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Microsoft (MSFT) reports earnings July 29, with investors focused on whether its massive AI investments are paying off. In this Tech Corner, George Tsilis breaks down expectations for Azure, Copilot, and Microsoft's rapidly expanding AI business, as Wall Street looks for signs that rising cloud revenue will justify all the spending.

Corrado Advisors LLC grew its position in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 196.0% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 6,314 shares of the software giant’s stock after purchasing an additional 4,181 shares during the period. Corrado Advisors LLC’s holdings in Microsoft were worth $2,337,000 as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of the stock. Taylor Securities Services Inc. acquired a new position in Microsoft during the fourth quarter valued at $2,616,000. Werba Rubin Papier Wealth Management increased its stake in shares of Microsoft by 15.7% during the 4th quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock worth $6,041,000 after purchasing an additional 1,698 shares during the last quarter. SG Americas Securities LLC increased its position in Microsoft by 2,332.1% during the fourth quarter. SG Americas Securities LLC now owns 6,746,017 shares of the software giant’s stock worth $3,262,509,000 after buying an additional 6,468,645 shares during the last quarter. World Investment Advisors raised its stake in shares of Microsoft by 22.1% in the 4th quarter. World Investment Advisors now owns 272,424 shares of the software giant’s stock valued at $131,750,000 after acquiring an additional 49,371 shares in the last quarter. Finally, Overbrook Management Corp lifted its stake in shares of Microsoft by 2.8% in the fourth quarter. Overbrook Management Corp now owns 87,535 shares of the software giant’s stock worth $42,334,000 after buying an additional 2,384 shares during the last quarter. Institutional investors and hedge funds own 71.13% of the company’s stock.

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

Positive Sentiment: Microsoft joined 25 tech companies in urging U.S. policymakers not to impose broad restrictions on open-weight and open-source AI models, a stance that supports its broader AI ecosystem strategy and could help preserve flexibility for future product development. Reuters article Positive Sentiment: Microsoft also backed a coalition letter with Nvidia, Meta, and other firms arguing that open-weight AI is important for U.S. leadership, reinforcing investor confidence that the company remains a major AI platform player rather than being boxed into one model provider. Business Insider article Positive Sentiment: Microsoft’s expanded Databricks partnership extends a key cloud/data-AI relationship through the 2030s, which should help Azure adoption and strengthen long-term enterprise demand for Microsoft’s cloud services. TipRanks article Neutral Sentiment: Several previews ahead of Microsoft’s July 29 earnings report say the big investor focus will be FY2027 CapEx guidance and Azure growth, with analysts expecting strong results but worrying that AI infrastructure spending could weigh on free cash flow and margins. MarketBeat article Negative Sentiment: Multiple law firms issued class-action alerts and deadline reminders tied to Microsoft securities-fraud claims, including allegations related to Copilot disclosures, which adds headline risk and may keep some investors cautious into earnings. GlobeNewswire article Negative Sentiment: Broader tech weakness tied to AI spending fears also weighed on Microsoft, as investors sold mega-cap names after seeing massive capital outlays across the sector and questioning near-term returns on AI investment. Fox Business article Insiders Place Their Bets In other news, EVP Amy Coleman sold 1,262 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the sale, the executive vice president owned 46,003 shares in the company, valued at $18,922,874.02. The trade was a 2.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the transaction, the chief executive officer directly owned 110,477 shares in the company, valued at $50,928,792.23. The trade was a 12.30% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 23,762 shares of company stock worth $10,508,361 over the last three months. Insiders own 0.03% of the company’s stock.

Wall Street Analysts Forecast Growth MSFT has been the topic of several research analyst reports. CLSA initiated coverage on shares of Microsoft in a research note on Monday. They issued an “outperform” rating and a $535.00 price objective on the stock. Sanford C. Bernstein reissued an “outperform” rating and set a $646.00 price objective on shares of Microsoft in a report on Wednesday. Arete Research lifted their price objective on Microsoft from $730.00 to $870.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. President Capital raised their price target on shares of Microsoft from $500.00 to $520.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Finally, Argus reduced their target price on shares of Microsoft from $620.00 to $510.00 and set a “buy” rating on the stock in a research note on Friday, July 10th. Forty-two research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $555.40.

Read Our Latest Report on Microsoft

Microsoft Price Performance NASDAQ:MSFT opened at $381.70 on Friday. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. Microsoft Corporation has a 12-month low of $349.20 and a 12-month high of $555.45. The stock’s 50 day moving average price is $398.21 and its two-hundred day moving average price is $408.08. The firm has a market capitalization of $2.84 trillion, a price-to-earnings ratio of 22.72, a P/E/G ratio of 1.17 and a beta of 1.13.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, beating analysts’ consensus estimates of $4.06 by $0.21. The business had revenue of $82.89 billion for the quarter, compared to analysts’ expectations of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The firm’s revenue for the quarter was up 18.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.46 EPS. On average, analysts anticipate that Microsoft Corporation will post 16.7 earnings per share for the current year.

Microsoft Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 1.0%. Microsoft’s dividend payout ratio (DPR) is 21.67%.

Microsoft Profile (Free Report)

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

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

Read More Five stocks we like better than Microsoft AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits 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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Posted by Defense World Staff on Jul 25th, 2026

AlpenGlobal Capital LLC purchased a new stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) during the first quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 16,177 shares of the software giant’s stock, valued at approximately $5,988,000. Microsoft accounts for about 3.9% of AlpenGlobal Capital LLC’s portfolio, making the stock its 9th largest position.

A number of other institutional investors and hedge funds have also recently modified their holdings of MSFT. Longfellow Investment Management Co. LLC raised its stake in Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after acquiring an additional 20 shares during the last quarter. Shepherd Kaplan Krochuk LLC raised its holdings in shares of Microsoft by 4.9% during the 3rd quarter. Shepherd Kaplan Krochuk LLC now owns 431 shares of the software giant’s stock valued at $223,000 after buying an additional 20 shares during the period. Fischer Investment Strategies LLC raised its position in shares of Microsoft by 3.1% in the 4th quarter. Fischer Investment Strategies LLC now owns 697 shares of the software giant’s stock valued at $337,000 after purchasing an additional 21 shares in the last quarter. Pollock Investment Advisors LLC raised its position in shares of Microsoft by 0.8% during the 3rd quarter. Pollock Investment Advisors LLC now owns 2,805 shares of the software giant’s stock valued at $1,453,000 after acquiring an additional 21 shares in the last quarter. Finally, Better Money Decisions LLC lifted its holdings in shares of Microsoft by 0.6% in the 2nd quarter. Better Money Decisions LLC now owns 3,498 shares of the software giant’s stock worth $1,740,000 after purchasing an additional 21 shares during the last quarter. Institutional investors and hedge funds own 71.13% of the company’s stock.

