Microsoft (NASDAQ:MSFT) Issues Quarterly Earnings Results

Microsoft (NASDAQ:MSFT) posted its quarterly earnings results on Wednesday. The software giant reported $3.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.10 by $0.20, Briefing.com reports. The business had revenue of $65.59 billion during the quarter, compared to analyst estimates of $64.57 billion. Microsoft had a net margin of 35.61% and a return on equity of 34.56%. The company’s revenue was up 16.0% on a year-over-year basis. During the same period in the prior year, the business posted $2.99 earnings per share. Microsoft updated its Q2 2025 guidance to EPS.

Microsoft Trading Up 1.0 %

Microsoft stock opened at $410.37 on Friday. Microsoft has a 12 month low of $344.77 and a 12 month high of $468.35. 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 business’s fifty day simple moving average is $420.69 and its two-hundred day simple moving average is $424.62. The company has a market capitalization of $3.05 trillion, a price-to-earnings ratio of 33.86, a price-to-earnings-growth ratio of 2.14 and a beta of 0.91.

Microsoft Increases Dividend

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

Microsoft declared that its Board of Directors has initiated a share buyback plan on Monday, September 16th that authorizes the company to buyback $60.00 billion in shares. This buyback authorization authorizes the software giant to reacquire up to 1.9% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s management believes its shares are undervalued.

Insider Transactions at Microsoft

In related news, CMO Takeshi Numoto sold 2,500 shares of the stock in a transaction dated Tuesday, September 10th. The shares were sold at an average price of $411.04, for a total transaction of $1,027,600.00. Following the sale, the chief marketing officer now directly owns 50,000 shares of the company’s stock, valued at approximately $20,552,000. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other Microsoft news, CMO Takeshi Numoto sold 2,500 shares of the stock in a transaction on Tuesday, September 10th. The stock was sold at an average price of $411.04, for a total transaction of $1,027,600.00. Following the sale, the chief marketing officer now directly owns 50,000 shares in the company, valued at approximately $20,552,000. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Amy Hood sold 38,000 shares of the business’s stock in a transaction on Thursday, September 5th. The stock was sold at an average price of $410.55, for a total value of $15,600,900.00. Following the completion of the transaction, the chief financial officer now owns 496,369 shares of the company’s stock, valued at $203,784,292.95. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 190,629 shares of company stock valued at $77,916,485 in the last quarter. 0.03% of the stock is owned by insiders.

Institutional Trading of Microsoft

An institutional investor recently raised its position in Microsoft stock. Ironwood Wealth Management LLC. raised its position in Microsoft Co. (NASDAQ:MSFT) by 0.3% during the second quarter, according to the company in its most recent disclosure with the SEC. The firm owned 12,658 shares of the software giant’s stock after acquiring an additional 38 shares during the quarter. Microsoft makes up 1.7% of Ironwood Wealth Management LLC.’s portfolio, making the stock its 22nd biggest holding. Ironwood Wealth Management LLC.’s holdings in Microsoft were worth $5,658,000 at the end of the most recent quarter. 71.13% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

MSFT has been the subject of several analyst reports. Wells Fargo & Company restated a “buy” rating on shares of Microsoft in a report on Friday, October 18th. Mizuho raised their target price on shares of Microsoft from $450.00 to $480.00 and gave the stock an “outperform” rating in a report on Tuesday, July 16th. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $500.00 target price on shares of Microsoft in a research note on Wednesday, July 31st. Citigroup cut their price target on shares of Microsoft from $500.00 to $497.00 and set a “buy” rating on the stock in a report on Wednesday, October 23rd. Finally, TD Cowen lowered their price objective on shares of Microsoft from $495.00 to $475.00 and set a “buy” rating for the company in a research note on Thursday. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and twenty-six have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $503.03.

About Microsoft

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.