What is William Blair’s Estimate for Microsoft Q2 Earnings?

Microsoft Co. (NASDAQ:MSFT) – Research analysts at William Blair decreased their Q2 2025 earnings per share estimates for Microsoft in a note issued to investors on Thursday, October 31st. William Blair analyst J. Ader now expects that the software giant will earn $3.11 per share for the quarter, down from their previous estimate of $3.23. The consensus estimate for Microsoft’s current full-year earnings is $12.98 per share. William Blair also issued estimates for Microsoft’s Q4 2025 earnings at $3.19 EPS, FY2025 earnings at $12.69 EPS, Q1 2026 earnings at $3.55 EPS, Q2 2026 earnings at $3.62 EPS, Q3 2026 earnings at $3.65 EPS, Q4 2026 earnings at $3.79 EPS and FY2026 earnings at $14.61 EPS.

Several other research firms have also recently issued reports on MSFT. KeyCorp increased their price objective on Microsoft from $490.00 to $505.00 and gave the stock an “overweight” rating in a research report on Friday, October 18th. TD Cowen dropped their price target on Microsoft from $495.00 to $475.00 and set a “buy” rating for the company in a research report on Thursday. Wedbush restated an “underperform” rating on shares of Microsoft in a research report on Friday, October 18th. The Goldman Sachs Group dropped their price target on Microsoft from $515.00 to $500.00 and set a “buy” rating for the company in a research report on Thursday, October 10th. Finally, BMO Capital Markets dropped their price target on Microsoft from $500.00 to $495.00 and set an “outperform” rating for the company in a research report on Thursday. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and twenty-six have assigned a buy rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $503.03.

Microsoft Trading Up 1.0 %

NASDAQ:MSFT opened at $410.37 on Friday. The stock has a fifty day moving average price of $420.69 and a two-hundred day moving average price of $424.62. The stock has a market capitalization of $3.05 trillion, a price-to-earnings ratio of 33.86, a PEG ratio of 2.14 and a beta of 0.91. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.27 and a current ratio of 1.30. Microsoft has a 1 year low of $344.77 and a 1 year high of $468.35.

Microsoft (NASDAQ:MSFT) last released its quarterly earnings data on Wednesday, October 30th. The software giant reported $3.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.08 by $0.22. The firm had revenue of $65.59 billion during the quarter, compared to analysts’ expectations of $64.57 billion. Microsoft had a return on equity of 34.56% and a net margin of 35.61%. Microsoft’s 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.

Microsoft announced that its board has initiated a stock repurchase program on Monday, September 16th that allows the company to buyback $60.00 billion in outstanding shares. This buyback authorization allows the software giant to repurchase up to 1.9% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s leadership believes its shares are undervalued.

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 annualized dividend and a dividend yield of 0.81%. The ex-dividend date is Thursday, November 21st. Microsoft’s payout ratio is currently 27.39%.

Insider Activity

In other news, insider Bradford L. Smith sold 40,000 shares of Microsoft stock in a transaction dated Monday, September 9th. The stock was sold at an average price of $402.59, for a total value of $16,103,600.00. Following the transaction, the insider now directly owns 544,847 shares of the company’s stock, valued at $219,349,953.73. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. In related news, insider Bradford L. Smith sold 40,000 shares of the business’s stock in a transaction that occurred on Monday, September 9th. The stock was sold at an average price of $402.59, for a total transaction of $16,103,600.00. Following the transaction, the insider now directly owns 544,847 shares of the company’s stock, valued at approximately $219,349,953.73. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CMO Takeshi Numoto sold 2,500 shares of the business’s stock in a transaction that occurred on Tuesday, September 10th. The stock was sold at an average price of $411.04, for a total value of $1,027,600.00. Following the transaction, the chief marketing officer now directly owns 50,000 shares in the company, valued at $20,552,000. This trade represents 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 valued at $77,916,485 in the last three months. Corporate insiders own 0.03% of the company’s stock.

Hedge Funds Weigh In On Microsoft

Several hedge funds and other institutional investors have recently bought and sold shares of MSFT. New Harbor Financial Group LLC increased its holdings in Microsoft by 55.9% during the 2nd quarter. New Harbor Financial Group LLC now owns 1,255 shares of the software giant’s stock worth $561,000 after purchasing an additional 450 shares during the last quarter. Meeder Asset Management Inc. increased its holdings in Microsoft by 25.7% during the 2nd quarter. Meeder Asset Management Inc. now owns 250,657 shares of the software giant’s stock worth $112,031,000 after purchasing an additional 51,273 shares during the last quarter. AMG National Trust Bank increased its holdings in Microsoft by 19.0% during the 2nd quarter. AMG National Trust Bank now owns 81,502 shares of the software giant’s stock worth $36,427,000 after purchasing an additional 12,994 shares during the last quarter. True Link Financial Advisors LLC increased its holdings in Microsoft by 296.7% during the 1st quarter. True Link Financial Advisors LLC now owns 3,027 shares of the software giant’s stock worth $1,274,000 after purchasing an additional 2,264 shares during the last quarter. Finally, Spinnaker Investment Group LLC increased its holdings in Microsoft by 2.7% during the 1st quarter. Spinnaker Investment Group LLC now owns 12,521 shares of the software giant’s stock worth $5,268,000 after purchasing an additional 326 shares during the last quarter. 71.13% of the stock is owned by institutional investors and hedge funds.

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.