DA Davidson Predicts Microsoft’s Q2 Earnings (NASDAQ:MSFT)

Microsoft Co. (NASDAQ:MSFT) – Research analysts at DA Davidson issued their Q2 2025 EPS estimates for shares of Microsoft in a note issued to investors on Thursday, October 31st. DA Davidson analyst G. Luria anticipates that the software giant will post earnings of $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 (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 the consensus estimate of $64.57 billion. Microsoft had a return on equity of 35.73% and a net margin of 35.61%. The firm’s quarterly revenue was up 16.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.99 earnings per share.

MSFT has been the subject of several other research reports. Piper Sandler reaffirmed an “overweight” rating and set a $470.00 price objective on shares of Microsoft in a research report on Thursday. Truist Financial reaffirmed a “buy” rating and set a $600.00 price target on shares of Microsoft in a report on Monday. JPMorgan Chase & Co. decreased their price objective on shares of Microsoft from $470.00 to $465.00 and set an “overweight” rating on the stock in a research note on Thursday. Oppenheimer cut Microsoft from an “outperform” rating to a “market perform” rating in a research note on Tuesday, October 8th. Finally, Bank of America boosted their price target on Microsoft from $480.00 to $510.00 and gave the stock a “buy” rating in a report on Wednesday, July 17th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and twenty-six have issued a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $503.03.

Microsoft Stock Performance

MSFT opened at $406.35 on Friday. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.27 and a current ratio of 1.27. Microsoft has a 52-week low of $334.69 and a 52-week high of $468.35. The firm has a market cap 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. The business’s fifty day moving average is $420.82 and its 200-day moving average is $424.58.

Institutional Investors Weigh In On Microsoft

A number of hedge funds have recently added to or reduced their stakes in the company. Christopher J. Hasenberg Inc lifted its position in Microsoft by 169.2% in the 2nd quarter. Christopher J. Hasenberg Inc now owns 70 shares of the software giant’s stock valued at $31,000 after acquiring an additional 44 shares in the last quarter. Quarry LP bought a new stake in shares of Microsoft in the 2nd quarter worth $45,000. Richardson Capital Management LLC raised its holdings in shares of Microsoft by 1,290.0% in the first quarter. Richardson Capital Management LLC now owns 139 shares of the software giant’s stock valued at $59,000 after purchasing an additional 129 shares during the last quarter. Innealta Capital LLC purchased a new stake in shares of Microsoft in the second quarter valued at about $75,000. Finally, Bellevue Group AG lifted its position in shares of Microsoft by 47.5% during the first quarter. Bellevue Group AG now owns 180 shares of the software giant’s stock valued at $76,000 after purchasing an additional 58 shares in the last quarter. Institutional investors and hedge funds own 71.13% of the company’s stock.

Insider Transactions at Microsoft

In other news, CEO Satya Nadella sold 78,353 shares of Microsoft stock in a transaction dated Wednesday, September 4th. The stock was sold at an average price of $408.63, for a total value of $32,017,386.39. Following the completion of the transaction, the chief executive officer now directly owns 864,327 shares of the company’s stock, valued at approximately $353,189,942.01. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. In other news, CMO Takeshi Numoto sold 2,500 shares of the stock in a transaction dated 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 owns 50,000 shares of the company’s stock, valued at $20,552,000. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Satya Nadella sold 78,353 shares of the business’s stock in a transaction dated Wednesday, September 4th. The shares were sold at an average price of $408.63, for a total value of $32,017,386.39. Following the completion of the sale, the chief executive officer now directly owns 864,327 shares of the company’s stock, valued at $353,189,942.01. The trade was 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 worth $77,916,485 over the last three months. 0.03% of the stock is owned by company insiders.

Microsoft Increases Dividend

The company 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. 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 0.82%. The ex-dividend date of this dividend is Thursday, November 21st. Microsoft’s dividend payout ratio is currently 24.75%.

Microsoft announced that its board has approved a stock buyback plan on Monday, September 16th that permits the company to repurchase $60.00 billion in shares. This repurchase authorization permits the software giant to reacquire up to 1.9% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board 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.