Analysts Offer Predictions for Microsoft FY2026 Earnings

Key Points

• KeyCorp analysts predict Microsoft's FY2026 earnings per share (EPS) at $15.64, with a price target set at $630.00 and an "Overweight" rating for the stock.
• In its recent earnings report, Microsoft exceeded expectations with an EPS of $3.65, beating estimates by $0.30, and achieved revenue of $76.44 billion, signifying an 18.1% year-over-year growth.
• The consensus rating for Microsoft stock is a "Moderate Buy", with 31 analysts recommending a buy and a target price averaging $609.86.

Microsoft Corporation (NASDAQ:MSFT - Free Report) - Investment analysts at KeyCorp issued their FY2026 earnings per share (EPS) estimates for shares of Microsoft in a research report issued on Wednesday, July 30th. KeyCorp analyst J. Ader anticipates that the software giant will earn $15.64 per share for the year. KeyCorp has a "Overweight" rating and a $630.00 price target on the stock. The consensus estimate for Microsoft's current full-year earnings is $13.08 per share. KeyCorp also issued estimates for Microsoft's Q4 2026 earnings at $4.18 EPS.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its earnings results on Wednesday, July 30th. The software giant reported $3.65 EPS for the quarter, beating 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 firm had revenue of $76.44 billion for the quarter, compared to analyst estimates of $73.79 billion. During the same quarter in the prior year, the firm earned $2.95 earnings per share. Microsoft's revenue for the quarter was up 18.1% on a year-over-year basis.

MSFT has been the subject of several other reports. Raymond James Financial lifted their price objective on shares of Microsoft from $490.00 to $570.00 and gave the company an "outperform" rating in a research note on Monday, July 28th. BMO Capital Markets lifted their price objective on shares of Microsoft from $550.00 to $650.00 and gave the company an "outperform" rating in a research note on Thursday. Piper Sandler upped their target price on Microsoft from $600.00 to $650.00 and gave the stock an "overweight" rating in a research note on Thursday. Westpark Capital restated a "hold" rating on shares of Microsoft in a research note on Thursday. Finally, The Goldman Sachs Group upped their target price on Microsoft from $480.00 to $550.00 and gave the stock a "buy" rating in a research note on Wednesday, May 21st. Two equities research analysts have rated the stock with a hold rating and thirty-one have assigned a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $609.86.

Microsoft Stock Performance

Shares of NASDAQ MSFT opened at $524.11 on Monday. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 0.12. Microsoft has a 12 month low of $344.79 and a 12 month high of $555.45. The company has a 50 day simple moving average of $489.94 and a two-hundred day simple moving average of $435.01. The stock has a market cap of $3.90 trillion, a price-to-earnings ratio of 38.42, a PEG ratio of 2.31 and a beta of 1.06.

Microsoft Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Shareholders of record on Thursday, August 21st will be issued 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 0.6%. Microsoft's dividend payout ratio is presently 24.34%.

Insider Transactions at Microsoft

In other Microsoft news, EVP Amy Coleman sold 13,243 shares of the stock in a transaction that occurred on Thursday, May 15th. The stock was sold at an average price of $452.01, for a total transaction of $5,985,968.43. Following the completion of the transaction, the executive vice president owned 43,100 shares of the company's stock, valued at $19,481,631. This represents a 23.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Kathleen T. Hogan sold 21,500 shares of the stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $453.77, for a total value of $9,756,055.00. Following the transaction, the executive vice president directly owned 134,888 shares of the company's stock, valued at $61,208,127.76. The trade was a 13.75% decrease in their position. The disclosure for this sale can be found here. Insiders sold 54,743 shares of company stock worth $24,921,913 over the last three months. 0.03% of the stock is owned by insiders.

Institutional Investors Weigh In On Microsoft

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Bulwark Capital Corp acquired a new stake in shares of Microsoft in the second quarter valued at approximately $32,000. Westend Capital Management LLC increased its holdings in shares of Microsoft by 386.7% in the second quarter. Westend Capital Management LLC now owns 73 shares of the software giant's stock valued at $36,000 after purchasing an additional 58 shares during the last quarter. Ball & Co Wealth Management Inc. acquired a new stake in shares of Microsoft in the fourth quarter valued at approximately $31,000. Newton One Investments LLC increased its holdings in shares of Microsoft by 66.7% in the first quarter. Newton One Investments LLC now owns 75 shares of the software giant's stock valued at $28,000 after purchasing an additional 30 shares during the last quarter. Finally, LSV Asset Management purchased a new position in Microsoft in the fourth quarter worth approximately $44,000. Institutional investors and hedge funds own 71.13% of the company's stock.

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.

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