cash flow. Reports also questioned the reliability of OpenAI’s annual recurring revenue figures, adding uncertainty around a key AI partner. Oracle, Microsoft Shares Decline as OpenAI’s ARR Is Questioned Negative Sentiment: Italy launched an EU-backed antitrust investigation into Microsoft-owned gaming companies over their use of virtual currencies, creating an additional regulatory overhang for the Xbox business. Italy Launches EU-Backed Probe Into Microsoft-Owned Gaming Companies Microsoft Trading Down 1.3% Shares of MSFT stock opened at $522.61 on Friday. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The firm has a fifty day moving average price of $499.74 and a 200-day moving average price of $434.03. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The company has a market cap of $3.88 trillion, a price-to-earnings ratio of 29.10, a PEG ratio of 1.70 and a beta of 1.10.
Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same period in the prior year, the business posted $3.65 EPS. Microsoft’s revenue was up 17.7% on a year-over-year basis. As a group, equities analysts predict that Microsoft Corporation will post 19.65 earnings per share for the current year.
Microsoft Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a yield of 0.8%. Microsoft’s dividend payout ratio (DPR) is currently 20.27%.
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Read More Five stocks we like better than Microsoft Want Private-Market Access to Kalshi and Polymarket? Try This ETF Levi’s Stock Dip Reveals Value Opportunity Despite Q3 Headwinds PepsiCo Stock Looks Poised to Bottom With High Yield, Deep Value Alphabet’s $1.8 Billion Black Hills Deal Powers AI Data Center Push
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India called comments by U.S. Vice President J.D. Vance about immigrants from the country "deeply offensive" in an official government statement published on Friday.
Vance said on Thursday that the Trump administration wants foreign and local companies to "employ American workers," and that they "cannot lay off American workers and then replace them with foreign indentured servants."
He was speaking as the U.S. Department of Labor announced it would suspend Microsoft, Adobe and several major Indian information technology companies from its Permanent Labor Certification program, meaning they cannot apply for permanent residency for their employees on H-1 B visas.
Around 70% of H-1B beneficiaries in 2025 were born in India, per official data.
In a statement on Friday, India's Ministry of External Affairs accused Vance of using "terminology that carries painful historical and colonial legacy connotations."
"Such descriptions are unwarranted and ignore the fact that Indian professionals in the United States are highly educated and skilled contributors to its economy and innovation ecosystem," the statement said.
Vance's office did not immediately respond to a comment request from CNBC.
Vance was critical of Microsoft, accusing the company of replacing 6,000 laid-off workers with people on H-1B visas.
The Indian foreign ministry assured its citizens that measures announced by the U.S. will not affect the validity of existing H-1B visas or the status of H-1B visa holders and their dependents.
"Talent mobility adds value to both economies," the statement said, adding that the suspensions "do not advance the shared ambitions of both countries."
More hiring in the U.S.The Indian companies affected by the ban include Cognizant, Infosys, Capgemini, Tata Consultancy Services, Wipro and HCL.
NASSCOM, the IT industry body, said in a statement that Indian technology companies have "significantly reduced their dependence on H-1B visas" over the last few years, and are expanding domestic hiring to their U.S. workforces.
The largest Indian IT company, Tata Consultancy Services, said its H-1B applications were in "single digits" in the last two years, and it intends to hire another 15,000 people in the U.S. over the next five years.
In June, a federal judge blocked the $100,000 H-1B visa fee U.S. President Donald Trump imposed last year.
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Business Insider dialed up immigration attorneys on Thursday to get their reaction to the Trump administration's latest move. Alex Wong/Getty Images The Trump administration's Thursday declaration that it was suspending Microsoft and Adobe from a federal visa sponsorship program is reverberating through the tech industry.
Immigration attorneys told Business Insider that employees on H-1B visas working at Microsoft, Adobe, and the other named tech companies should seek counsel and get clarity about their status in light of the suspensions.
Individual cases may vary, and the attorneys spoke in general terms about the advice they would give without knowing a client's specific circumstances or status.
"This is a time where immigrants, high-skilled immigrants, really need to pay attention to laws," said Tahmina Watson, a business immigration attorney at Watson Immigration Law in Seattle. "Things are changing on a dime," she added.
Business Insider spoke to eight immigration attorneys on Thursday in the wake of the announcement, as part of our ongoing series, "H-1B Fallout: 1 Year Later," which explores how foreign workers are navigating a rapidly changing US immigration landscape.
Some of the immigration attorneys said the suspensions were likely to be challenged in court. Others said they were the latest in a series of US measures targeting foreign workers. One attorney suggested they would only impact a relatively small group of workers.
"Most people will either be able to wait it out or have time to switch jobs," said Loren Locke, an attorney at Locke Immigration Law in Atlanta.
The Permanent Labor Certification, or PERM, program is an initial step that employers generally must complete before sponsoring a worker for an employment-based visa, requiring them to show that no qualified and available US workers could fill the role.
Vice President JD Vance said at a press conference on Thursday that Microsoft had "abused" this system by laying off American workers and using it to hire foreign ones, who he said were paid less. "If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants," Vance said.
A Microsoft spokesperson pointed Business Insider to a blog post the company published Thursday, which said "the vast majority of Microsoft employees in the United States are Americans." The company said it pays its H-1B employees "the same as any other employees doing comparable work."
Microsoft CEO Satya Nadella receives the National Medal of Technology and Innovation from President Donald Trump on Thursday — hours after Microsoft's suspension from a visa program. Win McNamee/Getty Images Labor Secretary Keith Sonderling said at the press conference that the government would not accept any new PERM applications or process any pending ones for the named companies, which, in addition to Microsoft and Adobe, also include tech outsourcing firms Cognizant, Infosys, Tata, Wipro, HCL Technologies, and Capgemini.
The importance of knowing your statusIn suspending new and pending PERM applications, the Trump administration left a very specific group of H-1B visa holders in limbo, said Matthew Maiona, an immigration attorney at Maiona Ward in Boston.
Maiona said that a hypothetical employee at Microsoft or Adobe, six years into an H-1B visa, could now, in theory, be ordered to appear in immigration court under this new suspension.
"You could be in trouble if you cannot qualify for another non-immigrant visa classification," Maiona said. "You may have to leave the United States."
But Locke said workers would only face potential removal if they exhausted their H-1B eligibility and could not secure an extension or another legal basis — of which there are several — to remain in the country.
Though H-1B visas have a statutory maximum of six years before expiring, they can be extended past that number if workers have made sufficient progress toward obtaining a green card, she said.
"If the goal is to crush H-1B workers, it's not great, but it's not really crushing them either," Locke said.
Todd Pomerleau, an immigration attorney based in Boston, said that with uncertainty around the extent and enforcement of the suspensions, "anybody who's concerned about their immigration status needs to seek competent counsel."
'We will start seeing lawsuits'Some immigration attorneys who spoke with Business Insider said they expected the Trump administration's move to be challenged in a lawsuit that would argue the suspensions are outside the Labor Department's legal authority.
"I assume, by next week, we will start seeing lawsuits," said Kripa Upadhyay, the co-chair of Buchalter's Immigration & Global Mobility Practice, a Seattle firm.
Ted Chiappari, the head of immigration law at Duane Morris LLP, said federal statute only allows the Department of Labor to unilaterally suspend an employer from using the PERM program for 180 days.
"That gives the employer notice that there's an investigation going on, and at the end of that investigation, if they find something inappropriate, they have six years to decide whether to debar an employer," he said.
And even then, Chiappari said, they can only debar an employer for up to three years.
Only the latest H-1B broadsideFew attorneys interviewed by Business Insider said they were surprised by the measure. Mostly, they saw it as another salvo in what they described as the Trump administration's ongoing crackdown on foreign workers.
Upadhyay said that just the day before, she had spoken with a Microsoft employee on an H-1B whose spouse also was on an H-1B.
The person's H-1B extension was running out, and they now faced the "impossible decision" of moving to their home country, leaving behind their spouse and two US citizen children.
"I have children to support," Upadhyay recalled the worker saying. "What happens now?"
Upadhyay expects to get more of these calls.
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Truman Dickerson You're currently following this author! Click to unsubscribe from email alerts.
Truman Dickerson is the Weekend News Fellow at Business Insider, based in New York City. He covers trending tech and business news. He previously reported for The Boston Globe's Express Desk. He graduated from Boston University, where he served as editor in chief of The Daily Free Press, BU's student-run newspaper.Contact him at [email protected]
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Pranav Dixit is Business Insider’s Meta correspondent based in the San Francisco Bay Area. His reporting focuses on the company’s race to build and deploy AI, its shifting workplace and corporate strategy, and the consequences of its actions on users, employees, and the broader tech industry.Previously, Pranav was BuzzFeed News’ India-based technology correspondent, reporting on how Silicon Valley’s biggest companies affected the culture, politics, and society of South Asia. He was also a senior news editor at Engadget and led technology coverage at the Hindustan Times, one of India’s largest national newspapers. He moved to the United States in 2021 to be a Nieman Fellow at Harvard University and calls himself an "accidental expat." Pranav’s award-winning reporting has shed light on the human consequences of Big Tech’s quest for growth in emerging markets, and sparked widespread global conversations about the impact of American technology companies on the Global South. He has reported from rural India about gruesome lynchings sparked by Whatsapp misinformation, and documented the world's longest-running internet shutdown from Kashmir, a volatile geopolitical hotspot.Pranav’s work has been cited in dozens of books and research papers, as well as by major national and international publications. He has appeared on the national and international television, and on podcasts including Vox Media’s Land of the Giants. His writing has also appeared in The Guardian, Vox, Time, The Information, and Al Jazeera.Pranav keeps sources anonymous. Please use a non-work device to reach out.
