KeyCorp Issues Optimistic Estimate for Microsoft Earnings

Microsoft Corporation (NASDAQ:MSFT) – Equities researchers at KeyCorp raised their Q2 2027 EPS estimates for shares of Microsoft in a research note issued on Wednesday, October 28th. KeyCorp analyst J. Ader now forecasts that the software giant will post earnings per share of $4.84 for the quarter, up from their prior estimate of $4.82. The consensus estimate for Microsoft’s current full-year earnings is $19.92 per share. KeyCorp also issued estimates for Microsoft’s Q3 2027 earnings at $4.95 EPS, Q4 2027 earnings at $5.28 EPS, FY2027 earnings at $19.96 EPS, FY2028 earnings at $24.60 EPS, FY2029 earnings at $30.93 EPS and FY2030 earnings at $37.93 EPS.

Several other equities research analysts have also weighed in on the stock. Oppenheimer increased their target price on shares of Microsoft from $570.00 to $625.00 and gave the stock an “outperform” rating in a report on Monday, October 26th. JPMorgan Chase & Co. reissued a “buy” rating on shares of Microsoft in a report on Monday, September 28th. BMO Capital Markets set a $610.00 price objective on shares of Microsoft in a research report on Thursday, October 29th. Wells Fargo & Company raised their price objective on Microsoft from $725.00 to $750.00 and gave the stock an “overweight” rating in a research note on Thursday, October 29th. Finally, Roth Capital initiated coverage on Microsoft in a report on Friday. They set a “buy” rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, forty-six have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Microsoft currently has a consensus rating of “Moderate Buy” and a consensus target price of $609.54.

Microsoft Stock Performance

NASDAQ MSFT opened at $545.18 on Monday. Microsoft has a 1-year low of $349.20 and a 1-year high of $559.15. The company has a 50 day moving average of $517.28 and a 200-day moving average of $440.69. The company has a current ratio of 1.22, a quick ratio of 1.21 and a debt-to-equity ratio of 0.07. The firm has a market cap of $4.05 trillion, a price-to-earnings ratio of 30.81, a PEG ratio of 1.64 and a beta of 1.05.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.72 by $0.17. The company had revenue of $92.28 billion during the quarter, compared to analysts’ expectations of $90.62 billion. Microsoft had a net margin of 41.17% and a return on equity of 31.28%. The business’s quarterly revenue was up 18.8% compared to the same quarter last year. During the same period in the prior year, the company earned $4.13 earnings per share.

Hedge Funds Weigh In On Microsoft

A number of hedge funds have recently modified their holdings of the business. State Street Corp raised its holdings in Microsoft by 2.9% during the 2nd quarter. State Street Corp now owns 315,653,206 shares of the software giant’s stock worth $117,744,959,000 after purchasing an additional 8,944,917 shares during the last quarter. Bank of America Corp DE acquired a new position in shares of Microsoft in the 2nd quarter valued at about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Microsoft by 0.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant’s stock valued at $24,013,297,000 after purchasing an additional 543,172 shares in the last quarter. Legal & General Group Plc bought a new stake in shares of Microsoft during the 2nd quarter valued at about $18,306,443,000. Finally, Amundi grew its stake in Microsoft by 12.0% during the second quarter. Amundi now owns 46,694,778 shares of the software giant’s stock worth $17,418,076,000 after purchasing an additional 5,019,702 shares during the period. Institutional investors and hedge funds own 71.13% of the company’s stock.

Insider Transactions at Microsoft

In related news, EVP Amy Hood sold 41,674 shares of Microsoft stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $498.27, for a total transaction of $20,764,903.98. Following the sale, the executive vice president directly owned 533,624 shares in the company, valued at $265,888,830.48. This trade represents a 7.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, 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 that occurred on Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the sale, the chief executive officer directly owned 486,763 shares in the company, valued at $244,092,173.98. The trade was 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. In the last ninety days, insiders sold 135,504 shares of company stock valued at $68,138,024. Insiders own 0.03% of the company’s stock.

Microsoft Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Thursday, November 19th will be given a dividend of $0.98 per share. The ex-dividend date is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a yield of 0.7%. This is an increase from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio is presently 19.00%.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Northern Trust introduced an AI-powered client-onboarding agent running on Microsoft Azure, with Excel and SharePoint integration. The reported reductions in data-preparation time and strong data-quality results illustrate potential enterprise demand for Microsoft’s cloud and AI tools. Microsoft stock and Northern Trust AI agent
• Neutral Sentiment: Microsoft is reportedly becoming more selective about outside AI data-center and neocloud arrangements, including not renewing a cloud contract involving Oracle. Tighter spending could support cash flow, but changes to its infrastructure plans may also raise questions about capacity and execution. Microsoft AI data-center deals
• Negative Sentiment: AI investment remains a key risk: one report said Microsoft’s free cash flow over the last four quarters was about 23% below the prior-year period, amid rising infrastructure spending. A large reported backlog signals demand, but investors will look for that spending to translate into returns. Microsoft backlog, AI capex and neocloud ties
• Negative Sentiment: B&D White Capital, a fund with roughly $1.03 billion in assets, reported selling all its Microsoft shares in the third quarter. The filing is backward-looking and does not establish the fund’s reason for selling, but it may add to near-term sentiment concerns. B&D White Capital share sale

About Microsoft

Microsoft Corporation is a global technology company that develops software, cloud services, devices, and digital solutions for consumers, businesses, and public-sector organizations. Founded in 1975 by Bill Gates and Paul Allen, the company is headquartered in Redmond, Washington.

Its products and services include the Windows operating system, Microsoft 365 productivity applications, Azure cloud computing, LinkedIn, GitHub, Surface devices, and Xbox gaming products and services. Microsoft also provides business software, cybersecurity tools, and artificial intelligence technologies.

Microsoft serves customers around the world through its products, online platforms, and network of business partners.