Insider Activity In related news, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction on Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the sale, the chief executive officer directly owned 110,477 shares of the company’s stock, valued at $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the transaction, the executive vice president directly owned 46,003 shares of the company’s stock, valued at $18,922,874.02. This trade represents a 2.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 23,762 shares of company stock worth $10,508,361. 0.03% of the stock is currently owned by corporate insiders.

Microsoft Stock Performance NASDAQ MSFT opened at $381.70 on Friday. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.27 and a current ratio of 1.28. Microsoft Corporation has a fifty-two week low of $349.20 and a fifty-two week high of $555.45. The firm’s fifty day moving average price is $398.21 and its two-hundred day moving average price is $408.08. The stock has a market cap of $2.84 trillion, a PE ratio of 22.72, a PEG ratio of 1.17 and a beta of 1.13.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.06 by $0.21. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The firm had revenue of $82.89 billion during the quarter, compared to analyst estimates of $81.44 billion. During the same quarter last year, the business earned $3.46 EPS. The company’s revenue was up 18.3% compared to the same quarter last year. On average, equities analysts expect that Microsoft Corporation will post 16.7 EPS for the current fiscal year.

Microsoft Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is 21.67%.

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

Positive Sentiment: Microsoft joined 25 tech companies in urging U.S. policymakers not to impose broad restrictions on open-weight and open-source AI models, a stance that supports its broader AI ecosystem strategy and could help preserve flexibility for future product development. Reuters article Positive Sentiment: Microsoft also backed a coalition letter with Nvidia, Meta, and other firms arguing that open-weight AI is important for U.S. leadership, reinforcing investor confidence that the company remains a major AI platform player rather than being boxed into one model provider. Business Insider article Positive Sentiment: Microsoft’s expanded Databricks partnership extends a key cloud/data-AI relationship through the 2030s, which should help Azure adoption and strengthen long-term enterprise demand for Microsoft’s cloud services. TipRanks article Neutral Sentiment: Several previews ahead of Microsoft’s July 29 earnings report say the big investor focus will be FY2027 CapEx guidance and Azure growth, with analysts expecting strong results but worrying that AI infrastructure spending could weigh on free cash flow and margins. MarketBeat article Negative Sentiment: Multiple law firms issued class-action alerts and deadline reminders tied to Microsoft securities-fraud claims, including allegations related to Copilot disclosures, which adds headline risk and may keep some investors cautious into earnings. GlobeNewswire article Negative Sentiment: Broader tech weakness tied to AI spending fears also weighed on Microsoft, as investors sold mega-cap names after seeing massive capital outlays across the sector and questioning near-term returns on AI investment. Fox Business article Wall Street Analysts Forecast Growth Several equities research analysts have commented on MSFT shares. Cantor Fitzgerald reiterated an “overweight” rating and issued a $502.00 price target on shares of Microsoft in a research report on Thursday, June 4th. Rothschild & Co Redburn cut their price objective on Microsoft from $450.00 to $400.00 and set a “neutral” rating for the company in a research report on Thursday, April 23rd. The Goldman Sachs Group restated a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. Phillip Securities raised shares of Microsoft to a “buy” rating and set a $485.00 price objective on the stock in a report on Wednesday, May 13th. Finally, TD Cowen reiterated a “buy” rating and set a $540.00 price target on shares of Microsoft in a research report on Thursday, June 4th. Forty-two research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $555.40.

Read Our Latest Research Report on MSFT

About Microsoft (Free Report)

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

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

Recommended Stories Five stocks we like better than Microsoft AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits 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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Artificial intelligence has become the biggest growth story in global technology, but this week's earnings from Alphabet and Tesla have reminded investors that building the infrastructure behind that boom is becoming increasingly expensive.

And, investors are not okay with this.

While both companies reported robust revenue growth and highlighted expanding demand for AI-related products and services, their results also reinforced concerns that the industry's largest players are spending at an unprecedented pace, squeezing free cash flow and raising questions about when those investments will begin generating meaningful financial returns.

The concern was evident immediately after the results.

Alphabet shares fell 7.1% on Thursday, while Tesla plunged 14.5%, marking the electric vehicle maker's worst single-day decline since March 2025.

The sharp market reaction has also set the tone for the next wave of Big Tech earnings, with Microsoft, Meta Platforms and Amazon due to report next week.

Investors are expected to closely examine not only revenue growth but also whether AI spending is accelerating faster than profits.

Tesla delivers record revenue growth but margins remain under pressureTesla's second-quarter report illustrated the growing divide between strong top-line expansion and increasing costs.

Revenue rose 26% year over year to $28.2 billion, comfortably exceeding the company's compiled consensus estimate of $27.6 billion.

Vehicle deliveries also reached a record 480,126 units during the quarter, up 25% from a year earlier.

Automotive revenue increased 23% to $20.5 billion, while energy generation and storage revenue climbed 13% to $3.1 billion.

Despite those gains, profitability deteriorated significantly.

Adjusted earnings came in at 33 cents per share, well below analyst expectations of 55 cents.

Operating expenses surged 47% to $4.4 billion, including a 49% jump in research and development spending to $2.4 billion.

Operating income declined 57% year over year to $398 million, leaving Tesla with an operating margin of just 1.4%, compared with 4.1% during the same period last year.

The biggest concern for investors was capital expenditure.

Tesla increased capex by 142% from a year earlier to $5.8 billion during the quarter, pushing free cash flow to negative $1.1 billion.

The company also said it expects to spend more than $25 billion in capital expenditures this year.

Chief Executive Elon Musk sought to reassure investors that the elevated spending reflects investments designed to transform Tesla beyond electric vehicles.

"This is a massive capex year. I'm confident that all the things that we're investing in will yield incredible returns. Really, maybe the best capex returns that we've ever seen," Musk said during the earnings call.