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Alex is a reporter at Business Insider writing about how people, from billionaires to penny-pinchers, save, invest, and manage their money. He previously covered private credit and equity, real estate, and real estate technology for Business Insider.Recently, he's covered Steve Schwarzman's hidden family office, private capital's push into your retirement account, a massive Airbnb tax-break unlocked by President Trump, and the ex-McKinsey consultant connecting Zohran Mamdani to the business world. According to one Fortune 500 CEO, he's a "fringe reporter."Before joining Business Insider in 2019, he worked for Bridgewater Associates and Peloton. He is the interim vice-chair of the Insider Union.He welcomes any and all reachouts, prioritizes his source's safety, and has a long record of working with confidential sources to tell deeply reported, complicated stories. He loves to yap.Get in touch! Contact this reporter via encrypted messaging app Signal at @alexnicoll.01 using a non-work phone, email at [email protected] or [email protected], or Twitter DM at @nicollsanddimes.
Market conditions and sentiment can turn on a dime. Something that was once a clear bullish indicator can become a bearish one in a hurry, and vice versa. And sometimes, something that's a critical factor in the narrative can be both a positive and a negative.
That seems to be where capital expenditures among hyperscalers driving the artificial intelligence revolution are heading.
Joachim Klement, an analyst at British investment bank Panmure Liberum, recently told MarketWatch that the market has put itself in a "capex pickle" that could soon come into focus.
Here's what that could mean for the stock market.
Image source: Getty Images.
What's good for the hyperscalers may no longer be aligned with what's good for the market In 2024 and the bulk of 2025, whenever a major hyperscaler announced it was increasing its capex for AI-related infrastructure due to increased demand, its stock jumped.
And for a while, it seemed like all gravy. Some hyperscalers, like Microsoft (MSFT -1.35%) and Amazon (AMZN -2.25%), were seeing their cloud revenue jump 30% to 40% year over year due to AI-related demand.
However, that enthusiasm began to fade as their free cash flow deteriorated, and several hyperscalers are expected to experience negative free cash flow over the next few years. The market has become more stringent: If you are going to spend big, you need to provide clear evidence of returns on your investments.
In the most recent quarter, hyperscalers that have shown strong revenue growth have been rewarded, while those boosting their 2026 capex guidance have seen their stocks sold off intensely if the market is unimpressed by their growth.
However, the $800 billion that the five largest hyperscalers are projected to spend this year is going into the pockets of other publicly traded companies, lifting their revenue and profits.
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These dynamics are increasingly at odds with themselves, argues Klement. If the hyperscalers continue to increase their capex, they are likely to be punished by the market. But if they don't, companies across the broader market may be punished because those hundreds of billions of dollars of spending are contributing in a major way to the revenue and earnings growth of so many other companies.
"The upcoming Q3 earnings season and then the full-year earnings and guidance for 2027 in January will provide a critical reality check," Klement said, according to MarketWatch.
Recently, I've seen analysts at Goldman Sachs and S&P Global say that hyperscaler capex could land between $1.2 trillion and $1.3 trillion in 2027. A result like that would likely leave many of them free-cash-flow negative for 2027, and potentially for 2028 as well.
Klement anticipates that the AI bubble will burst next year or in 2028, with the S&P 500 falling roughly 35% to about 5,000 as sentiment toward the AI space darkens.
Spending can't keep rising like this forever Klement certainly raises some interesting points. I would agree that one way or another, data center capital expenditures are becoming an issue.
I also don't believe that capex can keep climbing like this forever. Whether matters come to a head because the hyperscalers built too many data centers too quickly, or because they're simply running out of options for funding their build-outs, eventually, something's got to give.
What will happen after that is hard to predict.
Perhaps the hyperscalers will choose to slow their spending and benefit as their financials improve, while a host of companies across the rest of the market see their earnings decline as AI-related capex retreats. Or the hyperscalers might keep spending regardless of the damage it does to their share prices, but the broader market performs better. Maybe it will all end up balancing out.
It's also possible that Klement is right and there is a bear market coming, even if AI ends up being as transformational as many expect. I do think that a correction would be a helpful reset for the market at this point.
Investors should prepare for a range of scenarios. Long-term investors don't necessarily need to adjust their portfolios, but having a clear understanding of why the market may become more volatile will help you make more rational decisions should action be required.
Retirees are swapping bonds for a high-yield ETF that pays nearly three times more every month, but the real job of a bond allocation has nothing to do with income.
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A $300,000 position in the NEOS S&P 500 High Income ETF (BATS:SPYI) pays about $2,935 a month. A matching amount in iShares Core U.S. Aggregate Bond ETF (NYSEARCA:AGG) pays $1,050 a month. That gap helps explain why SPYI has become a favorite with retirees, and why some now use it in place of their bond allocation.
The fund took in $5.15 billion in net inflows through late September, including $806 million in the final month of that period, bringing total assets to $12.40 billion. The trouble starts when you ask what the fund does in a stock crash, because a bond allocation is there to protect you in a crash.
Where an 11.7% Yield Comes From SPYI owns S&P 500 stocks. The largest positions are Apple (NASDAQ:AAPL | AAPL Price Prediction) at about 7% of assets and Microsoft (NASDAQ:MSFT) at 4%. The fund sells call options on the index and pays out the premium every month.
Over the past year, SPYI paid $6.34 per share against a recent price near $54. That works out to a trailing yield of 11.7%, while AGG yields 4.2%.
When the fund sells those calls, it gives up any gains above the strike price for the premium. When stocks fall, the premium offsets losses only by the amount collected, so the fund falls almost as hard as the stocks it holds.
2026 has rewarded SPYI holders, though.
SPYI has returned 13% this year, while AGG is down 3%. The gap widened in September, when SPYI gained 0.11% and AGG lost 3%.
AGG now sits 4% below its late February level. A $300,000 position in it has lost $8,010 this year.
That loss comes from duration. When interest rates rise, fixed bond payments are worth less, and the bond’s price falls. The longer the maturity, the bigger the drop.
How 16.8 Months of Income Vanished in the 2025 Crash From February 19 to April 8, 2025, SPYI fell 16% with distributions reinvested. On a $300,000 position, that was a $49,410 loss.
The loss wiped out more than a year of monthly checks in a single spring. It is 16.8 months of income.
Over the same period, AGG gained 1%, or $2,640 on the same amount. Bonds earn their place in a retirement portfolio through what they do when stocks fall. Their yield matters less.
Selling at the Bottom Locks In the Loss SPYI closed back above its February peak on June 25, 2025. That recovery only helped holders who never sold.
This is called sequence of returns risk, and a bad market in the first few years of retirement does far more damage than one in year fifteen (we built a free guide around exactly that problem, here). Two retirees with the same average return can end up far apart if one withdraws heavily during a crash, because shares sold at the low miss the rebound. Bonds that hold their value give you something else to sell.
From February 25 to March 30, 2026, SPYI fell 8% while AGG slipped 2%. Two drops like this within a year show how the fund is built.
Where SPYI Fits in a Retirement Portfolio As a bond substitute, SPYI falls short. It matches bond income but carries stock market risk. A retiree who moved a bond allocation into it has raised their stock exposure without noticing.
As a stock income holding, it has done its job. If you want monthly cash from part of your stock allocation and accept S&P 500 drawdowns, the fund has delivered.
For the role bonds actually play, AGG is the better tool. It lost money this year, but in the 2025 crash it rose while SPYI dropped 16%. In this year’s late winter fall, it lost only a fraction of what SPYI did.
That steadier behavior in a drawdown is what lets you fund withdrawals without selling stocks at a loss. SPYI belongs in the stock bucket, and a core bond fund belongs in the bond bucket.
Contact [email protected] for any questions or corrections.
The Donald Trump administration suspended Microsoft Corp. (NASDAQ:MSFT) and Adobe Inc. (NASDAQ:ADBE) from the Department of Labor’s Permanent Labor Certification, or PERM, program, which companies use to sponsor eligible foreign workers for permanent U.S. residency, reported Reuters.
The action also covers Cognizant Technology Solutions Corp (NASDAQ:CTSH), Infosys Ltd. (NYSE:INFY), Tata Consultancy Services, Wipro Ltd. (NYSE:WIT), HCL Technologies and Capgemini.
