Track market-moving stories before they get noisy

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.86% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Microsoft (MSFT - Free Report) Redmond, WA-based Microsoft Corporation is one of the largest broad-based technology providers in the world. The company holds the leading position in the PC software market with its Windows operating system. 

MSFT is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. MSFT has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.5% for the current fiscal year.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.02 to $19.65 per share. MSFT boasts an average earnings surprise of +9.3%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, MSFT should be on investors' short list.

NEW YORK & SINGAPORE--(BUSINESS WIRE)--RegASK today announced the availability of its AI-native regulatory platform in the Microsoft Marketplace, the unified online destination for customers to buy trusted cloud solutions, AI apps, and agents to meet their business needs. RegASK customers can now discover and deploy trusted solutions through Microsoft Marketplace, with smooth integration and streamlined management across Microsoft Azure and other Microsoft products. For organizations already op.

Microsoft has beaten earnings estimates for six straight quarters, but heavy AI spending and pressure on cash flow have kept investors cautious. Summary

Capital spending reached $116 billion, while free cash flow fell 6%, according to the report.

Software and cloud computing firm Microsoft Corp. (MSFT, Financials) looks to have what many AI competitors want: the confidence of huge business clients.

That benefit has not led to the type of stock performance investors may hope for.

Microsoft has topped profit projections in six straight quarters, although its shares are still around where they were a year ago. One factor is the cost of developing for the AI surge. Capital spending is set at $116 billion and free cash flow was down 6%, the report says.

The payout might be in Microsoft's backlog.

Commercial outstanding performance commitments jumped 84% to $678 billion, indicating that companies are investing heavily in Microsoft's cloud and AI ecosystem.

“Boards of directors might lean toward Microsoft because they know the company and have confidence in its governance,” said Jim Cramer. His point is less about whose AI model is superior, and more about which supplier organizations are comfortable constructing a model around.

That distinction counts to shareholders only if those promises translate into revenue and cash flow.

That makes the upcoming earnings report from Microsoft all the more significant. The increase in Azure will be a clearer test of whether the company's massive AI investment is starting to pay dividends that are big enough to shift the stock's direction.

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.

Click for the complete disclosure

Microsoft (NASDAQ:MSFT – Get Free Report) was upgraded by equities researchers at Melius Research from a “hold” rating to a “buy” rating in a research note issued to investors on Monday, MarketBeat Ratings reports. The firm presently has a $665.00 target price on the software giant’s stock. Melius Research’s price objective would indicate a potential upside of 26.62% from the stock’s current price.

Other analysts also recently issued reports about the stock. Oppenheimer upped their target price on shares of Microsoft from $515.00 to $570.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 22nd. Stifel Nicolaus raised shares of 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 research report on Tuesday, September 22nd. CLSA reissued an “outperform” rating on shares of Microsoft in a research report on Thursday, July 30th. Citizens Jmp reaffirmed a “market outperform” rating and set a $550.00 price target on shares of Microsoft in a report on Tuesday, September 15th. Finally, Argus reduced their price target on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating for the company in a research note on Friday, July 10th. One equities research analyst has rated the stock with a Strong Buy rating, forty have issued a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $578.73.

Get Our Latest Analysis on MSFT

Microsoft Price Performance Shares of Microsoft stock opened at $525.18 on Monday. The firm has a market cap of $3.90 trillion, a PE ratio of 29.24, a price-to-earnings-growth ratio of 1.66 and a beta of 1.10. The company’s fifty day simple moving average is $492.81 and its two-hundred day simple moving average is $431.07. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. Microsoft has a 12-month low of $349.20 and a 12-month high of $553.72. Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The business had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.Microsoft’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $3.65 EPS. As a group, equities analysts expect that Microsoft will post 19.62 EPS for the current year.

Insiders Place Their Bets In related news, CEO Judson Althoff sold 10,000 shares of the firm’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 sale, the chief executive officer directly owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. This trade represents a 9.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the transaction, the executive vice president owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 143,009 shares of company stock valued at $71,420,699 over the last three months. Insiders own 0.03% of the company’s stock.

Institutional Trading of Microsoft A number of hedge funds and other institutional investors have recently bought and sold shares of MSFT. Montgomery Financial Services LLC purchased a new stake in shares of Microsoft in the second quarter valued at approximately $26,000. Frankly Finances LLC purchased a new position in Microsoft during the 2nd quarter worth $35,000. Bard Associates Inc. bought a new stake in Microsoft during the 2nd quarter valued at $37,000. PMV Capital Advisers LLC bought a new stake in Microsoft during the 2nd quarter valued at $38,000. Finally, Fiduciary Advisors Inc. lifted its holdings in shares of Microsoft by 37.4% in 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 period. Hedge funds and other institutional investors own 71.13% of the company’s stock.

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

Positive Sentiment: Melius Research upgraded Microsoft from Hold to Strong Buy/Buy and set a $665 price target, implying substantial upside from recent levels. The firm considers Microsoft the “adults in charge” of AI, arguing that rising concerns over AI safety, security and governance could increase demand for Azure, Copilot and Microsoft’s enterprise security products. Melius upgrade and price target Positive Sentiment: Microsoft is benefiting from a broader software-sector rebound. Commentary citing third-quarter performance noted that Microsoft rose strongly alongside Salesforce, reinforcing investor confidence that software demand and AI monetization are recovering. Software sector rebound Positive Sentiment: Microsoft’s Copilot ecosystem continues to expand, with reports pointing to 30 million paid seats. A new Wood Mackenzie connector also brings proprietary energy intelligence directly into Microsoft Copilot, supporting the case for broader enterprise adoption. Copilot growth Neutral Sentiment: Microsoft and Meta are reportedly steering employees away from Anthropic’s Claude toward their own AI tools. Microsoft may reduce planned internal spending on Claude, potentially lowering costs, although the move also highlights competition and uncertainty in the AI model market. Microsoft reduces internal Claude use Negative Sentiment: Amazon hired longtime Microsoft AI executive Pedram Rezaei, a loss of leadership talent as rivals accelerate their own coding and workplace AI products. Amazon hires Microsoft AI executive Negative Sentiment: Investors remain focused on Microsoft’s large AI infrastructure requirements, data-center environmental concerns and questions about converting a sizable backlog into revenue and cash flow. These issues could limit near-term upside if AI spending outpaces monetization. About Microsoft (Get 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 Vistra Stock Gains as Federal Funds Fuel Nuclear Power Expansion Airship AI’s $29 Million DHS Deal Could Change Everything 3 Low-Rated Stocks Analysts May Be Underestimating Ahead of Q3 Earnings NVIDIA’s Record High Raises a Bigger Question About How Far the Rally Can Run

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

Microsoft Corp. (NASDAQ:MSFT) is entering fiscal 2027 with multiple AI-driven growth engines, as Azure demand, its OpenAI economics, and emerging consumption-based Copilot pricing create additional monetization opportunities across the business.

BNP Paribas Sees Multiple AI TailwindsBNP Paribas analyst Stefan Slowinski said Microsoft is increasingly positioned to benefit from a second layer of AI monetization beyond infrastructure demand.

He highlighted Microsoft’s OpenAI revenue share and consumption-based pricing across Microsoft 365 Copilot as potential sources of upside to current expectations.

With OpenAI reportedly approaching nearly $70 billion in annual recurring revenue exiting Microsoft’s fiscal first quarter of 2027, Slowinski sees a path for Azure growth to reach as high as 46% in constant currency during fiscal first-quarter and approach 50% in fiscal second-quarter.

Ahead of Microsoft’s fiscal first-quarter results, BNP Paribas expects the company to benefit from accelerating revenue growth while continuing to generate positive free cash flow.

Copilot Consumption Could Lift M365 GrowthSlowinski pointed to GitHub Copilot as an early example of how consumption-based billing can outperform initial expectations.

He sees the potential for a similar pattern as usage-based Copilot revenue begins contributing more meaningfully to Microsoft 365.

BNP Paribas estimates that Copilot consumption could add roughly one percentage point of incremental Microsoft 365 Commercial Cloud growth by the fiscal fourth quarter.

Slowinski therefore sees potential for Microsoft to beat Azure expectations, issue stronger fiscal second-quarter guidance and deliver upside in Microsoft 365 Commercial Cloud while maintaining management’s commitment to positive free cash flow.

Cramer Sees Copilot Supporting MicrosoftCNBC’s Jim Cramer also identified Microsoft as one of a small group of AI leaders helping offset pressure from rising interest rates.

"Here, I think there’s tremendous distortion caused by some very big winners, namely NVIDIA Corp. (NASDAQ:NVDA), Microsoft and Meta Platforms Inc. (NASDAQ:META)," Cramer said.

He pointed to improving sentiment around Copilot as a key catalyst for Microsoft. At the same time, Nvidia benefits from strong AI chip demand and Meta gains momentum around its Muse personal AI agent.

Microsoft accounted for roughly 5.8% of the S&P 500 as of Friday’s close, giving moves in the company an outsized influence on the broader index.

Ignite Could Become The Next CatalystBNP Paribas also identified Microsoft’s Ignite conference as a potential catalyst.

Microsoft is expected to hold a Financial Community Briefing on Nov. 17, with CEO Satya Nadella addressing investors in that format for the first time in many years.

Slowinski said the return of the briefing could indicate Microsoft’s willingness to provide more strategic and financial detail about its next phase of AI-driven growth and any potential capital-unlock strategy tied to its recent re-segmentation.

BNP Paribas Raises Microsoft Price ForecastBNP Paribas maintained its Outperform rating and raised its price forecast to $604 from $549, implying about 15% upside from Microsoft’s Oct. 5 price of $525.20.

Slowinski increased his fiscal 2027 revenue and earnings-per-share estimates by 1% to 2%.

He now models Azure growth of 46% in fiscal first-quarter 2027 and 49% in fiscal second-quarter.

BNP Paribas values Microsoft using a sum-of-the-parts framework based on 27.5 times fiscal 2028 earnings, up from 25 times previously, while also incorporating Microsoft’s stake in OpenAI.

Slowinski said the broader sector re-rating primarily drove the higher price forecast.

MSFT Price Action: Microsoft shares were up 1.35% at $532.25 at the time of publication on Tuesday, according to Benzinga Pro data.

