What is DA Davidson’s Forecast for Microsoft Q2 Earnings?

Microsoft Co. (NASDAQ:MSFT) – DA Davidson issued their Q2 2025 earnings estimates for shares of Microsoft in a report issued on Thursday, October 31st. DA Davidson analyst G. Luria anticipates that the software giant will earn $3.25 per share for the quarter. DA Davidson has a “Neutral” rating and a $475.00 price objective on the stock. The consensus estimate for Microsoft’s current full-year earnings is $13.02 per share. DA Davidson also issued estimates for Microsoft’s FY2025 earnings at $13.27 EPS and FY2026 earnings at $15.18 EPS.

Microsoft (NASDAQ:MSFT) last issued its quarterly earnings results on Wednesday, October 30th. The software giant reported $3.30 earnings per share for the quarter, beating analysts’ consensus estimates of $3.08 by $0.22. Microsoft had a net margin of 35.61% and a return on equity of 35.73%. The business had revenue of $65.59 billion during the quarter, compared to analyst estimates of $64.57 billion. During the same quarter last year, the business posted $2.99 earnings per share. Microsoft’s revenue for the quarter was up 16.0% compared to the same quarter last year.

Other analysts have also issued reports about the company. Argus lifted their price objective on Microsoft from $475.00 to $526.00 and gave the stock a “buy” rating in a research report on Tuesday, July 9th. TD Cowen reduced their price objective on shares of Microsoft from $495.00 to $475.00 and set a “buy” rating on the stock in a research note on Thursday. Wells Fargo & Company restated a “buy” rating on shares of Microsoft in a report on Friday, October 18th. Morgan Stanley upped their price objective on shares of Microsoft from $506.00 to $548.00 and gave the company an “overweight” rating in a research report on Thursday. Finally, UBS Group reduced their target price on Microsoft from $510.00 to $500.00 and set a “buy” rating on the stock in a report on Thursday. One research analyst has rated the stock with a sell rating, three have issued a hold rating and twenty-six have issued a buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $503.03.

Microsoft Stock Down 6.1 %

NASDAQ MSFT opened at $406.35 on Friday. The stock has a market capitalization of $3.02 trillion, a P/E ratio of 33.53, a price-to-earnings-growth ratio of 2.27 and a beta of 0.90. Microsoft has a 52 week low of $334.69 and a 52 week high of $468.35. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.27 and a current ratio of 1.27. The stock has a fifty day moving average of $420.82 and a 200-day moving average of $424.58.

Institutional Investors Weigh In On Microsoft

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its stake in shares of Microsoft by 0.5% during the 1st quarter. Vanguard Group Inc. now owns 667,987,038 shares of the software giant’s stock worth $281,035,506,000 after buying an additional 3,078,099 shares during the last quarter. Capital International Investors lifted its position in Microsoft by 1.0% during the first quarter. Capital International Investors now owns 83,571,070 shares of the software giant’s stock worth $35,160,020,000 after acquiring an additional 842,884 shares during the last quarter. International Assets Investment Management LLC boosted its holdings in shares of Microsoft by 48,526.1% during the third quarter. International Assets Investment Management LLC now owns 38,501,645 shares of the software giant’s stock worth $16,567,258,000 after acquiring an additional 38,422,466 shares during the period. Ameriprise Financial Inc. grew its position in shares of Microsoft by 0.3% in the second quarter. Ameriprise Financial Inc. now owns 34,511,544 shares of the software giant’s stock valued at $15,426,767,000 after purchasing an additional 97,075 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in shares of Microsoft by 6.9% during the second quarter. Dimensional Fund Advisors LP now owns 24,091,789 shares of the software giant’s stock worth $10,768,771,000 after purchasing an additional 1,563,533 shares during the period. Institutional investors and hedge funds own 71.13% of the company’s stock.

Insiders Place Their Bets

In related news, CMO Takeshi Numoto sold 2,500 shares of the business’s stock in a transaction on Tuesday, September 10th. The shares were sold at an average price of $411.04, for a total transaction of $1,027,600.00. Following the transaction, the chief marketing officer now directly owns 50,000 shares in the company, valued at approximately $20,552,000. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other Microsoft news, CEO Satya Nadella sold 14,398 shares of the company’s stock in a transaction that occurred on Friday, August 23rd. The stock was sold at an average price of $417.41, for a total value of $6,009,869.18. Following the sale, the chief executive officer now owns 786,933 shares in the company, valued at $328,473,703.53. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CMO Takeshi Numoto sold 2,500 shares of Microsoft stock in a transaction that occurred 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 transaction, the chief marketing officer now owns 50,000 shares of the company’s stock, valued at $20,552,000. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 190,629 shares of company stock valued at $77,916,485 in the last 90 days. 0.03% of the stock is currently owned by insiders.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 12th. Investors of record on Thursday, November 21st will be given a dividend of $0.83 per share. The ex-dividend date is Thursday, November 21st. This is a boost from Microsoft’s previous quarterly dividend of $0.75. This represents a $3.32 annualized dividend and a yield of 0.82%. Microsoft’s dividend payout ratio is 24.75%.

Microsoft announced that its board has authorized a stock buyback program on Monday, September 16th that permits the company to buyback $60.00 billion in shares. This buyback authorization permits 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 management believes its stock is undervalued.

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.