Microsoft (NASDAQ:MSFT) Stock Keeps Outperform Rating at Royal Bank Of Canada

Posted by Francis Steltz on Oct 29th, 2026

Microsoft (NASDAQ:MSFT – Get Free Report)‘s stock had its “outperform” rating reiterated by equities research analysts at Royal Bank Of Canada in a research report issued to clients and investors on Thursday, Benzinga reports. They presently have a $640.00 price target on the software giant’s stock. Royal Bank Of Canada‘s price objective suggests a potential upside of 20.72% from the company’s previous close.

Several other research analysts have also issued reports on MSFT. Wolfe Research lowered Microsoft from an “outperform” rating to a “hold” rating in a research report on Wednesday, September 23rd. JPMorgan Chase & Co. reissued a “buy” rating on shares of Microsoft in a research note on Monday, September 28th. Bank of America raised their price objective on Microsoft from $500.00 to $600.00 and gave the stock a “buy” rating in a research report on Tuesday, September 1st. Barclays increased their target price on shares of Microsoft from $600.00 to $610.00 and gave the company an “overweight” rating in a research report on Thursday. Finally, Scotiabank set a $650.00 price target on shares of Microsoft in a research report on Thursday. Forty-five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, Microsoft presently has a consensus rating of “Moderate Buy” and a consensus price target of $609.54.

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Microsoft Trading Down 0.2%

NASDAQ MSFT traded down $0.87 on Thursday, hitting $530.14. The company’s stock had a trading volume of 38,626,960 shares, compared to its average volume of 33,449,102. The company’s 50-day moving average is $511.18 and its 200 day moving average is $437.96. The firm has a market cap of $3.94 trillion, a PE ratio of 29.52, a PEG ratio of 1.68 and a beta of 1.10. Microsoft has a 1-year low of $349.20 and a 1-year high of $551.15. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07.

Microsoft (NASDAQ:MSFT – Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, topping analysts’ consensus estimates of $4.71 by $0.18. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company had revenue of $92.28 billion for the quarter, compared to analyst estimates of $90.62 billion. During the same quarter in the previous year, the business earned $4.13 earnings per share. Microsoft’s revenue was up 18.8% compared to the same quarter last year. As a group, analysts predict that Microsoft will post 19.66 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Microsoft news, CEO Judson Althoff sold 10,000 shares of the stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total transaction of $4,878,900.00. Following the transaction, the chief executive officer directly owned 100,447 shares in the company, valued at approximately $49,007,086.83. This represents a 9.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Takeshi Numoto sold 4,810 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $496.48, for a total transaction of $2,388,068.80. Following the sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. This trade represents a 10.13% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 150,314 shares of company stock valued at $75,404,992. Company insiders own 0.03% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Empirical Financial Services LLC d.b.a. Empirical Wealth Management grew its holdings in Microsoft by 4.0% during the second quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 229,490 shares of the software giant’s stock worth $85,604,000 after buying an additional 8,773 shares in the last quarter. D.B. Root & Company LLC bought a new position in Microsoft during the 2nd quarter valued at $3,652,000. Dearborn Partners LLC purchased a new position in Microsoft during the 2nd quarter worth $75,641,000. GTS Securities LLC grew its stake in shares of Microsoft by 44.6% in the 2nd quarter. GTS Securities LLC now owns 271,597 shares of the software giant’s stock worth $101,311,000 after acquiring an additional 83,734 shares in the last quarter. Finally, Henson Edgewater Management LLC bought a new stake in shares of Microsoft in the 2nd quarter worth $9,430,000. Institutional investors and hedge funds own 71.13% of the company’s stock.

Microsoft News Summary

Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Microsoft reported fiscal first-quarter revenue of $92.28 billion and earnings of $4.89 per share, exceeding estimates of $90.62 billion and $4.71, respectively. Revenue increased 19% year over year, while profit margins remained strong. Microsoft beats quarterly cloud revenue estimates
Positive Sentiment: Azure growth accelerated 48% to approximately $33.2 billion, supported by demand for cloud computing and enterprise AI. Microsoft Cloud revenue rose 30%, and its commercial backlog reached roughly $677 billion, reinforcing expectations for continued growth. Microsoft Azure revenue surges
Positive Sentiment: Several analysts raised their price targets, including TD Cowen and D.A. Davidson to $650, while Barclays lifted its target to $610. Analysts cited Azure momentum, strong cash generation and multiple paths to monetize AI. Microsoft analyst forecasts
Neutral Sentiment: Microsoft disclosed that commercial arrangements with OpenAI generated about $10 billion in quarterly revenue, nearly 11% of total sales. The relationship is a major AI growth driver but also increases customer and partnership concentration. Microsoft recorded revenue from OpenAI
Negative Sentiment: Microsoft plans to raise at least $25 billion through its first major U.S. bond offering since 2017. Investors viewed the borrowing as evidence that the AI buildout is becoming more capital-intensive, potentially pressuring future free cash flow and returns. Microsoft expects to raise $25 billion in bond sale
Negative Sentiment: Quarterly capital expenditures came in below analyst expectations, and Microsoft lowered its fiscal 2026 capital-spending outlook to $170 billion from $175 billion because of third-party AI-chip and capacity delays. Although management said demand remains strong, the update renewed debate over the timing and returns of AI investments. AI buildout hits delays
Negative Sentiment: Griffin Securities downgraded Microsoft from “buy” to “neutral,” reflecting valuation and spending concerns despite the strong operating results. Griffin Securities Microsoft ratings

Microsoft Company Profile

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Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.