Read Next

Photo: Shutterstock.com

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

State of Wyoming increased its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 129.1% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 30,409 shares of the software giant’s stock after acquiring an additional 17,134 shares during the period. Microsoft makes up about 1.1% of State of Wyoming’s portfolio, making the stock its 6th largest holding. State of Wyoming’s holdings in Microsoft were worth $11,343,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently modified their holdings of the business. Friedenthal Financial grew its holdings in Microsoft by 6.2% in the first quarter. Friedenthal Financial now owns 431 shares of the software giant’s stock valued at $160,000 after purchasing an additional 25 shares during the period. Sequent Planning LLC increased its position in shares of Microsoft by 0.7% during the first quarter. Sequent Planning LLC now owns 3,733 shares of the software giant’s stock worth $1,382,000 after purchasing an additional 25 shares in the last quarter. Riverpoint Wealth Management Holdings LLC raised its position in shares of Microsoft by 0.5% in the first quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant’s stock valued at $2,052,000 after buying an additional 26 shares during the last quarter. American Investment Services Inc. boosted its stake in Microsoft by 3.1% during the first quarter. American Investment Services Inc. now owns 876 shares of the software giant’s stock worth $324,000 after buying an additional 26 shares during the last quarter. Finally, REAP Financial Group LLC increased its holdings in shares of Microsoft by 1.1% during the 2nd quarter. REAP Financial Group LLC now owns 2,453 shares of the software giant’s stock worth $915,000 after buying an additional 26 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.

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

Positive Sentiment: Melius Research upgraded Microsoft to Buy from Hold and raised its price target to $665. The firm said rising corporate concerns about AI risks could increase demand for Microsoft’s security, governance and compliance products, while positioning Azure as a relatively dependable way to participate in the AI trend. Microsoft stock rises as Melius upgrades to Buy Positive Sentiment: Broad market strength also supported MSFT. The Nasdaq reached a record as megacap technology stocks rallied on optimism about earnings growth, with Microsoft among the sector leaders. Expectations for strong technology-sector profits continue to support investor appetite for the shares. Nasdaq hits record as megacap gains offset elevated Treasury yields Positive Sentiment: Microsoft continues expanding Copilot’s enterprise usefulness. Wood Mackenzie connected its proprietary energy data and analytics to Microsoft Copilot through a new Model Context Protocol connector, providing another example of specialized business content being integrated into Microsoft’s AI ecosystem. Wood Mackenzie connects energy intelligence with Microsoft Copilot Positive Sentiment: Upcoming Xbox and Xbox Game Pass releases provided a smaller consumer-business catalyst. New game launches may support engagement and subscription activity, although the impact is likely less significant than Azure and AI developments. Microsoft stock rises ahead of new Xbox game releases Neutral Sentiment: Microsoft and Meta reportedly encouraged employees to reduce their use of Anthropic’s Claude in favor of internal AI tools. The move could lower Microsoft’s external AI expenses and strengthen Copilot adoption, but it also indicates ongoing competition and uncertainty over which AI models will deliver the best economics. Microsoft and Meta steer staff from Anthropic Claude to in-house AI Negative Sentiment: Amazon hired longtime Microsoft AI executive Pedram Rezaei, formerly associated with Copilot. The departure could raise concerns about retaining senior AI talent as cloud and software rivals intensify their competition. Amazon hires a Microsoft AI leader Negative Sentiment: Investors remain focused on execution risks. Microsoft’s large backlog offers revenue visibility, but the timing of recognition, infrastructure spending and cash conversion could limit near-term benefits. Questions also remain about whether Copilot can become a breakout AI application. How much revenue visibility does Microsoft’s backlog provide? Insider Buying and Selling at Microsoft In related 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 transaction 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 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 company’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 value of $4,878,900.00. Following the sale, the chief executive officer directly owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 143,009 shares of company stock worth $71,420,699 over the last three months. 0.03% of the stock is currently owned by corporate insiders. Microsoft Stock Performance Shares of MSFT opened at $525.18 on Tuesday. The company’s 50 day simple moving average is $492.81 and its 200-day simple moving average is $431.07. The firm has a market cap of $3.90 trillion, a PE ratio of 29.24, a price-to-earnings-growth ratio of 1.66 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 company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. Microsoft’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.65 EPS. As a group, equities analysts predict that Microsoft Corporation will post 19.62 EPS for the current year.

Microsoft Increases Dividend The firm also recently announced 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 of this dividend is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s dividend payout ratio is currently 20.27%.

Analyst Upgrades and Downgrades A number of brokerages have weighed in on MSFT. Rothschild & Co Redburn set a $440.00 price target on shares of Microsoft in a research report on Monday, September 21st. The Goldman Sachs Group reiterated a “buy” rating and set a $640.00 price target on shares of Microsoft in a research note on Thursday, July 30th. Benchmark reaffirmed a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. BNP Paribas Exane cut shares of Microsoft to a “neutral” rating in a research report on Monday. Finally, Barclays dropped their price target on shares of Microsoft from $545.00 to $512.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. Forty-one 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, the company currently has an average rating of “Moderate Buy” and a consensus price target of $578.73.

Check Out Our Latest Stock Analysis 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.

Read More Five stocks we like better than Microsoft NVIDIA’s Record High Raises a Bigger Question About How Far the Rally Can Run A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks

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.

SCS Capital Management LLC boosted its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 173.7% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 288,945 shares of the software giant’s stock after purchasing an additional 183,360 shares during the quarter. Microsoft comprises 1.0% of SCS Capital Management LLC’s investment portfolio, making the stock its 12th biggest position. SCS Capital Management LLC’s holdings in Microsoft were worth $107,782,000 at the end of the most recent reporting period.

Several other large investors have also recently bought and sold shares of MSFT. Frankly Finances LLC bought a new stake in Microsoft during the second quarter valued at $35,000. MidAtlantic Capital Management Inc. bought a new position in Microsoft in the 4th quarter worth about $59,000. Fiduciary Advisors Inc. increased its stake in Microsoft by 37.4% in the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock worth $47,000 after acquiring an additional 34 shares during the last quarter. Lifetime Wealth Management P.C. purchased a new stake in shares of Microsoft in the 4th quarter valued at about $101,000. Finally, Glynn Capital Management LLC raised its holdings in shares of Microsoft by 34.2% in the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant’s stock valued at $95,000 after acquiring an additional 65 shares in the last quarter. 71.13% of the stock is owned by institutional investors.

Analysts Set New Price Targets Several brokerages have recently commented on MSFT. Stifel Nicolaus raised Microsoft from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $530.00 to $575.00 in a report on Tuesday, September 22nd. Guggenheim reaffirmed a “buy” rating and issued a $586.00 target price on shares of Microsoft in a research note on Monday, July 27th. Phillip Securities lowered shares of Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research report on Monday, August 3rd. Oppenheimer boosted their price target on shares of Microsoft from $515.00 to $570.00 and gave the stock an “outperform” rating in a research note on Tuesday, September 22nd. Finally, Morgan Stanley lowered shares of Microsoft from an “overweight” rating to a “negative” rating in a report on Monday. Forty-one investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $578.73.

Get Our Latest Report on MSFT Key Headlines Impacting Microsoft Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Melius Research upgraded Microsoft to Buy from Hold and raised its price target to $665. The firm said rising corporate concerns about AI risks could increase demand for Microsoft’s security, governance and compliance products, while positioning Azure as a relatively dependable way to participate in the AI trend. Microsoft stock rises as Melius upgrades to Buy Positive Sentiment: Broad market strength also supported MSFT. The Nasdaq reached a record as megacap technology stocks rallied on optimism about earnings growth, with Microsoft among the sector leaders. Expectations for strong technology-sector profits continue to support investor appetite for the shares. Nasdaq hits record as megacap gains offset elevated Treasury yields Positive Sentiment: Microsoft continues expanding Copilot’s enterprise usefulness. Wood Mackenzie connected its proprietary energy data and analytics to Microsoft Copilot through a new Model Context Protocol connector, providing another example of specialized business content being integrated into Microsoft’s AI ecosystem. Wood Mackenzie connects energy intelligence with Microsoft Copilot Positive Sentiment: Upcoming Xbox and Xbox Game Pass releases provided a smaller consumer-business catalyst. New game launches may support engagement and subscription activity, although the impact is likely less significant than Azure and AI developments. Microsoft stock rises ahead of new Xbox game releases Neutral Sentiment: Microsoft and Meta reportedly encouraged employees to reduce their use of Anthropic’s Claude in favor of internal AI tools. The move could lower Microsoft’s external AI expenses and strengthen Copilot adoption, but it also indicates ongoing competition and uncertainty over which AI models will deliver the best economics. Microsoft and Meta steer staff from Anthropic Claude to in-house AI Negative Sentiment: Amazon hired longtime Microsoft AI executive Pedram Rezaei, formerly associated with Copilot. The departure could raise concerns about retaining senior AI talent as cloud and software rivals intensify their competition. Amazon hires a Microsoft AI leader Negative Sentiment: Investors remain focused on execution risks. Microsoft’s large backlog offers revenue visibility, but the timing of recognition, infrastructure spending and cash conversion could limit near-term benefits. Questions also remain about whether Copilot can become a breakout AI application. How much revenue visibility does Microsoft’s backlog provide? Microsoft Stock Up 1.5% Shares of NASDAQ:MSFT opened at $525.18 on Tuesday. The stock has a market capitalization of $3.90 trillion, a P/E ratio of 29.24, a price-to-earnings-growth ratio of 1.66 and a beta of 1.10. The stock’s 50-day moving average price is $492.81 and its 200-day moving average price is $431.07. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.Microsoft’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter in the previous year, the company posted $3.65 EPS. On average, equities analysts anticipate that Microsoft Corporation will post 19.62 earnings per share for the current year.

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

Insider Buying and Selling In related news, EVP Amy Hood sold 41,674 shares of the company’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the sale, 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 position. The transaction 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, EVP Takeshi Numoto sold 4,810 shares of the stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total 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. The trade was a 10.13% decrease in their position. 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 worth $71,420,699. 0.03% of the stock is owned by company insiders.

Microsoft Profile (Free Report)

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

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

Featured Stories Five stocks we like better than Microsoft NVIDIA’s Record High Raises a Bigger Question About How Far the Rally Can Run A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks

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.

Alphabet just posted 40% gains and trades at a cheaper multiple, so why does one analyst still reach for Microsoft when building a retirement position that has to last decades?

