Track market-moving stories before they get noisy

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.

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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.

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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."

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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.

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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.

Fifth Third Bancorp lowered its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 2.3% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 4,471,738 shares of the software giant’s stock after selling 104,684 shares during the quarter. Microsoft accounts for about 2.7% of Fifth Third Bancorp’s holdings, making the stock its 7th largest position. Fifth Third Bancorp owned 0.06% of Microsoft worth $1,668,048,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also modified their holdings of the company. Auto Owners Insurance Co lifted its holdings in shares of Microsoft by 56,160.8% during the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after acquiring an additional 60,009,531 shares during the period. Amundi increased its stake in Microsoft by 30.8% in the first quarter. Amundi now owns 41,675,076 shares of the software giant’s stock valued at $15,426,862,000 after acquiring an additional 9,814,598 shares during the period. Fisher Asset Management LLC raised its position in Microsoft by 1.8% in the fourth 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 in the last quarter. Dimensional Fund Advisors LP lifted its stake in Microsoft by 10.5% during the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock worth $10,852,884,000 after purchasing an additional 2,784,809 shares during the period. Finally, Hsbc Holdings PLC boosted its holdings in Microsoft by 7.8% during the fourth quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant’s stock valued at $10,715,379,000 after purchasing an additional 1,599,412 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In A number of brokerages have recently issued reports on MSFT. Royal Bank Of Canada reissued an “outperform” rating on shares of Microsoft in a report on Thursday, September 10th. DA Davidson reiterated a “buy” rating and issued a $550.00 price target on shares of Microsoft in a research report on Thursday, July 30th. Morgan Stanley reiterated an “overweight” rating on shares of Microsoft in a research note on Thursday, July 30th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Microsoft in a research note on Monday, July 20th. Finally, Scotiabank reiterated an “outperform” rating and issued a $510.00 target price on shares of Microsoft in a research note on Thursday, July 30th. 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 company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $571.18.

Get Our Latest Stock Report on Microsoft Microsoft Stock Up 0.9% Shares of NASDAQ MSFT opened at $517.53 on Friday. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The stock has a market cap of $3.84 trillion, a P/E ratio of 28.82, a P/E/G ratio of 1.65 and a beta of 1.10. The firm has a 50 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 net margin of 40.31% and a return on equity of 31.98%. The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same period last year, the business posted $3.65 earnings per share. The business’s revenue for the quarter was up 17.7% compared to the same quarter last year. Analysts expect 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. Shareholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This is a boost from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a yield of 0.8%. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio is presently 20.27%.

Insiders Place Their Bets In other Microsoft news, 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 value of $43,388,826.50. Following the completion of the sale, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $498.27, for a total value of $20,764,903.98. Following the sale, the executive vice president directly owned 533,624 shares in the company, valued at approximately $265,888,830.48. This represents a 7.24% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 143,009 shares of company stock valued at $71,420,699 in the last three months. Insiders own 0.03% of the company’s stock.

Key Stories 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 Profile (Free Report)

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

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

Further Reading Five stocks we like better than Microsoft 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

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LiftPoint Family Wealth Advisors LLC lifted its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 57.2% in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 3,133 shares of the software giant’s stock after buying an additional 1,140 shares during the period. Microsoft makes up approximately 0.8% of LiftPoint Family Wealth Advisors LLC’s holdings, making the stock its 9th largest position. LiftPoint Family Wealth Advisors LLC’s holdings in Microsoft were worth $1,169,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in MSFT. Frankly Finances LLC purchased a new position in shares of Microsoft in the 2nd quarter valued at approximately $35,000. Fiduciary Advisors Inc. grew its position in Microsoft by 37.4% in the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock valued at $47,000 after buying an additional 34 shares during the last quarter. MidAtlantic Capital Management Inc. acquired a new position in Microsoft in the 4th quarter valued at $59,000. Glynn Capital Management LLC raised its position in Microsoft by 34.2% during the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant’s stock worth $95,000 after buying an additional 65 shares during the last quarter. Finally, Lifetime Wealth Management P.C. acquired a new stake in shares of Microsoft in the 4th quarter worth $101,000. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Insiders Place Their Bets In other Microsoft news, 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 sale, the executive vice president owned 533,624 shares in the company, valued at $265,888,830.48. The trade was a 7.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the company’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares of the company’s stock, valued at approximately $244,092,173.98. This represents a 15.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 143,009 shares of company stock worth $71,420,699 in the last three months. Company insiders own 0.03% of the company’s stock.

Microsoft Stock Performance NASDAQ:MSFT opened at $517.53 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. The firm has a market cap of $3.84 trillion, a PE ratio of 28.82, a P/E/G ratio of 1.65 and a beta of 1.10. The firm has a 50 day simple moving average of $490.08 and a 200-day simple moving average of $429.97. Microsoft Corporation has a 1-year low of $349.20 and a 1-year high of $553.72. Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. Microsoft’s revenue was up 17.7% compared to the same quarter last year. During the same quarter last year, the business earned $3.65 earnings per share. On average, equities analysts expect that Microsoft Corporation will post 19.62 EPS for the current year.

Microsoft Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a dividend of $0.98 per share. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. The ex-dividend date is Thursday, November 19th. Microsoft’s payout ratio is 20.27%.

More Microsoft News 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 Analyst Ratings Changes A number of research analysts have recently issued reports on MSFT shares. KeyCorp reiterated an “overweight” rating on shares of Microsoft in a research note on Thursday, September 3rd. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Microsoft in a report on Monday, September 28th. Oppenheimer boosted their target price on Microsoft from $515.00 to $570.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 22nd. Wolfe Research downgraded Microsoft from an “outperform” rating to a “hold” rating in a research note on Wednesday, September 23rd. Finally, DA Davidson reissued a “buy” rating and issued a $550.00 price target on shares of Microsoft in a report on Thursday, July 30th. Forty-three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $571.18.

Check Out Our Latest Stock Report on MSFT

About Microsoft (Free Report)

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

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

Featured Articles 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).

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Mccarter Private Wealth Services LLC lifted its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 6.4% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 23,694 shares of the software giant’s stock after acquiring an additional 1,418 shares during the period. Microsoft makes up 3.0% of Mccarter Private Wealth Services LLC’s holdings, making the stock its 3rd biggest holding. Mccarter Private Wealth Services LLC’s holdings in Microsoft were worth $8,839,000 as of its most recent SEC filing.

Several other large investors have also added to or reduced their stakes in MSFT. Frankly Finances LLC purchased a new stake in shares of Microsoft in the second quarter worth approximately $35,000. MidAtlantic Capital Management Inc. purchased a new position in shares of Microsoft during the fourth quarter valued at approximately $59,000. Fiduciary Advisors Inc. lifted its stake in Microsoft by 37.4% during the 2nd quarter. Fiduciary Advisors Inc. now owns 125 shares of the software giant’s stock valued at $47,000 after acquiring an additional 34 shares in the last quarter. Lifetime Wealth Management P.C. bought a new position in Microsoft during the 4th quarter valued at $101,000. Finally, Glynn Capital Management LLC boosted its holdings in Microsoft by 34.2% during the 2nd quarter. Glynn Capital Management LLC now owns 255 shares of the software giant’s stock worth $95,000 after acquiring an additional 65 shares during the last quarter. Institutional investors own 71.13% of the company’s stock.

Microsoft Trading Up 0.9% Shares of MSFT opened at $517.53 on Friday. The business’s 50-day moving average price is $490.08 and its 200-day moving average price is $429.97. The stock has a market cap of $3.84 trillion, a PE ratio of 28.82, a P/E/G ratio of 1.65 and a beta of 1.10. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping the consensus estimate of $4.24 by $0.50. The company had revenue of $90.01 billion for the quarter, compared to analysts’ expectations of $87.62 billion. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. Microsoft’s revenue for the quarter was up 17.7% compared to the same quarter last year. During the same period in the prior year, the business earned $3.65 earnings per share. On average, equities analysts forecast that Microsoft Corporation will post 19.62 EPS for the current fiscal year. Microsoft Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be issued a $0.98 dividend. This is an increase from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio (DPR) is presently 20.27%.

