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

Microsoft Co. (NASDAQ:MSFT) – DA Davidson issued their Q2 2025 earnings estimates for Microsoft in a note issued to investors on Thursday, October 31st. DA Davidson analyst G. Luria forecasts that the software giant will earn $3.25 per share for the quarter. DA Davidson currently has a “Neutral” rating and a $475.00 target price 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 data on Wednesday, October 30th. The software giant reported $3.30 EPS for the quarter, topping analysts’ consensus estimates of $3.08 by $0.22. The business had revenue of $65.59 billion for the quarter, compared to analysts’ expectations of $64.57 billion. Microsoft had a net margin of 35.61% and a return on equity of 35.73%. The business’s revenue was up 16.0% on a year-over-year basis. During the same quarter last year, the company earned $2.99 EPS.

MSFT has been the subject of a number of other research reports. Wedbush reiterated an “underperform” rating on shares of Microsoft in a research note on Friday, October 18th. Argus increased their target price on Microsoft from $475.00 to $526.00 and gave the stock a “buy” rating in a research report on Tuesday, July 9th. Piper Sandler reiterated an “overweight” rating and set a $470.00 target price on shares of Microsoft in a research report on Thursday. Royal Bank of Canada restated an “outperform” rating and issued a $500.00 price objective on shares of Microsoft in a report on Wednesday, July 31st. Finally, Morgan Stanley increased their target price on Microsoft from $506.00 to $548.00 and gave the company an “overweight” rating in a research note on Thursday. One research analyst has rated the stock with a sell rating, three have given a hold rating and twenty-six have given a buy rating to the company. According to MarketBeat.com, Microsoft presently has a consensus rating of “Moderate Buy” and an average price target of $503.03.

Microsoft Stock Up 1.0 %

NASDAQ MSFT opened at $410.37 on Friday. Microsoft has a 52 week low of $344.77 and a 52 week high of $468.35. 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 business’s fifty day simple moving average is $420.69 and its 200-day simple moving average is $424.55. The firm has a market cap of $3.05 trillion, a PE ratio of 33.86, a P/E/G ratio of 2.27 and a beta of 0.90.

Institutional Trading of Microsoft

A number of large investors have recently made changes to their positions in MSFT. International Assets Investment Management LLC boosted its stake in shares of Microsoft by 48,526.1% during the 3rd quarter. International Assets Investment Management LLC now owns 38,501,645 shares of the software giant’s stock worth $16,567,258,000 after buying an additional 38,422,466 shares during the last quarter. Swedbank AB acquired a new position in shares of Microsoft during the 1st quarter worth about $5,587,119,000. Wulff Hansen & CO. boosted its stake in shares of Microsoft by 47,196.6% during the 2nd quarter. Wulff Hansen & CO. now owns 4,834,658 shares of the software giant’s stock worth $2,160,850,000 after buying an additional 4,824,436 shares during the last quarter. Vanguard Group Inc. lifted its stake in Microsoft by 0.5% in the 1st quarter. Vanguard Group Inc. now owns 667,987,038 shares of the software giant’s stock valued at $281,035,506,000 after purchasing an additional 3,078,099 shares during the last quarter. Finally, Canada Pension Plan Investment Board lifted its stake in Microsoft by 77.6% in the 1st quarter. Canada Pension Plan Investment Board now owns 6,281,925 shares of the software giant’s stock valued at $2,642,931,000 after purchasing an additional 2,744,900 shares during the last quarter. Institutional investors own 71.13% of the company’s stock.

Insider Activity at Microsoft

In related news, CEO Satya Nadella sold 14,398 shares of the business’s stock in a transaction dated Friday, August 23rd. The stock was sold at an average price of $417.41, for a total transaction of $6,009,869.18. Following the transaction, the chief executive officer now directly owns 786,933 shares in the company, valued at $328,473,703.53. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. In other Microsoft news, CEO Satya Nadella sold 14,398 shares of Microsoft stock in a transaction that occurred on Friday, August 23rd. The stock was sold at an average price of $417.41, for a total transaction of $6,009,869.18. Following the sale, the chief executive officer now directly owns 786,933 shares of the company’s stock, valued at approximately $328,473,703.53. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Amy Hood sold 38,000 shares of Microsoft stock in a transaction that occurred on Thursday, September 5th. The shares were sold at an average price of $410.55, for a total value of $15,600,900.00. Following the sale, 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 ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 190,629 shares of company stock worth $77,916,485 over the last three months. Company insiders own 0.03% of the company’s stock.

Microsoft Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 12th. Stockholders of record on Thursday, November 21st will be paid a $0.83 dividend. The ex-dividend date is Thursday, November 21st. This is a positive change from Microsoft’s previous quarterly dividend of $0.75. This represents a $3.32 dividend on an annualized basis and a dividend yield of 0.81%. Microsoft’s payout ratio is presently 24.75%.

Microsoft declared that its board has authorized a stock buyback plan on Monday, September 16th that authorizes the company to repurchase $60.00 billion in outstanding shares. This repurchase authorization authorizes the software giant to repurchase up to 1.9% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s leadership believes its shares are undervalued.

Microsoft Company Profile

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.