EJMK Ventures LLC lifted its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 14.9% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 10,876 shares of the software giant’s stock after acquiring an additional 1,407 shares during the quarter. Microsoft makes up approximately 1.8% of EJMK Ventures LLC’s portfolio, making the stock its 11th largest position. EJMK Ventures LLC’s holdings in Microsoft were worth $4,057,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Auto Owners Insurance Co boosted its position 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 last quarter. Amundi increased its position in shares of Microsoft by 30.8% during the 1st quarter. Amundi now owns 41,675,076 shares of the software giant’s stock valued at $15,426,862,000 after purchasing an additional 9,814,598 shares during the last quarter. Fisher Asset Management LLC raised its stake in shares of Microsoft by 1.8% during the 4th quarter. Fisher Asset Management LLC now owns 25,300,410 shares of the software giant’s stock worth $12,235,785,000 after purchasing an additional 458,014 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of Microsoft by 10.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock worth $10,852,884,000 after purchasing an additional 2,784,809 shares during the period. Finally, Hsbc Holdings PLC boosted its holdings in shares of Microsoft by 7.8% in the 4th quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant’s stock worth $10,715,379,000 after buying an additional 1,599,412 shares during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Microsoft Stock Performance Microsoft stock opened at $525.18 on Tuesday. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock has a market cap of $3.90 trillion, a P/E ratio of 29.24, a price-to-earnings-growth ratio of 1.66 and a beta of 1.10. The firm’s fifty day moving average price is $492.81 and its 200-day moving average price is $431.07.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period in the previous year, the business earned $3.65 earnings per share. On average, equities research analysts expect that Microsoft Corporation will post 19.62 earnings per share for the current fiscal year. Microsoft Increases Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a $0.98 dividend. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. 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 currently 20.27%.

Insider Transactions at Microsoft In other Microsoft news, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at $21,188,276.96. The trade was a 10.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Amy Hood sold 41,674 shares of Microsoft 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 completion of the transaction, the executive vice president owned 533,624 shares in the company, valued at approximately $265,888,830.48. This represents a 7.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 143,009 shares of company stock valued at $71,420,699 over the last 90 days. 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: Melius Research upgraded Microsoft to Buy from Hold and raised its price target to $665. The firm said rising corporate concerns about AI risks could increase demand for Microsoft’s security, governance and compliance products, while positioning Azure as a relatively dependable way to participate in the AI trend. Microsoft stock rises as Melius upgrades to Buy Positive Sentiment: Broad market strength also supported MSFT. The Nasdaq reached a record as megacap technology stocks rallied on optimism about earnings growth, with Microsoft among the sector leaders. Expectations for strong technology-sector profits continue to support investor appetite for the shares. Nasdaq hits record as megacap gains offset elevated Treasury yields Positive Sentiment: Microsoft continues expanding Copilot’s enterprise usefulness. Wood Mackenzie connected its proprietary energy data and analytics to Microsoft Copilot through a new Model Context Protocol connector, providing another example of specialized business content being integrated into Microsoft’s AI ecosystem. Wood Mackenzie connects energy intelligence with Microsoft Copilot Positive Sentiment: Upcoming Xbox and Xbox Game Pass releases provided a smaller consumer-business catalyst. New game launches may support engagement and subscription activity, although the impact is likely less significant than Azure and AI developments. Microsoft stock rises ahead of new Xbox game releases Neutral Sentiment: Microsoft and Meta reportedly encouraged employees to reduce their use of Anthropic’s Claude in favor of internal AI tools. The move could lower Microsoft’s external AI expenses and strengthen Copilot adoption, but it also indicates ongoing competition and uncertainty over which AI models will deliver the best economics. Microsoft and Meta steer staff from Anthropic Claude to in-house AI Negative Sentiment: Amazon hired longtime Microsoft AI executive Pedram Rezaei, formerly associated with Copilot. The departure could raise concerns about retaining senior AI talent as cloud and software rivals intensify their competition. Amazon hires a Microsoft AI leader Negative Sentiment: Investors remain focused on execution risks. Microsoft’s large backlog offers revenue visibility, but the timing of recognition, infrastructure spending and cash conversion could limit near-term benefits. Questions also remain about whether Copilot can become a breakout AI application. How much revenue visibility does Microsoft’s backlog provide? Analyst Ratings Changes Several analysts have issued reports on MSFT shares. The Goldman Sachs Group restated a “buy” rating and issued a $640.00 target price on shares of Microsoft in a research note on Thursday, July 30th. Barclays decreased their price objective on Microsoft from $545.00 to $512.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Jefferies Financial Group initiated coverage on Microsoft in a research note on Monday. They issued 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 report on Wednesday, September 23rd. Finally, William Blair started coverage on shares of Microsoft in a research report on Monday. They set an “outperform” rating for the company. Forty-one research 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.com, Microsoft currently has a consensus rating of “Moderate Buy” and a consensus target price of $578.73.

Read Our Latest 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.

Featured Articles Five stocks we like better than Microsoft NVIDIA’s Record High Raises a Bigger Question About How Far the Rally Can Run A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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

Tech StocksMicrosoft looks like a winning play in an environment where investors are looking for safer bets on the AI trend, according to Melius Research

Analysts have praised Microsoft for being the “adult in the room” by keeping its artificial-intelligence spending in check. Now other aspects of the company’s maturity are winning praise on Wall Street.

On Monday, Ben Reitzes at Melius Research wrote that Microsoft MSFT CEO Satya Nadella and his team will be considered the “adults in charge” as the AI narrative shifts. Investors are looking for safer ways to play the AI trend following warnings from Anthropic CEO Dario Amodei and others about the technology’s dangerous potential. Microsoft’s legacy software portfolio — and its cybersecurity offerings — could thrive in this environment.

by Todd Bishop on

Pedram Rezaei, a 20-year Microsoft veteran, is joining Amazon Web Services as a distinguished engineer. (Amazon Photo) A longtime Microsoft engineering leader who was previously a Copilot chief technology officer is joining Amazon Web Services to work on its competing AI tools for coding and workplace productivity.

Pedram Rezaei, a nearly 20-year Microsoft veteran who was most recently a corporate vice president on the Microsoft Superintelligence team, starts Monday as a distinguished engineer in the AWS Agentic AI and Emerging Technologies organization, led by Swami Sivasubramanian.

Rezaei will work initially on Kiro, the AWS coding tool, and Quick, Amazon’s AI assistant for workplace tasks, Sivasubramanian wrote in a memo to his team Monday. “He is a hands-on engineer who is still in the code every day, and he plans to keep it that way here,” he added.

Kiro’s user count doubled from the first quarter to the second, and monthly AI users for Quick grew fourfold, according to the memo. Rezaei’s plan for his first few months is to “meet people, learn how things work here, and ship something real,” Sivasubramanian wrote.

Sivasubramanian’s organization was expanded in July to include emerging technologies, part of a broader reshuffling of Amazon’s AI teams.

The hire comes as Amazon and Microsoft compete more directly in AI tools for work. Microsoft last month unveiled an all-in-one Copilot app that combines chat, coding and agents, its answer to OpenAI and Anthropic. Amazon made its Quick desktop app generally available in September and brought its main features to mobile.

Rezaei joined Microsoft in 2006 and held senior technical roles on Power BI, Dynamics 365, Cortana, Bing and Azure Maps before moving to Copilot, according to his LinkedIn profile. He became Copilot’s CTO in February and moved to the Microsoft Superintelligence team in June, according to the profile. Sivasubramanian’s memo said Rezaei was most recently working on training foundation models.

We’ve contacted Microsoft for comment on his departure.

Rezaei is the latest Microsoft executive to move to AWS this year. Shawn Bice returned to AWS in May from a security role at Microsoft to lead its Automated Reasoning Group.

In his memo Monday, Sivasubramanian also told his team that two longtime AWS engineers, Marvin Theimer and Reto Kramer, have returned to work on neurosymbolic AI and automated reasoning, which he called “one of our biggest bets for the future.” Both came back from Microsoft, according to their LinkedIn profiles.

Neurosymbolic AI pairs large language models with rule-based systems that can check whether an AI agent is following a company’s policies and procedures.

Speaking at Madrona’s IA40 Summit in Seattle last week, Sivasubramanian said nearly every CIO and CEO raises the same question about AI agents. “How do I know it is always going to obey all my rules and regulations?” he said. “This is a real concern.”

Solving that problem “actually unlocks so many use cases for all these enterprises,” he added.

Theimer, an AWS distinguished engineer for nine years before leaving in 2022, joined Microsoft in July 2024 as a corporate vice president and technical architect and stayed until March. It was his second stint at the company, where he worked from 1998 to 2006. He rejoined AWS in July as a vice president and distinguished engineer.

Kramer, who led an automated reasoning team at AWS before leaving in 2023, joined Microsoft in September 2025 as vice president of Security Platform & AI and stayed until May. He rejoined AWS in September as vice president of applied science.

Sivasubramanian hinted at more hires to come, writing that Rezaei joins “as we continue to build out our technical leadership team to help take on the ambitious work we have planned.”

Wall Street heads into a quieter week after a surprisingly weak September jobs report pushed back expectations for another Federal Reserve rate hike and helped send US stocks to fresh records. 

The question now is whether that momentum can spread beyond the handful of AI-linked stocks that have driven much of the rally. 

The main event will be the release of minutes from the Fed’s September meeting on Wednesday at 2pm ET. Investors will be looking for clues about how policymakers view inflation, the labor market and the path for interest rates. 

The minutes come after September payrolls showed just 29,000 jobs were added, well below expectations, while wage growth also slowed. The data has reduced bets on an October rate hike, although Deutsche Bank still expects the Fed to deliver two more 25-basis-point increases over the coming quarters. 

XTB research director Kathleen Brooks said the weaker jobs data could set the tone for markets in the weeks ahead, particularly as the labor market is no longer adding to inflation concerns. 

Still, elevated Treasury yields remain a risk. The 10-year yield was around 5.28% at the end of last week, and Brooks warned that a move above 5.5% could create broader economic and financial pressure. 

That is particularly important for technology stocks, where expectations are already high. AI leaders Nvidia, Microsoft and Apple have been among the biggest contributors to the Nasdaq's gains, but analysts expect technology-sector earnings growth of around 65%. Any disappointment could put pressure on the rally. 

Microsoft will provide another test of investor appetite for AI on Wednesday, when it holds a Windows and Surface event. The company is expected to highlight local AI capabilities in Windows and new Surface devices, with CEO Satya Nadella and Nvidia CEO Jensen Huang expected to attend. 

Away from tech, the Paramount Skydance acquisition of Warner Bros Discovery is expected to close Tuesday, creating a combined company that will operate under the Skydance name and trade under the SKYD ticker. 

