Q2 Earnings Forecast for Microsoft Issued By DA Davidson

Microsoft Co. (NASDAQ:MSFT) – Research analysts at DA Davidson issued their Q2 2025 earnings estimates for shares of Microsoft in a research note issued on Thursday, October 31st. DA Davidson analyst G. Luria forecasts that the software giant will post earnings per share of $3.25 for the quarter. DA Davidson has a “Neutral” rating and a $475.00 price target on the stock. The consensus estimate for Microsoft’s current full-year earnings is $12.98 per share. DA Davidson also issued estimates for Microsoft’s FY2025 earnings at $13.27 EPS and FY2026 earnings at $15.18 EPS.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings data on Wednesday, October 30th. The software giant reported $3.30 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.08 by $0.22. Microsoft had a net margin of 35.61% and a return on equity of 34.56%. The firm had revenue of $65.59 billion for the quarter, compared to analysts’ expectations of $64.57 billion. During the same quarter in the previous year, the company earned $2.99 earnings per share. The company’s revenue for the quarter was up 16.0% compared to the same quarter last year.

A number of other research firms have also recently issued reports on MSFT. UBS Group decreased their price objective on shares of Microsoft from $510.00 to $500.00 and set a “buy” rating on the stock in a research report on Thursday. Piper Sandler reiterated an “overweight” rating and set a $470.00 price target on shares of Microsoft in a research report on Thursday. Sanford C. Bernstein reduced their price target on shares of Microsoft from $501.00 to $500.00 and set an “outperform” rating on the stock in a research report on Friday, October 25th. Mizuho boosted their price target on shares of Microsoft from $450.00 to $480.00 and gave the company an “outperform” rating in a research report on Tuesday, July 16th. Finally, Argus boosted their price target on shares of Microsoft from $475.00 to $526.00 and gave the company a “buy” rating in a research report on Tuesday, July 9th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and twenty-six have issued a buy rating to the stock. Based on data from MarketBeat, Microsoft currently has an average rating of “Moderate Buy” and an average price target of $503.03.

Microsoft Price Performance

MSFT stock opened at $410.37 on Friday. The firm’s 50-day moving average price is $420.69 and its two-hundred day moving average price is $424.62. Microsoft has a 12-month low of $344.77 and a 12-month high of $468.35. The stock has a market capitalization of $3.05 trillion, a price-to-earnings ratio of 33.86, a PEG ratio of 2.14 and a beta of 0.91. The company has a current ratio of 1.30, a quick ratio of 1.27 and a debt-to-equity ratio of 0.15.

Microsoft Increases Dividend

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

Microsoft announced that its Board of Directors has approved a stock buyback plan on Monday, September 16th that permits the company to buyback $60.00 billion in outstanding shares. This buyback authorization permits the software giant to repurchase up to 1.9% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board of directors believes its shares are undervalued.

Insider Transactions at Microsoft

In other news, insider Bradford L. Smith sold 40,000 shares of the company’s stock in a transaction that occurred on Monday, September 9th. The shares were sold at an average price of $402.59, for a total value of $16,103,600.00. Following the transaction, the insider now owns 544,847 shares in the company, valued at approximately $219,349,953.73. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. In other news, insider Bradford L. Smith sold 40,000 shares of the business’s stock in a transaction that occurred on Monday, September 9th. The shares were sold at an average price of $402.59, for a total transaction of $16,103,600.00. Following the completion of the transaction, the insider now directly owns 544,847 shares of the company’s stock, valued at $219,349,953.73. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Amy Hood sold 38,000 shares of the business’s stock in a transaction that occurred on Thursday, September 5th. The shares were sold at an average price of $410.55, for a total transaction of $15,600,900.00. Following the transaction, the chief financial officer now directly owns 496,369 shares of the company’s stock, valued at $203,784,292.95. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 190,629 shares of company stock worth $77,916,485. Corporate insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in MSFT. Christopher J. Hasenberg Inc increased its holdings in Microsoft by 169.2% during the second quarter. Christopher J. Hasenberg Inc now owns 70 shares of the software giant’s stock valued at $31,000 after buying an additional 44 shares during the last quarter. Quarry LP purchased a new stake in Microsoft during the second quarter valued at approximately $45,000. Richardson Capital Management LLC raised its position in shares of Microsoft by 1,290.0% during the 1st quarter. Richardson Capital Management LLC now owns 139 shares of the software giant’s stock valued at $59,000 after purchasing an additional 129 shares during the period. Innealta Capital LLC bought a new stake in shares of Microsoft during the 2nd quarter valued at $75,000. Finally, Bellevue Group AG raised its position in shares of Microsoft by 47.5% during the 1st quarter. Bellevue Group AG now owns 180 shares of the software giant’s stock valued at $76,000 after purchasing an additional 58 shares during the period. 71.13% of the stock is owned by hedge funds and other institutional investors.

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.