Q2 Earnings Forecast for Microsoft Issued By DA Davidson

Microsoft Corporation (NASDAQ:MSFT) – Stock analysts at DA Davidson issued their Q2 2026 EPS estimates for Microsoft in a research report issued on Thursday, October 30th. DA Davidson analyst G. Luria forecasts that the software giant will post earnings per share of $3.97 for the quarter. The consensus estimate for Microsoft’s current full-year earnings is $13.08 per share. DA Davidson also issued estimates for Microsoft’s FY2027 earnings at $18.13 EPS.

Microsoft (NASDAQ:MSFT) last posted its quarterly earnings data on Wednesday, October 29th. The software giant reported $4.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.65 by $0.48. The business had revenue of $77.67 billion during the quarter, compared to analysts’ expectations of $75.49 billion. Microsoft had a net margin of 35.71% and a return on equity of 33.47%. The business’s revenue was up 18.4% on a year-over-year basis. During the same period last year, the firm posted $3.30 earnings per share. Microsoft has set its Q2 2026 guidance at EPS.

A number of other analysts have also recently weighed in on the stock. Scotiabank raised their target price on shares of Microsoft from $500.00 to $650.00 and gave the stock a “sector outperform” rating in a report on Thursday, July 31st. The Goldman Sachs Group restated a “buy” rating and set a $630.00 target price on shares of Microsoft in a report on Tuesday. KeyCorp restated an “overweight” rating on shares of Microsoft in a report on Thursday. Wells Fargo & Company raised their target price on shares of Microsoft from $675.00 to $700.00 and gave the stock an “overweight” rating in a report on Thursday. Finally, Westpark Capital restated a “hold” rating on shares of Microsoft in a report on Thursday, July 31st. One analyst has rated the stock with a Strong Buy rating, thirty-six have given a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of $634.67.

Microsoft Trading Down 1.5%

Shares of NASDAQ:MSFT opened at $517.81 on Friday. The stock has a market capitalization of $3.85 trillion, a price-to-earnings ratio of 36.83, a PEG ratio of 2.36 and a beta of 1.03. Microsoft has a 1-year low of $344.79 and a 1-year high of $555.45. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.35 and a current ratio of 1.35. The company has a 50 day moving average price of $513.81 and a 200 day moving average price of $487.54.

Institutional Investors Weigh In On Microsoft

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. AlphaQuest LLC lifted its position in Microsoft by 5.9% in the 2nd quarter. AlphaQuest LLC now owns 342 shares of the software giant’s stock worth $170,000 after buying an additional 19 shares in the last quarter. BLVD Private Wealth LLC raised its holdings in shares of Microsoft by 0.6% during the 3rd quarter. BLVD Private Wealth LLC now owns 3,169 shares of the software giant’s stock valued at $1,641,000 after purchasing an additional 19 shares in the last quarter. PMV Capital Advisers LLC raised its holdings in shares of Microsoft by 5.9% during the 2nd quarter. PMV Capital Advisers LLC now owns 359 shares of the software giant’s stock valued at $178,000 after purchasing an additional 20 shares in the last quarter. Seek First Inc. raised its holdings in shares of Microsoft by 1.5% during the 2nd quarter. Seek First Inc. now owns 1,358 shares of the software giant’s stock valued at $675,000 after purchasing an additional 20 shares in the last quarter. Finally, Level Financial Advisors raised its holdings in shares of Microsoft by 0.8% during the 2nd quarter. Level Financial Advisors now owns 2,680 shares of the software giant’s stock valued at $1,333,000 after purchasing an additional 20 shares in the last quarter. Hedge funds and other institutional investors own 71.13% of the company’s stock.

Insider Activity at Microsoft

In other Microsoft news, EVP Takeshi Numoto sold 4,850 shares of the stock in a transaction that occurred on Tuesday, August 12th. The shares were sold at an average price of $527.32, for a total value of $2,557,502.00. Following the completion of the sale, the executive vice president owned 39,111 shares in the company, valued at $20,624,012.52. This represents a 11.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Satya Nadella sold 149,205 shares of the stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $504.78, for a total transaction of $75,315,699.90. Following the completion of the sale, the chief executive officer owned 790,852 shares of the company’s stock, valued at approximately $399,206,272.56. The trade was a 15.87% decrease in their position. The SEC filing for this sale provides additional information. 0.03% of the stock is currently owned by corporate insiders.

Microsoft Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 11th. Investors of record on Thursday, November 20th will be given a $0.91 dividend. This is a boost from Microsoft’s previous quarterly dividend of $0.83. The ex-dividend date is Thursday, November 20th. This represents a $3.64 annualized dividend and a dividend yield of 0.7%. Microsoft’s payout ratio is currently 25.89%.

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.