The earnings calendar is light, with PepsiCo and Delta Air Lines among the companies reporting. Costco will also release monthly sales figures on Wednesday. 

With economic data relatively sparse, investors may get some breathing room after a volatile September. But the rally is still being driven by a narrow group of stocks, while high bond yields remain a potential headwind. 

For now, the big question is whether the softer labor market gives the Fed room to wait, and whether that can broaden the stock market rally beyond AI. 

Microsoft Corp. (MSFT, Financials), the software and cloud computing company, is confronting a familiar challenge for CEO Satya Nadella: changing its business model before the technology market changes around it.

Microsoft moved early in generative AI through OpenAI, but the company has yet to produce a dominant AI model or application. Copilot adoption also remains modest relative to Microsoft's enormous installed base.

The company has 30 million Copilot seats, while commercial Office 365 has more than 450 million users. Copilot currently costs an additional $30 per user each month.

AI agents are making that pricing model harder to sustain because complex tasks can consume dramatically different amounts of computing power.

Microsoft is responding with usage-based billing. Copilot Cowork, which handles larger productivity assignments, is an early example, with thousands of customers already paying based on consumption.

GitHub Copilot offers evidence the approach can work. Users reached 50 million by July from 26 million last October, while sales growth accelerated 60% sequentially after a pricing change tied more closely to computing demand.

For investors, the opportunity is larger AI consumption across Microsoft's customer base. The risk is that unpredictable usage costs slow adoption while competitors capture more workloads.

The next catalyst is Microsoft's Windows and Surface event, where the company plans to outline how local AI could shape the next generation of PCs.

Check the Warning Signs for

MSFT

now!

Melius Research upgraded Microsoft (MSFT) to buy from hold and sees a strong case building for the Mag 7 giant's Azure cloud platform. Marley Kayden takes investors through the key takeaways from the analyst note, which explains why the firm sees Microsoft and its team as the "adults in charge" for the AI trade.

Microsoft shares MSFT rose more than 1.6% on Monday after Melius Research upgraded the software giant to Buy from Hold and lifted its price target to $665.

The research firm argued that growing corporate concerns about artificial intelligence could itself become a powerful driver of demand for Microsoft's security and governance products.

The new target implies more than 26% upside from Monday's trading levels.

Microsoft shares have already gained over 40% from their June low of $353.

The stock has gained 11% this year.

Melius analyst Ben Reitzes said enterprises are increasingly looking for ways to deploy AI without exposing themselves to the security and governance risks associated with relying directly on frontier AI labs.

“Enterprises are electing to spend on a secure wrapper that can route models to the right task and secure agents rather than put their trust in the labs.”

Melius said Microsoft is increasingly becoming the “adults in charge” for enterprise AI security and governance as companies seek greater control over how AI models and agents are deployed.

The brokerage expects Azure growth to accelerate beyond 50% by the fourth quarter of fiscal 2027, reflecting stronger enterprise adoption and spending on Microsoft's broader cloud and AI infrastructure.

The upgrade follows recent comments from AI executives that have heightened concerns about the risks associated with increasingly capable AI systems.

Melius said those concerns have already prompted enterprise resellers to show greater interest in Microsoft's security offerings.

The brokerage also raised its earnings estimates, increasing its fiscal 2027 forecast by 2% and fiscal 2028 estimate by 4%.

It initiated a fiscal 2029 earnings estimate of $30.77 a share, about 7% above consensus.

Its $665 price target represents roughly 22 times its fiscal 2029 earnings estimate.

Melius' bullish view comes after Piper Sandler last week raised its price target on Microsoft to $610 from $550 while maintaining an Overweight rating.

Piper Sandler developed a new framework for evaluating Microsoft's M365 Commercial Cloud business following the company's “Super App” announcement, the introduction of its E7 tier, and growing adoption of consumption-based pricing for Copilot and Cowork.

The brokerage estimates that every 10% shift in customer seats from the existing E5 tier to E7 could generate about $2 billion in annualized revenue.

The impact is expected to build gradually as customers move between subscription tiers.

Piper Sandler also sees significant potential in consumption-based revenue from Copilot and Cowork, estimating the businesses could reach a $2 billion annualized revenue run rate by the end of fiscal 2028.

The firm said part of their appeal comes from Microsoft's enterprise technology “harness” and auto-routing capabilities, which can direct tasks to appropriate models at lower costs than relying exclusively on frontier AI systems.

That could allow Microsoft to monetize AI consumption more quickly than under the traditional seat-based Copilot model.

The bullish forecasts come as investors increasingly scrutinize whether the enormous sums being spent on AI infrastructure can translate into durable revenue and cash flow.

For Microsoft, the opportunity extends beyond selling access to AI models.

Its position across cloud infrastructure, enterprise software and security could allow it to benefit as companies seek to deploy AI while keeping tighter control over costs, data and governance.

Melius' upgrade suggests those concerns may ultimately reinforce Microsoft's position rather than weaken it, as enterprises turn to established technology providers to manage the risks of the AI transition.

Microsoft Corporation (NASDAQ:MSFT) is trending Monday after Melius upgraded the stock to Buy from Hold and set a price target of $665.

Microsoft stock is showing positive momentum. What’s the outlook for MSFT shares? AI Security Demand Drives a $665 Price TargetAccording to Investing.com, analyst Ben Reitzes cited increased enterprise demand for AI security and governance solutions. He said Microsoft’s stock has risen about 40% from its June low of $353 and now trades near its 52-week high of $553.72. Melius raised its fiscal 2027 earnings estimates by 2% and fiscal 2028 by 4% and initiated a fiscal 2029 estimate of $30.77 per share, about 7% above consensus. The $665 target represents about 22 times that fiscal 2029 estimate.

Melius expects Azure to grow more than 50% by the fourth quarter of fiscal 2027. The firm said enterprises are choosing to spend on secure systems that can route AI models and secure agents rather than relying directly on AI labs. The upgrade follows recent statements from AI company executives that heightened concerns about AI risks, which Melius said has driven immediate interest from enterprise resellers in Microsoft’s security offerings.

In other recent news, Microsoft announced the departure of Ryan Roslansky, the executive vice president overseeing M365 apps and a former LinkedIn CEO, while Piper Sandler raised its price target on the stock, citing growth in Copilot and Cowork, and maintained an Overweight rating.

Microsoft is scheduled to report first-quarter fiscal 2027 results later this month, with its Ignite conference planned for mid-November.

Read Next

Microsoft Shares Trade FlatMSFT Price Action: At the time of publication, Microsoft shares are trading 0.46% higher at $519.89, according to data from Benzinga Pro.

Image via Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Melius Research just made a bold case that corporate fear of AI could actually send one tech giant's stock soaring, and the market is already responding in a way that leaves Amazon and Alphabet out of the conversation entirely.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

A new Melius Research call argues that corporate fear of artificial intelligence (AI) can itself drive software demand, with Microsoft (NASDAQ:MSFT | MSFT Price Prediction) shares carrying that argument. Microsoft stock is up 2% to $527.29 after Melius Research upgraded the shares to Buy from Hold early in the session. Melius Research paired the rating change with a $665 price target on Microsoft stock, a call that lands at the center of the mega-cap AI trade.

Rival mega-cap cloud stocks are close to unchanged. Amazon (NASDAQ:AMZN) stock is down 0.2%, while Alphabet (NASDAQ:GOOGL) stock is up 0.2%.

The Technology Select Sector SPDR ETF (NYSEARCA:XLK) is up 0.2%, a gain that partly reflects Microsoft itself, since the company made up 8.4% of the fund’s net assets as of June 30. Furthermore, as a gauge of tech stocks in general, the Invesco QQQ Trust (NASDAQ:QQQ) is up 0.1%.

Melius Research Calls Microsoft the Adult in Charge Melius Research’s thesis rests on enterprise anxiety about how AI gets deployed. In the firm’s view, corporate buyers worried about AI security and governance risks default to the vendor they regard as the responsible operator, and Melius Research described Microsoft as the adult in charge.

Microsoft’s latest quarterly results give the thesis some support. For fiscal Q4 2026, Microsoft’s Azure business grew 43%, and its commercial remaining performance obligations (contracted revenue not yet recognized) rose 84% to $678 billion. That backlog fits the Melius Research picture of buyers settling on a trusted vendor.

Why Microsoft Is Moving on Its Own Amazon and Alphabet sitting close to unchanged suggests the buying is aimed directly at Microsoft. Microsoft trades at 25x forward earnings, so the upgrade lands on a stock whose valuation already leans on continued AI execution.

Comments from the July 29 earnings call reinforce the Melius Research case for Microsoft. Satya Nadella, speaking as Microsoft’s chairman and chief executive, declared, “I’ve never been more confident in Microsoft’s opportunity to drive durable long-term growth and ensure the benefits of AI flow broadly.” The company reported more than 30 million paid Microsoft 365 Copilot seats and nearly 40 million agents registered with Agent 365 in the two months after that product’s launch.

Microsoft is also pressing the security angle through its own AI models. On the call, the company stated that its MAI Cyber One Flash model, combined with a multi-agent security framework, outperformed a much larger model “at half the cost.”

History offers a caution, since rating-driven rallies in Microsoft stock have repeatedly run into selling around the same price levels. Heavy spending adds pressure, as Microsoft expects its fiscal 2027 capital expenditures to reach approximately $175 billion, and its Q4 free cash flow fell 23.2%. The power, cooling, and networking suppliers soaking up that expansion are the subject of a free report here.

What to Watch Next Microsoft’s next quarterly report offers the clearest test of the upgrade thesis. The company’s guidance calls for Q1 FY2027 revenue between $89.85 billion and $90.95 billion, and enterprise demand tied to AI trust would need to show up in its results. The key question is whether Microsoft stock holds its upgrade-driven gain once the initial reaction to the Melius Research call fades.

Contact [email protected] for any questions or corrections.