The action does not directly affect current H-1B visa holders. Instead, it blocks a common route for skilled foreign workers to transition to permanent residency, potentially making the U.S. a less certain destination for talent companies want to retain.
The AI ‘Brain Drain’ RiskTodd Warren, founding partner at Envorso, said H-1B limits can be “quite negative for companies” and push them to look offshore.
“Capping H1B’s in effect creates a ‘brain drain’ of people who have been educated in the U.S.—as these people leave and go back to their home countries instead of adding to the U.S. workforce and capacity,” Warren warned.
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Warren noted that developer demand has already fallen significantly from its 2022 peak as Big Tech shifts spending from human capital toward data centers and AI infrastructure. That could cushion the immediate impact, but it does little to resolve the longer-term talent question.
Ken Mahoney, president and CEO of Mahoney Asset Management, similarly said the immediate financial impact on major technology companies is likely limited, while the implications for innovation and competitiveness could be much larger.
Mahoney pointed to Nvidia Corp. (NASDAQ:NVDA) CEO Jensen Huang and Advanced Micro Devices Inc. (NASDAQ:AMD) CEO Lisa Su as examples of immigrant leadership in semiconductors.
The R&D RiskIf restrictions broaden or become permanent, Mahoney said companies could face higher hiring costs and stronger incentives to shift research and development overseas.
The White House has also extended restrictions on certain H-1B workers through September 2027, with covered petitions generally subject to a $100,000 payment, subject to exceptions.
For Microsoft, Nvidia and Broadcom Inc. (NASDAQ:AVGO), the immediate question is not whether they can hire another developer. It is whether the U.S. remains the easiest place to assemble the world’s best AI researchers, engineers and founders.
Investment Takeaway: Investors should watch hiring costs, overseas R&D expansion and management commentary on talent availability. The bigger risk may not appear in next quarter’s earnings, but years later in where America’s next AI breakthroughs are built.
President Trump's largest August stock purchase landed in a tech company already moving fast, and the trade raises questions about what investors betting on AI and advertising growth are actually pricing in.
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In a breaking news story, Meta Platforms (NASDAQ:META | META Price Prediction) stock appears in the largest bracket of President Donald Trump’s newest disclosure. A periodic transaction report filed with the U.S. Office of Government Ethics covers more than five hundred transactions, including a Meta Platforms purchase on August 21 in a $5 million to $25 million range.
Shares of Meta Platforms closed at $549.51 on the trade date and $721.31 on October 7, a 31% gain, and traded this afternoon at $714.52, down 0.9%. That huge gain wasn’t a broad-based mega-cap technology story. Over the same window, from the August 21 close to the October 7 close, Microsoft (NASDAQ:MSFT) rose from $483.24 to $529.76, a gain of 10%, and Alphabet (NASDAQ:GOOGL) rose from $344.60 to $350.50, a gain of 2%.
META stock outran both by a wide margin, which places the move in something specific to Meta Platforms rather than in a rising tide across large-cap technology. Both comparison figures run through the October 7 settled close, the same basis as the Meta Platforms figures above. So, what’s going on with Meta in particular?
AI Spending and Ad Growth Drive the Story The purchase landed weeks after Meta Platforms reported a mixed quarter. Revenue beat Wall Street estimates as advertising sales climbed, with both ad impressions and price per ad rising. Earnings per share missed, however, ending a streak of quarterly beats as legal charges and severance tied to a staff cut pushed costs sharply higher.
Spending is the bigger story. Capital expenditures jumped as the company built out AI infrastructure, free cash flow collapsed from the prior-year level, and management raised its full-year expense outlook. Meta Platforms CEO Mark Zuckerberg framed the investment as a growth engine. “AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities.”
META stock’s run since the trade date suggests investors have looked past the earnings miss and focused on revenue momentum and the eventual AI payoff. The suppliers behind that expansion matter too, and we featured seven of them, from power to cooling and networking, in a free report on the AI boom beyond the chipmakers.
How Meta Compares With Other Ways to Play the Theme For a sector read, the Communication Services Select Sector SPDR ETF (NYSEARCA:XLC) is at $111.68, up 0.4%. The fund holds Meta Platforms as its largest position. That gives investors Meta exposure alongside other communication services names, cushioning the impact of any single company’s legal or spending surprises.
SpaceX (NASDAQ:SPCX) offers a different high-profile AI bet. The recently listed company is growing AI and Starlink revenue rapidly but still reports a loss per share, and its shares have swung widely since the IPO. Meta, by contrast, pairs heavy AI spending with an established, highly profitable advertising business. SpaceX is not among Trump’s reported holdings.
The disclosure covers transactions for the filer, a spouse, or a dependent child, so the Meta Platforms purchase may reflect another person’s choice, and amounts appear only as ranges, with the filing reporting trade dates separately from public release.
What to Watch Next Investors can watch for the gap between each trade date and its public release, and share positions in Meta Platforms should reflect the stock’s sharp run since the trade date.
Meta’s next earnings report will test whether revenue can keep pace with management’s guidance while costs keep climbing. Further legal charges or a softer ad market could weigh on margins and cash flow.
Ongoing youth-related legal trials in the U.S. remain a risk for Meta Platforms. Investors who want the theme with less single-stock exposure can track the XLC ETF alongside META stock.
Contact [email protected] for any questions or corrections.
Key Takeaways Microsoft expands its Nvidia partnership with new AI-powered PCs and developer workstations.Microsoft's strong growth is tempered by relatively flat EPS revisions and a premium valuation.MSFT shares have gained 9% this year, but stronger momentum may be found elsewhere in tech. Microsoft (MSFT - Free Report) ) is strengthening its position in artificial intelligence after expanding its collaboration with Nvidia (NVDA - Free Report) ) and introducing a new generation of AI-powered Windows PCs.
On Wednesday, Microsoft unveiled pricing and availability details for its Surface Laptop Ultra, powered by Nvidia's RTX Spark chip, which enables developers and consumers to run AI models directly on their devices rather than relying entirely on cloud infrastructure.
Starting at $2,599, the new laptop will become available on October 16, alongside Nvidia-powered AI PCs from Dell (DELL - Free Report) ), HP (HPQ - Free Report) ), Lenovo (LNVGY - Free Report) ), and other manufacturers.
Additionally, Microsoft announced the Nvidia-powered Surface RTX Spark Dev Box, designed for developers and AI engineers working with advanced models, which is expected to ship in November at a starting price of $5,999.
The collaboration could help Microsoft capture additional demand for AI-enabled computing while strengthening its Windows and Surface ecosystems.
Microsoft's Growth Outlook Remains StrongMicrosoft's growth trajectory remains encouraging, supported by expanding demand for Azure cloud services, enterprise AI applications, and its Microsoft 365 Copilot offerings.
During its most recent fiscal fourth quarter, Microsoft reported revenue of $90 billion, up 18% year over year, while adjusted earnings climbed 23% to $4.74 per share.
Looking ahead, the Zacks Consensus Estimate calls for Microsoft's current fiscal 2027 revenue to climb 17% to $390.2 billion, with earnings expected to increase 9% to $19.65 per share. Furthermore, FY28 sales and EPS are each projected to rise another 18%, highlighting the company's favorable longer-term growth prospects.
Image Source: Zacks Investment Research
Tracking Microsoft’s EPS RevisionsAlthough Microsoft’s growth outlook remains strong, earnings estimate revisions have been largely unchanged.
The FY27 EPS consensus is slightly up in the past 60 days from $19.63 to $19.65, while FY28 estimates have dipped from $23.30 to $23.24. This suggests analysts remain confident in Microsoft's growth outlook but have yet to become more bullish on its near-term earnings trajectory.
Image Source: Zacks Investment Research
Microsoft's Premium ValuationAt current levels, Microsoft stock trades at 27X forward earnings, well above its Zacks Computer-Software industry's average of 16X and at a slight premium to the benchmark S&P 500.
This premium reflects Microsoft's leadership in cloud computing, recurring enterprise software revenue, and expanding AI opportunities. Still, elevated expectations leave shares vulnerable to volatility if Azure growth slows or the company's substantial AI infrastructure investments pressure profitability.
Image Source: Zacks Investment Research
Bottom LineMicrosoft's expanded Nvidia collaboration adds another catalyst to its compelling long-term AI growth story. However, MSFT shares are up a respectable but relatively modest 9% year to date, suggesting investors may be gravitating toward other high-growth opportunities with stronger near-term momentum.
Combined with its premium P/E valuation and relatively stagnant earnings estimate revisions, Microsoft stock currently lands a Zacks Rank #3 (Hold), with MSFT being more appealing as a long-term holding than an aggressive near-term buy.
Hybrid intelligence routes work between local models and cloud services, potentially reducing token costs while strengthening Windows. Summary
Local AI can strengthen Windows while shifting some inference away from Azure.
Microsoft MSFT, the cloud and operating-system giant, advanced its push to split AI workloads between Windows PCs and the cloud, with shares up approximately 0.3% to $531.39 as of October 8. The pitch is simple: run suitable tasks on the device and call the cloud when more computing power is needed. That could make AI cheaper to use—and give customers more reasons to stay inside Microsoft's ecosystem.
