What is Scotiabank's Forecast for Microsoft FY2027 Earnings?

Key Points

• Scotiabank raised its FY2027 EPS forecast for Microsoft to $19.76 from $19.21. The analyst maintained a “Sector Outperform” rating and a $650 price target.
• Scotiabank’s new estimate is slightly below the $19.86 consensus forecast for Microsoft’s current full-year earnings.
• Microsoft’s latest quarter beat expectations, with EPS of $4.89 and revenue of $92.28 billion; revenue increased 18.8% year over year.

Microsoft Corporation (NASDAQ:MSFT - Free Report) - Scotiabank lifted their FY2027 EPS estimates for Microsoft in a research report issued on Monday, November 2nd. Scotiabank analyst P. Colville now anticipates that the software giant will earn $19.76 per share for the year, up from their previous forecast of $19.21. Scotiabank currently has a "Sector Outperform" rating and a $650.00 target price on the stock. The consensus estimate for Microsoft's current full-year earnings is $19.86 per share.

A number of other equities research analysts have also weighed in on the stock. Sanford C. Bernstein boosted their price objective on shares of Microsoft from $662.00 to $722.00 and gave the company an "outperform" rating in a report on Thursday, October 29th. Bank of America raised their target price on Microsoft from $500.00 to $600.00 and gave the stock a "buy" rating in a research note on Tuesday, September 1st. Guggenheim lifted their price target on Microsoft from $586.00 to $595.00 and gave the stock a "buy" rating in a research report on Thursday, October 29th. Wells Fargo & Company lifted their price target on Microsoft from $725.00 to $750.00 and gave the stock an "overweight" rating in a research report on Thursday, October 29th. Finally, Jefferies Financial Group boosted their price target on Microsoft from $575.00 to $650.00 and gave the company a "buy" rating in a research note on Wednesday, October 14th. One equities research analyst has rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $609.54.

Microsoft Trading Up 6.7%

NASDAQ MSFT opened at $555.80 on Thursday. The company has a fifty day simple moving average of $515.34 and a two-hundred day simple moving average of $439.42. The stock has a market cap of $4.13 trillion, a P/E ratio of 29.01, a P/E/G ratio of 1.54 and a beta of 1.05. Microsoft has a 12-month low of $349.20 and a 12-month 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 (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, topping analysts' consensus estimates of $4.72 by $0.17. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The company had revenue of $92.28 billion during the quarter, compared to analysts' expectations of $90.62 billion. During the same period last year, the business earned $4.13 EPS. Microsoft's revenue for the quarter was up 18.8% on a year-over-year basis.

Microsoft Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date is Thursday, November 19th. This is an increase 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 dividend payout ratio (DPR) is currently 19.00%.

Insiders Place Their Bets

In related news, EVP Amy Hood sold 7,305 shares of the firm's stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the completion of the transaction, the executive vice president owned 555,396 shares of the company's stock, valued at $302,924,086.32. This trade represents a 1.30% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Satya Nadella sold 86,525 shares of the business's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the transaction, the chief executive officer owned 486,763 shares of the company's stock, valued at $244,092,173.98. This represents a 15.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 135,504 shares of company stock worth $68,138,024 in the last quarter. Company insiders own 0.03% of the company's stock.

Institutional Investors Weigh In On Microsoft

Several hedge funds and other institutional investors have recently added to or reduced their stakes in MSFT. Cornerstone Wealth Management LLC increased its position in Microsoft by 1.3% in the third quarter. Cornerstone Wealth Management LLC now owns 83,614 shares of the software giant's stock worth $42,886,000 after buying an additional 1,052 shares during the period. Triton Wealth Management PLLC lifted its stake in Microsoft by 9.8% in the third quarter. Triton Wealth Management PLLC now owns 10,127 shares of the software giant's stock valued at $5,232,000 after buying an additional 904 shares during the last quarter. D.B. Root & Company LLC lifted its stake in Microsoft by 4.1% in the third quarter. D.B. Root & Company LLC now owns 10,190 shares of the software giant's stock valued at $5,227,000 after buying an additional 400 shares during the last quarter. Cassia Capital Partners LLC boosted its holdings in shares of Microsoft by 1.5% during the third quarter. Cassia Capital Partners LLC now owns 5,167 shares of the software giant's stock valued at $2,650,000 after acquiring an additional 78 shares during the period. Finally, Quarry Hill Advisors LLC acquired a new position in shares of Microsoft during the third quarter valued at $425,000. 71.13% of the stock is owned by institutional investors and hedge funds.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Cloud and AI results supported the rally. Microsoft’s fiscal first-quarter revenue rose 19% year over year to $92.28 billion, beating estimates, while Azure growth accelerated and AI adoption continued to expand. Reports also highlighted a $677 billion commercial backlog as evidence of future demand. Article: MSFT Q1 Earnings Call Highlights Azure Growth and AI Spending
• Positive Sentiment: Broader market strength lifted mega-cap technology shares. Microsoft joined a post-election rebound as investors rotated back into AI leaders; the company also reached a record high during the session. Article: Microsoft Stock Hits Record High as Midterm Results Boost AI Infrastructure Bets
• Positive Sentiment: New analytics tools target AI-assisted shopping. Microsoft added features to Clarity that help merchants track how AI agents interact with websites and apps, extending the company’s offerings for businesses adopting agentic AI. Article: Microsoft Clarity Helps Merchants Welcome AI Shopping Agents
• Neutral Sentiment: Microsoft disclosed a $25 billion senior-notes offering. The debt issuance provides financing flexibility, but also adds borrowing and interest obligations. Article: Microsoft Announces $25 Billion Senior Notes Offering
• Negative Sentiment: AI investment remains a key risk. Analysts and commentary flagged substantial infrastructure spending, possible pressure on free cash flow and margins, and political calls for tighter data-center rules that could constrain future expansion. Article: Microsoft: Don't Get Too Excited About Its Positive FCF

Microsoft Company Profile

Microsoft Corporation NASDAQ: MSFT is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company's principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.

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