Much of that investment is being directed toward Tesla's next-generation semiconductor production capabilities and its Optimus humanoid robot programme.

The company said it is "installing the first-generation lines for Optimus" and expects production to begin soon.

For Musk, those initiatives represent future revenue streams that could ultimately outweigh the near-term financial pressure currently weighing on margins.

Alphabet posts record cloud growth but spending dominates investor attentionAlphabet delivered another quarter of exceptional cloud performance, but investors focused instead on the scale of the company's AI investment plans.

Google Cloud revenue surged 82% year over year to $24.8 billion during the quarter ended June, significantly outperforming analysts' expectations of approximately 64% growth, according to LSEG.

The performance reinforced Google's growing position in enterprise AI infrastructure, with cloud demand continuing to accelerate as businesses expand adoption of generative AI applications.

However, those strong results were overshadowed by another increase in capital expenditure guidance.

Chief Financial Officer Anat Ashkenazi said Alphabet now expects capital expenditure of between $195 billion and $205 billion during 2026, compared with previous guidance of $180 billion to $190 billion.

The revised outlook also exceeded analysts' expectations of roughly $188 billion, according to Visible Alpha.

Perhaps more striking was Alphabet's free cash flow.

The company reported negative free cash flow of $5.9 billion during the quarter, reversing nearly $25 billion in positive free cash flow generated during the same period a year earlier.

Alphabet executives argued the spending increase simply reflects overwhelming customer demand.

"The increase in the range is primarily due to an acceleration in the delivery of capacity to meet growing demand," Ashkenazi told analysts.

She said Google continues to face supply constraints despite multiple quarters of infrastructure expansion.

"We're still in a supply-constrained environment," she said. "I think we've said this now for multiple quarters in a row, and we are seeing very strong demand both from external cloud customers as well as across the business."

Ashkenazi, however, acknowledged that free cash flow will likely remain under pressure as Alphabet continues building technical infrastructure.

"We expect the free cash flow will remain under pressure, driven by our investments in technical infrastructure, which enables us to capitalize on the AI opportunity and continue to drive attractive returns," she said.

While operational performance received widespread praise, analysts questioned how sustainable current spending levels may become.

Bloomberg Intelligence analyst Mandeep Singh said Alphabet's financial results left little room for criticism operationally but warned that future capital expenditure could keep cash flow negative.

"Right now they are probably $10 billion-$15 billion free cash flow for this year, next year if this goes to $300 billion there is no way they're going to be positive free cash flow," Singh said on a Bloomberg Podcasts episode.

He argued that investors increasingly want stronger earnings contributions from Search, YouTube and Alphabet's other businesses instead of relying primarily on Google Cloud.

Thomas Monteiro, senior analyst at Investing.com, expressed similar concerns.

"After a negative cash flow quarter, the new raise in capex does not sit well for Alphabet," he said.

"The market's most reliable cash generators are now spending more than they bring in. As long as revenue keeps accelerating, investors will tolerate it. But capital has a real cost again, and the room for error is shrinking every quarter."

The spending surge reflects a broader transformation underway across the technology sector.

For years, companies such as Alphabet, Microsoft, Meta and Amazon generated enormous free cash flow that comfortably funded acquisitions, buybacks and new product development.

The AI race has changed that equation.

Industry capital expenditure is expected to exceed $700 billion this year as companies rapidly expand data centres, purchase AI chips and develop proprietary infrastructure.

As a result, investors are becoming less focused on revenue growth alone and increasingly attentive to whether AI-related investments can ultimately produce returns that exceed their cost.

That shift is expected to dominate discussions when Microsoft, Meta and Amazon publish earnings next week.

Alphabet's results have heightened expectations that rival technology companies could also increase investment plans.

Both Meta and Amazon shares declined alongside Alphabet following Wednesday's report.

"The risk is tilted towards further increases, particularly while Microsoft and others remain capacity-constrained," said Charu Chanana, chief investment strategist at Saxo Markets.

"But investors will increasingly focus on how much of that cash must be reinvested simply to remain competitive — and whether AI revenue can grow faster than capital expenditure, depreciation and operating costs."

Consensus estimates suggest Alphabet and Amazon could continue burning cash into 2026, while Meta's free cash flow is expected to decline 95.7% to just $1.9 billion.

Microsoft is forecast to generate $25.4 billion in free cash flow during its current fiscal year ending next June, compared with an estimated $58.7 billion during the previous financial year.

Meanwhile, capital expenditure relative to revenue is projected to rise sharply across the sector.

Meta's capex-to-revenue ratio is expected to increase to 54.9% from 35.9%, Alphabet's to 41% from 23%, Microsoft's to 45% from 31%, and Amazon's to 25% from 18%.

The latest earnings also underscored shifting competitive dynamics within cloud computing.

Google Cloud's 82% revenue growth substantially outpaced expectations and highlighted the division's rapid expansion.

Alphabet executives said customer demand has become so strong that the company plans to rent additional third-party data centre capacity despite the negative impact on margins.

Analysts say the performance raises pressure on both Amazon Web Services and Microsoft Azure.

AWS is expected to report revenue growth of 31.04%, accelerating from 28.4% during the previous quarter.

Microsoft Azure is forecast to deliver growth of 39.98%, broadly matching the prior quarter's 40%.

Competition could intensify further after reports that Meta is discussing renting computing capacity to Anthropic, adding another major buyer to an increasingly crowded AI infrastructure market.

"As compute becomes more available and models become cheaper, cloud capacity may look increasingly interchangeable. That could force providers to spend more while accepting lower returns," said Lale Akoner, global market strategist at eToro in a Reuters report.

Although not part of the so-called Magnificent Seven, Intel also reinforced the industry's AI narrative this week.

The chipmaker reported better-than-expected second-quarter results, recording its fastest revenue growth since 2011 as demand for server processors benefited from AI infrastructure spending.

Shares initially rose following the announcement before retreating during Friday's trading session.

"AI is driving unprecedented demand for compute," Intel Chief Executive Lip-Bu Tan said.

"As we continue to execute, Intel is well-positioned to capture sustainable growth across our CPU franchise."

The mixed reaction across the sector suggests investors remain supportive of AI's long-term potential but are becoming increasingly selective about how much they are willing to pay for that growth while companies continue pouring hundreds of billions of dollars into infrastructure.