According to its Windows Experience Blog, Microsoft made Execution Containers generally available to control which files and networks AI agents can access. The hardware push is coming too. Surface Laptop Ultra supports models exceeding 120 billion parameters locally and becomes available October 16. Microsoft is also bringing its 137-billion-parameter MAI Code model to devices, using compression to shrink its memory requirements. These are separate pieces of the same bet: make Windows a practical home for demanding AI work.
The valuation snapshot puts the shares 10.1% below the $591.09 GF Value estimate, suggesting a valuation cushion rather than a guaranteed bargain. The business trade-off deserves attention. Local processing could trim some cloud usage, while stronger Windows, Copilot, security and developer offerings could create other revenue opportunities. Microsoft's challenge is to make cheaper AI generate enough additional demand to outweigh the workloads moving off Azure.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
A federal move could complicate how tech firms hire. Summary
The move restricts a pathway from employment visas to permanent residency.
Microsoft MSFT is facing a new U.S. immigration-related constraint after the government suspended the company from using the PERM labor-certification program, potentially making it harder to convert some foreign workers into permanent U.S. residents. The move adds a new workforce risk for Microsoft and several other technology companies already navigating tighter immigration scrutiny.
Vice President JD Vance said Thursday that Microsoft had abused the immigration system by laying off U.S. workers while continuing to benefit from large numbers of work visas and green cards.
"Unfortunately, no one has abused this program more than Microsoft," Vance said.
He cited roughly 6,000 Microsoft layoffs last year alongside 6,300 new visas and nearly 3,000 green cards.
"Thanks to an ongoing investigation, we have decided to suspend the PERM program for Microsoft, which means they will no longer be able to take those H-1Bs and apply for permanent resident status within the United States of America," Vance said.
PERM is the labor-certification process employers generally use before sponsoring many foreign workers for employment-based green cards. Losing access does not shut off H-1B hiring entirely, but it can complicate the longer-term retention of affected workers.
Other companies reportedly suspended from PERM include Cognizant CTSH, Infosys INFY, Wipro WIT, Adobe ADBE, HCL and Capgemini.
Wipro and Infosys shares fell more than 3% after the announcement, while Cognizant declined roughly 2%. Microsoft shares were little changed.
The administration also announced investigations into alleged J-1 visa abuse involving several major U.S. universities.
Investor takeawayFor Microsoft, the immediate financial effect is likely limited, but the strategic risk is meaningful if immigration restrictions begin constraining access to specialized engineering and AI talent.
Investors should watch whether the suspension is temporary, whether Microsoft challenges it, and whether similar restrictions expand to other visa programs.
The bigger concern is sector-wide. If immigration rules become materially tighter, technology companies could face higher labor costs, slower hiring and greater competition for U.S.-based technical workers.
For now, the issue looks more like a talent-acquisition and compliance risk than a direct earnings shock.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
The best stocks to own forever are usually the ones that know how to keep reinventing themselves as the world changes. Microsoft (MSFT -1.87%) and Alphabet (GOOGL -1.00%) fit that description well because they're already embedded in everyday applications used by billions, all while using artificial intelligence (AI) to make their businesses more future proof.
Microsoft's long-standing dominance in enterprise software makes it the logical place to start.
Image source: Getty Images.
Microsoft's AI platform keeps getting stronger Microsoft is one of those rare companies where the shift to AI is strengthening a business it already dominates. The company is transforming itself into the software layer for the AI era, with Azure, Microsoft 365, GitHub, and Copilot all moving in the same direction.
The clearest example is Azure. Microsoft Cloud revenue continued to accelerate, while Azure and other cloud services grew strongly in the latest fiscal year. More importantly, Microsoft has been integrating AI across its ecosystem, rather than treating it as a stand-alone product. Customers can build and run AI applications through Azure while using Microsoft's data, security, and productivity ecosystem.
Consider Copilot. Rather than simply competing with other AI chatbots, Microsoft is embedding AI directly into the software people already use at work. In fact, Microsoft 365 Copilot has already passed 30 million paid seats.
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Plus, the opportunity extends beyond Copilot. GitHub Copilot is bringing AI into software development, Dynamics is integrating AI into business applications, and Azure provides the infrastructure. As a result, Microsoft has multiple ways to benefit from companies deploying AI across their everyday operations.
Microsoft's broader business also gives it something many new AI companies don't have: an established base of customers it can easily distribute new technology to. This is exactly the kind of stability that long-term investors are looking for. Meanwhile, Microsoft's latest results showed continued strength across its cloud and productivity businesses, while its commercial remaining performance obligations (RPO) surged, providing better visibility into long-term revenue.
But Microsoft isn't the only game in town. Another tech giant is deploying AI across one of the world's largest consumer ecosystems.
Alphabet's AI push is strengthening its whole ecosystem Alphabet may be one of the best examples of a company where AI can strengthen rather than undermine the core business. Instead of treating AI as a replacement for Search, Google is using AI to make it more capable, while integrating Gemini across its massive ecosystem of consumer applications.
Google says AI Mode has surpassed one-billion monthly users, while AI-powered features have contributed to continued growth in Search queries. In other words, giving users better AI tools can encourage them to search more frequently and explore more complex questions.
That matters for long-term investors because Google doesn't have to build an entirely new user base for AI. It can introduce AI to people who already use Search, Android, Chrome, and other Google services every day.
But Alphabet's AI ambitions go beyond consumer chat. Google Cloud is a major beneficiary of enterprise AI, with customers using Google's infrastructure, models, and tools to develop and run AI applications. Alphabet reported strong Cloud growth in its latest quarter, driven by solid demand for AI solutions.
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Looking ahead, Google is also pushing into the next stage of AI: agents. Gemini Enterprise allows companies to build and manage AI agents that can perform multistep tasks, while Google is integrating similar features into Search and other applications.
Alphabet's advantage is that it controls much of the technology stack required for this AI shift to work. It develops its own models, operates data centers, owns a global distribution network, and runs one of the world's largest advertising businesses. This gives Alphabet a sound business that can grow with AI over the long run.
Put side by side, these two companies show different paths to the same destination: a business built to keep growing for decades.
Two stocks built to last for decades Investors looking for stocks to own for decades should find Microsoft and Alphabet appealing, because their businesses are evolving with technology rather than being disrupted by it. Both are embedded in everyday consumer applications, cloud infrastructure, and AI, giving them multiple avenues for continued growth.
For investors who think in generations rather than quarters, these are exactly the kind of businesses worth owning well beyond this market cycle.
Key Takeaways Microsoft's AI buildout is backed by $678 billion in commercial remaining performance obligations.Short-lived AI hardware drives much of Microsoft's capex, allowing spending to slow if demand weakens.Amazon and Alphabet also ramp up AI spending, supported by strong cloud growth and sizable backlogs. Microsoft (MSFT - Free Report) changed how it reports its business in September 2026, and the change puts its AI investment case in sharper focus. Starting with fiscal 2027, the company has merged its three reporting segments into two: Agents and Infra, and Devices and Consumer. The new Agents and Infra segment groups Azure, Microsoft 365 cloud and industry solutions together. Restated figures show the segment generated $268.1 billion in revenues and $136.4 billion in operating income in fiscal 2026, which works out to an operating margin above 50% even at the peak of the buildout. Management expects first-quarter fiscal 2027 Agents and Infra revenues of $75.15-$75.75 billion.
The spending is enormous. Fiscal fourth-quarter capital expenditures were $41 billion, and roughly two-thirds of that went to short-lived assets, mainly CPUs and GPUs. First-quarter capex is expected to exceed $50 billion, and a lease reclassification has lifted the calendar 2026 estimate to about $175 billion. Free cash flow fell to $19.6 billion from about $25.6 billion a year earlier, and Microsoft Cloud gross margin fell year over year to 65%.
The strongest offset is how much future demand is already visible. Commercial remaining performance obligation jumped 84% to $678 billion, and about 30% of it is expected to be recognized as revenue within 12 months. Azure revenues exceeded $100 billion for the first time in fiscal 2026. Under the new definition, Azure is projected to grow 44-45% in constant currency in the first quarter, while Microsoft 365 commercial cloud is expected to grow about 17%. That outlook is supported by more than 30 million paid Copilot seats and new usage-based billing.
For fiscal 2027, Microsoft expects double-digit growth in revenues and operating income. It sees full-year operating margins slipping by less than a point and free cash flow staying positive. Because so much of the spending goes to short-lived hardware, the company can slow purchases quickly if demand weakens. Rising depreciation and margin pressure remain real risks. Even so, guidance anchored in a large contracted backlog suggests the capex cycle is increasingly backed by committed demand.
