Microsoft (NASDAQ:MSFT) Issues Earnings Results, Beats Estimates By $0.53 EPS

Posted by Geri Gentry on Jul 29th, 2026

Microsoft (NASDAQ:MSFT – Get Free Report) posted its quarterly earnings results on Wednesday. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.21 by $0.53, FiscalAI reports. The business had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%.

Microsoft Stock Down 0.7%

MSFT traded down $2.81 on Wednesday, hitting $390.54. The company had a trading volume of 43,034,461 shares, compared to its average volume of 37,084,070. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27. Microsoft has a 52-week low of $349.20 and a 52-week high of $555.45. The stock has a fifty day simple moving average of $397.04 and a 200-day simple moving average of $406.36. The firm has a market capitalization of $2.90 trillion, a P/E ratio of 23.25, a P/E/G ratio of 1.19 and a beta of 1.13.

Microsoft Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date is Thursday, August 20th. This represents a $3.64 annualized dividend and a dividend yield of 0.9%. Microsoft’s payout ratio is currently 21.67%.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on MSFT. Citigroup restated a “market outperform” rating on shares of Microsoft in a research report on Tuesday. The Goldman Sachs Group reissued a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. TD Cowen reaffirmed a “buy” rating and issued a $540.00 target price on shares of Microsoft in a research note on Thursday, June 4th. Phillip Securities raised shares of Microsoft to a “buy” rating and set a $485.00 price target for the company in a research report on Wednesday, May 13th. Finally, HSBC decreased their price objective on shares of Microsoft from $593.00 to $571.00 in a research report on Thursday, April 30th. Forty-two research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $554.73.

Get Our Latest Stock Analysis on Microsoft

Insiders Place Their Bets

In other Microsoft news, CEO Judson Althoff sold 15,500 shares of the company’s stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the transaction, the chief executive officer owned 110,477 shares in the company, valued at approximately $50,928,792.23. This represents a 12.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Amy Coleman sold 1,262 shares of the firm’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the completion of the transaction, the executive vice president owned 46,003 shares of the company’s stock, valued at approximately $18,922,874.02. The trade was a 2.67% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 23,762 shares of company stock worth $10,508,361. Company insiders own 0.03% of the company’s stock.

Institutional Trading of Microsoft

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Longfellow Investment Management Co. LLC lifted its holdings in shares of Microsoft by 51.3% during the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after purchasing an additional 20 shares during the last quarter. Shepherd Kaplan Krochuk LLC grew its stake in shares of Microsoft by 4.9% in the 3rd quarter. Shepherd Kaplan Krochuk LLC now owns 431 shares of the software giant’s stock worth $223,000 after buying an additional 20 shares during the last quarter. Pollock Investment Advisors LLC increased its position in Microsoft by 0.8% during the 3rd quarter. Pollock Investment Advisors LLC now owns 2,805 shares of the software giant’s stock valued at $1,453,000 after buying an additional 21 shares in the last quarter. Better Money Decisions LLC raised its stake in Microsoft by 0.6% during the second quarter. Better Money Decisions LLC now owns 3,498 shares of the software giant’s stock valued at $1,740,000 after buying an additional 21 shares during the last quarter. Finally, Endowment Wealth Management Inc. raised its stake in Microsoft by 0.4% during the third quarter. Endowment Wealth Management Inc. now owns 5,251 shares of the software giant’s stock valued at $2,720,000 after buying an additional 21 shares during the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Fiscal Q4 beat expectations: Microsoft reported adjusted earnings of $4.74 per share versus the $4.21 consensus and revenue of approximately $90.0 billion versus expectations of $87.6 billion. Profit increased sharply, reinforcing the company’s operating strength. Microsoft Beats Wall Street Expectations, With 31% Jump in Profits
Positive Sentiment: Azure growth exceeded forecasts: Azure revenue rose 43% year over year, ahead of the roughly 40% analyst estimate. The result suggests Microsoft’s large AI infrastructure investments are translating into increased cloud demand and helped ease concerns about capacity constraints. Microsoft tops quarterly cloud growth estimates, easing spending concerns
Positive Sentiment: AI monetization remains central: Management highlighted progress in Azure and Microsoft 365 Copilot, while investors continued to focus on whether AI adoption can produce attractive returns. Strong cloud momentum temporarily outweighed skepticism surrounding the company’s spending plans. Microsoft CFO’s internal memo tells employees that its biggest AI bets are paying off
Positive Sentiment: Analyst support persists: Citizens JMP reaffirmed a Market Outperform rating and a $550 price target, implying substantial upside from recent levels. However, the market’s immediate reaction will depend heavily on forward guidance.
Neutral Sentiment: Macro conditions remain volatile: The Federal Reserve held rates unchanged, while oil prices surged amid renewed U.S.-Iran tensions. Higher-for-longer rate concerns and weakness across technology stocks could limit gains even after Microsoft’s earnings beat. Dow Jones Futures: Stock Market Tumbles, Oil Prices Soar
Negative Sentiment: AI spending remains the key risk: Microsoft’s planned capital expenditures—reported at roughly $190 billion for the year—are under intense scrutiny. Investors want evidence that Azure growth and Copilot adoption will generate sufficient returns and protect margins.
Negative Sentiment: Regulatory pressure increased: The U.K. competition regulator opened an investigation into whether Microsoft misled customers about Microsoft 365 subscription options and pricing. Potential remedies or reputational damage could weigh on the stock. UK’s competition regulator investigates Microsoft over 365 subscriptions
Negative Sentiment: Competitive and legal concerns persist: Disney reportedly plans to replace GitHub Copilot with OpenAI Codex, highlighting competition in AI coding tools. Multiple securities-law firms also publicized a shareholder lawsuit alleging problems with Copilot disclosures, adding headline risk.

About Microsoft

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Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).