What is DA Davidson's Estimate for Microsoft Q1 Earnings?

Key Points

• DA Davidson projects Microsoft will earn $3.57 per share in Q1 2026, with a "Buy" rating and a price target of $650.00.
• Microsoft reported $3.65 EPS for the last quarter, exceeding expectations of $3.35 EPS and showing an 18.1% year-over-year revenue increase.
• Multiple firms have increased their price targets for Microsoft, with Morgan Stanley setting it at $582.00 and Oppenheimer at $630.00, while maintaining a consensus rating of "Moderate Buy".

Microsoft Corporation (NASDAQ:MSFT - Free Report) - Equities researchers at DA Davidson issued their Q1 2026 earnings estimates for shares of Microsoft in a report issued on Thursday, July 31st. DA Davidson analyst G. Luria anticipates that the software giant will post earnings of $3.57 per share for the quarter. DA Davidson has a "Buy" rating and a $650.00 price objective on the stock. The consensus estimate for Microsoft's current full-year earnings is $13.08 per share. DA Davidson also issued estimates for Microsoft's FY2026 earnings at $14.97 EPS and FY2027 earnings at $17.44 EPS.

Microsoft (NASDAQ:MSFT - Get Free Report) last posted its earnings results on Wednesday, July 30th. The software giant reported $3.65 earnings per share for the quarter, topping analysts' consensus estimates of $3.35 by $0.30. Microsoft had a net margin of 36.15% and a return on equity of 32.44%. The firm had revenue of $76.44 billion for the quarter, compared to the consensus estimate of $73.79 billion. During the same period in the previous year, the firm posted $2.95 EPS. The business's quarterly revenue was up 18.1% on a year-over-year basis.

Several other analysts also recently weighed in on MSFT. Bank of America lifted their price target on shares of Microsoft from $585.00 to $640.00 and gave the company a "buy" rating in a research note on Thursday. Royal Bank Of Canada raised their price target on shares of Microsoft from $525.00 to $640.00 and gave the stock an "outperform" rating in a report on Thursday. Wall Street Zen lowered shares of Microsoft from a "buy" rating to a "hold" rating in a research report on Monday, June 30th. Needham & Company LLC reiterated a "buy" rating on shares of Microsoft in a research report on Thursday, May 1st. Finally, Evercore ISI lifted their target price on shares of Microsoft from $515.00 to $545.00 and gave the stock an "outperform" rating in a research note on Friday, July 25th. Three investment analysts have rated the stock with a hold rating and thirty have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $609.86.

Microsoft Trading Down 1.8%

NASDAQ:MSFT traded down $9.39 during mid-day trading on Friday, hitting $524.11. 28,948,527 shares of the stock traded hands, compared to its average volume of 17,331,950. The stock has a market capitalization of $3.90 trillion, a price-to-earnings ratio of 38.42, a PEG ratio of 2.39 and a beta of 1.06. Microsoft has a 52 week low of $344.79 and a 52 week high of $555.45. The firm's 50 day moving average is $489.94 and its two-hundred day moving average is $434.88. The company has a quick ratio of 1.36, a current ratio of 1.35 and a debt-to-equity ratio of 0.12.

Institutional Trading of Microsoft

A number of large investors have recently bought and sold shares of the business. Newton One Investments LLC increased its holdings in shares of Microsoft by 66.7% in the 1st 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 in the last quarter. Ball & Co Wealth Management Inc. acquired a new position in Microsoft during the fourth quarter valued at approximately $31,000. Bulwark Capital Corp acquired a new position in shares of Microsoft during the second quarter worth $32,000. Westend Capital Management LLC lifted its position in shares of Microsoft by 386.7% during the second quarter. Westend Capital Management LLC now owns 73 shares of the software giant's stock worth $36,000 after purchasing an additional 58 shares in the last quarter. Finally, LSV Asset Management bought a new stake in shares of Microsoft in the fourth quarter worth $44,000. Institutional investors and hedge funds own 71.13% of the company's stock.

Insider Activity

In related news, EVP Judson Althoff sold 16,000 shares of the stock in a transaction on Monday, May 19th. The shares were sold at an average price of $458.18, for a total transaction of $7,330,880.00. Following the completion of the sale, the executive vice president owned 98,010 shares in the company, valued at $44,906,221.80. This represents a 14.03% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Bradford L. Smith sold 6,000 shares of the stock in a transaction on Monday, May 5th. The stock was sold at an average price of $433.17, for a total transaction of $2,599,020.00. Following the sale, the insider owned 471,036 shares of the company's stock, valued at approximately $204,038,664.12. This represents a 1.26% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 60,743 shares of company stock worth $27,520,933 over the last 90 days. 0.03% of the stock is owned by corporate insiders.

Microsoft Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 11th. Investors of record on Thursday, August 21st will be paid a dividend of $0.83 per share. The ex-dividend date is Thursday, August 21st. This represents a $3.32 dividend on an annualized basis and a yield of 0.6%. Microsoft's dividend payout ratio is currently 24.34%.

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.