How Amazon and Alphabet Stack Up on AI Capex ReturnsAmazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) are pursuing similarly aggressive AI infrastructure buildouts. Amazon raised its 2026 cash capex outlook to about $220 billion. AWS revenues climbed 37% to $42.2 billion in the second quarter, and its backlog reached $496 billion. Amazon expects capacity to remain short of demand into 2027. Alphabet lifted its 2026 capex guidance to $195-$205 billion, as Google Cloud revenues surged 82% to $24.8 billion. Alphabet's cloud backlog stood at $514 billion, with slightly more than half expected to convert into revenue within 24 months. However, Alphabet's free cash flow turned negative in the second quarter.
MSFT’s Share Price Performance, Valuation & EstimatesMSFT shares have returned 9.6% in the year-to-date (YTD) period against the Zacks Computer – Software industry’s 0.1% return. The Zacks Computer and Technology sector has appreciated 25.4% in the same time frame.
MSFT’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MSFT stock appears overvalued, trading at a trailing 12-month price/earnings ratio of 30.66X, higher than the industry’s 28.57X. MSFT has a Value Score of D.
MSFT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MSFT’s fiscal 2027 earnings is pegged at $19.65 per share. The estimate indicates 9.47% year-over-year growth.
Microsoft currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
When Medicare backdated his Part A coverage six months into the past, it quietly turned months of perfectly legal HSA deposits into a tax problem he never saw coming. Laid-off workers near 65 face a hidden deadline that no severance…
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A 67-year-old manager in Redmond collects his last paycheck at the end of August 2026, one more casualty of the region’s layoff wave. In September he signs up for Medicare. He feels sure his Health Savings Account (HSA) is clean because his payroll contributions stopped the day the job ended. But then his Part A start date arrives in the mail: March 1. Six months of HSA deposits he made while still employed are now excess contributions. HSA contributions and Medicare Part A benefits should not overlap but they did.
Regional layoffs set up this situation. Roughly 9,000 people lost their jobs in tech in the Seattle area over the past 12 months, KUOW reported in March. Tech employer Microsoft (NASDAQ:MSFT | MSFT Price Prediction) would be responsible for several hundred of those layoffs, including in Redmond and the Puget Sound region, as part of a broader restructuring announced in the summer.
The national picture looks calmer. Initial jobless claims came in at 197,000 for the week ending Sept. 26, and unemployment stood at 4.2%. Seattle’s job losses are concentrated, and so is the trap, which catches workers who stayed on an employer high-deductible plan past 65 and kept putting money into an HSA.
How Part A Reaches Back Six Months Sign up for Medicare after 65 and Part A can start retroactively for up to six months, but never before age 65. If you apply in September, coverage starts in March. At 67, our worker gets the full six months.
HSA eligibility ends with the first month of Medicare coverage. The IRS counts every contribution for March forward as excess, and that includes contributions from employers. He paid into the account month by month. Medicare then moved his coverage start date back to a time when he was still working.
What the Excess Costs in Dollars Assume he was on pace to contribute the 2026 self-only maximum of $4,400 plus the $1,000 catch-up for savers 55 and older, through equal monthly payroll deductions. At $450 a month, the six backdated months detailed above leave $2,700 in excess contributions. Someone with family coverage on pace for the $8,750 limit plus catch-up would have $4,875 in excess.
If the money stays in the account, the IRS charges a recurring 6% annual excise tax on it. That comes to $162 a year in the self-only example and $292.50 in the family example, every year until he fixes it. He also loses the tax break on the excess: contributions that were excluded from income may have to be added back.
Laid-off workers get hit hardest because their attention is elsewhere, as severance, COBRA elections and a job search fill the calendar. None of that paperwork mentions that Medicare can backdate coverage into months when the HSA was still getting deposits.
One taxpayer laid out the consequences on a TurboTax community forum. The notice arrived on April 16, 2026, showing Medicare coverage retroactive to September 2025, after the poster had already filed a 2025 return showing $9,500 in HSA contributions. The revised limit came to $6,367, so the poster asked the custodian to return $3,183 and amend the return.
Who Can Skip the Fix You owe nothing here if your HSA contributions stayed within the limit allowed before your Medicare coverage began. For someone enrolling more than six months after 65, that generally means stopping contributions at least six months before the month of the Medicare application. The same warning applies if you start Social Security after 65, because Part A can reach back six months there too.
Three Steps to Take Before Your Filing Deadline Pull three dates. Your Medicare application month is on your Social Security confirmation. Your Part A effective date is on your Medicare card. The date of your last HSA deposit, from you or your employer, is on your custodian statement and last pay slip. Once Medicare Part A reaches back to March, his HSA contribution limit for 2026 shrinks to the amount allowed for January and February; anything above that annual limit is excess. Take action now. Request a removal of excess contributions. Ask your HSA custodian to send back the excess and its earnings before your tax filing deadline or extension deadline. That avoids the 6% tax. Report the earnings as income and file Form 8889 with the corrected limit. If you already filed, amend the return, as the forum poster did. If you have not applied yet, stop contributions first. Stop all HSA deposits six months before you apply for Medicare or Social Security. A laid-off worker still on an HDHP through COBRA can time this to fall inside the eight-month Part B Special Enrollment Period. That window starts when the job or the employer coverage ends, whichever comes first, and COBRA does not extend it. The layoff set one end date for the job. Part A set its own start date six months earlier, and that date determines which HSA dollars count as excess.
Contact [email protected] for any questions or corrections.
Microsoft CEO Satya Nadella receives the National Medal of Technology and Innovation from President Trump on Thursday at the “Science: A New Golden Age” summit in Washington, D.C. (White House video screenshot) The Trump administration suspended Microsoft from the federal program the company uses to help foreign workers stay in the U.S. permanently, accusing the tech giant of abusing the system.
The announcement by Vice President JD Vance, during a news conference Thursday morning at the White House, came hours before President Trump gave Microsoft CEO Satya Nadella the National Medal of Technology and Innovation in a ceremony honoring Elon Musk and other tech leaders.
Vance said Microsoft laid off 6,000 American workers last year while getting 6,300 H-1B visas and nearly 3,000 green cards, which he said amounted to replacing U.S. employees with lower-paid foreign workers.
“There has been no company in the United States, unfortunately, that has abused the system more than Microsoft,” Vance said at the news conference, while adding, “Our message to Microsoft is you’re a great American company, but you’ve got to hire great American workers.”
Microsoft’s response: In a statement, the company said 80% of the roughly 6,000 H-1B applications it filed last fiscal year were to extend or change the status of people who already work for the company. The rest were for new hires who were already living in the U.S. legally, a group equal to about 1% of its U.S. workforce.
“They are not new arrivals to our country,” the company said.
Microsoft said it pays H-1B employees “the same as any other employees doing comparable work,” that its wages are “among the highest of all H-1B filings,” and that the vast majority of its U.S. employees are Americans.
The statement didn’t mention the suspension, but the company said it looks forward to “providing the Administration with additional information.”
Details of the penalty: The suspension covers the Labor Department’s Permanent Labor Certification program, known as PERM. It’s usually the first step when a company sponsors a foreign employee to live and work in the U.S. permanently. To get approved, the employer has to advertise the job and show the government that no qualified American worker was available.
Labor Secretary Keith Sonderling said the department won’t accept new applications from Microsoft or process the ones it already has pending. The move doesn’t stop Microsoft from applying for H-1B visas, the temporary work visas that many PERM applicants hold.
The department also suspended Adobe and six IT outsourcing firms: Cognizant, Infosys, Tata, Wipro, HCL and Capgemini.
Trump didn’t mention the suspension at the ceremony. Introducing Nadella, he credited him with making Microsoft “an early leader in superintelligence” and said, “Satya, we are honored to give you the National Medal of Technology and Innovation. It is so well deserved.”
The official citation honored Nadella “for his transformative leadership of a critical American technology company” and for building the “hyperscale infrastructure that enabled the training and global deployment of American superintelligence.”
Tech industry reaction: The announcement drew pushback in Seattle’s tech community.
“There has been a continuous, nonstop deluge of immigration-related news leading up to the midterms,” said Xiao Wang, co-founder and CEO of Boundless, a Seattle startup that helps people navigate the U.S. immigration process.
Wang pushed back on Vance’s characterization of H-1B workers as “foreign indentured servants,” noting there are wage requirements to prevent underpayment of employees. He emphasized the economic benefits of educating and employing the students and workers who seek these visas — and what happens if they’re discouraged or prevented from coming to the U.S.
“What I have been trying to warn folks about is the long-term chilling effects that would be detrimental to the long-term prosperity and competitiveness of the United States,” he said.
Wang said the idea that the layoffs and recruitment of foreign-born workers are linked doesn’t make sense. “Layoffs and hiring are not one for ones of each other, especially at giant companies like Microsoft,” he said.
Someone laid off from a gaming division at Microsoft isn’t interchangeable, for example, with an H-1B employee who’s an expert in agentic AI for a Copilot role, he said.
Priyanka Kulkarni, founder and CEO of the immigration technology company Casium, previously worked at Microsoft for more than a decade building enterprise AI technology. She personally navigated H-1B status before becoming a permanent resident.