CNBC's Seema Mody and MacKenzie Sigalos report on trends regarding AI's capex concerns.

Microsoft Corporation (MSFT) Shareholders Who Lost Money Have Opportunity to Lead Securities Fraud Lawsuit PR Newswire

NEW YORK, July 24, 2026 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Microsoft Corporation (NASDAQ: MSFT).

New York, New York--(Newsfile Corp. - July 24, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ: MSFT) and certain of its officers.

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Microsoft securities between May 1, 2025 and January 28, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/MSFT.

Microsoft Case Details

The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements because they failed to disclose that:

Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and as a result of the above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing.What's Next for Microsoft Investors?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/MSFT, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Microsoft you have until August 11, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

No Cost to Microsoft Investors

We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman, LLC for Microsoft Securities Class Action?

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com

"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.

Follow us for updates on LinkedIn, X, Facebook, or Instagram.

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301533

Source: Bronstein, Gewirtz & Grossman, LLC

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SummaryMicrosoft remains my top AI winner, leveraging its software moat, cash reserves, and strategic OpenAI stake.MSFT's aggressive CapEx and cloud investments are justified by rapid growth in intelligent cloud, driving operating income and margins higher.I expect a short-term selloff post-earnings due to negative free cash flow and CapEx concerns, but view this as a buy-the-dip opportunity.MSFT's long-term thesis remains intact: cloud revenue growth, strong margins, and resilience against AI bubble fallout position it for sustained leadership.lcva2/iStock Editorial via Getty Images

I've been a Microsoft Corporation (MSFT) shareholder for a long time, and it's not always been easy to sit with its stock, but I stand by what I said back in 2024: Microsoft

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

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

HomeEarnings AnalysisTech 

SummaryMicrosoft Corporation’s earnings setup is unusually asymmetric: Azure can deliver near-40% growth, and the stock could still fall if management raises CapEx again.The key question for Microsoft is no longer whether AI demand exists, but whether it can convert massive infrastructure spending into enough revenue, margins, and free cash flow.Commercial RPO reached $627B, giving Microsoft far more revenue visibility than a company building capacity without committed customers.This article maps the bull, base, and bear scenarios for Microsoft Azure, CapEx, and the likely stock reaction after earnings.I remain bullish on MSFT stock and would view post-earnings weakness as an opportunity, provided Azure demand, AI monetization, and operating leverage remain intact. Getty Images

Executive Summary In chess, there are times when the game isn't won by keeping all your pieces but by accepting the sacrifice of one to capture the center and prepare the decisive attack. This is an awkward choice, because in

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

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

HomeEarnings Analysis

SummaryThe strong growth in investing in technology infrastructure to support AI has been a focus the past year and is projected to expand this year and next.For 2026, consensus year-over-year CapEx is expected to increase by almost $300 billion from $384 billion to $682 billion.Will Microsoft and Meta Platforms maintain their capex guidance this year? Getty Images

A look at CapEx spending The strong growth in investing in technology infrastructure to support AI has been a focus the past year and is projected to expand this year and next. The expectations for CapEx spending by

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Microsoft AI released two new in-house models into public preview on Wednesday — MAI-Image-2.5-Pro, its highest-fidelity image generator to date, and MAI-Voice-2-Flash, a speech model built for high-volume enterprise workloads — while publishing production data that amounts to the company's most aggressive argument yet that it can power its own products without leaning on OpenAI's frontier models. The announcement, made by Microsoft AI's Superintelligence team, lands roughly a year after the company committed to building purpose-built models internally, and it arrives with an unusual level of specificity about where those models now run: Bing, PowerPoint, OneDrive, Dynamics 365, Excel, GitHub Copilot, and Azure.

Some Wall Street experts are warning investors could be in for a bumpier ride than usual this earning season.

The Databricks logo in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

July 23 (Reuters) - Databricks said on Thursday it would expand its partnership with Microsoft (MSFT.O), opens new tab through the 2030s, a deal ​under which it will increase its use of ‌the Azure platform and Microsoft's custom chips.

Databricks offers a platform that helps users ingest, analyze and build AI applications using ​complex data from various sources.

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One of the ​most valuable private companies, the San Francisco-based firm's ⁠move marks a sizeable win for Microsoft's Azure cloud ​business and comes as enterprise AI adoption accelerates.

Databricks said ​it would increase Azure usage to run its own core business operations and analytics, and also boost its usage of ​Azure Cobalt, Microsoft's Arm-based (O9Ty.F), opens new tab custom processors, for data-intensive and ​agentic AI workloads.

Under the partnership, Microsoft will also continue integrating Databricks' ‌AI ⁠capabilities across its products, including Databricks' conversational analytics tool Genie, to strengthen enterprise AI offerings.

"With Databricks deepening its investment in Azure Databricks and Azure Cobalt-powered infrastructure, customers ​will benefit from ​greater performance, ⁠efficiency, and scale for their most demanding workloads," said Judson Althoff, CEO of ​Microsoft's Commercial Business.

Databricks said last week it ​had ⁠signed off on a funding round that values the firm at $188 billion, with the round expected to close later this ⁠summer. ​The company's platform is used ​by over 20,000 organizations globally, including 70% of the Fortune 500 companies.

Reporting ​by Deborah Sophia in Bengaluru; Editing by Tasim Zahid

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I keep buying Microsoft because it is the only hyperscaler I trust to own both ends of the AI supply chain: the software everyone already pays for, and the electrons that will decide who actually gets to run the models. That combination is why my finger keeps hitting the buy button, and it is why the recent drawdown feels like a gift rather than a warning.

Here is the setup. Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is down 17.39% year to date and 21.39% over the past year, yet the business underneath it just posted its fourth consecutive EPS beat with $4.27 against a $4.07 estimate. Revenue climbed 18.3% year over year to $82.89 billion. The market is punishing capex. I am accumulating.

The Three Data Points That Keep Me Buying First, the demand signal. Commercial remaining performance obligations reached $627 billion, up 99%. That is contracted, signed, non-cancellable future revenue that nearly doubled in a year. Azure grew 40%, and the AI business alone crossed a $37 billion annual run rate, up 123% year over year. Satya Nadella framed it plainly on the call: “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”

Second, the quality of the compounding. Return on equity sits at 33.28%, operating margin at 45.62%, gross margin at 68.82%. Debt to equity is 0.176 and interest coverage runs 53.89x. This is a fortress funding a build-out. Shareholders got $12.7 billion returned in a single quarter, up 32% year over year.