Insider Buying and Selling In related news, EVP Amy Hood sold 41,674 shares of the firm’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the transaction, the executive vice president directly owned 533,624 shares in the company, valued at $265,888,830.48. This trade represents a 7.24% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of Microsoft stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 143,009 shares of company stock worth $71,420,699 in the last ninety days. Corporate insiders own 0.03% of the company’s stock.

More Microsoft News 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 Analyst Ratings Changes A number of research analysts recently weighed in on the stock. Tigress Financial raised their price target on shares of Microsoft from $680.00 to $690.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. The Goldman Sachs Group reiterated a “buy” rating and set a $640.00 price target on shares of Microsoft in a report on Thursday, July 30th. Raymond James Financial cut Microsoft from a “moderate buy” rating to a “strong sell” rating in a research report on Wednesday, September 23rd. CLSA reaffirmed an “outperform” rating on shares of Microsoft in a research report on Thursday, July 30th. Finally, UBS Group assumed coverage on Microsoft in a research note on Wednesday, September 23rd. They set a “buy” rating on the stock. Forty-three research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $571.18.

View Our Latest Research 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.

Read More 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

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

Microsoft (MSFT +0.92%) stock sat around $518 as of this writing, within about 5% of its record close of $542 set last October.

Microsoft's board rarely let the share price go anywhere near that high before. The software giant split its stock nine times over its first 17 years as a public company, and one share bought at its March 1986 initial public offering is now 288 shares.

But the last split was a 2-for-1 split that took effect in February 2003. The shares have gone from around $25 just after that split to over $500 now.

And Microsoft hasn't announced any plan to split them again. The call is up to the board.

After 23 years without one, could a 10th split be close?

Image source: Getty Images.

Microsoft used to split well below today's priceMicrosoft's board used to split the shares nearly as soon as they got pricey. The first eight splits happened between 1987 and 1999, and every time the stock closed somewhere between around $98 and $178 right before the split took effect.

The 2003 split was the odd one out, at a pre-split price of about $48. And a long flat spell followed. Microsoft shares didn't close back over $50 until October 2015, more than 12 years later. They first cleared $100 in June 2018 and crossed $178, their highest pre-split price of the 1990s, in February 2020.

Put another way, the stock has traded above every price at which Microsoft ever decided to split for most of the past six years, and it's now at almost three times the highest one. If the old pattern still held, I think the board would've split the shares again years ago.

That climb has come with a far bigger business. Showing how much the company keeps growing, Microsoft's fiscal 2026 revenue (for the year ended June 30) rose 18% to $331.8 billion -- a pickup from 15% growth in fiscal 2025 and 16% in fiscal 2024. And non-GAAP (adjusted) earnings per share grew 22% to $17.28.

Pricier peersSure, a few of Microsoft's big tech peers have split their shares lately. Nvidia (NVDA +1.34%) announced a 10-for-1 split in May 2024, Broadcom (AVGO +3.35%) announced its own 10-for-1 split a month later, and Netflix (NFLX -1.16%) announced one in October 2025.

But these stocks were much more expensive than Microsoft's is now. Nvidia closed at around $950 the day of its announcement, Netflix at about $1,090, and Broadcom at about $1,500. All three said the split was at least partly about making their shares more accessible to employees.

Microsoft's share price is a bit over half Nvidia's price the day it announced its split, and around a third of Broadcom's. Next to the companies that did split, Microsoft's stock arguably isn't all that expensive per share.

Also, fractional shares can make the price tag matter less than it used to. Fidelity, for example, lets investors buy a piece of a share of Nasdaq- and NYSE-listed stocks for as little as $1.

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What would a split do to Microsoft's Dow weight?The Dow Jones Industrial Average (^DJI +0.49%) is price-weighted, so a stock's influence on the index depends on its share price, not its market value. This makes Microsoft a heavyweight. By my math, it accounts for about 6% of the index now, the third-biggest weight after Goldman Sachs and Caterpillar.

A split would lower that weight. A 2-for-1 split like Microsoft's last one would cut it to about 3%, which is still near the middle of the pack.

But a 10-for-1 split like Nvidia's might send Microsoft close to the bottom of the index. The shares would trade at about $52, above only Nike among the Dow's 30 stocks, and Microsoft's weight would drop to about 0.6%.

Verizon Communications was only about 0.5% of the Dow when it was removed from the index in June. In its announcement, S&P Dow Jones Indices, which runs the Dow, said that stocks with persistently low prices have an immaterial effect on the Dow.

Is a split coming, then? I doubt one is close. The board has let the shares trade over all of its earlier split prices for most of the last six years, and $518 is modest next to where Nvidia, Broadcom, and Netflix split. If a split does come sometime, I'd expect a small one, more like the 2-for-1 splits in Microsoft's past than a 10-for-1.

Either way, a split wouldn't change what buyers pay for the business. At around 30 times adjusted earnings, I think the stock's priced about right for a company that grew adjusted earnings per share 22% last fiscal year.

Microsoft MSFT , the cloud, productivity and enterprise-AI company, launched MAI-Transcribe-2-Streaming alongside MAI-Voice-2.1 and its faster Flash variant, with shares up approximately 0.54% to $515.57 at 10.05am ET on October 2. The push gives developers more of the pieces needed to build voice agents inside Microsoft's ecosystem. Hearing a customer and answering back could mean two opportunities to capture spending.

Artificial Analysis ranked the streaming model first among 38 systems, measuring a 2.5% word-error rate and a final transcript delivered 0.13 seconds after speech ended. As explainx.ai noted, the accuracy result deserves attention. But a benchmark win does not establish customer adoption or performance in busy contact centers. Fast transcripts open the door. Reliable service keeps customers inside.

Microsoft offers all three models through Foundry, creating a potential route from voice applications to additional Azure usage. The valuation picture puts shares 12.52% below the $589.33 GF Value™ estimate, suggesting potential upside rather than guaranteeing it. The commercial hurdle is straightforward: turn strong model scores into recurring workloads while keeping inference costs under control. More conversations help only if the economics hold up.

Microsoft holds a stake in OpenAI that no public market has ever priced, and one investor argues that gap between the stock and the business is exactly where the opportunity lives.

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I keep buying Microsoft (NASDAQ:MSFT | MSFT Price Prediction), and every quarter gives me another reason to add more. The reason I bring up most at dinner is OpenAI. Microsoft owns roughly 27% of the company behind ChatGPT. That stake was valued at approximately $135 billion when the partnership was restructured. One day the stake will get a public price, and I want my shares in place before then.

Paper Value Wall Street Still Can’t Price OpenAI is reportedly aiming a valuation of about $1.2 trillion, and its listing now points toward 2027. If OpenAI lists near that figure, a 27% stake would be worth about $324 billion on paper before dilution. That equals roughly 8.5% of Microsoft’s $3.81 trillion market cap. Right now that value shows up mostly as an accounting line. A public market would price it every trading day.

I could wait and buy OpenAI directly at its IPO. I’d rather own it through Microsoft. Microsoft keeps IP rights to OpenAI models through 2032, including post-AGI models. OpenAI also signed to buy an additional $250 billion of Azure services. An OpenAI shareholder owns one model company. I own the stake, the cloud signed, and a platform that gets paid no matter which model wins. Polymarket traders give Microsoft a 0.56 probability of ending the year with a higher valuation than Anthropic and OpenAI combined.

Three Reasons I Keep Adding First, Microsoft keeps growing at huge scale. Fiscal 2026 revenue reached $331.84 billion, up 17.8%, and Azure passed $100 billion for the first time. For the first quarter of fiscal 2027, management guided Azure growth to approximately 45% in constant currency.

