Microsoft Stock Sees Q2 Earnings Forecast Boosted at KeyCorp

Microsoft Corporation (NASDAQ:MSFT) – KeyCorp increased their Q2 2027 earnings per share estimates for shares of Microsoft in a research report issued on Wednesday, October 28th. KeyCorp analyst J. Ader now forecasts that the software giant will post earnings per share of $4.84 for the quarter, up from their previous estimate of $4.82. The consensus estimate for Microsoft’s current full-year earnings is $19.87 per share. KeyCorp also issued estimates for Microsoft’s Q3 2027 earnings at $4.95 EPS, Q4 2027 earnings at $5.28 EPS, FY2027 earnings at $19.96 EPS, FY2028 earnings at $24.60 EPS, FY2029 earnings at $30.93 EPS and FY2030 earnings at $37.93 EPS.

Several other brokerages have also issued reports on MSFT. Wolfe Research raised Microsoft from a “hold” rating to a “strong-buy” rating in a research note on Thursday, October 29th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $640.00 price objective on shares of Microsoft in a research report on Thursday, July 30th. BMO Capital Markets set a $610.00 price objective on shares of Microsoft in a research note on Thursday, October 29th. JPMorgan Chase & Co. reiterated a “buy” rating on shares of Microsoft in a research report on Monday, September 28th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $600.00 target price on shares of Microsoft in a research note on Monday, October 12th. One equities research analyst has rated the stock with a Strong Buy rating, forty-six have issued a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $609.54.

Microsoft Trading Down 2.2%

Shares of MSFT stock opened at $533.16 on Monday. The company has a market cap of $3.96 trillion, a P/E ratio of 30.22, a PEG ratio of 1.61 and a beta of 1.05. The stock has a 50 day simple moving average of $517.80 and a two-hundred day simple moving average of $441.10. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.21 and a current ratio of 1.22. Microsoft has a fifty-two week low of $349.20 and a fifty-two week high of $559.15.

Microsoft (NASDAQ:MSFT) last announced its earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, beating the consensus estimate of $4.72 by $0.17. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The company had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. During the same quarter in the prior year, the company earned $4.13 EPS. The firm’s revenue for the quarter was up 18.8% compared to the same quarter last year.

Microsoft Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This is a positive change from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s payout ratio is currently 19.00%.

Insiders Place Their Bets

In related news, CEO Satya Nadella sold 86,525 shares of the stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total value of $43,388,826.50. Following the transaction, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. This trade represents a 15.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 41,674 shares of Microsoft stock in a transaction on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the completion of the sale, the executive vice president directly owned 533,624 shares of the company’s stock, valued at approximately $265,888,830.48. The trade was a 7.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 142,809 shares of company stock worth $72,114,646. 0.03% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Sullivan Wood Capital Management LLC boosted its holdings in Microsoft by 3.2% during the 3rd quarter. Sullivan Wood Capital Management LLC now owns 647 shares of the software giant’s stock worth $332,000 after acquiring an additional 20 shares during the last quarter. Narus Financial Partners LLC raised its holdings in shares of Microsoft by 0.4% in the third quarter. Narus Financial Partners LLC now owns 4,487 shares of the software giant’s stock valued at $2,301,000 after purchasing an additional 20 shares during the last quarter. Box Hill Private Wealth LLC raised its holdings in shares of Microsoft by 0.5% in the second quarter. Box Hill Private Wealth LLC now owns 4,272 shares of the software giant’s stock valued at $1,593,000 after purchasing an additional 21 shares during the last quarter. PMG Family Office LLC lifted its position in shares of Microsoft by 1.0% during the third quarter. PMG Family Office LLC now owns 2,063 shares of the software giant’s stock valued at $1,058,000 after purchasing an additional 21 shares in the last quarter. Finally, Dynamic Financial Group lifted its position in shares of Microsoft by 1.5% during the third quarter. Dynamic Financial Group now owns 1,439 shares of the software giant’s stock valued at $738,000 after purchasing an additional 21 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft and IBM introduced Imagine Enterprise, a platform combining IBM’s library of more than 6,000 AI agents with Microsoft’s cloud, data and security tools. The partnership could help drive enterprise demand for Microsoft’s AI and cloud services. IBM and Microsoft Announce a New AI Agent Platform Designed for Industry-Specific Transformation
• Positive Sentiment: A five-year partnership with Ohio State University will apply Microsoft’s cloud and AI technology to healthcare, research and education, adding another potential customer and use case. Ohio State and Microsoft announce five-year strategic partnership
• Neutral Sentiment: Microsoft reportedly urged the administration to drop a proposed ban on Chinese data-center technology, warning that restrictions could complicate data-center deployment. The outcome could affect equipment access and rollout timing. Microsoft presses Trump to scuttle expected ban on Chinese data-center technology
• Negative Sentiment: Anthropic unveiled workplace tools that could compete with Microsoft Office, including spreadsheet-related capabilities. The move raised concerns about competition in Microsoft’s enterprise software business. Anthropic unveils office suite to challenge Microsoft
• Negative Sentiment: A hot inflation report and rising bond yields weighed on the broader market, creating an additional headwind for technology shares. Stock market coverage on inflation and technology shares

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices, and digital solutions for consumers, businesses, and public-sector organizations. Founded in 1975 by Bill Gates and Paul Allen, the company is headquartered in Redmond, Washington. Its products and services include the Windows operating system, Microsoft 365 productivity applications, Azure cloud computing, LinkedIn, GitHub, Surface devices, and Xbox gaming products and services. Microsoft also provides business software, cybersecurity tools, and artificial intelligence technologies.