Orca Investment Management LLC decreased its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 5.4% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 24,920 shares of the software giant’s stock after selling 1,420 shares during the quarter. Microsoft accounts for 6.7% of Orca Investment Management LLC’s portfolio, making the stock its 3rd largest position. Orca Investment Management LLC’s holdings in Microsoft were worth $9,296,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also bought and sold shares of the company. Friedenthal Financial boosted its stake in shares of Microsoft by 6.2% in the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant’s stock valued at $160,000 after purchasing an additional 25 shares in the last quarter. Sequent Planning LLC grew 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 purchasing an additional 25 shares during the last quarter. Riverpoint Wealth Management Holdings LLC raised its position in Microsoft by 0.5% in the 1st quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant’s stock worth $2,052,000 after purchasing an additional 26 shares during the period. American Investment Services Inc. lifted its stake in Microsoft by 3.1% in the first quarter. American Investment Services Inc. now owns 876 shares of the software giant’s stock worth $324,000 after purchasing an additional 26 shares during the last quarter. Finally, REAP Financial Group LLC lifted its stake in Microsoft by 1.1% in the second 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 during the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Microsoft Price Performance Shares of Microsoft stock opened at $517.53 on Monday. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $553.72. The company has a market cap of $3.84 trillion, a P/E ratio of 28.82, a PEG ratio of 1.66 and a beta of 1.10. The company’s fifty day simple moving average is $490.08 and its two-hundred day simple moving average is $430.19.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping the consensus estimate of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same period last year, the company posted $3.65 EPS. Research analysts anticipate that Microsoft Corporation will post 19.62 EPS for the current year. Microsoft Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be issued a $0.98 dividend. This represents a $3.92 annualized dividend 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 dividend payout ratio (DPR) is 20.27%.

Wall Street Analysts Forecast Growth Several analysts have issued reports on the stock. KeyCorp restated an “overweight” rating on shares of Microsoft in a research report on Thursday, September 3rd. Phillip Securities lowered Microsoft from a “strong-buy” rating to a “moderate buy” rating in a research note on Monday, August 3rd. BMO Capital Markets boosted their target price on Microsoft from $500.00 to $515.00 and gave the company an “outperform” rating in a research note on Thursday, July 30th. Weiss Ratings upgraded Microsoft from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, August 27th. Finally, Needham & Company LLC assumed coverage on Microsoft in a research report on Wednesday, September 23rd. They set a “buy” rating on the stock. Forty-three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $571.18.

Get Our Latest Stock Analysis on Microsoft

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

Positive Sentiment: Azure and AI demand remain the primary catalyst. Investor data and analyst commentary point to accelerating Azure demand, while Microsoft’s recent earnings showed its fastest cloud growth in four years. The improving demand is helping ease concerns that the company’s substantial AI infrastructure spending will not generate adequate returns. Ca$htag: MSFT Azure Cloud Drives Soaring Demand Positive Sentiment: Wells Fargo added Microsoft to its Q4 Tactical Ideas list and raised its price target to $725, citing Azure’s growth potential and the prospect of improved AI monetization through Copilot. The action adds to a series of bullish analyst revisions; one report noted that 52 analysts covering Microsoft currently have no sell ratings. With Azure as a Catalyst, Microsoft Is Positioned for Sustained Growth Positive Sentiment: Microsoft’s OpenAI relationship provides potential additional value. Investors are increasingly focused on Microsoft’s stake and commercial partnership with OpenAI, particularly ahead of a possible OpenAI initial public offering that could provide a market reference for the investment. OpenAI’s Future IPO Keeps Me Buying Microsoft Positive Sentiment: Microsoft introduced new real-time AI speech models for customer-service agents, multilingual assistants and voice interfaces. The products broaden Microsoft’s enterprise AI offering and could support additional cloud consumption and software revenue. Microsoft Targets Contact Center Market With Real-Time AI Voice Models Neutral Sentiment: Investors are awaiting Microsoft’s October 7 Surface and Windows event. New hardware or Windows updates could support the ecosystem, although the event has not yet produced a material earnings catalyst. Microsoft Stock Notches Up Ahead of the Surface Show Negative Sentiment: Risks include heavy AI capital spending, valuation concerns and broader market concentration. Critics argue that rising data-center capacity could pressure compute pricing and returns, while strategists warn that a market correction could disproportionately affect megacap technology stocks. Microsoft’s dividend remains affordable, but AI infrastructure spending and lease commitments could limit future dividend growth. Morgan Stanley Strategist Sees Market Drawdown Potential Insider Transactions at Microsoft In other news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the completion of the transaction, the chief executive officer owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the firm’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 value of $4,878,900.00. Following the completion of the transaction, the chief executive officer owned 100,447 shares of the company’s stock, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 143,009 shares of company stock valued at $71,420,699. Insiders own 0.03% of the company’s stock.

Microsoft Company Profile (Free Report)

Microsoft Corporation is a global technology company that develops software, cloud services, devices, 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 Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning? Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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

Maridea Wealth Management LLC grew its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 50.5% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 14,534 shares of the software giant’s stock after buying an additional 4,877 shares during the period. Maridea Wealth Management LLC’s holdings in Microsoft were worth $5,421,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently made changes to their positions in MSFT. Auto Owners Insurance Co raised 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 during the last quarter. Amundi boosted its position in 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 acquiring an additional 9,814,598 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Microsoft by 10.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock worth $10,852,884,000 after acquiring an additional 2,784,809 shares during the period. Fisher Asset Management LLC grew its holdings in Microsoft by 1.8% during the 4th quarter. Fisher Asset Management LLC now owns 25,300,410 shares of the software giant’s stock worth $12,235,785,000 after acquiring an additional 458,014 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its position 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 worth $8,982,083,000 after acquiring an additional 9,493,778 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Microsoft In other Microsoft news, EVP Amy Hood sold 41,674 shares of the firm’s 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 transaction, the executive vice president directly owned 533,624 shares of the company’s stock, valued at approximately $265,888,830.48. This trade represents a 7.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares of the company’s stock, valued at $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 143,009 shares of company stock worth $71,420,699. 0.03% of the stock is owned by company insiders.

Wall Street Analyst Weigh In MSFT has been the topic of a number of recent analyst reports. Raymond James Financial downgraded Microsoft from a “moderate buy” rating to a “strong sell” rating in a research note on Wednesday, September 23rd. Bank of America raised their target price on Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a research note on Tuesday, September 1st. TD Cowen reissued a “buy” rating and issued a $540.00 price target on shares of Microsoft in a research note on Thursday, July 30th. Rothschild & Co Redburn set a $440.00 price target on Microsoft in a research note on Monday, September 21st. Finally, Mizuho cut their price target on Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a report on Wednesday, July 15th. Forty-three equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $571.18. Get Our Latest Stock Report on Microsoft

Microsoft Price Performance MSFT stock opened at $517.53 on Monday. The stock’s 50 day simple moving average is $490.08 and its 200 day simple moving average is $430.19. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $553.72. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The company has a market cap of $3.84 trillion, a P/E ratio of 28.82, a price-to-earnings-growth ratio of 1.66 and a beta of 1.10.

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, beating analysts’ consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion during the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter last year, the firm posted $3.65 earnings per share. On average, research analysts expect that Microsoft Corporation will post 19.62 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 issued a $0.98 dividend. 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%. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio (DPR) is 20.27%.

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

Positive Sentiment: Azure and AI demand remain the primary catalyst. Investor data and analyst commentary point to accelerating Azure demand, while Microsoft’s recent earnings showed its fastest cloud growth in four years. The improving demand is helping ease concerns that the company’s substantial AI infrastructure spending will not generate adequate returns. Ca$htag: MSFT Azure Cloud Drives Soaring Demand Positive Sentiment: Wells Fargo added Microsoft to its Q4 Tactical Ideas list and raised its price target to $725, citing Azure’s growth potential and the prospect of improved AI monetization through Copilot. The action adds to a series of bullish analyst revisions; one report noted that 52 analysts covering Microsoft currently have no sell ratings. With Azure as a Catalyst, Microsoft Is Positioned for Sustained Growth Positive Sentiment: Microsoft’s OpenAI relationship provides potential additional value. Investors are increasingly focused on Microsoft’s stake and commercial partnership with OpenAI, particularly ahead of a possible OpenAI initial public offering that could provide a market reference for the investment. OpenAI’s Future IPO Keeps Me Buying Microsoft Positive Sentiment: Microsoft introduced new real-time AI speech models for customer-service agents, multilingual assistants and voice interfaces. The products broaden Microsoft’s enterprise AI offering and could support additional cloud consumption and software revenue. Microsoft Targets Contact Center Market With Real-Time AI Voice Models Neutral Sentiment: Investors are awaiting Microsoft’s October 7 Surface and Windows event. New hardware or Windows updates could support the ecosystem, although the event has not yet produced a material earnings catalyst. Microsoft Stock Notches Up Ahead of the Surface Show Negative Sentiment: Risks include heavy AI capital spending, valuation concerns and broader market concentration. Critics argue that rising data-center capacity could pressure compute pricing and returns, while strategists warn that a market correction could disproportionately affect megacap technology stocks. Microsoft’s dividend remains affordable, but AI infrastructure spending and lease commitments could limit future dividend growth. Morgan Stanley Strategist Sees Market Drawdown Potential Microsoft Company Profile (Free Report)

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

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

See Also Five stocks we like better than Microsoft Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning? Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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

Cumberland Partners Ltd lifted its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 18.2% during the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 176,987 shares of the software giant’s stock after purchasing an additional 27,230 shares during the quarter. Microsoft comprises about 4.3% of Cumberland Partners Ltd’s holdings, making the stock its 3rd biggest holding. Cumberland Partners Ltd’s holdings in Microsoft were worth $66,020,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. Friedenthal Financial boosted its position in Microsoft by 6.2% in the 1st quarter. Friedenthal Financial now owns 431 shares of the software giant’s stock valued at $160,000 after buying an additional 25 shares during the period. Sequent Planning LLC grew its stake in shares of Microsoft by 0.7% in the first quarter. Sequent Planning LLC now owns 3,733 shares of the software giant’s stock worth $1,382,000 after acquiring an additional 25 shares in the last quarter. Riverpoint Wealth Management Holdings LLC increased its position in shares of Microsoft by 0.5% during the first quarter. Riverpoint Wealth Management Holdings LLC now owns 5,543 shares of the software giant’s stock worth $2,052,000 after acquiring an additional 26 shares during the period. American Investment Services Inc. increased its position in shares of Microsoft by 3.1% during the first 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 period. Finally, REAP Financial Group LLC raised its stake in shares of Microsoft by 1.1% in the second quarter. REAP Financial Group LLC now owns 2,453 shares of the software giant’s stock valued at $915,000 after acquiring an additional 26 shares in 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 research analysts recently issued reports on MSFT shares. Wells Fargo & Company lifted their target price on Microsoft from $700.00 to $725.00 and gave the company an “overweight” rating in a report on Thursday. Morgan Stanley restated an “overweight” rating on shares of Microsoft in a report on Thursday, July 30th. Mizuho reduced their price target on Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 15th. Oppenheimer lifted their price objective on Microsoft from $515.00 to $570.00 and gave the company an “outperform” rating in a research note on Tuesday, September 22nd. Finally, TD Cowen reissued a “buy” rating and set a $540.00 price objective on shares of Microsoft in a research report on Thursday, July 30th. Forty-three analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $571.18.