Second, the backlog. Commercial remaining performance obligations, meaning signed revenue not yet recognized, reached $678 billion, up 84%. Without OpenAI, that backlog still grew 25%. Nearly 90% of full-year Microsoft Cloud revenue came from customers outside frontier model companies. The core business stands on its own, and OpenAI adds upside.

Third, the quality of the business. Operating margin is 46.78%, return on equity is 34.04%, debt-to-equity is 0.29, with interest coverage at 50.88x. Microsoft returned over $43 billion to shareholders in fiscal 2026. The 0.69% dividend yield is small, so I own this stock for the compounding behind the payout. At 28x earnings, I think the price for that profile is fair.

Risk I Track Every Quarter The spending concerns me most. Capital expenditures for fiscal 2026 reached $115.95 billion, up 79.6%, and free cash flow fell 6.5%. Management expects fiscal 2027 capex of about $175 billion. OpenAI losses also hit GAAP earnings: $3.1 billion in the first quarter of fiscal 2026, compared with $523 million a year earlier. And the IPO date keeps slipping.

My case still holds because demand keeps exceeding supply. On the July 29 call, CFO Amy Hood said “Demand continues to exceed available supply”. She called the data center investment “quite flexible”. Microsoft also expects to stay free cash flow positive in fiscal 2027.

Why I Keep Buying Ahead of the IPO Over the past year the stock moved -0.51%. Over the same period, revenue rose, the backlog grew, and Copilot passed 30 million paid seats. That gap between the stock and the business is my window. When OpenAI finally prices, I want my Microsoft shares already sitting in my account, compounding while everyone else waits for the IPO.

Contact [email protected] for any questions or corrections.

Fifty-two analysts cover Microsoft and not one recommends selling, yet the stock has gone nowhere for a year while Azure just crossed a historic revenue threshold. Something in that gap between Wall Street conviction and share price stagnation does not…

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The 24/7 Wall St. price target for Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is $627.63 over the next 12 months. The target stands 22.37% above the current price of $512.90. Our model rates the stock a buy with high confidence.

Metric Value Current Price $512.90 Price Target from 24/7 Wall St. $627.63 Upside/Downside 22.37% Recommendation BUY Confidence Level 90% Wall Street agrees. Microsoft has 14 Strong Buy, 38 Buy and 3 Hold ratings, with zero Sells. The consensus target is $578.42, implying about 12.8% upside. Our target stands above the Street because consensus is underpricing how quickly Azure capacity will convert to revenue.

Azure Tops $100 Billion While Shares Tread Water The stock is up 2.56% over the past week and 6.83% year to date, but about flat for the full year at -0.06%. The 52-week range runs from $348.54 to $549.20.

The business grew much faster than the stock. Microsoft reported fiscal Q4 2026 results on July 29. Revenue came in at $90.01 billion, up 17.75%, beating the $87.63 billion estimate. EPS of $4.74 beat the $4.24 estimate. Azure grew 43% and passed $100 billion in annual revenue. Commercial backlog rose 84% to $678 billion.

Why Bulls See $727 Within Reach In our bull case, the stock hits $727.41. Supply is the main driver. Management guided to Azure growth of about 45% in constant currency for fiscal Q1 2027. CFO Amy Hood said “demand continues to exceed available supply.” Each new gigawatt of capacity sells almost as soon as it comes online.

AI products are making real money. Microsoft 365 Copilot has passed 30 million paid seats, with net additions more than doubling from the prior quarter. GitHub Copilot revenue grew over 60% quarter over quarter.

Capex and Free Cash Flow Are the Pressure Points Our bear case comes to at $533.45. Q4 capital spending rose 109.63% to $35.80 billion, and free cash flow fell 23.19%. Management expects fiscal 2027 capex of about $175 billion. More Personal Computing, which includes Windows and Xbox, contracted 4%. Excluding OpenAI, backlog grew a more modest 25%.

Operating cash flow rose 30% to $55.44 billion, and Microsoft expects free cash flow to stay positive. Hood said spending is flexible: “If the demand environment changes, you just slow down what is, in fact, the largest component.”

Microsoft Pairs Growth With Positive Free Cash Flow, Unlike Amazon and Alphabet Amazon (NASDAQ:AMZN) runs AWS, Azure’s closest rival. AWS grew 37%, slower than Azure, yet Amazon trades at 35x trailing earnings versus Microsoft’s 28x. Amazon’s trailing free cash flow was negative $7.6 billion.

Alphabet (NASDAQ:GOOGL) trades at 15x earnings, and Google Cloud grew 82%. A $99.03 billion gain on equity securities inflated those earnings. Alphabet had negative Q2 free cash flow of $5.855 billion and suspended its buyback.

Company Trailing P/E Cloud Growth Microsoft 28 43% (Azure) Amazon 35 37% (AWS) Alphabet 15 82% (Google Cloud) Against these peers, our target looks reasonable. Microsoft has premium-quality cash flow at a valuation between the two.

Microsoft Price Prediction 2026-2030 I stand by our 24/7 Wall St. price target of $627.63, a buy rating and 90% confidence. Capacity selling as soon as it arrives tips the scale. My confidence would rise if Azure delivers the guided acceleration and Copilot seat additions keep compounding.

I would get more conservative if capex keeps growing while free cash flow contracted for several more quarters. For now, the evidence supports the bull side.

Our model projects where Microsoft could trade if current growth and market conditions hold.

Year Price Target from 24/7 Wall St. 2026 $542.26 2027 $629.19 2028 $727.64 2029 $820.67 2030 $895.81 Contact [email protected] for any questions or corrections.

Investors have survived September, the historically worst month of the year for stock market returns.

Outside of February (which has an average return that's just barely negative), September is the only month to average a negative return for the S&P 500. The S&P 500 was actually positive for September this year, although it wasn't a very large positive gain – less than 1%. However, that primes the market for October.

The S&P 500 has averaged about a 0.9% positive return in October, making it one of the better months (although not as good as November or December). I think there's a huge opportunity coming in October, and it could send the market skyrocketing.

October has some major catalysts comingOctober is the start of the fourth quarter, which means companies will start to report their third-quarter results. There are some highly anticipated Q3 earnings reports coming out soon, including many of the AI hyperscalers. We'll get updated on how businesses like Alphabet, Amazon and Microsoft are doing in the second half of the month, and what they say could shape how the market performs through the end of 2026.

META PUTS POPULAR NEW TOOL IN HANDS OF SMALL BUSINESSES

Ticker Security Last Change Change % GOOGL ALPHABET INC. 338.24 -5.84 -1.70% AMZN AMAZON.COM INC. 248.23 -0.92 -0.37% MSFT MICROSOFT CORP. 512.80 -0.10 -0.02% These three tech megacaps are spending hundreds of billions of dollars to build new AI computing capacity in data centers. So far, the growth rates their respective cloud computing businesses have put up have made these investments worth it. This trio may decide to use their next earnings reports to reveal 2027 capital expenditure guidance, which could cause the markets to decline or soar based on the extent to which these three are planning on spending.

It's already widely assumed that these three will increase their capital expenditures in 2027, but the question remains as to how much. I think they will make hefty hikes to their capex budgets, but that they will justify that spending by reporting further massive revenue growth from their cloud computing divisions.

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The opening bell of the New York Stock Exchange in New York City, on 28 May 2025. (Adam Gray for Fox News Digital)

Take Alphabet's Google Cloud, for example. In Q2, its revenue rose 82% year over year, and it delivered a 36% operating margin. That's an incredible business, and if Alphabet has customer demand for more capacity (which it does), it should be commended for heavily investing in this business unit.

