What is DA Davidson’s Forecast for Microsoft Q1 Earnings?

Microsoft Corporation (NASDAQ:MSFT) – Analysts at DA Davidson issued their Q1 2026 earnings per share estimates for shares of Microsoft in a research note issued on Thursday, July 31st. DA Davidson analyst G. Luria anticipates that the software giant will post earnings of $3.57 per share for the quarter. DA Davidson currently has a “Buy” rating and a $650.00 target price on the stock. The consensus estimate for Microsoft’s current full-year earnings is $13.08 per share. DA Davidson also issued estimates for Microsoft’s FY2026 earnings at $14.97 EPS and FY2027 earnings at $17.44 EPS.

Microsoft (NASDAQ:MSFT) last posted its quarterly earnings results on Wednesday, July 30th. The software giant reported $3.65 EPS for the quarter, topping analysts’ consensus estimates of $3.35 by $0.30. Microsoft had a return on equity of 32.44% and a net margin of 36.15%. The company had revenue of $76.44 billion during the quarter, compared to analysts’ expectations of $73.79 billion. During the same quarter in the previous year, the firm earned $2.95 EPS. Microsoft’s revenue was up 18.1% on a year-over-year basis.

MSFT has been the topic of a number of other research reports. Bank of America boosted their price objective on Microsoft from $585.00 to $640.00 and gave the stock a “buy” rating in a research report on Thursday. Wedbush boosted their price objective on Microsoft from $600.00 to $625.00 and gave the stock an “outperform” rating in a research report on Thursday. Jefferies Financial Group boosted their price objective on Microsoft from $600.00 to $675.00 and gave the stock a “buy” rating in a research report on Thursday. Needham & Company LLC restated a “buy” rating on shares of Microsoft in a research report on Thursday, May 1st. Finally, Citigroup boosted their price objective on Microsoft from $605.00 to $613.00 and gave the stock a “buy” rating in a research report on Tuesday, July 22nd. Two equities research analysts have rated the stock with a hold rating and thirty-one have issued a buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $609.86.

Microsoft Price Performance

Microsoft stock opened at $524.11 on Friday. The stock has a market capitalization of $3.90 trillion, a P/E ratio of 38.42, a price-to-earnings-growth ratio of 2.35 and a beta of 1.06. Microsoft has a 52 week low of $344.79 and a 52 week high of $555.45. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.36 and a current ratio of 1.35. The stock has a fifty day moving average of $489.94 and a 200-day moving average of $434.94.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Bulwark Capital Corp purchased a new stake in shares of Microsoft in the second quarter worth approximately $32,000. Westend Capital Management LLC raised its stake in shares of Microsoft by 386.7% in the second quarter. Westend Capital Management LLC now owns 73 shares of the software giant’s stock worth $36,000 after purchasing an additional 58 shares during the last quarter. Ball & Co Wealth Management Inc. purchased a new stake in shares of Microsoft in the fourth quarter worth approximately $31,000. Newton One Investments LLC raised its stake in shares of Microsoft by 66.7% in the first quarter. Newton One Investments LLC now owns 75 shares of the software giant’s stock worth $28,000 after purchasing an additional 30 shares during the last quarter. Finally, LSV Asset Management purchased a new stake in shares of Microsoft in the fourth quarter worth approximately $44,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling at Microsoft

In related news, EVP Kathleen T. Hogan sold 21,500 shares of the company’s stock in a transaction that occurred on Wednesday, May 21st. The stock was sold at an average price of $453.77, for a total transaction of $9,756,055.00. Following the transaction, the executive vice president directly owned 134,888 shares of the company’s stock, valued at approximately $61,208,127.76. This represents a 13.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Amy Coleman sold 13,243 shares of the company’s stock in a transaction that occurred on Thursday, May 15th. The stock was sold at an average price of $452.01, for a total value of $5,985,968.43. Following the transaction, the executive vice president directly owned 43,100 shares in the company, valued at approximately $19,481,631. This trade represents a 23.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 60,743 shares of company stock worth $27,520,933 in the last quarter. Company insiders own 0.03% of the company’s stock.

Microsoft Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be paid a dividend of $0.83 per share. This represents a $3.32 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date of this dividend is Thursday, August 21st. Microsoft’s dividend payout ratio is 24.34%.

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.