Third, and this is the part that turns a good business into a moat: energy. By aggressively funding nuclear restarts, SMRs, and grid-permitting AI, Microsoft turns energy from an external existential risk into a proprietary moat, ensuring its data centers stay powered while turning the energy transition into a software-driven profit center. The LBNL projection has data centers consuming between 6.7% and 12% of U.S. electricity by 2028. Power is the bottleneck now. Microsoft is buying its way to the front of that line.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

Why Not Amazon, Alphabet, or NVIDIA Amazon and Alphabet run capable clouds. Neither owns a roughly 27% stake in OpenAI worth about $135 billion, with IP rights extended through 2032 and a $250 billion incremental Azure services commitment from the counterparty. That is a structural revenue lock the other hyperscalers cannot replicate by writing a check. NVIDIA is the pick-and-shovel play, and I own picks and shovels elsewhere. I would rather own the landlord collecting the rent under a contracted backlog than the supplier selling into a replacement cycle.

The Real Risk Capex is the real concern. It hit $30.88 billion in a single quarter, up 84.39% year over year. A widely shared r/investing post argues AI infrastructure depreciates faster than railroads or fiber, with chips obsolete in about two years, and it landed hard because it is partly true. My answer: the $627 billion RPO is contracted revenue against those assets. If the backlog stops growing, I will reassess. It is still doubling.

Why I Keep Buying From Here Over ten years, Microsoft returned 695.26%. Long-term compounders tend to reward holders who look past single-quarter noise. I keep buying Microsoft because it is quietly building the one thing the AI era cannot manufacture on demand: guaranteed power under a signed contract.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Major tech looks a little soft in pre-market trading on Thursday.

AAPL Technical Analysis

Apple daily chart, holding near 326 after breaking above the 317 level. Source: TradingView Apple looks like it’s going to gap a little bit lower to kick off the trading session on Thursday as the market may be a little overstretched. The $317 level underneath had previously been resistance, so traders may be looking at that as potential market memory. It’ll be interesting to see, but as things stand right now, it looks a little soft, probably overbought, and of course, we get an earnings call on the 30th. Between now and then, there might be some hesitation to get too aggressive by some traders out there.

MSFT Technical Analysis Microsoft daily chart, hovering near 390 below its 50-day EMA. Source: TradingView Microsoft looks like it’s going to open up just a touch lower based on pre-market trading. It is struggling with the 50-day EMA and higher rates at the same time. Microsoft has had a little bit of a rough ride recently. A lot of this can be laid at the feet of Copilot failing, as it just isn’t getting the kind of traction some other AI models are. Whether or not that actually remains, who knows, but there is value in Microsoft. Plenty of traders think so, as there are buyers of dips.

At this point, consolidation looks like what we are going through at the moment, right around that crucial 50-day EMA, which, of course, is a widely followed technical indicator.

AMZN Technical Analysis Amazon daily chart, easing back near 245 after stalling below its May highs. Source: TradingView Amazon looks like it is going to gap lower to kick off the session. The 200-day EMA is sitting at $235.77 and could offer a bit of support. We’ll just have to wait and see, but there are some concerns out there about inflation and the consumer in general. If that’s the case, then some people will leave retail altogether, and of course, retail is what Amazon is known for. It is one of the biggest companies used by Americans. If there are concerns about the American consumer, it translates into this market quite often. We have an earnings call for Amazon on the 30th as well, so between now and then, there might be a little bit of hesitation. We’ll just have to wait and see how that plays out.

If you’d like to know more about technical analysis and how traders use it, please visit our educational area.

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At $390, Microsoft (NASDAQ:MSFT | MSFT Price Prediction) looks compelling to contrarians. The AI capital spending panic dragging the stock lower looks more like a setup than a warning sign. The stock has shed roughly a fifth of its value over the past year despite four straight earnings beats, giving contrarians a rare opening on a business whose contracted backlog is nearly doubling.

Microsoft sits at the center of enterprise AI adoption. Azure, Microsoft 365, and the restructured OpenAI partnership feed a single cloud franchise that produced $54.5 billion in Microsoft Cloud revenue last quarter, up 29% year over year. Shares have derated hard, sliding from $552.51 at the Q4 FY25 filing to $390.34, a trajectory that maps almost perfectly to escalating quarterly capex.

The Backlog Is Doing the Talking Commercial remaining performance obligations reached $627 billion, up 99% year over year. That is contracted revenue backed by signed customer commitments. Microsoft’s $190 billion planned calendar 2026 capex is building against signed obligations competitors do not hold.

Monetization is showing up. AI annual run rate hit $37 billion, growing 123%, while Azure ran at 40% growth and Copilot seats climbed 250% year over year. Amy Hood told analysts, “We remain confident in the return on these investments given higher demand signals and increasing product usage.” Return on equity of 33.28% and operating margin of 45.62% confirm spending has not broken profitability.

What the Capex Skeptics See The bear case is real. Q3 capex jumped to $30.88 billion, up 84.39%, and full-year FY25 free cash flow already declined 3.32% as reinvestment accelerated. At a P/E near 28 and P/FCF around 40, Microsoft is priced for the AI story to compound.

OpenAI-related losses widened to $3.1 billion in Q1 FY26 from $523 million a year earlier, and OpenAI is no longer exclusive to Azure for non-API products. More Personal Computing shrank 1%, and insiders have been net sellers across 33 recent transactions. If Azure decelerates below the high 30s, multiple compression accelerates.

Why Patience Has a Case Composite sentiment sits at 42.91, neutral with a 7-day decline of 19.38 points, and Polymarket assigns only a 44.5% probability that shares close above $390 by month-end. The next Azure growth print and Q4 capex disclosure land within days. A guide toward the “over $40 billion” quarterly capex range without matching revenue acceleration would validate the bear thesis. Confirmation of Azure holding 40% or expanding operating margin tips the picture the other way.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

The Numbers Behind the Setup Shares trade at $390.34, down 18.93% year to date and 22.13% over the past year. The S&P 500 gained 9.6% year to date and 18.85% over the same twelve months. The gap is roughly 40 points of relative underperformance during accelerating fundamentals.