I expect Amazon and Microsoft to say the same thing, which could send their shares skyrocketing. This would also have positive implications for chip providers like Nvidia, Taiwan Semiconductor Manufacturing, and Broadcom, which also make up a hefty portion of the value of the stock market.

NVIDIA RELEASES AI SAFETY PLATFORM

If the giant tech companies that account for more than a third of the value of the S&P 500 perform well, they should pull the rest of the market up with them and make October 2026 a fantastic month on Wall Street.

Keithen Drury has positions in Alphabet, Amazon, Broadcom, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Broadcom, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

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Google just launched a frontier AI model that can hunt down security vulnerabilities automatically, yet investors are selling the stock while the rest of tech rallies. The reason why reveals a problem Alphabet has not yet solved.

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On Wednesday, Alphabet‘s (NASDAQ:GOOGL | GOOGL Price Prediction) Google unit unveiled Gemini 4 Argon, a frontier AI model aimed directly at enterprise work, and the market is declining to pay up for the announcement. Shares of Alphabet are slipping 2% to $338.85 as the session unfolds, a move that runs against a stronger technology sector.

To measure how isolated the slide in Alphabet shares is, the two major technology funds offer a quick check. Notably, the Technology Select Sector SPDR ETF (NYSEARCA:XLK) is up 1% to $198.25, a sign the broader technology group is drawing buyers. The Invesco QQQ Trust (NASDAQ:QQQ) up 0.54% to $743.79, a modest gain for the large-cap benchmark.

Meanwhile, Microsoft (NASDAQ:MSFT) shares are up 0.2% to $514.08, holding steady alongside the sector fund. Amazon (NASDAQ:AMZN) stock is down 0.5% to $247.90, a dip that leaves the stock close to unchanged. With both stocks trading near flat, the pressure looks specific to Alphabet shares.

Gemini 4 Argon Targets Enterprise Code and Security Alphabet’s Google unit built Gemini 4 Argon for long-horizon enterprise tasks, complex software development and automated defensive cybersecurity. Google stated that Argon’s single-trajectory output capacity reaches 1 million tokens, giving the system more room to follow extended reasoning paths across multi-stage projects. Argon can automatically scan codebases, isolate critical vulnerabilities and write context-aware security patches.

During early testing, Argon identified a severe, previously unmapped vulnerability in hospital healthcare software that earlier models had missed, Google declared, and internal engineering infrastructure at Google already runs Argon, giving the company a live proving ground for the system. For Alphabet, that security use case anchors the bull argument, because automatically finding and patching a vulnerability maps onto a budget and an owner inside a company.

Restricted Rollout Leaves Revenue Question Open The problem for Alphabet is Argon’s launch, which starts narrow. Google is releasing Argon first to a limited group of trusted cybersecurity specialists through the company’s Fairwind Program, and enterprise users, developers and subscribers are slated to follow once further safety safeguards are in place, according to Google.

An introductory developer interface price of $2 per million input tokens, confirmed by Google, gives an early marker for how Alphabet may charge for Argon. Until enterprise customers and developers gain access, the revenue question Argon was meant to answer stays open for Alphabet. That timing gap helps explain why Alphabet shares are lower even as the sector fund rises.

Microsoft shares holding steady and Amazon stock dipping only slightly show the mega-cap group trading name by name. Alphabet stock stands out as the clear decliner of the three, one day after a frontier model release the market has yet to reward. The divergence is significant because all three companies compete for enterprise technology budgets.

What to Watch Next Alphabet’s next test is the timing of Argon’s broader commercial launch, which Google tied to further safety safeguards. Shareholders could look for signs that Google’s developer price of $2 per million input tokens draws early interest once access opens up. A broader release to subscribers could test how far Argon reaches beyond security specialists.

The optimistic case for Alphabet stock rests on Argon turning automated vulnerability patching into paid enterprise work. In contrast, the bear case centers on a restricted launch that pushes revenue further out.

Contact [email protected] for any questions or corrections.

Former LinkedIn CEO Ryan Roslansky announced on Thursday that he is stepping down “after nearly 18 years at LinkedIn and Microsoft” and will leave the company at the end of the year.

Roslansky led LinkedIn for six years, during which time he grew membership on the platform from 700 million to 1.3 billion. Last year, his role at Microsoft expanded to include overseeing the software giant’s Office productivity software group, CNBC reported.

The news follows the departures earlier this year of Microsoft’s former gaming CEO Phil Spencer, and Rajesh Jha, former executive vice president of Experiences and Devices.

“Ryan leaves the organization in a strong position,” Microsoft CEO Satya Nadella, wrote in a memo to employees on Thursday.

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In his note, Roslansky said the need to work in office at the company’s Washington headquarters, requiring a relocation, played a part in his decision to leave. (Like many companies, Microsoft now requires employees who live within 50 miles of its offices to work on-site.)

“I know what it would take for me to lead the next phase of this work well: being in Redmond [Washington] full time, every day. But my life and my family’s life are here in the Bay Area,” Roslansky wrote in a post on LinkedIn. “I thought about this for a long time. It’s the right call. The work now goes to leaders who are set up to take it further. I can’t wait to see what they do with it.

LinkedIn is not the only company to announce changes in a reshuffling of its executive suite this week. Condé Nast CEO Roger Lynch is moving to Mattel; while Mattel’s CEO Ynon Kreiz is moving to Paramount-Warner Bros., where he will be co-CEO of the Hollywood studio and media conglomerate following its expected merger.

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Jennifer Mattson is a Contributing Writer at Fast Company, where she covers news trends and writes daily about business, technology, finance and the workplace.. She is a former network news producer for CNN, CNN International and a number of public radio programs More

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Wells Fargo just added Microsoft to its Q4 Tactical Ideas list and pushed its price target well above Wall Street consensus, betting that Azure and Copilot are about to prove the skeptics wrong.

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Wells Fargo lifted its price target on Microsoft (NASDAQ:MSFT | MSFT Price Prediction) to $725 from $700 and kept its Overweight rating. It also added the shares to its Q4 “Tactical Ideas list”.

Analyst Michael Turrin sees a “favorable tactical setup” heading into the fourth quarter. The higher target shows that Wall Street is growing more confident Microsoft can turn its AI lead into lasting earnings growth.

Ticker Company Firm Action Old Rating New Rating Old Target New Target MSFT Microsoft Wells Fargo Price Target Raised Overweight Overweight $700 $725 Analyst’s Case: Catalysts Lining Up for Q4 Turrin cited a “number of key catalysts,” including Microsoft’s AI advantage starting to pay off, its Ignite conference in November and its new segment reporting.

Wells believes momentum among mega cap tech stocks is “shifting back to” Microsoft as the company “delivers on AI monetization story alongside balanced investment approach.”

Recent results back that view: Azure revenue topped $100 billion for the fiscal year. The number of paid seats for Microsoft 365 Copilot exceeded 30 million, and net paid seat additions more than doubled sequentially. Chief Financial Officer Amy Hood said “demand continues to exceed available supply.”

Record Quarter and Contract Backlog Fuel the Upgrade Microsoft reported fiscal Q4 2026 results on July 29, 2026. Revenue came in at $90.01 billion, up 17.8% and ahead of the $87.63 billion consensus. Non-GAAP EPS of $4.74 beat the $4.24 estimate, helped partly by a $3.2 billion gain on its Anthropic investment.

That was the company’s fifth consecutive EPS beat. Commercial remaining performance obligations, a measure of contracted future revenue, rose 84% to $678 billion.

For the full fiscal year, revenue reached $331.84 billion and EPS was $17.28. Heavy spending weighed on cash: capex hit $115.95 billion, and free cash flow fell 6.46% to $66.99 billion.

Why the Move Matters Now Microsoft stock trades at $517.75. It is up 7.74% year to date but only 0.79% over the past year, and it sits below its 52-week high of $549.20. Shares trade at roughly 28x trailing earnings and 25x forward earnings.