“I worked alongside people from around the world whose expertise helped build technology used by American businesses every day,” she said, adding, “America wants to lead in AI. That requires attracting and retaining exceptional people, and giving them confidence that they can build a future here.”
Among the Magnificent 7, one stock sits just below its 52-week high with a $678 billion backlog, zero analyst sell ratings, and a capex bet so large it could either supercharge returns or pressure free cash flow for years.
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Based on our proprietary model, the 24/7 Wall St. price target for Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is $635.80. That implies 21.06% upside from the $525.18 close. The model rates the stock a buy with high confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $525.18 24/7 Wall St. Price Target $635.80 Upside/Downside 21.06% Recommendation BUY Confidence Level 90% Microsoft gets the “safest upside” label because its AI growth sits on a foundation of established enterprise software and a cloud backlog that keeps expanding.
Commercial remaining performance obligation rose 84% to $678B, and Azure passed $100B in annual revenue for the first time. Analyst sentiment is 96% bullish, with no sell ratings. Even the most pessimistic outlook lands above the current price.
Azure Acceleration Powers a Rebound From Summer Lows Microsoft traded at $532.95 Tuesday afternoon, up 4.66% over the past week and 10.9% year to date. The stock sits just below its 52-week high of $549.20, well above the $401.10 low in mid-July.
The turnaround came with the July 29 earnings report. Fiscal Q4 revenue of $90.01B grew 17.75%, and EPS of $4.74 beat the $4.24 estimate. A $3.2B gain on the Anthropic stake helped. Microsoft has beaten estimates 6 consecutive quarters.
Bulls See $738.93 if Azure Keeps Accelerating Management guided to fiscal Q1 Azure growth of about 45% in constant currency and expects acceleration through the first half. Microsoft 365 Copilot has more than 30 million paid seats, with net additions more than doubling from the prior quarter.
Pricing is changing toward a “seat plus usage” model, linking revenue directly to customer consumption. Satya Nadella said, “We are only at the beginning phases of AI diffusion.” Analysts agree: 14 rate the stock a strong buy and 39 a buy. The bull case target is $738.93, a 40.7% return.
A $175B Capex Plan Is the Risk Worth Watching Capital spending reached $115.95B in fiscal 2026, and free cash flow fell 6.46%. Fiscal 2027 capex is expected to reach about $175 billion, most of it flowing to the power, cooling, and networking suppliers behind the data centers (we covered seven of them in a free report here).
Windows OEM and devices revenue is expected to fall by a high-teens percentage. Operating cash flow grew 34.35% to $182.94B, demand exceeds supply, and management expects free cash flow to remain positive. In the worst scenario, the target is $539.17, still a 2.66% gain.
Microsoft Commands a Modest Premium Over Alphabet and Amazon Azure competes with Alphabet (NASDAQ:GOOGL) for enterprise AI budgets. The stock trades at 23x forward earnings with a 34% operating margin, trailing Microsoft’s 45.1%.
AWS, Azure’s largest rival, is run by Amazon (NASDAQ:AMZN) and trades at 24x forward earnings with a 13.7% operating margin. Microsoft’s higher multiple matches its higher profitability, making the price target reasonable versus peers.
Company Forward P/E PEG Ratio Microsoft 25 1.617 Alphabet 23 1.255 Amazon 24 1.478 Microsoft Price Prediction 2026-2030 Our 24/7 Wall St. price target of $635.80 comes with a buy rating at 90% confidence. The backlog is what tips the scale.
The rating holds as long as Azure growth stays in the 40% range and Copilot keeps converting seats into usage revenue. I would turn more conservative if capex keeps climbing while free cash flow declines. For now, the risk-reward clearly favors the upside.
Here are the model’s year-end base case projections, assuming current growth trends and market conditions hold.
Year 24/7 Wall St. Price Target 2026 $547.01 2027 $655.29 2028 $746.94 2029 $812.22 2030 $888.03 Contact [email protected] for any questions or corrections.
Microsoft Corp (NASDAQ:MSFT) unveiled the Surface Laptop Ultra in San Francisco as it pushes deeper into AI-powered personal computers and takes aim at Apple’s MacBook Pro.
The new laptop is built around Nvidia’s RTX Spark superchip, which combines a central processing unit with Blackwell graphics technology and up to 128 gigabytes of unified memory for running AI models locally.
Microsoft is positioning the machine at developers, creators and other users who need substantial computing power, with the company promoting its ability to run AI agents locally and handle models with up to 120 billion parameters.
The company is also offering a trade-in program specifically for MacBook Pro users, underscoring the competitive focus as Microsoft seeks to pull customers from Apple’s premium laptop range.
The Surface Laptop Ultra has a 15-inch touchscreen with a 120Hz refresh rate and a peak HDR brightness of 2,000 nits, while weighing less than 4.5 pounds and measuring less than 18mm thick.
Microsoft is pairing the hardware with new Windows 11 features designed for what it calls hybrid intelligence, combining local AI processing with cloud computing for larger workloads.
The company also introduced Execution Containers, a security system designed to isolate AI agents and limit their access to data and other resources, as Microsoft seeks to address concerns about autonomous software operating on personal computers.
Chief executive Satya Nadella and Nvidia chief executive Jensen Huang appeared at the San Francisco event alongside Pavan Davuluri, Microsoft’s Windows and Devices chief, highlighting the partnership behind the new hardware platform.
Pre-orders for the Surface Laptop Ultra began Wednesday, with the device scheduled to ship on October 16, as Microsoft expands its Surface lineup around local AI computing.
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Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard's games characters in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
CompaniesOct 8 (Reuters) - Italy's antitrust authority said on Thursday it had launched a probe into several Microsoft-owned (MSFT.O), opens new tab video-game makers over their use of virtual currencies.
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Italy's probe is aimed at Activision Blizzard, among other companies of the Microsoft group, the antitrust authority said in a statement, without naming the others
Microsoft was not immediately available for comment
The move is part of a wider European Union-coordinated initiative by the EU's Consumer Protection Cooperation (CPC) Network. The network launched actions last month against nine video-game companies, including Riot Games, Ubisoft (UBIP.PA), opens new tab and Supercell, and had earlier opened a separate action against Microsoft-owned Activision Blizzard
The aim of the coordinated action is to promote transparency and fairness in the gaming sector, particularly protecting the rights of minors
The probes focus on the transparency and fairness of in-game virtual currencies used to purchase cosmetic upgrades, weapon enhancements and other digital items, the Italian regulator said
Purchases are often priced in virtual currencies rather than euros and may involve multiple layers of conversion, making it harder for consumers to understand how much they are spending, the authority said
The Italian Competition Authority will act as lead authority, working together with peers in Norway and Denmark
The watchdogs will seek to determine whether the companies may have committed a "widespread infringement" of EU consumer protection rules affecting consumers in at least three EU member states
The coordinated action complements investigations the Italian regulator opened nationally in December into Microsoft group companies over the popular games "Diablo Immortal" and "Call of Duty Mobile".
Reporting by Anna Uras; Editing by Giulia Segreti and Xevi Fontdegloria
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The investor argues that Big Tech's data center buildout may be driven as much by the race for market control as by immediate computing demand. Summary
Microsoft shares are up about 9.5% this year, according to the report.
Microsoft Corp. (MSFT, Financials), the software and cloud computing business, is confronting a familiar conundrum with a sharper edge: How much AI infrastructure expenditure is too much?
"Microsoft may be using its huge spending plans and financial metrics as a lever, and Wall Street is not looking closely enough at the numbers," investor Michael Burry (Trades, Portfolio) says. He's worried about the tech industry more generally.
“Microsoft, Amazon, Alphabet and Meta are aggressively investing in data centers because they expect AI to reinforce their market power,” Burry believes. He cited OpenAI, Anthropic and Oracle as firms making significant investments to try to join that club as well.
The debate matters because AI infrastructure is now one of the biggest capital commitments confronting Big Tech. Investors have largely bought into such outlays on the assumption that demand for computer power will continue to increase.
Burry is challenging the premise, not providing evidence that Microsoft's expenditure will not provide enough returns.
This is vital. The true test for shareholders will be whether Microsoft can leverage its growing AI infrastructure into enough Azure, Copilot and other AI-related income to justify the cash it takes.
Microsoft shares have risen around 9.5% this year, the report said. The next catalyst will be Microsoft earnings, especially what management says about AI demand, infrastructure investments and the rewards from that investment.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Firetrail Investments PTY Ltd. purchased a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm purchased 19,160 shares of the software giant’s stock, valued at approximately $7,104,000. Microsoft makes up approximately 2.0% of Firetrail Investments PTY Ltd.’s investment portfolio, making the stock its 23rd largest holding.
