Microsoft Stock Earnings Estimates Increased by KeyCorp

Key Points

• KeyCorp raised its Microsoft EPS forecast for Q2 2027 to $4.84 from $4.82, and projects earnings of $19.96 per share for FY2027, rising to $37.93 by FY2030.
• Microsoft reported quarterly EPS of $4.89, beating the $4.72 consensus, while revenue reached $92.28 billion and grew 18.8% year over year.
• Microsoft increased its quarterly dividend to $0.98 per share from $0.91. The article also flags uncertainty around AI infrastructure spending as the company reassesses some rented capacity and data-center commitments.

Microsoft Corporation (NASDAQ:MSFT - Free Report) - Equities research analysts at KeyCorp lifted their Q2 2027 earnings per share (EPS) estimates for Microsoft in a report released on Wednesday, October 28th. KeyCorp analyst J. Ader now forecasts that the software giant will earn $4.84 per share for the quarter, up from their prior forecast of $4.82. The consensus estimate for Microsoft's current full-year earnings is $19.92 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.

Microsoft (NASDAQ:MSFT - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $92.28 billion during the quarter, compared to analyst estimates of $90.62 billion. During the same quarter in the previous year, the company posted $4.13 earnings per share. The company's revenue was up 18.8% compared to the same quarter last year.

Several other analysts have also issued reports on MSFT. Cantor Fitzgerald upped their target price on Microsoft from $608.00 to $630.00 and gave the stock an "overweight" rating in a research note on Thursday, October 29th. Needham & Company LLC initiated coverage on shares of Microsoft in a research note on Wednesday, September 23rd. They set a "buy" rating on the stock. Barclays upped their price objective on shares of Microsoft from $600.00 to $610.00 and gave the company an "overweight" rating in a research note on Thursday, October 29th. Guggenheim increased their target price on shares of Microsoft from $586.00 to $595.00 and gave the company a "buy" rating in a report on Thursday, October 29th. Finally, CLSA reiterated an "outperform" rating on shares of Microsoft in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, forty-six have issued a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $609.54.

Microsoft Stock Performance

Shares of NASDAQ MSFT opened at $530.61 on Monday. The stock's 50-day moving average is $516.65 and its 200 day moving average is $440.18. The stock has a market cap of $3.94 trillion, a price-to-earnings ratio of 27.69, a P/E/G ratio of 1.56 and a beta of 1.05. Microsoft has a 1-year low of $349.20 and a 1-year high of $559.15. The company has a current ratio of 1.22, a quick ratio of 1.21 and a debt-to-equity ratio of 0.07.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Thursday, November 19th will be paid a $0.98 dividend. This is an increase from Microsoft's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. Microsoft's payout ratio is presently 20.46%.

Insider Activity at Microsoft

In other Microsoft news, CEO Satya Nadella sold 86,525 shares of the business's stock in a transaction that occurred 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 completion of the sale, the chief executive officer owned 486,763 shares in the company, valued at approximately $244,092,173.98. The trade was a 15.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 7,305 shares of the stock in a transaction that occurred on Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total value of $3,984,293.10. Following the sale, the executive vice president directly owned 555,396 shares of the company's stock, valued at approximately $302,924,086.32. This trade represents a 1.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 135,504 shares of company stock valued at $68,138,024 in the last quarter. Corporate insiders own 0.03% of the company's stock.

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 company. Hedeker Wealth LLC increased its position in Microsoft by 6.9% during the 2nd quarter. Hedeker Wealth LLC now owns 55,236 shares of the software giant's stock worth $20,604,000 after purchasing an additional 3,546 shares in the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management raised its holdings in Microsoft by 4.0% in the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant's stock valued at $85,604,000 after buying an additional 8,773 shares during the period. D.B. Root & Company LLC acquired a new position in Microsoft during the second quarter valued at approximately $3,652,000. Dearborn Partners LLC acquired a new position in Microsoft during the second quarter valued at approximately $75,641,000. Finally, GTS Securities LLC lifted its position in Microsoft by 44.6% during the second quarter. GTS Securities LLC now owns 271,597 shares of the software giant's stock valued at $101,311,000 after buying an additional 83,734 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft’s free-cash-flow position may offer some reassurance: an analysis notes that several other major AI hyperscalers are generating negative free cash flow, while Microsoft is generating positive cash flow. Is Microsoft Getting Enough Credit for Better Free Cash Flow Compared to its Peers?
• Neutral Sentiment: Reports say Microsoft plans to reduce the number of neocloud partners it uses, wind down rented AI capacity from Oracle, and declined a Texas data-center expansion with Nscale. This could help control costs and give Microsoft tighter oversight as it builds its own infrastructure, but the implications for capacity growth remain uncertain. Microsoft plans to use fewer neoclouds as AI buildout shows signs of strain
• Negative Sentiment: Investors may read the canceled or reduced AI-computing commitments as a sign that Microsoft is reassessing demand, project timing, or returns on its data-center spending. The shift comes as reports highlight construction delays and the rising cost of meeting a growing AI backlog, intensifying scrutiny of whether heavy investment will pay off. Microsoft is winding down Oracle deal to rent AI cloud capacity, Bloomberg News reports
• Negative Sentiment: Broader unease around AI spending and tech-market volatility may also weigh on MSFT, as investors question the scale of data-center investment relative to future cash returns. Microsoft and Oracle's AI ambitions are suddenly a lot more expensive

Microsoft Company Profile

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.

Microsoft serves customers around the world through its products, online platforms, and network of business partners.

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