Wells Fargo’s target is well above the consensus target of $578.42. Analyst sentiment leans strongly positive, with 14 Strong Buy, 38 Buy and 3 Hold ratings. The average fiscal 2027 EPS estimate has risen to $19.7597 from $19.3730 90 days ago.

Over the past 30 days, analysts made 21 upward revisions and 8 downward ones. Management expects Azure growth of about 45% in constant currency this quarter.

What It Means for Your Portfolio Spending remains the main risk: Microsoft now expects capex of about $175 billion. Microsoft Cloud gross margin slipped to 65% because of the shift toward AI infrastructure. Hood said much of that spending goes to shorter-lived chips, which gives the company “a lot more flexibility to manage through those” changes in demand.

Income-focused investors get a modest dividend yield of about 0.69%, with the next ex-dividend date on November 19, 2026.

Long-term investors may see the higher target as a sign of rising analyst confidence, though near-term volatility is still a real risk. Keep an eye on Ignite in November and on Microsoft’s first earnings report under its new segment structure.

Contact [email protected] for any questions or corrections.

Two top Microsoft executives shared this week that they're leaving the Redmond, Wash.

Mindset Wealth Management LLC grew its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 22.6% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 6,262 shares of the software giant’s stock after acquiring an additional 1,153 shares during the quarter. Microsoft accounts for 0.4% of Mindset Wealth Management LLC’s portfolio, making the stock its 21st biggest holding. Mindset Wealth Management LLC’s holdings in Microsoft were worth $2,336,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Empirical Financial Services LLC d.b.a. Empirical Wealth Management lifted its holdings in shares of Microsoft by 4.0% in the 2nd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant’s stock valued at $85,604,000 after acquiring an additional 8,773 shares during the last quarter. Markel Group Inc. increased its stake in Microsoft by 0.4% during the first quarter. Markel Group Inc. now owns 537,630 shares of the software giant’s stock worth $199,014,000 after acquiring an additional 1,950 shares during the last quarter. Bessemer Group Inc. raised its position in Microsoft by 8.4% during the first quarter. Bessemer Group Inc. now owns 6,921,677 shares of the software giant’s stock valued at $2,562,197,000 after purchasing an additional 537,634 shares during the period. Taylor Securities Services Inc. purchased a new stake in Microsoft during the fourth quarter valued at approximately $2,616,000. Finally, Harel Insurance Investments & Financial Services Ltd. lifted its stake in shares of Microsoft by 138.8% in the 1st quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,356,359 shares of the software giant’s stock valued at $502,077,000 after purchasing an additional 788,297 shares during the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes MSFT has been the topic of several analyst reports. Cantor Fitzgerald boosted their target price on Microsoft from $522.00 to $608.00 and gave the company an “overweight” rating in a research report on Monday, September 21st. Oppenheimer raised their price target on Microsoft from $515.00 to $570.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 22nd. UBS Group assumed coverage on shares of Microsoft in a research note on Wednesday, September 23rd. They set a “buy” rating for the company. Barclays reduced their target price on shares of Microsoft from $545.00 to $512.00 and set an “overweight” rating on the stock in a research note on Thursday, July 30th. Finally, Jefferies Financial Group reaffirmed a “buy” rating on shares of Microsoft in a research note on Monday, September 21st. Forty-three analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $570.62.

Read Our Latest Report on MSFT Microsoft Stock Up 0.8% NASDAQ:MSFT opened at $512.90 on Thursday. The company has a market cap of $3.81 trillion, a price-to-earnings ratio of 28.56, a price-to-earnings-growth ratio of 1.64 and a beta of 1.11. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $553.72. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07. The stock has a fifty day simple moving average of $484.74 and a 200-day simple moving average of $428.53.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. The firm had revenue of $90.01 billion for 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 business’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same period in the prior year, the business posted $3.65 earnings per share. Analysts anticipate that Microsoft Corporation will post 19.62 EPS for the current year.

Microsoft Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.8%. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s payout ratio is currently 20.27%.

Insider Activity at Microsoft In related news, CEO Judson Althoff sold 10,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the transaction, the chief executive officer owned 100,447 shares of the company’s stock, valued at $49,007,086.83. This represents a 9.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Takeshi Numoto sold 4,810 shares of Microsoft stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 143,009 shares of company stock valued at $71,420,699. 0.03% of the stock is owned by insiders.

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

Positive Sentiment: Piper Sandler raised its price target to $610 from $550 and maintained an Overweight rating, citing improving estimates for Microsoft’s commercial cloud business and potential revenue from the new E7 enterprise licensing tier. Why is Microsoft stock up on Wednesday? Positive Sentiment: Microsoft’s revamped Copilot is becoming more enterprise-focused, while usage-based billing expected to begin in November could simplify adoption and improve monetization. Analysts also see potential for paid Copilot seats to continue expanding rapidly. What a Revamped Copilot Means for Microsoft Stock Positive Sentiment: Microsoft is bringing OpenAI’s autonomous “Dots” agents into its enterprise security and governance framework, strengthening its position in workplace AI. A long-term Xbox publishing agreement with Take-Two also supports the gaming ecosystem. Microsoft Brings OpenAI’s Autonomous Dots AI Workers Into the Enterprise Neutral Sentiment: Microsoft has delivered a substantial quarterly rally, but its valuation remains below its recent average P/E despite strong Azure growth, expanding Copilot demand and a sizable commercial backlog. This leaves room for additional upside, although expectations are already elevated. How Much Upside Is Left In Microsoft Stock? Negative Sentiment: Investors remain concerned that surging AI infrastructure spending could outpace free cash flow before Azure and Copilot returns fully materialize. Microsoft also warns that AI agents may weaken traditional software pricing power and customer loyalty. The AI Revolution Could Be Microsoft’s Next Trillion-Dollar Opportunity Microsoft Profile (Free Report)

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

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

Recommended Stories Five stocks we like better than Microsoft Deutsche Bank Makes a Contrarian Call on Netflix—What Does It Mean for Investors? O’Reilly Automotive’s Stock Slump Hides a Stronger Business McDonald’s Stock Slump Makes Its AI Pricing Bet Even Riskier Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test

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Microsoft NASDAQ: MSFT investors have owned two different companies in 2026. Or at least, they've been told two very different stories about the same one.

Microsoft Today

$513.51 +0.61 (+0.12%)

As of 10:53 AM Eastern

This is a fair market value price provided by Massive. Learn more.

$349.20▼

$553.720.71%

28.65

$570.62

In the first half of the year, the story was fear. AI would disrupt software. Copilot was an expensive add-on nobody would pay for. Data center spending looked out of control. Not surprisingly, by late June, MSFT had sunk to roughly $355.

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But in the second half, the story is about discipline. Microsoft shares rose more than 36% in the last three months and turned positive for the year. It's a remarkable comeback for a stock that had fallen 20%.

The reason why may come as a surprise. The same capital spending that scared investors in the spring has become a selling point. To illustrate that point, CNBC's Jeff Marks now calls Microsoft "one of the few hyperscalers that is living within their means."

So what actually changed? Less than you might think. The business was improving the whole time. What flipped was the narrative investors used to interpret it. Here's how the change in sentiment happened, and what the chart says about what comes next.

Copilot Growth Was Already Hiding in Plain SightMicrosoft's fourth quarter of fiscal 2026 ran from April through June, which is the exact stretch when the stock slid toward its lows.

But the Q4 earnings report showed that during those same three months, Microsoft was delivering results on Copilot, which had been considered a major obstacle. Microsoft ended the quarter with 30 million paid Copilot seats, up 10 million in a single quarter and the fastest seat growth since Copilot launched. Q4 revenue increased 18% year-over-year to reach $90 billion.

In other words, customers were buying Copilot at a record pace. At the same time, investors were dumping the stock on fears that nobody would. Investors simply didn't have the data yet.