Read Our Latest Stock Report on MSFT Insider Transactions at Microsoft In related news, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the 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 through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the firm’s stock in a transaction 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. This represents a 9.05% decrease in their position. 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 worth $71,420,699. 0.03% of the stock is owned by company insiders.

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

Positive Sentiment: Azure and AI demand remain the primary catalyst. Investor data and analyst commentary point to accelerating Azure demand, while Microsoft’s recent earnings showed its fastest cloud growth in four years. The improving demand is helping ease concerns that the company’s substantial AI infrastructure spending will not generate adequate returns. Ca$htag: MSFT Azure Cloud Drives Soaring Demand Positive Sentiment: Wells Fargo added Microsoft to its Q4 Tactical Ideas list and raised its price target to $725, citing Azure’s growth potential and the prospect of improved AI monetization through Copilot. The action adds to a series of bullish analyst revisions; one report noted that 52 analysts covering Microsoft currently have no sell ratings. With Azure as a Catalyst, Microsoft Is Positioned for Sustained Growth Positive Sentiment: Microsoft’s OpenAI relationship provides potential additional value. Investors are increasingly focused on Microsoft’s stake and commercial partnership with OpenAI, particularly ahead of a possible OpenAI initial public offering that could provide a market reference for the investment. OpenAI’s Future IPO Keeps Me Buying Microsoft Positive Sentiment: Microsoft introduced new real-time AI speech models for customer-service agents, multilingual assistants and voice interfaces. The products broaden Microsoft’s enterprise AI offering and could support additional cloud consumption and software revenue. Microsoft Targets Contact Center Market With Real-Time AI Voice Models Neutral Sentiment: Investors are awaiting Microsoft’s October 7 Surface and Windows event. New hardware or Windows updates could support the ecosystem, although the event has not yet produced a material earnings catalyst. Microsoft Stock Notches Up Ahead of the Surface Show Negative Sentiment: Risks include heavy AI capital spending, valuation concerns and broader market concentration. Critics argue that rising data-center capacity could pressure compute pricing and returns, while strategists warn that a market correction could disproportionately affect megacap technology stocks. Microsoft’s dividend remains affordable, but AI infrastructure spending and lease commitments could limit future dividend growth. Morgan Stanley Strategist Sees Market Drawdown Potential Microsoft Price Performance Shares of NASDAQ:MSFT opened at $517.53 on Monday. The firm has a 50 day simple moving average of $490.08 and a 200-day simple moving average of $430.19. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The company has a market capitalization of $3.84 trillion, a PE ratio of 28.82, a P/E/G ratio of 1.66 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 EPS for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The firm had revenue of $90.01 billion for the quarter, compared to the consensus estimate of $87.62 billion. During the same period last year, the firm posted $3.65 EPS. The company’s revenue was up 17.7% on a year-over-year basis. On average, equities analysts predict that Microsoft Corporation will post 19.62 EPS for the current fiscal 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 issued a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. Microsoft’s dividend payout ratio is 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.

Read More Five stocks we like better than Microsoft Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning? Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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

ANTIPODES PARTNERS Ltd lessened its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 25.8% during the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 394,726 shares of the software giant’s stock after selling 136,999 shares during the period. Microsoft accounts for about 2.7% of ANTIPODES PARTNERS Ltd’s holdings, making the stock its 9th biggest position. ANTIPODES PARTNERS Ltd’s holdings in Microsoft were worth $147,241,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in MSFT. Auto Owners Insurance Co grew 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 purchasing an additional 60,009,531 shares during the last quarter. Corient Private Wealth LLC increased 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 buying an additional 12,493,786 shares in the last quarter. Amundi raised its stake in shares of Microsoft by 30.8% during the 1st quarter. Amundi now owns 41,675,076 shares of the software giant’s stock worth $15,426,862,000 after buying an additional 9,814,598 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its position 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 worth $8,982,083,000 after buying an additional 9,493,778 shares in the last quarter. Finally, Diamant Asset Management Inc. boosted 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 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.

Insider Activity at Microsoft In related 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 transaction of $20,764,903.98. Following the completion of 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 sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 143,009 shares of company stock valued at $71,420,699. Insiders own 0.03% of the company’s stock.

Microsoft News Summary Here are the key news stories impacting Microsoft this week: Positive Sentiment: Azure and AI demand remain the primary catalyst. Investor data and analyst commentary point to accelerating Azure demand, while Microsoft’s recent earnings showed its fastest cloud growth in four years. The improving demand is helping ease concerns that the company’s substantial AI infrastructure spending will not generate adequate returns. Ca$htag: MSFT Azure Cloud Drives Soaring Demand Positive Sentiment: Wells Fargo added Microsoft to its Q4 Tactical Ideas list and raised its price target to $725, citing Azure’s growth potential and the prospect of improved AI monetization through Copilot. The action adds to a series of bullish analyst revisions; one report noted that 52 analysts covering Microsoft currently have no sell ratings. With Azure as a Catalyst, Microsoft Is Positioned for Sustained Growth Positive Sentiment: Microsoft’s OpenAI relationship provides potential additional value. Investors are increasingly focused on Microsoft’s stake and commercial partnership with OpenAI, particularly ahead of a possible OpenAI initial public offering that could provide a market reference for the investment. OpenAI’s Future IPO Keeps Me Buying Microsoft Positive Sentiment: Microsoft introduced new real-time AI speech models for customer-service agents, multilingual assistants and voice interfaces. The products broaden Microsoft’s enterprise AI offering and could support additional cloud consumption and software revenue. Microsoft Targets Contact Center Market With Real-Time AI Voice Models Neutral Sentiment: Investors are awaiting Microsoft’s October 7 Surface and Windows event. New hardware or Windows updates could support the ecosystem, although the event has not yet produced a material earnings catalyst. Microsoft Stock Notches Up Ahead of the Surface Show Negative Sentiment: Risks include heavy AI capital spending, valuation concerns and broader market concentration. Critics argue that rising data-center capacity could pressure compute pricing and returns, while strategists warn that a market correction could disproportionately affect megacap technology stocks. Microsoft’s dividend remains affordable, but AI infrastructure spending and lease commitments could limit future dividend growth. Morgan Stanley Strategist Sees Market Drawdown Potential Wall Street Analysts Forecast Growth MSFT has been the subject of several recent research reports. KeyCorp restated an “overweight” rating on shares of Microsoft in a report on Thursday, September 3rd. CLSA reaffirmed an “outperform” rating on shares of Microsoft in a report on Thursday, July 30th. TD Cowen reiterated a “buy” rating and issued a $540.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Rothschild & Co Redburn set a $440.00 price target on shares of Microsoft in a research report on Monday, September 21st. Finally, Oppenheimer raised their price objective on shares of Microsoft from $515.00 to $570.00 and gave the stock an “outperform” rating in a research note on Tuesday, September 22nd. Forty-three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Microsoft has a consensus rating of “Moderate Buy” and an average target price of $571.18.

Read Our Latest Research Report on Microsoft

Microsoft Price Performance MSFT stock opened at $517.53 on Monday. The company has a 50 day moving average price of $490.08 and a two-hundred day moving average price of $430.19. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock has a market capitalization of $3.84 trillion, a P/E ratio of 28.82, a PEG ratio of 1.66 and a beta of 1.10. 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 issued its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The 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 business’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $3.65 EPS. As a group, sell-side analysts expect that Microsoft Corporation will post 19.62 EPS 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 paid a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio 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.

See Also Five stocks we like better than Microsoft Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning? Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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

On a sunny day in Seattle in late September, about 50 executives representing large Microsoft customers had a rare opportunity. They could ask anything of CEO Satya Nadella.

One attendee wanted to know what Microsoft could do to help companies adapt to the artificial intelligence age. Nadella responded by emphasizing the importance of "diffusion inside the enterprise," meaning AI tools need to be widely deployed.

"Like all things, change is always bottom up, top down, and middle up," said Nadella, sporting a tight black crewneck and dark gray slacks, as he strode across the stage at the downtown Paccar Pavilion.

For the 59-year-old Nadella, who's spent over half his life at Microsoft, the gathering landed at a pivotal moment, as the software giant tries to magnify its role in the AI boom. Of late, Nadella has been inserting himself more into the AI discourse, posting on X last month about the need for "deliberate pacing" in model development, and days later addressing safety fears at the All-In Summit in Los Angeles.

Despite its almost $4 trillion market cap, Microsoft has yet to break out as an AI leader. Nvidia dominates in AI chips, Anthropic and OpenAI boast the foremost models, Meta just released the first mass-market personal agent, and Google's Gemini-powered services are popular with businesses and consumers.

Microsoft was aggressively early to AI through an investment in OpenAI, but that alliance has frayed. While the software giant has a big business in renting out chips for AI developers through its Azure cloud, its Copilot technology isn't pervasive in the workplace, and its proprietary AI models remain niche.

The company is hosting a Windows and Surface event in San Francisco on Wednesday, describing it in an invitation as "a conversation on how local AI will shape the next chapter of the PC."

Wall Street is lukewarm on the story. Even factoring in a sharp third-quarter rally, the stock is trailing its megacap peers and the broader Nasdaq this year, up just 7% as of Friday's close. Microsoft hasn't beaten the S&P 500 in a calendar year since 2023.

Nasdaq vs. S&P 500 since the end of 2023

Tiffany Wade, co-portfolio manager at Microsoft shareholder Columbia Threadneedle, said there are a lot of unknowns about Copilot, which is the centerpiece of Nadella's AI strategy.

"I think there needs to be a little bit more maturity of the product before we figure out actually what the best solution or what pricing is," Wade said in an interview.

For longtime Microsoft investors, Nadella has a solid track record when it comes to navigating industry shifts. He was named CEO in 2014, succeeding Steve Ballmer, who had presided over a roughly 33% drop in the stock price during his 14-year tenure, as Microsoft slipped into the beleaguered category of legacy software.

Nadella proceeded to turn Microsoft into a cloud powerhouse. He tossed aside perpetual Office software licenses and pushed the company into subscription-based software-as-a-service offerings alongside Azure infrastructure. And he permitted customers to integrate products from bitter rivals like Oracle and Salesforce, rather than insisting on a pure Microsoft stack.

