Q2 Earnings Forecast for Microsoft Issued By Zacks Research

Microsoft Corporation (NASDAQ:MSFT) – Stock analysts at Zacks Research increased their Q2 2027 earnings per share estimates for shares of Microsoft in a research report issued to clients and investors on Wednesday, August 20th. Zacks Research analyst Team now forecasts that the software giant will post earnings of $4.26 per share for the quarter, up from their prior estimate of $4.25. The consensus estimate for Microsoft’s current full-year earnings is $13.08 per share. Zacks Research also issued estimates for Microsoft’s Q4 2027 earnings at $4.69 EPS.

Microsoft (NASDAQ:MSFT) last announced its quarterly earnings results on Wednesday, July 30th. The software giant reported $3.65 earnings per share (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 analyst estimates of $73.79 billion. During the same quarter in the previous year, the firm posted $2.95 EPS. The firm’s quarterly revenue was up 18.1% on a year-over-year basis. Microsoft has set its Q1 2026 guidance at EPS.

A number of other research analysts have also issued reports on MSFT. Citigroup boosted their price target on Microsoft from $605.00 to $613.00 and gave the stock a “buy” rating in a research report on Tuesday, July 22nd. Stifel Nicolaus boosted their price target on Microsoft from $500.00 to $550.00 and gave the stock a “buy” rating in a research report on Monday, July 28th. Oppenheimer boosted their price target on Microsoft from $600.00 to $630.00 and gave the stock an “outperform” rating in a research report on Thursday, July 31st. Wells Fargo & Company reiterated an “overweight” rating and set a $650.00 price target (up previously from $600.00) on shares of Microsoft in a research report on Thursday, July 31st. Finally, Bank of America upped their price objective on Microsoft from $585.00 to $640.00 and gave the company a “buy” rating in a report on Thursday, July 31st. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $612.54.

Microsoft Trading Up 0.6%

Shares of MSFT stock opened at $507.23 on Monday. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.35 and a current ratio of 1.35. Microsoft has a 1 year low of $344.79 and a 1 year high of $555.45. The stock has a fifty day moving average of $506.08 and a two-hundred day moving average of $444.52. The firm has a market capitalization of $3.77 trillion, a PE ratio of 37.19, a price-to-earnings-growth ratio of 2.22 and a beta of 1.06.

Microsoft Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be given a dividend of $0.83 per share. The ex-dividend date of this dividend is Thursday, August 21st. This represents a $3.32 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s payout ratio is 24.34%.

Insider Activity

In other news, EVP Takeshi Numoto sold 4,850 shares of the business’s stock in a transaction on Tuesday, August 12th. The stock was sold at an average price of $527.32, for a total transaction of $2,557,502.00. Following the sale, the executive vice president directly owned 39,111 shares of the company’s stock, valued at $20,624,012.52. The trade was a 11.03% 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. Insiders sold 8,850 shares of company stock worth $4,406,512 over the last quarter. 0.03% of the stock is owned by insiders.

Institutional Investors Weigh In On Microsoft

A number of institutional investors and hedge funds have recently modified their holdings of MSFT. WFA Asset Management Corp raised its position in shares of Microsoft by 27.0% during the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after purchasing an additional 216 shares during the period. Ironwood Wealth Management LLC. raised its position in shares of Microsoft by 0.3% during the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock worth $5,658,000 after purchasing an additional 38 shares during the period. Discipline Wealth Solutions LLC raised its position in shares of Microsoft by 410.4% during the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock worth $1,144,000 after purchasing an additional 2,138 shares during the period. Wealth Group Ltd. raised its position in shares of Microsoft by 1.2% during the fourth quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock worth $1,000,000 after purchasing an additional 28 shares during the period. Finally, Tallon Kerry Patrick acquired a new stake in shares of Microsoft during the fourth quarter worth $1,375,000. 71.13% of the stock is owned by institutional investors and hedge funds.

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.