Same Spending With a Different SentimentSpending tells the same story. Earlier this year, Microsoft's data center budget was treated as a liability. Investors questioned whether hyperscalers could generate sufficient returns on their enormous AI investments.

98th Percentile

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11.3% Upside

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0.86 Selling Shares

18.40%

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Microsoft didn't slash spending to win them back. Instead, it brought more capacity online, delivered 43% revenue growth from Azure and other cloud services, and remained free cash flow positive.

That's the key point. Capital expenditure (CapEx) didn't change. The return on investment story did. Once investors saw capacity turning into revenue, "reckless" became "disciplined."

Analysts followed the price. Stifel upgraded MSFT from Hold to Buy on Sept. 22, arguing that the company had decisively turned a corner. Then came the Copilot redesign on Sept. 25. On Wednesday, Sept. 30, Piper Sandler raised its price target to $610 from $550 while maintaining an Overweight rating, saying the Copilot narrative had “improved materially” this year.

Those upgrades arrived after the stock had rallied more than 40% off its lows. That's how sentiment changes work. Analyst consensus confirms a move. It rarely starts one.

The Chart Shows a Rally Catching Its BreathAfter the post-earnings move, Microsoft has spent about two months trading mostly between $485 and $520. Meanwhile, the 50-day simple moving average has climbed steeply to about $480. That's a constructive setup. Price is digesting its gains while the trend catches up underneath it.

Momentum has cooled, though. The MACD line sits at 7.02, just below its signal line at 7.35. The histogram is only slightly negative. Put simply, the stock isn't overheated. It's resting.

A MACD crossover back above the signal line would suggest the consolidation is resolving higher. If that happens, the next major test is the 52-week high near $554. On the downside, the rising 50-day average near $480 is the level to watch.

The Risk Now Is Chasing the New NarrativeSentiment whiplash cuts both ways. Investors who sold near $355 on a bad story can just as easily overpay on a good one.

The macro backdrop deserves respect, too. The 10-year Treasury yield advanced to 5.25%, its highest level since 2007. That puts pressure on big tech valuations.

The next chapter of this story will be written in usage data. The more advanced Cowork, Code, and Autopilot features shift to usage-based pricing. That's the metric to watch when Microsoft reports again in late October.

MSFT Outlook: Fundamentals Still Matter More Than SentimentMicrosoft didn't become a great business in August. It was already one in June. The only thing that changed was how investors chose to tell the story.

That's the real lesson for patient investors. Narratives swing quickly, while fundamentals compound quietly. The next time the story around Microsoft turns, check whether the numbers do too.

Should You Invest $1,000 in Microsoft Right Now?Before you consider Microsoft, you'll want to hear this.

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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.

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#1 (Strong Buy) stocks have produced an unmatched +23.86% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

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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.

Momentum investors should take note of this Computer and Technology stock. MSFT has a Momentum Style Score of B, and shares are up 3.2% over the past four weeks.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.03 to $19.62 per share. MSFT also boasts an average earnings surprise of +9.3%.

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

RPg Family Wealth Advisory LLC increased its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 50.2% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 33,919 shares of the software giant’s stock after purchasing an additional 11,341 shares during the quarter. Microsoft makes up 2.6% of RPg Family Wealth Advisory LLC’s investment portfolio, making the stock its 5th largest holding. RPg Family Wealth Advisory LLC’s holdings in Microsoft were worth $12,653,000 as of its most recent filing with the Securities and Exchange Commission.

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

Analysts Set New Price Targets Several research analysts recently weighed in on the company. Evercore set a $528.00 price target on Microsoft in a research report on Thursday, July 30th. Stifel Nicolaus raised Microsoft from a “hold” rating to a “buy” rating and lifted their target price for the company from $530.00 to $575.00 in a research note on Tuesday, September 22nd. BMO Capital Markets upped their target price on Microsoft from $500.00 to $515.00 and gave the company an “outperform” rating in a report on Thursday, July 30th. Benchmark reissued a “buy” rating on shares of Microsoft in a research report on Friday, July 24th. Finally, TD Cowen restated a “buy” rating and set a $540.00 price target on shares of Microsoft in a report on Thursday, July 30th. Forty-three investment 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 an average rating of “Moderate Buy” and an average target price of $570.62.

Get Our Latest Report on Microsoft Insider Buying and Selling at Microsoft 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 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 approximately $49,007,086.83. This trade represents a 9.05% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Amy Hood sold 41,674 shares of Microsoft 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 sale, 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 143,009 shares of company stock worth $71,420,699 in the last ninety days. Insiders own 0.03% of the company’s stock.

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

Positive Sentiment: Piper Sandler raised its price target to $610 from $550 and maintained an Overweight rating, citing improving estimates for Microsoft’s commercial cloud business and potential revenue from the new E7 enterprise licensing tier. Why is Microsoft stock up on Wednesday? Positive Sentiment: Microsoft’s revamped Copilot is becoming more enterprise-focused, while usage-based billing expected to begin in November could simplify adoption and improve monetization. Analysts also see potential for paid Copilot seats to continue expanding rapidly. What a Revamped Copilot Means for Microsoft Stock Positive Sentiment: Microsoft is bringing OpenAI’s autonomous “Dots” agents into its enterprise security and governance framework, strengthening its position in workplace AI. A long-term Xbox publishing agreement with Take-Two also supports the gaming ecosystem. Microsoft Brings OpenAI’s Autonomous Dots AI Workers Into the Enterprise Neutral Sentiment: Microsoft has delivered a substantial quarterly rally, but its valuation remains below its recent average P/E despite strong Azure growth, expanding Copilot demand and a sizable commercial backlog. This leaves room for additional upside, although expectations are already elevated. How Much Upside Is Left In Microsoft Stock? Negative Sentiment: Investors remain concerned that surging AI infrastructure spending could outpace free cash flow before Azure and Copilot returns fully materialize. Microsoft also warns that AI agents may weaken traditional software pricing power and customer loyalty. The AI Revolution Could Be Microsoft’s Next Trillion-Dollar Opportunity Microsoft Stock Performance Shares of NASDAQ MSFT opened at $512.90 on Thursday. The business’s 50-day moving average price is $484.74 and its two-hundred day moving average price is $428.53. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.23 and a quick ratio of 1.22. Microsoft Corporation has a one year low of $349.20 and a one year high of $553.72. The company has a market capitalization of $3.81 trillion, a P/E ratio of 28.56, a price-to-earnings-growth ratio of 1.64 and a beta of 1.11.

Microsoft (NASDAQ:MSFT – Get Free Report) last issued its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, topping the consensus estimate of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%.The company had revenue of $90.01 billion for the quarter, compared to analyst estimates of $87.62 billion. During the same period in the prior year, the firm posted $3.65 EPS. The business’s revenue was up 17.7% compared to the same quarter last year. Analysts anticipate 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. Investors of record on Thursday, November 19th will be issued a $0.98 dividend. This is an increase from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Thursday, November 19th. Microsoft’s dividend payout ratio is currently 20.27%.

