FY2027 EPS Estimates for Microsoft Cut by Erste Group Bank

Key Points

• Erste Group Bank slightly lowered its FY2027 EPS estimate for Microsoft to $19.40 from $19.43, while the current consensus estimate is $16.71 per share.
• Microsoft’s latest quarterly results were better than expected, with EPS of $4.27 on revenue of $82.89 billion, both beating analyst forecasts.
• Analyst sentiment remains broadly positive, with 41 Buy ratings versus 7 Holds and an average price target of $557.96, even as some firms have trimmed targets recently.

Microsoft Corporation (NASDAQ:MSFT - Free Report) - Equities researchers at Erste Group Bank cut their FY2027 earnings per share (EPS) estimates for shares of Microsoft in a report released on Wednesday, July 15th. Erste Group Bank analyst H. Engel now anticipates that the software giant will post earnings of $19.40 per share for the year, down from their previous forecast of $19.43. The consensus estimate for Microsoft's current full-year earnings is $16.71 per share.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its earnings results on Wednesday, April 29th. The software giant reported $4.27 EPS for the quarter, beating analysts' consensus estimates of $4.06 by $0.21. The firm had revenue of $82.89 billion for the quarter, compared to analysts' expectations of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.Microsoft's quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.46 EPS.

A number of other analysts have also commented on MSFT. Evercore reaffirmed an "outperform" rating and set a $525.00 price objective on shares of Microsoft in a research note on Wednesday. Truist Financial cut their target price on shares of Microsoft from $675.00 to $575.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Robert W. Baird reduced their target price on shares of Microsoft from $540.00 to $500.00 and set an "outperform" rating on the stock in a report on Wednesday, April 15th. Citizens Jmp started coverage on shares of Microsoft in a research note on Monday, June 1st. They set an "outperform" rating and a $550.00 price target on the stock. Finally, DA Davidson reiterated a "buy" rating and set a $550.00 price target on shares of Microsoft in a report on Monday, July 6th. Forty-one analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $557.96.

Microsoft Stock Performance

NASDAQ MSFT opened at $393.82 on Monday. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. Microsoft has a fifty-two week low of $349.20 and a fifty-two week high of $555.45. The business has a fifty day moving average of $400.28 and a 200-day moving average of $410.77. The stock has a market cap of $2.93 trillion, a price-to-earnings ratio of 23.44, a price-to-earnings-growth ratio of 1.19 and a beta of 1.13.

Microsoft Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a yield of 0.9%. Microsoft's dividend payout ratio is 21.67%.

Insider Buying and Selling

In other Microsoft news, EVP Amy Coleman sold 1,262 shares of the firm's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the sale, the executive vice president directly owned 46,003 shares of the company's stock, valued at approximately $18,922,874.02. This trade represents a 2.67% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $460.99, for a total value of $7,145,345.00. Following the completion of the sale, the chief executive officer owned 110,477 shares of the company's stock, valued at $50,928,792.23. This trade represents a 12.30% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 23,762 shares of company stock worth $10,508,361. 0.03% of the stock is owned by company insiders.

Institutional Investors Weigh In On Microsoft

Institutional investors have recently bought and sold shares of the stock. Longfellow Investment Management Co. LLC grew its position in Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock valued at $29,000 after acquiring an additional 20 shares during the period. Bernzott Capital Advisors acquired a new position in shares of Microsoft in the 4th quarter valued at about $34,000. Frankly Finances LLC acquired a new position in shares of Microsoft in the 2nd quarter valued at about $35,000. Timmons Wealth Management LLC purchased a new stake in shares of Microsoft during the 4th quarter worth about $36,000. Finally, Fairway Wealth LLC grew its holdings in shares of Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock worth $43,000 after purchasing an additional 66 shares during the period. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Microsoft is still getting support from Wall Street, with some analysts and portfolio managers reiterating buy ratings and arguing that Azure demand, Copilot adoption, and Microsoft 365 tailwinds can support long-term earnings power. Article: Josh Baer Reiterates Buy on Microsoft, Citing AI Leadership, Azure/M365 Budget Tailwinds and Underappreciated Earnings Power
• Positive Sentiment: A CIO survey and other commentary pointed to strong Azure demand at multi-year highs, reinforcing the view that Microsoft’s cloud and AI platform remains a core beneficiary of enterprise spending. Article: Microsoft (MSFT) Stock Surges on Strong Azure Demand in Latest CIO Survey
• Positive Sentiment: Microsoft also announced a multi-year AI infrastructure partnership with 3M, which investors viewed as another sign that its Azure ecosystem is expanding into real-world enterprise use cases. Article: Microsoft Stock Rebounds on 3M Optical Infrastructure Alliance
• Neutral Sentiment: Microsoft CEO Satya Nadella criticized Anthropic’s Fable restrictions and pushed for Microsoft to promote its own AI models more aggressively, highlighting the company’s effort to reduce reliance on outside AI vendors. Article: Microsoft's Nadella rips Anthropic's Fable restrictions in staff meeting: 'Doesn't make sense'
• Neutral Sentiment: Reports that Microsoft is training its sales force to push in-house AI models over OpenAI, Google, and Anthropic suggest a strategic shift toward better control over costs and monetization, but the market is still waiting for proof that this approach boosts returns. Article: Microsoft is reportedly training salespeople to talk down OpenAI and Anthropic
• Negative Sentiment: Several reports said analysts trimmed price targets ahead of earnings, and commentary stressed that investors are increasingly worried Microsoft’s AI spending spree could pressure margins before the payoff becomes visible. Article: Why Microsoft Is Playing a Different AI Game Than Big Tech—and Cash Flow Is the Test
• Negative Sentiment: Microsoft is facing added overhang from securities class-action deadlines and allegations tied to Copilot and Azure disclosures, which can keep pressure on sentiment even though these developments are not operational. Article: MSFT UPCOMING DEADLINE : The Gross Law Firm Alerts Microsoft Corporation Stockholders of Securities Class Action

About Microsoft

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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