Erste Group Bank Estimates Microsoft FY2027 Earnings

by · The Cerbat Gem

Microsoft Corporation (NASDAQ:MSFT – Free Report) – Erste Group Bank reduced their FY2027 earnings per share (EPS) estimates for Microsoft in a report released on Wednesday, October 21st. Erste Group Bank analyst H. Engel now anticipates that the software giant will post earnings of $19.57 per share for the year, down from their previous forecast of $19.60. The consensus estimate for Microsoft’s current full-year earnings is $19.66 per share. Erste Group Bank also issued estimates for Microsoft’s FY2028 earnings at $23.53 EPS.

A number of other analysts have also weighed in on MSFT. Stifel Nicolaus upgraded Microsoft from a “hold” rating to a “buy” rating and upped their target price for the stock from $530.00 to $575.00 in a report on Tuesday, September 22nd. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $600.00 price target on shares of Microsoft in a report on Monday, October 12th. UBS Group boosted their price target on Microsoft from $525.00 to $675.00 and gave the stock a “buy” rating in a research report on Thursday, October 15th. Tigress Financial upped their price objective on Microsoft from $680.00 to $690.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Finally, Evercore raised Microsoft from an “underperform” rating to an “outperform” rating in a research report on Monday, October 5th. Forty-three investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $594.11.

Check Out Our Latest Report on Microsoft

Microsoft Price Performance

NASDAQ MSFT opened at $532.60 on Monday. The company has a market cap of $3.96 trillion, a PE ratio of 30.35, a P/E/G ratio of 1.68 and a beta of 1.10. The firm’s 50 day moving average price is $508.43 and its 200-day moving average price is $437.18. The company has a debt-to-equity ratio of 0.07, a quick ratio of 1.22 and a current ratio of 1.23. Microsoft has a 52-week low of $349.20 and a 52-week high of $553.72.

Microsoft (NASDAQ:MSFT – Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The software giant reported $4.74 EPS for the quarter, beating the consensus estimate of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The business had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the previous year, the business posted $3.65 EPS. The company’s quarterly revenue was up 17.7% compared to the same quarter last year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Bank of America Corp DE acquired a new stake in shares of Microsoft during the second quarter worth about $27,338,370,000. Legal & General Group Plc acquired a new position in Microsoft in the 2nd quarter worth approximately $18,306,443,000. Jupiter Topco LLC purchased a new position in Microsoft during the 2nd quarter worth approximately $6,928,664,000. Canada Pension Plan Investment Board purchased a new position in Microsoft during the 2nd quarter worth approximately $5,653,812,000. Finally, The Manufacturers Life Insurance Company purchased a new position in Microsoft during the 2nd quarter worth approximately $4,000,706,000. Institutional investors and hedge funds own 71.13% of the company’s stock.

Insiders Place Their Bets

In related news, EVP Amy Hood sold 7,305 shares of the company’s stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total transaction of $3,984,293.10. Following the transaction, the executive vice president directly owned 555,396 shares of the company’s stock, valued at $302,924,086.32. This represents a 1.30% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Judson Althoff sold 10,000 shares of the business’s stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $487.89, for a total value of $4,878,900.00. Following the sale, the chief executive officer owned 100,447 shares in the company, valued at $49,007,086.83. The trade was a 9.05% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 150,314 shares of company stock worth $75,404,992. 0.03% of the stock is currently owned by company insiders.

Microsoft Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.98 per share. The ex-dividend date of this dividend is Thursday, November 19th. This is a boost from Microsoft’s previous quarterly dividend of $0.91. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. Microsoft’s payout ratio is currently 20.27%.

More Microsoft News

Here are the key news stories impacting Microsoft this week:

  • Positive Sentiment: Microsoft is offering voluntary buyouts to approximately 60,000 employees in the U.S., Canada, India and the U.K. The program is aimed at reducing costs and reallocating resources toward artificial intelligence, data centers and other strategic priorities. Investors appear to view the move as a way to help offset the company’s substantial AI infrastructure spending. Microsoft offers voluntary buyouts to 60,000 employees
  • Positive Sentiment: Analysts raised their price targets ahead of earnings. Oppenheimer lifted its target to $625 from $570, while Truist raised its target to $600 from $575 and maintained a Buy rating, citing resilient Azure growth and strong enterprise demand. Oppenheimer raises Microsoft target ahead of earnings
  • Positive Sentiment: Wall Street expects continued momentum in Azure and Copilot monetization. Microsoft reports fiscal first-quarter results on October 28, making cloud growth, AI demand and spending efficiency important near-term catalysts. Microsoft stock gains as Wall Street sees Azure growth

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.

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