Microsoft Profile (Free Report)

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

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

Further Reading Five stocks we like better than Microsoft Deutsche Bank Makes a Contrarian Call on Netflix—What Does It Mean for Investors? O’Reilly Automotive’s Stock Slump Hides a Stronger Business McDonald’s Stock Slump Makes Its AI Pricing Bet Even Riskier Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test

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Titan Global Capital Management USA LLC grew its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 6.3% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 73,607 shares of the software giant’s stock after acquiring an additional 4,338 shares during the period. Microsoft comprises 3.5% of Titan Global Capital Management USA LLC’s portfolio, making the stock its 8th largest position. Titan Global Capital Management USA LLC’s holdings in Microsoft were worth $27,457,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of MSFT. Auto Owners Insurance Co lifted its holdings in Microsoft by 56,160.8% in the 4th quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after buying an additional 60,009,531 shares during the period. Amundi increased its stake in shares of Microsoft by 30.8% during the first quarter. Amundi now owns 41,675,076 shares of the software giant’s stock valued at $15,426,862,000 after buying an additional 9,814,598 shares during the period. Dimensional Fund Advisors LP increased its stake in shares of Microsoft by 10.5% during the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock valued at $10,852,884,000 after buying an additional 2,784,809 shares during the period. Fisher Asset Management LLC raised its holdings in shares of Microsoft by 1.8% during the fourth quarter. Fisher Asset Management LLC now owns 25,300,410 shares of the software giant’s stock valued at $12,235,785,000 after acquiring an additional 458,014 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its holdings in shares of Microsoft by 64.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 24,264,779 shares of the software giant’s stock valued at $8,982,083,000 after acquiring an additional 9,493,778 shares in the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Microsoft Price Performance MSFT stock opened at $512.90 on Thursday. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. The firm has a 50 day moving average price of $484.74 and a 200-day moving average price of $428.53. Microsoft Corporation has a 52-week low of $349.20 and a 52-week high of $553.72. The firm has a market capitalization of $3.81 trillion, a price-to-earnings ratio of 28.56, a PEG ratio of 1.64 and a beta of 1.11.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share 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%.The firm’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter last year, the company earned $3.65 EPS. Equities research analysts forecast that Microsoft Corporation will post 19.62 EPS for the current fiscal year. Microsoft Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. This is an increase from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s payout ratio is currently 20.27%.

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

Positive Sentiment: Piper Sandler raised its price target to $610 from $550 and maintained an Overweight rating, citing improving estimates for Microsoft’s commercial cloud business and potential revenue from the new E7 enterprise licensing tier. Why is Microsoft stock up on Wednesday? Positive Sentiment: Microsoft’s revamped Copilot is becoming more enterprise-focused, while usage-based billing expected to begin in November could simplify adoption and improve monetization. Analysts also see potential for paid Copilot seats to continue expanding rapidly. What a Revamped Copilot Means for Microsoft Stock Positive Sentiment: Microsoft is bringing OpenAI’s autonomous “Dots” agents into its enterprise security and governance framework, strengthening its position in workplace AI. A long-term Xbox publishing agreement with Take-Two also supports the gaming ecosystem. Microsoft Brings OpenAI’s Autonomous Dots AI Workers Into the Enterprise Neutral Sentiment: Microsoft has delivered a substantial quarterly rally, but its valuation remains below its recent average P/E despite strong Azure growth, expanding Copilot demand and a sizable commercial backlog. This leaves room for additional upside, although expectations are already elevated. How Much Upside Is Left In Microsoft Stock? Negative Sentiment: Investors remain concerned that surging AI infrastructure spending could outpace free cash flow before Azure and Copilot returns fully materialize. Microsoft also warns that AI agents may weaken traditional software pricing power and customer loyalty. The AI Revolution Could Be Microsoft’s Next Trillion-Dollar Opportunity Insider Buying and Selling In related news, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the transaction, the executive vice president directly owned 42,677 shares in the company, valued at $21,188,276.96. The trade was a 10.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Satya Nadella sold 86,525 shares of the business’s stock in a transaction 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 $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. Insiders have sold 143,009 shares of company stock valued at $71,420,699 over the last ninety days. Insiders own 0.03% of the company’s stock.

Analysts Set New Price Targets Several analysts recently weighed in on MSFT shares. The Goldman Sachs Group reiterated a “buy” rating and issued a $640.00 price target on shares of Microsoft in a report on Thursday, July 30th. TD Cowen restated a “buy” rating and issued a $540.00 price objective on shares of Microsoft in a report on Thursday, July 30th. Raymond James Financial cut shares of Microsoft from a “moderate buy” rating to a “strong sell” rating in a research report on Wednesday, September 23rd. Sanford C. Bernstein set a $660.00 price target on shares of Microsoft in a research report on Monday, August 10th. Finally, Cantor Fitzgerald boosted their price target on shares of Microsoft from $522.00 to $608.00 and gave the company an “overweight” rating in a research report on Monday, September 21st. Forty-three research 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 data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $570.62.

Check Out Our Latest 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.

Recommended Stories Five stocks we like better than Microsoft Deutsche Bank Makes a Contrarian Call on Netflix—What Does It Mean for Investors? O’Reilly Automotive’s Stock Slump Hides a Stronger Business McDonald’s Stock Slump Makes Its AI Pricing Bet Even Riskier Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test

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.

TD Asset Management Inc cut its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 22.9% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 6,747,748 shares of the software giant’s stock after selling 2,007,411 shares during the period. Microsoft accounts for about 2.2% of TD Asset Management Inc’s portfolio, making the stock its 6th biggest position. TD Asset Management Inc owned about 0.09% of Microsoft worth $2,517,045,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also modified their holdings of the stock. Auto Owners Insurance Co lifted 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 buying an additional 60,009,531 shares during the last quarter. Amundi increased 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. Fisher Asset Management LLC increased its position in Microsoft by 1.8% during the fourth quarter. Fisher Asset Management LLC now owns 25,300,410 shares of the software giant’s stock valued at $12,235,785,000 after acquiring an additional 458,014 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Microsoft by 10.5% in the first quarter. Dimensional Fund Advisors LP now owns 29,323,744 shares of the software giant’s stock valued at $10,852,884,000 after acquiring an additional 2,784,809 shares during the period. Finally, Hsbc Holdings PLC raised its stake in shares of Microsoft by 7.8% in the fourth quarter. Hsbc Holdings PLC now owns 22,138,798 shares of the software giant’s stock valued at $10,715,379,000 after acquiring an additional 1,599,412 shares during the period. 71.13% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth A number of research firms recently commented on MSFT. CLSA reaffirmed an “outperform” rating on shares of Microsoft in a research note on Thursday, July 30th. Oppenheimer increased their price objective on shares of Microsoft from $515.00 to $570.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 22nd. Argus decreased their price objective 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. Tigress Financial raised their price objective on shares of Microsoft from $680.00 to $690.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Finally, Citizens Jmp restated a “market outperform” rating and set a $550.00 target price on shares of Microsoft in a research report on Tuesday, September 15th. Forty-three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Microsoft has an average rating of “Moderate Buy” and a consensus price target of $570.62.

Get Our Latest Stock Analysis on MSFT Microsoft Trading Up 0.8% NASDAQ MSFT opened at $512.90 on Thursday. The stock has a market cap of $3.81 trillion, a PE ratio of 28.56, a PEG ratio of 1.64 and a beta of 1.11. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $553.72. The company’s 50-day moving average price is $484.74 and its 200-day moving average price is $428.53. The company has a current ratio of 1.23, a quick ratio of 1.22 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The software giant reported $4.74 earnings per share for the quarter, beating analysts’ consensus estimates of $4.24 by $0.50. 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 revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter last year, the business posted $3.65 EPS. Equities research analysts forecast that Microsoft Corporation will post 19.62 earnings per share for the current year.

Microsoft Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.98 per share. This is a boost from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Thursday, November 19th. Microsoft’s payout ratio is presently 20.27%.

Insider Activity at Microsoft In related news, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the completion of the sale, the chief executive officer owned 100,447 shares in the company, valued at approximately $49,007,086.83. The trade was a 9.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 value of $43,388,826.50. Following the completion of the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at approximately $244,092,173.98. This trade 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. Over the last ninety days, insiders sold 143,009 shares of company stock worth $71,420,699. Insiders own 0.03% of the company’s stock.