Trained as an electrical engineer and computer scientist, Nadella became a savvy dealmaker, expanding Microsoft through acquisitions of "Minecraft"-maker Mojang, business social network LinkedIn and code-sharing service GitHub.

In recent months, Nadella has acknowledged to investors that he's got to change the business model yet again, this time to reflect the AI-fueled move toward consumption-based pricing. That means becoming a vendor of large volumes of tokens, which measure computing usage and represent the currency of the AI economy.

Success would mean "further expanding our TAM," Nadella said on Microsoft's July earnings call, adopting the acronym for total addressable market.

watch now

Much of the growth story Nadella preaches involves the production of software. Develop more code and do it faster, boosted by the latest and greatest AI tools.

"We went from the code assist to the agentic coding to software factory all within one year," Nadella said at the customer gathering late last month.

Now he wants to see Microsoft clients open their own software factories, spending more along the way to help churn out code. He's also hoping to empower non-technical knowledge workers. Some of Nadella's lieutenants at the event unveiled a Copilot "super app" that can perform increasingly complex tasks, generate simple applications and function as a virtual teammate.

Nadella had a preview of what was coming.

Microsoft first invested in OpenAI in 2019, when the company was still a fledgling lab. In 2021, a year before ChatGPT launched, Microsoft and OpenAI collaborated to release GitHub Copilot, a tool that could write parts of applications and websites based on vast swaths of public source code.

They'd created an early sensation. But as the generative AI market took off, developers moved to products from AI-native startups like Cursor, now owned by SpaceX, and Anthropic, which rolled out Claude Code.

'Learned lessons'Microsoft's sluggishness in keeping up with the rapid changes cost GitHub market share.

Earlier this year, Microsoft adjusted the pricing for the coding tool to align more with computing demand. Some customers initially balked, but by July the company said it had racked up 50 million users, up from 26 million last October, meaning that one in five on GitHub were on board.

Nadella said on the July earnings call that GitHub Copilot sales growth accelerated 60% from the previous quarter, with "significant consumption revenue after the new model went into effect."

"GitHub Copilot went out and learned lessons," said Kyle Daigle, the unit's operating chief, in an interview.

Daigle said GitHub employees shared their lessons with other teams at Microsoft that are eyeing consumption-based pricing schemes.

Hayete Gallot, Microsoft's executive vice president for security products, said the company will charge clients according to how intensely they use the technology.

"I always say to my team, when customers consume, it means we add value. And for me, the truth starts with customers," Gallot said. "If they don't consume, it means we're not giving value."

Currently, Microsoft's enterprise portfolio is reliant on subscriptions. For its core Microsoft 365 productivity suite, which includes Word, Excel and Teams, customers sign up for years at a time, and Copilot costs an extra $30 per person each month. Microsoft has 30 million Copilot seats. The commercial Office 365 base exceeds 450 million.

One area of uncertainty in Microsoft's AI roadmap revolves around Mustafa Suleyman.

Suleyman previously co-founded AI lab DeepMind, which Google bought in 2014. Nadella hired him in 2024 to lead AI initiatives as Microsoft's relationship with OpenAI was cooling.

Last year, Microsoft lost its status as OpenAI's exclusive cloud provider, and this year its license on OpenAI intellectual property became non-exclusive. That left the software company with a massive investment in the AI lab but less preferential treatment. Microsoft said in April that it continues to serve as OpenAI's "primary cloud partner."

Suleyman's group has rolled out models for coding, image generation and reasoning. This week he boasted on X that a new speech-to-text model was "the most accurate real time transcription model in the world... #1 !!!" But for raw digital intellect, the team has yet to rival Anthropic or OpenAI, according to independent leaderboards.

Microsoft executives say there are benefits to having model and application development under the same roof. The group building Teams and other Office productivity apps has seen higher performance from Suleyman's transcription models at a lower price, and engineers get clear feedback as they build out products, said Executive Vice President Charles Lamanna.

"The collaboration is much tighter with Mustafa," he said.

Suleyman maintains a high profile at Microsoft, but his responsibilities have shifted. In March, Microsoft announced that it was bringing together the engineering groups for its commercial and consumer Copilot assistants, as adoption had been sluggish. Jacob Andreou was promoted to executive vice president for Copilot experience, and Suleyman was charged with focusing on model development.

Nadella, meanwhile, has been downplaying the importance of world-beating models in isolation.

"In my view, our priority has to be building a frontier ecosystem, not just a frontier model, so value flows broadly across every company, every industry, and every country," he wrote in a post on his SN Scratchpad website in June.

At the September Copilot event, Nadella stood before a slide declaring that Copilot could connect to "every model," with the Anthropic, OpenAI, SpaceX and Microsoft AI logos.

Fixing the economicsIncreasingly, Microsoft is finding the model leaders encroaching on its turf, as they release products for cybersecurity, customer service and other functions.

In January, as Anthropic's Claude Code was building momentum, Microsoft executives were impressed with its ability to tap a bevy of tools to get things done, said Jared Spataro, Microsoft's marketing chief for AI at work. Microsoft was losing deals to Anthropic, promoting a close study of a rising competitor, said a person familiar with the matter, who asked not to be named due to confidentiality.

A Microsoft spokesperson declined to comment.

Spataro said the company sensed a need to change the mechanics.

"It became very clear to us at that moment. Like, oh wow, the economics are not going to be such that we're going to be able to offer now the best outcome within a fixed price per user per month," Spataro said. "We realized that we needed to start to think about the business model."

The company got cracking on a more comprehensive approach to consumption-based pricing that it calls usage-based billing, or UBB. The first UBB product was Copilot Cowork, which accepts large productivity assignments and shows its progress, Spataro said.

Nadella said on the July earnings call that "earlier this month, we added usage-based billing to Cowork with thousands of customers already paying for and actively using it."

Derrick Wood, an analyst at Cowen, said it was a strong signal.

"It may have the effect of what we saw when Claude Code, for example, shifted to consumption pricing, and you saw token bills go significantly higher," said Wood, who recommends buying Microsoft shares. "There's definitely the possibility for that to happen with Cowork."

Nadella is a user. On a podcast recorded after the September event, he said he can ask Cowork to prepare a supply chain optimization spreadsheet showing multiple scenarios.

"It'll create a fantastic artifact," he said.

David Berry, a vice president at advisory group Directions on Microsoft, said budget-conscious IT executives aren't all ready to take the Cowork plunge.

"There's a very real concern that you just kind of turn it on and people are going to start draining the bank," Berry said. "There's no way to determine if people are actually getting any benefit from it."

With the ChatGPT era nearing its four-year anniversary, Microsoft is still looking for a smash hit, whether at the model or application layer. While Nadella earned investor trust in reviving Microsoft once, he can't afford to let the company become an also-ran in AI.

Berry said he still sees Nadella as the right person to command the ship.

"He seems to be able to handle the situations or identify the situations and come up with a plan to change and evolve the business," he said. "The challenge is we're facing a lot more of the unknowns in a sense with AI, so it's a lot of different market dynamics going on, but he seems to have a plan, and he's working the plan."

In Seattle, Nadella ended his response to the transformation question by saying that those at the top of organizations play a key role.

"Leaders who are hands-on are able to change," he said. "Otherwise, they're all from press event to press event, right?"

He added, "It's kind of like you've got to be in it."

watch now

Nebius Group (NBIS +4.53%) says it has more than $40 billion in contracted revenue from investment-grade customers. The two it names are Microsoft (MSFT +0.92%) and Meta Platforms (META +0.30%).

For scale, the artificial intelligence (AI) cloud company's revenue for all of 2025 was around $530 million. Put another way, Nebius has signed up about 75 times its 2025 revenue. But how much of that rides on just two customers?

Most of it, by my count. And yet the signed part of that reliance worries me less than what the stock price assumes about the deals that come next.

Image source: The Motley Fool.

Around $32 billion is firmNebius doesn't break down its commitments by customer. But its filings lay out every big contract.

Microsoft signed first, in September 2025, for around $17.4 billion of dedicated capacity through 2031, growing to about $19.4 billion if Microsoft buys extra services or capacity.

Meta followed in November with a five-year deal for around $3 billion. It came back in March with $12 billion of dedicated capacity beginning in early 2027. The March agreement includes up to $15 billion more, but Meta only pays it for capacity in certain clusters that Nebius doesn't sell to other customers.

Add up just the firm parts, and the two companies account for around $32 billion, or roughly four-fifths of the $40 billion. Counting every "up to" amount would bring the total to about $49 billion.

Nebius' backlog shows the same concentration. Its remaining performance obligations (signed contract revenue it hasn't recognized yet) were around $21 billion at the end of 2025, when the Microsoft deal and Meta's first contract alone were worth about $20 billion. They surged to almost $34 billion at the end of March, the quarter Meta's $12 billion order was signed. Then they grew more slowly, to around $37.5 billion by June 30.

The last climb came without a fresh Microsoft or Meta deal. Nebius landed four second-quarter contracts averaging over $1 billion each, including deals with AI model makers Reflection and Cohere.

That said, the customer list is widening only slowly.

Revenue is concentrated, too. Three customers Nebius doesn't name made up 24%, 21%, and 14% of second-quarter revenue.

What if Microsoft or Meta pulls back?For the money already signed, less than you might think. Nebius' annual report says Microsoft agreed to pay its fees whether or not it uses the capacity, including around $7 billion in upfront payments. Meta's first contract has the same wording.

Their main way out is Nebius' own failure. Each can cancel individual tranches if Nebius misses set delivery dates or repeatedly falls short on availability.

This puts most of the near-term risk on execution.

By August, Nebius had delivered every tranche of capacity under the Microsoft deal. Meta's $12 billion of dedicated capacity, though, is still being built on Nvidia's next-generation Vera Rubin platform, and the March agreement includes discounted monthly fees for late delivery.

Meta's backstop also works in an odd direction. If demand for AI computing eased, Nebius would probably sell less of that cluster capacity to other customers, and Meta would have to buy more of it. A slowdown, in other words, could make Nebius more reliant on Meta, not less.

Today's Change

(

4.53

%) $

10.53

Current Price

$

242.81

The contracts are collateral, tooWhere the concentration arguably matters most is in how Nebius funds its expansion. In August, management reaffirmed its plan for $20 billion to $25 billion of capital spending in 2026. Meanwhile, just 36% of the $37.5 billion backlog is expected to become revenue over the 24 months ending June 2028 -- around $13.5 billion.

