Q2 Earnings Forecast for Microsoft Issued By DA Davidson

Microsoft Co. (NASDAQ:MSFT) – Analysts at DA Davidson issued their Q2 2025 earnings per share estimates for Microsoft in a report released on Thursday, October 31st. DA Davidson analyst G. Luria expects that the software giant will earn $3.25 per share for the quarter. DA Davidson has a “Neutral” rating and a $475.00 price target on the stock. The consensus estimate for Microsoft’s current full-year earnings is $12.98 per share. DA Davidson also issued estimates for Microsoft’s FY2025 earnings at $13.27 EPS and FY2026 earnings at $15.18 EPS.

A number of other analysts have also recently commented on the stock. Piper Sandler reaffirmed an “overweight” rating and set a $470.00 price target on shares of Microsoft in a research report on Thursday. Bank of America upped their price target on shares of Microsoft from $480.00 to $510.00 and gave the company a “buy” rating in a research report on Wednesday, July 17th. Oppenheimer cut shares of Microsoft from an “outperform” rating to a “market perform” rating in a research report on Tuesday, October 8th. Sanford C. Bernstein cut their price objective on shares of Microsoft from $501.00 to $500.00 and set an “outperform” rating on the stock in a research report on Friday, October 25th. Finally, Wells Fargo & Company reissued a “buy” rating on shares of Microsoft in a research report on Friday, October 18th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and twenty-six have issued a buy rating to the company’s stock. Based on data from MarketBeat, Microsoft has a consensus rating of “Moderate Buy” and an average target price of $503.03.

Microsoft Stock Performance

Shares of MSFT opened at $410.37 on Friday. The company has a current ratio of 1.30, a quick ratio of 1.27 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $3.05 trillion, a P/E ratio of 33.86, a price-to-earnings-growth ratio of 2.14 and a beta of 0.91. The firm’s fifty day simple moving average is $420.69 and its two-hundred day simple moving average is $424.62. Microsoft has a 12 month low of $344.77 and a 12 month high of $468.35.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings results on Wednesday, October 30th. The software giant reported $3.30 EPS for the quarter, beating analysts’ consensus estimates of $3.08 by $0.22. The business had revenue of $65.59 billion for the quarter, compared to analysts’ expectations of $64.57 billion. Microsoft had a net margin of 35.61% and a return on equity of 34.56%. The business’s quarterly revenue was up 16.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.99 earnings per share.

Institutional Trading of Microsoft

A number of hedge funds have recently made changes to their positions in the stock. Retirement Solution LLC lifted its holdings in shares of Microsoft by 33.1% during the 3rd quarter. Retirement Solution LLC now owns 39,510 shares of the software giant’s stock worth $17,001,000 after acquiring an additional 9,827 shares during the last quarter. Costello Asset Management INC lifted its holdings in shares of Microsoft by 11.3% during the 3rd quarter. Costello Asset Management INC now owns 23,189 shares of the software giant’s stock worth $9,978,000 after acquiring an additional 2,358 shares during the last quarter. Ted Buchan & Co raised its position in Microsoft by 4.0% in the 3rd quarter. Ted Buchan & Co now owns 5,971 shares of the software giant’s stock worth $2,569,000 after purchasing an additional 230 shares during the period. Transcendent Capital Group LLC raised its position in Microsoft by 6.5% in the 3rd quarter. Transcendent Capital Group LLC now owns 24,426 shares of the software giant’s stock worth $10,511,000 after purchasing an additional 1,483 shares during the period. Finally, Houlihan Financial Resource Group Ltd. purchased a new position in Microsoft in the 3rd quarter worth $7,471,000. 71.13% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, insider Bradford L. Smith sold 40,000 shares of the firm’s stock in a transaction that occurred on Monday, September 9th. The shares were sold at an average price of $402.59, for a total value of $16,103,600.00. Following the completion of the transaction, the insider now directly owns 544,847 shares of the company’s stock, valued at approximately $219,349,953.73. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, CEO Satya Nadella sold 78,353 shares of Microsoft stock in a transaction on Wednesday, September 4th. The shares were sold at an average price of $408.63, for a total transaction of $32,017,386.39. Following the completion of the sale, the chief executive officer now directly owns 864,327 shares of the company’s stock, valued at approximately $353,189,942.01. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Bradford L. Smith sold 40,000 shares of Microsoft stock in a transaction on Monday, September 9th. The stock was sold at an average price of $402.59, for a total transaction of $16,103,600.00. Following the sale, the insider now directly owns 544,847 shares of the company’s stock, valued at $219,349,953.73. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 190,629 shares of company stock valued at $77,916,485. Company insiders own 0.03% of the company’s stock.

Microsoft Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 12th. Investors of record on Thursday, November 21st will be issued a $0.83 dividend. The ex-dividend date is Thursday, November 21st. This is an increase from Microsoft’s previous quarterly dividend of $0.75. This represents a $3.32 annualized dividend and a yield of 0.81%. Microsoft’s dividend payout ratio (DPR) is 27.39%.

Microsoft declared that its Board of Directors has approved a share repurchase program on Monday, September 16th that allows the company to repurchase $60.00 billion in outstanding shares. This repurchase authorization allows the software giant to reacquire up to 1.9% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

Microsoft Company Profile

Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services.