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

Positive Sentiment: Piper Sandler raised its price target to $610 from $550 and maintained an Overweight rating, citing improving estimates for Microsoft’s commercial cloud business and potential revenue from the new E7 enterprise licensing tier. Why is Microsoft stock up on Wednesday? Positive Sentiment: Microsoft’s revamped Copilot is becoming more enterprise-focused, while usage-based billing expected to begin in November could simplify adoption and improve monetization. Analysts also see potential for paid Copilot seats to continue expanding rapidly. What a Revamped Copilot Means for Microsoft Stock Positive Sentiment: Microsoft is bringing OpenAI’s autonomous “Dots” agents into its enterprise security and governance framework, strengthening its position in workplace AI. A long-term Xbox publishing agreement with Take-Two also supports the gaming ecosystem. Microsoft Brings OpenAI’s Autonomous Dots AI Workers Into the Enterprise Neutral Sentiment: Microsoft has delivered a substantial quarterly rally, but its valuation remains below its recent average P/E despite strong Azure growth, expanding Copilot demand and a sizable commercial backlog. This leaves room for additional upside, although expectations are already elevated. How Much Upside Is Left In Microsoft Stock? Negative Sentiment: Investors remain concerned that surging AI infrastructure spending could outpace free cash flow before Azure and Copilot returns fully materialize. Microsoft also warns that AI agents may weaken traditional software pricing power and customer loyalty. The AI Revolution Could Be Microsoft’s Next Trillion-Dollar Opportunity About Microsoft (Free Report)

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

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

Recommended Stories Five stocks we like better than Microsoft Deutsche Bank Makes a Contrarian Call on Netflix—What Does It Mean for Investors? O’Reilly Automotive’s Stock Slump Hides a Stronger Business McDonald’s Stock Slump Makes Its AI Pricing Bet Even Riskier Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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Hedge fund managers are making big moves to capitalize on the artificial intelligence (AI)-driven stock market gyrations. Billionaire Bill Ackman made some in his portfolio last quarter, completely selling out of Alphabet (GOOG +1.01%) (GOOGL +0.93%) for his investment fund, Pershing Square. Given the timing of the buys and sells, it is likely that Pershing Square reaped multibagger returns from its investment in Alphabet.

What did Ackman buy with his Google proceeds? He turned to another AI technology giant: Microsoft (MSFT +0.77%). It had been a laggard in the first half of 2026 and was down about 20% from its Q2 highs when Pershing Square topped off its position.

Bill Ackman. Image source: Getty Images.

Microsoft is now back near all-time highs and the largest position in the Pershing Square portfolio. Does that mean Ackman made the right move to dump Alphabet for Microsoft?

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Microsoft's booming cloud business and software fears In early 2026, Microsoft's share price was facing two thematic headwinds. First, as the world's largest enterprise software company, Microsoft's stock dipped alongside the rest of the sector amid concerns that AI would disrupt everything.

It turns out that no AI disruption has occurred so far, or that it is taking much longer than pessimists assumed. Microsoft's commercial 365 software revenue rose 14% year over year in constant currency last quarter, showing no signs of disruption from AI.

Second, Microsoft had some weakness relative to other major technology players due to OpenAI's speed bumps in 2026. Previously, Microsoft was the leading cloud provider for OpenAI and was seen as reliant on OpenAI for revenue growth at its Azure cloud business. Microsoft has since diversified its AI cloud business beyond a sole bet on OpenAI, while also securing major commitments from its flagship partner.

Last quarter, Microsoft's cloud revenue increased 27% to $59.3 billion, with remaining performance obligations rising 84% to $678 billion. On these numbers, the stock price has begun to recover and is now down just 5% from the 2025 highs.

Image source: Alphabet.

A cheap earnings multiple compared to the rest of big tech Compared with other large technology players such as Alphabet, Microsoft had a much lower valuation in the first half of 2026. Earlier this year, when Pershing Square was buying, Microsoft had a forward price-to-earnings ratio (P/E) in the low 20s. For a business with revenue increasing in double-digit percentages with a huge order backlog, that is a low price, which was driven by the slump across the entire enterprise software sector.

Alphabet's forward P/E ratio was in the low 30s during the same period, while Apple's was in the high 30s. Pershing Square likely saw Microsoft as a better value because of this discrepancy in earnings ratios.

MSFT PE Ratio (Forward) data by YCharts

Was it the right move? So far, Ackman's decision to sell Alphabet and buy more Microsoft is looking smart. Alphabet's stock is down 15% since the middle of Q2, while Microsoft shares are up 26% and close to breaking through to new all-time highs.

But what about the long term? Alphabet is no slouch of a business and is growing quickly. Its Google Cloud business is actually growing much faster than Microsoft, posting 82% year-over-year growth to $24.8 billion in Q2.

The one concern investors have with Alphabet right now is the potential disruption of Google Search. People worry that new AI agents like ChatGPT or Claude will take users away from Google, Alphabet's cash cow. Still, these concerns have not shown up in Alphabet's financial performance yet, with Google Search revenue up 17% year over year, which is actually faster than Microsoft's enterprise software revenue growth.

Microsoft may have been a better buy earlier in 2026 because of its cheaper P/E ratio. However, over the long term, if you are comfortable with the AI risks for both businesses, both Alphabet and Microsoft should do fine in your portfolio.

by Lisa Stiffler on

The UW’s Global Innovation Exchange program has moved into a new full-time space on the Microsoft campus. (UW Photo) The University of Washington and Microsoft today celebrated the opening of the permanent home of the UW’s Global Innovation Exchange (GIX), an institute supporting tech leaders, on the tech giant’s Redmond, Wash., campus.

GIX is the first UW program to set up full-time operations at Microsoft, whose headquarters are just across Lake Washington from the university’s main campus. The company provided a $42 million in-kind donation to establish the embedded facility.

The UW is leasing the new 48,500-square-foot GIX space in Microsoft’s Building 92 rent-free.

“At a time when AI is transforming how we learn and work, that proximity will create new opportunities for University of Washington students, Microsoft employees, and researchers to learn from one another and accelerate innovation,” Microsoft President Brad Smith said in a statement.

GIX’s mission is to provide interdisciplinary graduate and professional education to tech leaders. It enrolls more than 150 students each year in its Master of Science in Technology Innovation program, which offers in-person and hybrid online options.

“At GIX, we keep people — not technology — as our focus, recognizing that technological change is not an end unto itself. Its value depends on how people use it to create opportunity, strengthen institutions, and contribute to broader social progress,” said Sean Carr, executive director and CEO of GIX.

A space inside the new GIX facility on the Microsoft campus. (UW Photo) The institute opened in 2017 in Bellevue’s Spring District. From then until 2023, Microsoft provided $70 million in endowment support, facility improvements and lease payments. GIX moved to its new Redmond home in July. The space includes classrooms, labs, prototyping and makers space facilities, and a high-tech remote learning studio.

GIX was initially created as a collaboration between the UW and Beijing’s Tsinghua University to offer graduate technology degrees for American and Chinese students, with the Chinese research university establishing a physical presence in the U.S.

It appears the arrangement did not come together as planned. The GIX website notes that students can earn dual master’s degrees, one from the UW and the other from Tsinghua, but the links for Tsinghua are dated. Under its “global experiences” heading, the site lists a two-week immersion program last summer for students from National Taiwan University to study in Seattle.

The announcement of the new facility says GIX participants will have access to “scholars, researchers, technologists, and business professionals from around the world” who are onsite at Microsoft.

The UW’s GIX facility in Redmond, Wash., includes labs, innovation spaces and classrooms. (UW Photo) Other GIX partners include T-Mobile, Amazon, Meta, Aigen, Cisco, Mitsubishi, Responsible Innovation Labs, AI2, Vaisala, King County Metro, Sound Transit, and the UW’s Applied Physics Laboratory and Urban Freight Lab.

The institute is a self-sustaining unit of the UW and does not receive operational funding from the university or the state. It operates in partnership with the UW’s College of Engineering and Foster School of Business.

The UW and Microsoft said in a release that the arrangement “demonstrates how a public research university can engage deeply with industry without sacrificing its academic independence or public purpose.”