Consensus analyst target sits at $557.79, implying 43% upside. The full-chain put/call ratio of 0.44 shows options traders are not positioned for further crash, and Polymarket puts 89.5% probability on a Q4 earnings beat.

At $390, the Contrarian Setup The path to price appreciation is mechanical. A $627 billion contracted backlog converts to revenue on schedule, and management has committed the capacity to service it. Hood said Microsoft expects “another year of double-digit revenue and operating income growth in FY ’27” and supply will “remain constrained at least through 2026.” Constrained supply against contracted demand creates a favorable pricing environment.

Buying a business earning a 33.28% return on equity with interest coverage above 53 times at a P/E in the high 20s reflects a market multiple for elite compounding on a stock that has already given back the froth. Reddit’s most engaged recent post asked whether “MSFT at $385 an absolute steal right now” and sustained bullish traction for nine days running.

The thesis breaks if Azure growth prints below the mid-30s, if capex intensity climbs without matching bookings, or if OpenAI losses meaningfully compress consolidated margins. None are visible in current data. The market is pricing spending as sin while the customer is signing the check, and that gap defines the contrarian opportunity.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

, /PRNewswire/ -- (ACCESSWIRE) Pomerantz LLP announces that a class action lawsuit has been filed against Microsoft Corporation ("Microsoft" or the "Company") (NASDAQ: MSFT). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

The class action concerns whether Microsoft and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

You have until August 11, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Microsoft securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.   

[Click here for information about joining the class action]

On January 28, 2026, Microsoft announced disappointing results for its fiscal second quarter ended December 31, 2025. First, during the quarter Microsoft's Azure growth had slowed suddenly and fallen below analyst expectations. During the related earnings call, CFO Amy E. Hood revealed that the slower Azure growth was primarily due to computational capacity constraints, as Microsoft had diverted CPU and GPU capacity to Copilot applications and AI-related R&D. Second, Microsoft revealed that its capital expenditures had increased to $37.5 billion during the quarter, causing Microsoft's capital expenditures for the first six months of its fiscal 2026 to increase to $72.4 billion compared to $88.2 billion for all of Microsoft's fiscal 2025. Third, Microsoft revealed, for the first time, that the number of paid Microsoft 365 Copilot seats totaled only 15 million to date, materially below analyst estimates and a fraction of the more than 450 million commercial Microsoft 365 users.  

On this news, the price of Microsoft stock fell nearly 10%.

Then, on February 3, 2026, The Wall Street Journal revealed, in an article titled "Microsoft's Pivotal AI Product Is Running Into Big Problems," that severe challenges and functionality issues had plagued Microsoft's Copilot offerings, leading to Copilot losing market share during the Class Period to competing products such as Google's Gemini. The price of Microsoft stock continued to fall in the days after Microsoft's second quarter 2026 earnings announcement as the market continued to digest the adverse news and sources such as The Wall Street Journal revealed new adverse information.

Thereafter, on March 17, 2026, The Wall Street Journal revealed in an article titled "Microsoft Seeks More Coherence in AI Efforts With Copilot Reorganization" that Microsoft was reorganizing its Copilot product teams to unify commercial and consumer versions partly in response to the challenges revealed by The Wall Street Journal's prior reporting on Copilot's problem-plagued development and disappointing customer adoption.  

On this news, the price of Microsoft stock continued to fall.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com. 

Attorney advertising. Prior results do not guarantee similar outcomes.  

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

Posted by Defense World Staff on Jul 23rd, 2026

Azzad Asset Management Inc. ADV cut its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 2.5% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 70,768 shares of the software giant’s stock after selling 1,838 shares during the period. Microsoft accounts for 2.6% of Azzad Asset Management Inc. ADV’s portfolio, making the stock its 3rd largest position. Azzad Asset Management Inc. ADV’s holdings in Microsoft were worth $26,196,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently modified their holdings of MSFT. Longfellow Investment Management Co. LLC increased its stake in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after purchasing an additional 20 shares during the last quarter. Bernzott Capital Advisors acquired a new stake in Microsoft during the fourth quarter worth about $34,000. Timmons Wealth Management LLC bought a new position in Microsoft in the fourth quarter worth about $36,000. Fairway Wealth LLC grew its holdings in shares of Microsoft by 287.0% during the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock valued at $43,000 after purchasing an additional 66 shares during the last quarter. Finally, LSV Asset Management acquired a new stake in shares of Microsoft during the 4th quarter worth approximately $44,000. Institutional investors own 71.13% of the company’s stock.

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

Positive Sentiment: Analysts at Morgan Stanley, Bernstein, Truist, and CLSA remained constructive on Microsoft, with reports calling the stock deeply undervalued and setting price targets well above current levels. Microsoft has 3 secret weapons that could drive its stock 50% higher, analyst says Positive Sentiment: Microsoft expanded its strategic partnership with Mistral AI, adding another way to grow its cloud and AI ecosystem in Europe and regulated industries. Microsoft to fund Mistral’s European AI expansion in multibillion-dollar deal Positive Sentiment: Microsoft also deepened AI-related ties through new commitments to the DOE’s “Genesis Mission,” reinforcing its role in major public-sector AI infrastructure projects. Microsoft commits $60M to ‘Genesis Mission’ to help power Dept. of Energy’s AI-for-science push Positive Sentiment: Reports highlighted record data-center demand led by hyperscalers including Microsoft, suggesting its AI infrastructure buildout remains robust despite the selloff. Sorry, AI Bears: Meta, Microsoft, and Google Lead Record Data Center Demand Neutral Sentiment: Microsoft’s upcoming July 29 earnings report is the next major catalyst, with Wall Street focused on Azure growth, AI margins, and whether heavy capex is starting to bite. Neutral Sentiment: Several articles noted strong buy-the-dip interest from retail investors, but this is sentiment-driven rather than a direct business update. Negative Sentiment: Investor concern is growing that Microsoft’s elevated AI spending is becoming an overhang, potentially pressuring near-term profitability and limiting upside. Microsoft Q4 Earnings Preview – Oppenheimer Says Demand Is Healthy, ‘But Elevated Capex Remains an Overhang’ on MSFT Stock Negative Sentiment: New securities-fraud class-action headlines tied to alleged AI/Copilot disclosure issues are adding another layer of uncertainty for Microsoft investors. MSFT Shareholder Alert: Microsoft Corporation Securities Class Action Lawsuit – Investors with Losses May Contact Levi & Korsinsky Wall Street Analysts Forecast Growth A number of research analysts recently commented on MSFT shares. Arete Research upped their price objective on Microsoft from $730.00 to $870.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. DZ Bank restated a “buy” rating on shares of Microsoft in a research report on Thursday, April 30th. CLSA started coverage on shares of Microsoft in a research report on Monday. They issued an “outperform” rating and a $535.00 price objective on the stock. Evercore restated an “outperform” rating and issued a $525.00 target price on shares of Microsoft in a research report on Wednesday, July 15th. Finally, BMO Capital Markets lifted their price target on Microsoft from $500.00 to $515.00 and gave the company an “outperform” rating in a report on Tuesday, July 7th. Forty-three research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, Microsoft has an average rating of “Moderate Buy” and an average price target of $556.37.

