Microsoft (NASDAQ:MSFT) Releases Quarterly Earnings Results, Beats Estimates By $0.22 EPS

by · The Markets Daily

Microsoft (NASDAQ:MSFT – Get Free Report) posted its quarterly earnings results on Wednesday. The software giant reported $3.30 earnings per share for the quarter, topping analysts’ consensus estimates of $3.08 by $0.22, Briefing.com reports. The firm had revenue of $65.59 billion for the quarter, compared to analyst estimates of $64.57 billion. Microsoft had a net margin of 35.61% and a return on equity of 35.73%. Microsoft’s quarterly revenue was up 16.0% on a year-over-year basis. During the same period in the previous year, the business posted $2.99 earnings per share. Microsoft updated its Q2 2025 guidance to EPS.

Microsoft Stock Up 1.0 %

Microsoft stock traded up $4.02 during mid-day trading on Friday, hitting $410.37. The company had a trading volume of 24,230,442 shares, compared to its average volume of 20,426,414. The company has a quick ratio of 1.27, a current ratio of 1.27 and a debt-to-equity ratio of 0.16. The stock has a market cap of $3.05 trillion, a price-to-earnings ratio of 33.86, a PEG ratio of 2.27 and a beta of 0.90. Microsoft has a 1 year low of $344.77 and a 1 year high of $468.35. The business has a fifty day moving average of $420.69 and a 200 day moving average of $424.55.

Microsoft Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 12th. Investors of record on Thursday, November 21st will be paid a $0.83 dividend. The ex-dividend date of this dividend is Thursday, November 21st. This represents a $3.32 dividend on an annualized basis and a yield of 0.81%. This is an increase from Microsoft’s previous quarterly dividend of $0.75. Microsoft’s payout ratio is currently 24.75%.

Wall Street Analyst Weigh In

MSFT has been the topic of several recent research reports. Wells Fargo & Company restated a “buy” rating on shares of Microsoft in a report on Friday, October 18th. KeyCorp upped their target price on Microsoft from $490.00 to $505.00 and gave the company an “overweight” rating in a report on Friday, October 18th. Oppenheimer downgraded Microsoft from an “outperform” rating to a “market perform” rating in a research note on Tuesday, October 8th. JPMorgan Chase & Co. lowered their price target on shares of Microsoft from $470.00 to $465.00 and set an “overweight” rating on the stock in a research report on Thursday. Finally, DA Davidson cut shares of Microsoft from a “buy” rating to a “neutral” rating and set a $475.00 price objective for the company. in a research report on Monday, September 23rd. One equities research analyst has rated the stock with a sell rating, three have given a hold rating and twenty-six have assigned a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $503.03.

Read Our Latest Analysis on MSFT

Insider Buying and Selling

In other news, CFO Amy Hood sold 38,000 shares of the company’s stock in a transaction on Thursday, September 5th. The shares were sold at an average price of $410.55, for a total transaction of $15,600,900.00. Following the transaction, the chief financial officer now directly owns 496,369 shares of the company’s stock, valued at $203,784,292.95. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In related news, CFO Amy Hood sold 38,000 shares of Microsoft stock in a transaction that occurred on Thursday, September 5th. The stock was sold at an average price of $410.55, for a total transaction of $15,600,900.00. Following the completion of the transaction, the chief financial officer now directly owns 496,369 shares in the company, valued at $203,784,292.95. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CMO Takeshi Numoto sold 2,500 shares of the business’s stock in a transaction on Tuesday, September 10th. The stock was sold at an average price of $411.04, for a total value of $1,027,600.00. Following the completion of the transaction, the chief marketing officer now directly owns 50,000 shares of the company’s stock, valued at approximately $20,552,000. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 190,629 shares of company stock valued at $77,916,485 over the last three months. 0.03% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Microsoft

An institutional investor recently raised its position in Microsoft stock. WFA Asset Management Corp grew its holdings in shares of Microsoft Co. (NASDAQ:MSFT – Free Report) by 27.0% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 1,016 shares of the software giant’s stock after purchasing an additional 216 shares during the quarter. WFA Asset Management Corp’s holdings in Microsoft were worth $427,000 at the end of the most recent quarter. Institutional investors own 71.13% of the company’s stock.

Microsoft declared that its board has initiated a stock buyback program on Monday, September 16th that allows the company to buyback $60.00 billion in shares. This buyback authorization allows the software giant to purchase up to 1.9% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board believes its stock is undervalued.

Microsoft Company Profile

(Get Free Report)

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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