Other hedge funds and other institutional investors also recently made changes to their positions in the company. Friedenthal Financial increased its holdings in shares of Microsoft by 6.2% during the first quarter. Friedenthal Financial now owns 431 shares of the software giant’s stock worth $160,000 after buying an additional 25 shares in the last quarter. Sequent Planning LLC boosted its holdings in shares of Microsoft by 0.7% during the 1st quarter. Sequent Planning LLC now owns 3,733 shares of the software giant’s stock valued at $1,382,000 after acquiring an additional 25 shares in the last quarter. Riverpoint Wealth Management Holdings LLC grew its position in Microsoft by 0.5% during the 1st quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant’s stock worth $2,052,000 after acquiring an additional 26 shares during the last quarter. American Investment Services Inc. grew its position in Microsoft by 3.1% during the 1st quarter. American Investment Services Inc. now owns 876 shares of the software giant’s stock worth $324,000 after acquiring an additional 26 shares during the last quarter. Finally, REAP Financial Group LLC increased its holdings in Microsoft by 1.1% in the 2nd quarter. REAP Financial Group LLC now owns 2,453 shares of the software giant’s stock worth $915,000 after purchasing an additional 26 shares in the last quarter. 71.13% of the stock is owned by institutional investors.
Insider Activity In other news, CEO Satya Nadella sold 86,525 shares of Microsoft stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the transaction, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 41,674 shares of the business’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the transaction, the executive vice president directly owned 533,624 shares in the company, valued at $265,888,830.48. This represents a 7.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 143,009 shares of company stock worth $71,420,699 in the last three months. Corporate insiders own 0.03% of the company’s stock.
Microsoft Stock Performance Shares of MSFT stock opened at $529.76 on Thursday. The stock has a market capitalization of $3.93 trillion, a PE ratio of 29.50, a PEG ratio of 1.70 and a beta of 1.10. The business’s 50 day simple moving average is $498.31 and its 200 day simple moving average is $433.03. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company’s revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the business earned $3.65 EPS. As a group, research analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current year.
Microsoft Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This is a boost from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s payout ratio is 20.27%.
Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635 Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats. Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like. Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot Wall Street Analyst Weigh In A number of brokerages have recently commented on MSFT. Oppenheimer lifted their price target on Microsoft from $515.00 to $570.00 and gave the company an “outperform” rating in a research note on Tuesday, September 22nd. Benchmark reaffirmed a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. BNP Paribas Exane lowered shares of Microsoft from a “strong-buy” rating to a “hold” rating in a report on Monday. Rothschild & Co Redburn set a $440.00 target price on shares of Microsoft in a research report on Monday, September 21st. Finally, Piper Sandler boosted their target price on shares of Microsoft from $550.00 to $610.00 and gave the stock an “overweight” rating in a report on Wednesday, September 30th. Forty-one research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Microsoft has a consensus rating of “Moderate Buy” and an average target price of $578.73.
Read Our Latest Stock Report on Microsoft
Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
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Deutsche Bank AG decreased its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 0.2% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 32,564,249 shares of the software giant’s stock after selling 53,375 shares during the quarter. Microsoft accounts for approximately 3.5% of Deutsche Bank AG’s portfolio, making the stock its 3rd largest holding. Deutsche Bank AG owned 0.44% of Microsoft worth $12,147,116,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently modified their holdings of the business. Empirical Financial Services LLC d.b.a. Empirical Wealth Management lifted its holdings in Microsoft by 4.0% in the 2nd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant’s stock valued at $85,604,000 after purchasing an additional 8,773 shares in the last quarter. Markel Group Inc. grew its holdings in shares of Microsoft by 0.4% during the first quarter. Markel Group Inc. now owns 537,630 shares of the software giant’s stock worth $199,014,000 after buying an additional 1,950 shares in the last quarter. Bessemer Group Inc. grew its holdings in shares of Microsoft by 8.4% during the first quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant’s stock worth $2,562,197,000 after buying an additional 537,634 shares in the last quarter. Taylor Securities Services Inc. acquired a new stake in shares of Microsoft in the fourth quarter valued at about $2,616,000. Finally, Harel Insurance Investments & Financial Services Ltd. raised its holdings in Microsoft by 138.8% in the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,356,359 shares of the software giant’s stock valued at $502,077,000 after acquiring an additional 788,297 shares during the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.
Microsoft Price Performance MSFT opened at $529.76 on Thursday. The stock’s 50-day moving average price is $498.31 and its 200 day moving average price is $433.03. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The firm has a market cap of $3.93 trillion, a price-to-earnings ratio of 29.50, a PEG ratio of 1.70 and a beta of 1.10.
Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.Microsoft’s revenue was up 17.7% compared to the same quarter last year. During the same period in the previous year, the company posted $3.65 EPS. As a group, sell-side analysts expect that Microsoft Corporation will post 19.65 earnings per share for the current year. Microsoft Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be given a $0.98 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio is 20.27%.
Insider Buying and Selling In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the completion of the 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 position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares in the company, valued at approximately $21,188,276.96. This represents a 10.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 143,009 shares of company stock worth $71,420,699. 0.03% of the stock is owned by corporate insiders.
Wall Street Analysts Forecast Growth Several brokerages have recently weighed in on MSFT. The Goldman Sachs Group restated a “buy” rating and set a $640.00 target price on shares of Microsoft in a report on Thursday, July 30th. Evercore raised Microsoft from an “underperform” rating to an “outperform” rating in a research note on Monday. Phillip Securities lowered Microsoft from a “strong-buy” rating to a “moderate buy” rating in a report on Monday, August 3rd. KeyCorp reissued an “overweight” rating on shares of Microsoft in a research report on Thursday, September 3rd. Finally, Morgan Stanley lowered shares of Microsoft from an “overweight” rating to a “negative” rating in a report on Monday. Forty-one equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $578.73.
Check Out Our Latest Stock Analysis on Microsoft
Microsoft News Roundup Here are the key news stories impacting Microsoft this week:
Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635 Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats. Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like. Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot About Microsoft (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Further Reading Five stocks we like better than Microsoft Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up
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Focused Wealth Management Inc lifted its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 9.4% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 22,779 shares of the software giant’s stock after purchasing an additional 1,954 shares during the quarter. Microsoft comprises 0.7% of Focused Wealth Management Inc’s holdings, making the stock its 20th largest position. Focused Wealth Management Inc’s holdings in Microsoft were worth $8,497,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Frankly Finances LLC purchased a new position in shares of Microsoft during the second quarter worth $35,000. MidAtlantic Capital Management Inc. purchased a new stake in Microsoft in the fourth quarter valued at $59,000. Fiduciary Advisors Inc. boosted its holdings in Microsoft by 37.4% in the second quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock valued at $47,000 after purchasing an additional 34 shares during the last quarter. Persistent Asset Partners Ltd acquired a new stake in Microsoft during the 2nd quarter worth about $60,000. Finally, Lifetime Wealth Management P.C. purchased a new position in shares of Microsoft during the 4th quarter valued at about $101,000. Institutional investors and hedge funds own 71.13% of the company’s stock.
Insider Activity at Microsoft In related news, CEO Satya Nadella sold 86,525 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. This trade represents a 15.09% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president owned 42,677 shares in the company, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is owned by corporate insiders.
Wall Street Analyst Weigh In Several equities analysts have recently issued reports on the company. William Blair assumed coverage on Microsoft in a report on Monday. They issued an “outperform” rating for the company. Citizens Jmp reiterated a “market outperform” rating and set a $550.00 price target on shares of Microsoft in a research report on Tuesday, September 15th. TD Cowen reissued a “buy” rating and issued a $540.00 price target on shares of Microsoft in a report on Thursday, July 30th. BMO Capital Markets began coverage on Microsoft in a report on Monday. They issued an “outperform” rating for the company. Finally, Needham & Company LLC assumed coverage on Microsoft in a research report on Wednesday, September 23rd. They issued a “buy” rating on the stock. Forty-one research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $578.73. Get Our Latest Analysis on MSFT
Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635 Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats. Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like. Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot Microsoft Trading Up 0.1% Shares of MSFT stock opened at $529.76 on Thursday. The stock has a 50 day simple moving average of $498.31 and a 200-day simple moving average of $433.03. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. The company has a market cap of $3.93 trillion, a price-to-earnings ratio of 29.50, a PEG ratio of 1.70 and a beta of 1.10. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22.
Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the prior year, the business posted $3.65 earnings per share. On average, equities research analysts expect that Microsoft Corporation will post 19.65 EPS for the current fiscal year.
Microsoft Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a dividend of $0.98 per share. This is a boost from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. Microsoft’s payout ratio is currently 20.27%.
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Featured Articles Five stocks we like better than Microsoft Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up 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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Performance Wealth Partners LLC reduced its holdings in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 30.5% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 316,280 shares of the software giant’s stock after selling 138,818 shares during the quarter. Microsoft makes up 2.9% of Performance Wealth Partners LLC’s portfolio, making the stock its 9th biggest holding. Performance Wealth Partners LLC’s holdings in Microsoft were worth $117,979,000 as of its most recent SEC filing.