Check Out Our Latest Analysis on MSFT

Insider Activity In related news, EVP Takeshi Numoto sold 4,500 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total value of $1,812,780.00. Following the completion of the transaction, the executive vice president owned 47,468 shares in the company, valued at $19,122,009.12. This trade represents a 8.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Judson Althoff sold 15,500 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $460.99, for a total value of $7,145,345.00. Following the sale, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. The trade was a 12.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 23,762 shares of company stock valued at $10,508,361 over the last three months. Insiders own 0.03% of the company’s stock.

Microsoft Stock Performance NASDAQ:MSFT opened at $390.34 on Thursday. The company has a 50-day moving average of $399.57 and a 200-day moving average of $408.91. The firm has a market cap of $2.90 trillion, a price-to-earnings ratio of 23.23, a price-to-earnings-growth ratio of 1.22 and a beta of 1.13. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08. Microsoft Corporation has a twelve month low of $349.20 and a twelve month high of $555.45.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, beating the consensus estimate of $4.06 by $0.21. The business had revenue of $82.89 billion during the quarter, compared to analyst estimates of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The business’s quarterly revenue was up 18.3% on a year-over-year basis. During the same period in the prior year, the business earned $3.46 earnings per share. Analysts forecast that Microsoft Corporation will post 16.71 earnings per share for the current fiscal year.

Microsoft Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a dividend yield of 0.9%. Microsoft’s payout ratio is 21.67%.

Microsoft Company Profile (Free Report)

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

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

See Also Five stocks we like better than Microsoft Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play 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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« PREVIOUS HEADLINESchwab U.S. Large-Cap Growth ETF $SCHG Shares Sold by B&D White Capital Company LLC

Posted by Defense World Staff on Jul 23rd, 2026

DSM Capital Partners LLC lowered its stake in Microsoft Corporation (NASDAQ:MSFT – Free Report) by 6.4% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 1,541,875 shares of the software giant’s stock after selling 104,627 shares during the quarter. Microsoft comprises approximately 10.1% of DSM Capital Partners LLC’s holdings, making the stock its 2nd largest holding. DSM Capital Partners LLC’s holdings in Microsoft were worth $570,756,000 as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC boosted its stake in Microsoft by 51.3% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock worth $29,000 after acquiring an additional 20 shares during the last quarter. Bernzott Capital Advisors bought a new stake in Microsoft in the fourth quarter valued at approximately $34,000. Timmons Wealth Management LLC acquired a new stake in Microsoft in the fourth quarter worth $36,000. Fairway Wealth LLC raised its holdings in Microsoft by 287.0% in the fourth quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after purchasing an additional 66 shares during the period. Finally, LSV Asset Management bought a new position in shares of Microsoft during the fourth quarter worth $44,000. Institutional investors and hedge funds own 71.13% of the company’s stock.

Insider Activity at Microsoft In related news, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the sale, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Amy Coleman sold 1,262 shares of the stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president directly owned 46,003 shares of the company’s stock, valued at $18,922,874.02. This trade represents a 2.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 23,762 shares of company stock valued at $10,508,361. 0.03% of the stock is owned by insiders.

Microsoft Stock Performance Shares of MSFT stock opened at $390.34 on Thursday. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $555.45. The company’s fifty day simple moving average is $399.57 and its 200-day simple moving average is $408.91. The firm has a market cap of $2.90 trillion, a PE ratio of 23.23, a P/E/G ratio of 1.22 and a beta of 1.13. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, beating analysts’ consensus estimates of $4.06 by $0.21. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. The business had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. During the same quarter last year, the firm earned $3.46 earnings per share. The firm’s revenue for the quarter was up 18.3% compared to the same quarter last year. Equities research analysts expect that Microsoft Corporation will post 16.71 EPS for the current fiscal year.

Microsoft Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Thursday, August 20th will be issued a $0.91 dividend. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a dividend yield of 0.9%. Microsoft’s dividend payout ratio (DPR) is presently 21.67%.

