Microsoft (NASDAQ:MSFT) Announces Quarterly Earnings Results, Beats Expectations By $0.08 EPS

Microsoft (NASDAQ:MSFTGet Free Report) released its earnings results on Wednesday. The software giant reported $3.23 EPS for the quarter, beating the consensus estimate of $3.15 by $0.08, Zacks reports. Microsoft had a net margin of 35.61% and a return on equity of 34.56%. During the same period last year, the company posted $2.93 EPS. Microsoft updated its Q3 2025 guidance to EPS.

Microsoft Price Performance

Shares of MSFT opened at $419.31 on Thursday. The company has a market capitalization of $3.12 trillion, a P/E ratio of 34.63, a price-to-earnings-growth ratio of 2.40 and a beta of 0.90. Microsoft has a twelve month low of $385.58 and a twelve month high of $468.35. The company has a quick ratio of 1.29, a current ratio of 1.30 and a debt-to-equity ratio of 0.15. The firm has a 50 day moving average of $432.01 and a 200 day moving average of $425.03.

Microsoft Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 13th. Stockholders of record on Thursday, February 20th will be paid a $0.83 dividend. The ex-dividend date is Thursday, February 20th. This represents a $3.32 annualized dividend and a dividend yield of 0.79%. Microsoft’s dividend payout ratio is presently 27.39%.

Insiders Place Their Bets

In other news, EVP Judson Althoff sold 25,000 shares of Microsoft stock in a transaction that occurred on Friday, November 22nd. The shares were sold at an average price of $417.00, for a total transaction of $10,425,000.00. Following the sale, the executive vice president now owns 117,294 shares in the company, valued at $48,911,598. This trade represents a 17.57 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CMO Takeshi Numoto sold 2,500 shares of Microsoft stock in a transaction on Monday, December 9th. The shares were sold at an average price of $447.41, for a total transaction of $1,118,525.00. Following the completion of the sale, the chief marketing officer now owns 49,352 shares in the company, valued at approximately $22,080,578.32. This represents a 4.82 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 41,200 shares of company stock valued at $17,383,892. 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 MSFT. WFA Asset Management Corp grew its stake in Microsoft by 27.0% in the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock worth $427,000 after purchasing an additional 216 shares in the last quarter. Ironwood Wealth Management LLC. increased its position in shares of Microsoft by 0.3% during the second quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock worth $5,658,000 after purchasing an additional 38 shares in the last quarter. Finally, Discipline Wealth Solutions LLC grew its stake in shares of Microsoft by 410.4% during the third quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock worth $1,144,000 after acquiring an additional 2,138 shares during the last quarter. 71.13% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research firms have commented on MSFT. Wells Fargo & Company reiterated a “buy” rating on shares of Microsoft in a research report on Friday, October 18th. The Goldman Sachs Group cut their price target on shares of Microsoft from $515.00 to $500.00 and set a “buy” rating on the stock in a report on Thursday, October 10th. Citigroup reduced their price target on Microsoft from $500.00 to $497.00 and set a “buy” rating on the stock in a research report on Wednesday, October 23rd. StockNews.com raised Microsoft from a “hold” rating to a “buy” rating in a research report on Wednesday, January 22nd. Finally, TD Cowen cut their target price on Microsoft from $495.00 to $475.00 and set a “buy” rating on the stock in a report on Thursday, October 31st. Three investment analysts have rated the stock with a hold rating and twenty-eight have given a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $511.97.

Read Our Latest Research Report on MSFT

About Microsoft

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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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Earnings History for Microsoft (NASDAQ:MSFT)

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