Several other large investors have also recently added to or reduced their stakes in MSFT. Commerzbank Aktiengesellschaft FI boosted its stake in Microsoft by 8.9% in the 2nd quarter. Commerzbank Aktiengesellschaft FI now owns 838,500 shares of the software giant’s stock worth $312,777,000 after buying an additional 68,695 shares during the last quarter. Oak Barrel Wealth Advisory LLC purchased a new stake in Microsoft in the 2nd quarter valued at about $2,904,000. Phillips Wealth Planners LLC increased its stake in shares of Microsoft by 4.9% during the 2nd quarter. Phillips Wealth Planners LLC now owns 9,063 shares of the software giant’s stock valued at $3,524,000 after acquiring an additional 423 shares during the last quarter. Trust Co. of Vermont purchased a new position in shares of Microsoft during the 2nd quarter worth about $94,867,000. Finally, Principle Wealth Partners LLC lifted its holdings in shares of Microsoft by 1.8% during the 2nd quarter. Principle Wealth Partners LLC now owns 116,758 shares of the software giant’s stock worth $43,553,000 after acquiring an additional 2,104 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.
Microsoft Stock Up 0.1% MSFT opened at $529.76 on Thursday. Microsoft Corporation has a 1 year low of $349.20 and a 1 year high of $553.72. The firm has a 50 day moving average price of $498.31 and a 200 day moving average price of $433.03. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The company has a market cap of $3.93 trillion, a PE ratio of 29.50, a price-to-earnings-growth ratio of 1.70 and a beta of 1.10.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 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. Sell-side analysts expect that Microsoft Corporation will post 19.65 earnings per share for the current year. Microsoft Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio (DPR) is presently 20.27%.
Insider Buying and Selling at Microsoft In related 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 transaction 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 approximately $21,188,276.96. This represents a 10.13% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Amy Hood sold 41,674 shares of the stock in a transaction on Monday, September 14th. The shares were sold at an average price of $498.27, for a total value of $20,764,903.98. Following the completion of the sale, the executive vice president owned 533,624 shares of the company’s stock, valued at approximately $265,888,830.48. This represents a 7.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 143,009 shares of company stock worth $71,420,699. Insiders own 0.03% of the company’s stock.
Analyst Upgrades and Downgrades Several equities research analysts recently issued reports on the stock. Mizuho decreased their target price on shares of Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 15th. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Microsoft in a research note on Monday, September 28th. Citizens Jmp reiterated a “market outperform” rating and issued a $550.00 price target on shares of Microsoft in a report on Tuesday, September 15th. Royal Bank Of Canada reiterated an “outperform” rating on shares of Microsoft in a report on Thursday, September 10th. Finally, Wells Fargo & Company boosted their price objective on shares of Microsoft from $700.00 to $725.00 and gave the company an “overweight” rating in a research note on Thursday, October 1st. Forty-one research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $578.73.
Read Our Latest Report on Microsoft
More Microsoft News Here are the key news stories impacting Microsoft this week:
Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635 Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats. Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like. Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot Microsoft Company Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Recommended Stories Five stocks we like better than Microsoft Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up
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.
Pursue Wealth Partners LLC lessened its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 29.2% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 16,837 shares of the software giant’s stock after selling 6,928 shares during the period. Microsoft accounts for 3.5% of Pursue Wealth Partners LLC’s portfolio, making the stock its 9th biggest holding. Pursue Wealth Partners LLC’s holdings in Microsoft were worth $6,280,000 as of its most recent filing with the Securities & Exchange Commission.
Several other large investors have also recently bought and sold shares of the stock. Phillips Wealth Planners LLC lifted its position in Microsoft by 4.9% in the second quarter. Phillips Wealth Planners LLC now owns 9,063 shares of the software giant’s stock worth $3,524,000 after purchasing an additional 423 shares during the period. Trust Co. of Vermont acquired a new position in shares of Microsoft during the 2nd quarter valued at $94,867,000. Principle Wealth Partners LLC raised its stake in shares of Microsoft by 1.8% in the 2nd quarter. Principle Wealth Partners LLC now owns 116,758 shares of the software giant’s stock worth $43,553,000 after buying an additional 2,104 shares in the last quarter. Capital Financial Group Inc. Co. ADV raised its stake in shares of Microsoft by 3.2% in the 2nd quarter. Capital Financial Group Inc. Co. ADV now owns 1,544 shares of the software giant’s stock worth $576,000 after buying an additional 48 shares in the last quarter. Finally, Focused Wealth Management Inc lifted its holdings in shares of Microsoft by 9.4% in the second quarter. Focused Wealth Management Inc now owns 22,779 shares of the software giant’s stock valued at $8,497,000 after buying an additional 1,954 shares during the period. Institutional investors and hedge funds own 71.13% of the company’s stock.
Microsoft Stock Up 0.1% NASDAQ:MSFT opened at $529.76 on Thursday. The business’s fifty day moving average price is $498.31 and its 200 day moving average price is $433.03. The firm has a market capitalization of $3.93 trillion, a price-to-earnings ratio of 29.50, a PEG ratio of 1.70 and a beta of 1.10. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72.
Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The firm had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same period last year, the company posted $3.65 EPS. The business’s quarterly revenue was up 17.7% compared to the same quarter last year. On average, sell-side analysts forecast that Microsoft Corporation will post 19.65 earnings per share for the current fiscal year. Microsoft Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This is an increase from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio is 20.27%.
Insider Activity at Microsoft In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the sale, the chief executive officer owned 486,763 shares in the company, valued at $244,092,173.98. This represents a 15.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the sale, the chief executive officer directly owned 100,447 shares of the company’s stock, valued at $49,007,086.83. This trade represents a 9.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 143,009 shares of company stock valued at $71,420,699. Company insiders own 0.03% of the company’s stock.
Trending Headlines about Microsoft Here are the key news stories impacting Microsoft this week:
Positive Sentiment: New AI hardware and Windows strategy: Microsoft unveiled the $2,599 Surface Laptop Ultra, powered by Nvidia’s RTX chip, allowing users to run AI models and agents locally rather than through the cloud. The launch could strengthen Windows’ position in AI PCs, support device demand and create new opportunities for Microsoft’s software ecosystem. Microsoft to sell $2,599 Surface Laptop Ultra containing Nvidia AI chip Positive Sentiment: AI monetization remains the core bull case: Analysts and investors continue to point to Azure growth, Copilot revenue potential and Microsoft’s perceived strength in AI security and enterprise trust. Evercore ISI reiterated a Buy rating and raised its target to $635, while Melius Research upgraded the stock to Buy with a $665 target. Microsoft: AI-Driven Azure Upside Spurs Buy Rating and Target Price Hike to $635 Positive Sentiment: Strong fundamentals provide support: Microsoft’s latest reported quarter exceeded expectations, with revenue up 17.7% year over year and earnings above consensus. Optimism ahead of the next earnings report is also supported by reported Azure momentum and a history of earnings beats. Neutral Sentiment: Upcoming earnings date: Microsoft will release fiscal 2027 first-quarter results after the market close on October 28. The date gives investors a near-term catalyst, but it may also keep attention focused on Azure growth, Copilot usage, capital spending and free cash flow. Microsoft announces quarterly earnings release date Negative Sentiment: Debt-funded AI expansion raises risk: Microsoft is issuing additional debt to finance data centers and AI hardware. While this supports capacity growth, investors are increasingly concerned about leverage, declining free cash flow and the possibility that AI infrastructure spending becomes excessive or bubble-like. Negative Sentiment: Copilot utilization concerns: Usage-tracking commentary suggests many employees at companies with Microsoft Copilot licenses use the service minimally. If low engagement leads to weaker renewals or slower seat expansion, it could challenge assumptions that Copilot will quickly become a major source of recurring AI revenue. Bad News for Microsoft: Basically Zero AI Use for Most Employees on Copilot Wall Street Analysts Forecast Growth Several research analysts recently weighed in on MSFT shares. BMO Capital Markets assumed coverage on Microsoft in a research note on Monday. They set an “outperform” rating for the company. Argus cut their price target on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a report on Friday, July 10th. TD Cowen restated a “buy” rating and set a $540.00 price objective on shares of Microsoft in a research report on Thursday, July 30th. Wolfe Research lowered shares of Microsoft from an “outperform” rating to a “hold” rating in a research report on Wednesday, September 23rd. Finally, William Blair began coverage on shares of Microsoft in a research note on Monday. They issued an “outperform” rating on the stock. Forty-one analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Microsoft has a consensus rating of “Moderate Buy” and a consensus target price of $578.73.
Get Our Latest Analysis on Microsoft
Microsoft Profile (Free Report)
Microsoft Corporation is a global technology company that develops software, cloud services, devices, gaming products and business solutions. Founded in 1975 by Bill Gates and Paul Allen, the company is best known for the Windows operating system and Microsoft Office productivity software. Microsoft is headquartered in Redmond, Washington, and serves consumers, businesses, governments and educational institutions worldwide.
Microsoft’s productivity and business offerings include Microsoft 365 applications such as Word, Excel, PowerPoint and Outlook, along with collaboration tools including Teams.
Recommended Stories Five stocks we like better than Microsoft Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up 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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