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

Positive Sentiment: Analysts at Morgan Stanley, Bernstein, Truist, and CLSA remained constructive on Microsoft, with reports calling the stock deeply undervalued and setting price targets well above current levels. Microsoft has 3 secret weapons that could drive its stock 50% higher, analyst says Positive Sentiment: Microsoft expanded its strategic partnership with Mistral AI, adding another way to grow its cloud and AI ecosystem in Europe and regulated industries. Microsoft to fund Mistral’s European AI expansion in multibillion-dollar deal Positive Sentiment: Microsoft also deepened AI-related ties through new commitments to the DOE’s “Genesis Mission,” reinforcing its role in major public-sector AI infrastructure projects. Microsoft commits $60M to ‘Genesis Mission’ to help power Dept. of Energy’s AI-for-science push Positive Sentiment: Reports highlighted record data-center demand led by hyperscalers including Microsoft, suggesting its AI infrastructure buildout remains robust despite the selloff. Sorry, AI Bears: Meta, Microsoft, and Google Lead Record Data Center Demand Neutral Sentiment: Microsoft’s upcoming July 29 earnings report is the next major catalyst, with Wall Street focused on Azure growth, AI margins, and whether heavy capex is starting to bite. Neutral Sentiment: Several articles noted strong buy-the-dip interest from retail investors, but this is sentiment-driven rather than a direct business update. Negative Sentiment: Investor concern is growing that Microsoft’s elevated AI spending is becoming an overhang, potentially pressuring near-term profitability and limiting upside. Microsoft Q4 Earnings Preview – Oppenheimer Says Demand Is Healthy, ‘But Elevated Capex Remains an Overhang’ on MSFT Stock Negative Sentiment: New securities-fraud class-action headlines tied to alleged AI/Copilot disclosure issues are adding another layer of uncertainty for Microsoft investors. MSFT Shareholder Alert: Microsoft Corporation Securities Class Action Lawsuit – Investors with Losses May Contact Levi & Korsinsky Analyst Upgrades and Downgrades Several equities analysts have recently weighed in on the company. Barclays reiterated an “overweight” rating on shares of Microsoft in a report on Wednesday, June 3rd. Cantor Fitzgerald reaffirmed an “overweight” rating and issued a $502.00 price target on shares of Microsoft in a research note on Thursday, June 4th. Truist Financial reiterated a “buy” rating and issued a $575.00 price target on shares of Microsoft in a report on Wednesday. China Renaissance lowered their price objective on shares of Microsoft from $630.00 to $550.00 and set a “buy” rating for the company in a research report on Monday, May 4th. Finally, Arete Research raised their price objective on shares of Microsoft from $730.00 to $870.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Forty-three analysts have rated the stock with a Buy rating and six have issued a Hold 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 $556.37.

Read Our Latest Stock Report on MSFT

Microsoft Profile (Free Report)

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

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

Further Reading Five stocks we like better than Microsoft Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play

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NEW YORK, July 22, 2026 (GLOBE NEWSWIRE) --

WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”), of the important August 11, 2026 lead plaintiff deadline.

SO WHAT: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.

DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit (“GPU”) and central processing unit (“CPU”) capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development (“R&D”); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft’s Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information:

Laurence Rosen, Esq.
Phillip Kim, Esq.
The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
Toll Free: (866) 767-3653
Fax: (212) 202-3827
[email protected]
www.rosenlegal.com

As of 11:31 AM ET, the Dow Jones Industrial Average (^DJI +0.13%) is up 0.24% to 52,351.14, the S&P 500 (^GSPC +0.01%) has gained 0.07% to 7,514.29, and the Nasdaq Composite (^IXIC -0.31%) has slipped 0.15% to 25,798.97 as tech stocks come under pressure.

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7,510.08

Gold prices have climbed 1.98% to $4,154.42 as of 11:39 AM ET, while the 10-Year Treasury yield is trading up 0.02% at 4.65%. Utilities and energy stocks are leading sector gains, while technology and communication services are falling.

Today's biggest movesThe Magnificent Seven are in focus this morning, with quarterly results due from Alphabet (GOOGL -0.13%) (GOOG +0.00%) and Tesla (TSLA -0.92%) after the bell. Microsoft (MSFT -2.28%), Amazon (AMZN -1.85%), and Meta Platforms (META -2.69%) all dropped in early trading. Super Micro Computer (SMCIP +17.60%) soared over 24% after the company said it expects its 2026 gross margins to double.

What this means for investorsIt has been a mixed morning of trading as oil prices continued to increase, fueling renewed inflation concerns and pressuring global markets. WTI crude rose over 2% to more than $86 a barrel. Traders are concerned about further supply restrictions as tensions in the Middle East show no signs of de-escalation.

A research note from Goldman Sachs Group highlighted the eye watering level of debt issuance to fund artificial intelligence (AI) build-outs. It said around $489 billion in AI-related debt had been issued this year, with hyperscalers such as Microsoft, Amazon, and Meta accounting for 40% of the debt. As markets brace for Alphabet and Tesla earnings later today, investors will be looking for signs that this intensive spending is driving revenue growth.

Emma Newbery has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Goldman Sachs Group, Meta Platforms, Microsoft, and Tesla. The Motley Fool has a disclosure policy.

BENSALEM, Pa., July 22, 2026 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith reminds investors that class action lawsuits have been filed on behalf of shareholders of the following publicly-traded companies. Investors have until the deadlines listed below to file a lead plaintiff motion.

Investors suffering losses on their investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in these class actions at (215) 638-4847 or by email to [email protected].

Erasca, Inc. (NASDAQ: ERAS)
Class Period: January 14, 2025 – April 26, 2026
Lead Plaintiff Deadline: August 10, 2026

The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose that: (1) ERAS-0015’s preclinical data was based on improper comparisons to RevMed and placed Erasca at risk of violating patent and trade secret protections; and (2) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Nano-X Imaging Ltd. (NASDAQ: NNOX)
Class Period: March 31, 2025 – April 17, 2026
Lead Plaintiff Deadline: August 11, 2026

The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose that: (1) Defendants overstated purported efficiency gains achieved in Nano-X’s operations, as well as the purported increased demand for its products; (2) in reality, Nano-X’s production and manufacturing operations were poorly aligned with demand for the Company’s products; (3) as a result, Nano-X was experiencing significantly increased operating expenses and cash burn; (4) the foregoing significantly increased the likelihood that Nano-X would be forced to take disruptive remedial measures with respect to its manufacturing operations, entailing significant restructuring and impairment charges; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Microsoft Corporation (NASDAQ: MSFT)
Class Period: May 1, 2025 – January 28, 2026
Lead Plaintiff Deadline: August 11, 2026

The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose: (1) that Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) that Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) that Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; (4) that, as a result of the foregoing, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company’s Copilot offerings had lost market share to rival products, a trend that was increasing; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

Black Rock Coffee Bar, Inc. (NASDAQ: BRCB)
Class Period: September 12, 2025 – May 12, 2026
Lead Plaintiff Deadline: August 17, 2026

The complaint alleges that throughout the Class Period the defendants made false and/or misleading statements and/or failed to disclose: (1) Black Rock Coffee’s new store openings were leading to a cannibalization of its existing services and revenue; (2) Black Rock Coffee overstated the manner in which its expansion strategy was tailored to avoid “sales transfer”; (3) as a result of “sales transfer,” the Company’s financial results were materially impacted; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

To be a member of these class actions, you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about these class actions, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847 or by email to [email protected], or visit our website at www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
[email protected]
www.howardsmithlaw.com