"We currently have approximately $40 billion of committed backlog that we can borrow against," CFO Dado Alonso said on the company's second-quarter earnings call in August.

Put another way, the Microsoft and Meta contracts are most of what Nebius can borrow against to keep building this fast.

With shares near $243 as of this writing, about 19% off their 52-week high, Nebius is worth about $64 billion. Its customer commitments, meanwhile, are about $40 billion of revenue spread across several years, not profit. I think the stock price assumes many more contracts like these are coming, and not just from Microsoft and Meta.

In the end, depending on two customers looks safer to me than that four-fifths share suggests, at least for the revenue already signed. But Nebius is valued for a far wider customer list than it has today. I'd rather wait for a few more quarters like the second one, when the backlog grew from new names, before paying this much for the stock.

Deciding between Accenture (ACN -6.31%) and Microsoft (MSFT +0.92%) requires choosing between a dominant professional services provider and a global leader in software platforms as both companies race toward an AI-driven future.

Accenture thrives as the primary partner for digital transformation projects, while Microsoft provides the underlying cloud infrastructure and productivity tools that businesses use daily. Though they operate in different niches, both are considered foundational investments for those looking to capitalize on the ongoing expansion of the enterprise technology landscape.

The case for AccentureAs a prominent name among tech stocks, Accenture provides essential professional services, helping enterprises and governments navigate complex shifts in technology and strategy. With approximately 814,000 employees globally, it serves roughly 9,000 clients, including a vast majority of the Fortune Global 500. The firm leverages deep ecosystem partnerships with the largest cloud providers to integrate specialized solutions for its five major industry groups, which include financial services and health and public service.

In its latest annual report, filed for FY 2026, revenue reached nearly $74.2 billion, representing a growth rate of approximately 6.5% compared to the prior year. This steady expansion supported a net income of roughly $8.5 billion for the period. The net margin of close to 11.5% reflects a slight improvement over the previous fiscal years, indicating a consistent ability to generate profit from its global consulting and outsourcing operations.

As of its August 2026 balance sheet, the company reported a debt-to-equity ratio of approximately 0.3x. This metric, which compares total debt to shareholder equity, suggests a conservative approach to borrowing. The current ratio, which measures the ability to pay short-term obligations, was nearly 1.4x, while free cash flow, calculated as cash flow from operations minus capital expenditures, reached roughly $11.6 billion for the year.

The case for MicrosoftMicrosoft focuses on providing the infrastructure for the modern digital economy through cloud services, AI-powered productivity tools, and personal computing hardware. The business relies heavily on Azure and Microsoft 365, which serve a massive spectrum of users from individual consumers to multinational corporations. High-profile investments in AI, particularly via its Copilot offerings, remain central to its efforts to drive growth across all business segments.

In its latest annual report, filed for FY 2026, the company generated revenue of nearly $331.8 billion, a robust 17.8% increase over its FY 2025 results. This performance led to net income of approximately $133.7 billion for the fiscal year. The net margin reached close to 40.3%, highlighting the significant profitability of its software-centric model when compared to more labor-intensive services businesses.

As of its June 2026 balance sheet, the company maintained a debt-to-equity ratio of roughly 0.3x. This metric compares total debt against shareholder equity, and a lower value typically indicates less financial risk. Its current ratio was approximately 1.2x, while free cash flow for the year, which is cash from operations minus capital expenditures, was exceptionally strong at nearly $67.0 billion.

Risk profile comparisonAccenture faces significant competition in the global services market, where rapid technological shifts in AI could disrupt traditional pricing models. Geopolitical risks are also present due to the company reliance on global delivery centers in regions like India and the Philippines. Additionally, it recently addressed a $25 million settlement with the Department of Justice regarding federal contracting practices.

Microsoft is currently navigating several legal challenges, including securities fraud class action lawsuits involving its AI and Copilot claims. The company faces intense competition from other cloud hyperscalers like Amazon or Alphabet. Furthermore, it is under scrutiny from global regulators regarding antitrust concerns and is managing a large-scale tax audit with the IRS.

Valuation comparisonAccenture offers a much lower valuation on both an earnings and sales basis, while Microsoft commands a significant premium for its faster growth.

MetricAccentureMicrosoftForward P/E14.7x26.2xP/S ratio1.8x11.6xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

I'd go with Microsoft, and it's not a close call. After its most recent results, the case for it has rarely looked stronger. Azure growth accelerated for the fifth consecutive quarter, Copilot paid seats more than doubled, and the company raised its full-year outlook with confidence that its AI strategy is working at scale. The AI build-out is now running partly on Microsoft's infrastructure, partly on its software, and increasingly on its Copilot tools.

To its credit, Accenture is building a credible AI consulting business that enterprises are paying for. Revenue grew at a healthy pace, earnings beat estimates, and the AI consulting opportunity keeps expanding as enterprises need help deploying the tools Microsoft and others are building. For investors who want steady, professional services exposure to the AI transformation, it has its appeal.

But Accenture's stock sold off after its most recent earnings despite a decent quarter, weighed down by weaker bookings and a cautious near-term tone. When a stock drops on good news, it usually means the market expects the bar to keep moving higher. Microsoft is setting the bar. Accenture is helping enterprises clear it. For a long-term investor, owning the platform is the stronger starting point.

Cynosure Group LLC cut its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 62.2% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 5,349 shares of the software giant’s stock after selling 8,813 shares during the quarter. Microsoft comprises about 0.3% of Cynosure Group LLC’s holdings, making the stock its 21st biggest holding. Cynosure Group LLC’s holdings in Microsoft were worth $1,995,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also bought and sold shares of the business. Frankly Finances LLC purchased a new position in shares of Microsoft in the 2nd quarter worth about $35,000. Fiduciary Advisors Inc. lifted its holdings in 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 in the last quarter. MidAtlantic Capital Management Inc. purchased a new stake in shares of Microsoft during the fourth quarter worth about $59,000. Glynn Capital Management LLC lifted its stake in Microsoft by 34.2% in the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant’s stock worth $95,000 after purchasing an additional 65 shares in the last quarter. Finally, Lifetime Wealth Management P.C. purchased a new position in shares of Microsoft in the fourth quarter valued at $101,000. Institutional investors own 71.13% of the company’s stock.

Microsoft Stock Performance Shares of MSFT stock opened at $517.53 on Friday. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. The company has a market cap of $3.84 trillion, a P/E ratio of 28.82, a PEG ratio of 1.65 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. The firm has a fifty day moving average price of $490.08 and a 200 day moving average price of $429.97.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a 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 analysts’ expectations of $87.62 billion. During the same quarter in the previous year, the business earned $3.65 earnings per share. The firm’s revenue was up 17.7% compared to the same quarter last year. Sell-side analysts predict that Microsoft Corporation will post 19.62 earnings per share for the current fiscal year. Microsoft Increases Dividend The company 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 dividend of $0.98 per share. The ex-dividend date is Thursday, November 19th. 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. Microsoft’s dividend payout ratio (DPR) is 20.27%.

Insider Buying and Selling at Microsoft In related news, CEO Judson Althoff sold 10,000 shares of the company’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the sale, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. This represents a 9.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Satya Nadella sold 86,525 shares of the stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the sale, the chief executive officer owned 486,763 shares of the company’s stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 143,009 shares of company stock valued at $71,420,699. Insiders own 0.03% of the company’s stock.

Wall Street Analyst Weigh In Several research firms have recently issued reports on MSFT. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Microsoft in a report on Monday, July 20th. Benchmark reiterated a “buy” rating on shares of Microsoft in a research note on Friday, July 24th. DA Davidson reissued a “buy” rating and set a $550.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Cantor Fitzgerald increased their target price on shares of Microsoft from $522.00 to $608.00 and gave the stock an “overweight” rating in a research note on Monday, September 21st. Finally, Wells Fargo & Company upped their price target on shares of Microsoft from $700.00 to $725.00 and gave the stock an “overweight” rating in a research report on Thursday. Forty-three equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Microsoft currently has an average rating of “Moderate Buy” and a consensus price target of $571.18.

Check Out Our Latest Report on MSFT

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

Positive Sentiment: Azure and AI demand remain the primary catalyst. Investor data and analyst commentary point to accelerating Azure demand, while Microsoft’s recent earnings showed its fastest cloud growth in four years. The improving demand is helping ease concerns that the company’s substantial AI infrastructure spending will not generate adequate returns. Ca$htag: MSFT Azure Cloud Drives Soaring Demand Positive Sentiment: Wells Fargo added Microsoft to its Q4 Tactical Ideas list and raised its price target to $725, citing Azure’s growth potential and the prospect of improved AI monetization through Copilot. The action adds to a series of bullish analyst revisions; one report noted that 52 analysts covering Microsoft currently have no sell ratings. With Azure as a Catalyst, Microsoft Is Positioned for Sustained Growth Positive Sentiment: Microsoft’s OpenAI relationship provides potential additional value. Investors are increasingly focused on Microsoft’s stake and commercial partnership with OpenAI, particularly ahead of a possible OpenAI initial public offering that could provide a market reference for the investment. OpenAI’s Future IPO Keeps Me Buying Microsoft Positive Sentiment: Microsoft introduced new real-time AI speech models for customer-service agents, multilingual assistants and voice interfaces. The products broaden Microsoft’s enterprise AI offering and could support additional cloud consumption and software revenue. Microsoft Targets Contact Center Market With Real-Time AI Voice Models Neutral Sentiment: Investors are awaiting Microsoft’s October 7 Surface and Windows event. New hardware or Windows updates could support the ecosystem, although the event has not yet produced a material earnings catalyst. Microsoft Stock Notches Up Ahead of the Surface Show Negative Sentiment: Risks include heavy AI capital spending, valuation concerns and broader market concentration. Critics argue that rising data-center capacity could pressure compute pricing and returns, while strategists warn that a market correction could disproportionately affect megacap technology stocks. Microsoft’s dividend remains affordable, but AI infrastructure spending and lease commitments could limit future dividend growth. Morgan Stanley Strategist Sees Market Drawdown Potential About Microsoft (Free Report)

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

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

Featured Stories Five stocks we like better than Microsoft AST SpaceMobile’s BlueBird Progress Comes With Several Risks Still Unresolved Time to Nibble on MCD Stock After it Enters Oversold Territory? McCormick Stock Trades Cheap, Offers Dividend Growth and Unilever Deal Upside Corning and AT&T’s $3 Billion Fiber Deal Reveals Where AI Spending Goes Next Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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