What is Zacks Research’s Estimate for Microsoft Q2 Earnings?

Microsoft Co. (NASDAQ:MSFT) – Investment analysts at Zacks Research reduced their Q2 2025 earnings estimates for Microsoft in a research report issued to clients and investors on Wednesday, November 20th. Zacks Research analyst V. Sawalka now expects that the software giant will earn $3.10 per share for the quarter, down from their prior estimate of $3.19. The consensus estimate for Microsoft’s current full-year earnings is $12.94 per share. Zacks Research also issued estimates for Microsoft’s Q3 2025 earnings at $3.15 EPS, Q4 2025 earnings at $3.29 EPS, Q1 2026 earnings at $3.46 EPS, Q2 2026 earnings at $3.57 EPS, Q3 2026 earnings at $3.66 EPS, Q4 2026 earnings at $3.83 EPS, FY2026 earnings at $14.53 EPS and FY2027 earnings at $17.32 EPS.

Microsoft (NASDAQ:MSFT) last issued 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 $3.10 by $0.20. Microsoft had a return on equity of 34.56% and a net margin of 35.61%. The business had revenue of $65.59 billion during the quarter, compared to the consensus estimate of $64.57 billion. During the same period in the previous year, the firm posted $2.99 earnings per share. The business’s revenue was up 16.0% on a year-over-year basis.

MSFT has been the topic of a number of other reports. Wells Fargo & Company reiterated a “buy” rating on shares of Microsoft in a research note on Friday, October 18th. TD Cowen decreased their target price on shares of Microsoft from $495.00 to $475.00 and set a “buy” rating on the stock in a research report on Thursday, October 31st. UBS Group lowered their target price on shares of Microsoft from $510.00 to $500.00 and set a “buy” rating on the stock in a report on Thursday, October 31st. Morgan Stanley raised their price objective on shares of Microsoft from $506.00 to $548.00 and gave the company an “overweight” rating in a research report on Thursday, October 31st. Finally, KeyCorp raised their price target on Microsoft from $490.00 to $505.00 and gave the company an “overweight” rating in a report on Friday, October 18th. Three research analysts have rated the stock with a hold rating and twenty-seven have given a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $503.03.

Microsoft Stock Performance

Shares of MSFT opened at $417.00 on Friday. The firm has a market cap of $3.10 trillion, a price-to-earnings ratio of 34.41, a price-to-earnings-growth ratio of 2.21 and a beta of 0.91. The company’s fifty day moving average is $421.94 and its 200-day moving average is $426.07. Microsoft has a 12 month low of $362.90 and a 12 month high of $468.35. The company has a quick ratio of 1.29, a current ratio of 1.30 and a debt-to-equity ratio of 0.15.

Institutional Trading of Microsoft

Hedge funds and other institutional investors have recently bought and sold shares of the company. Christopher J. Hasenberg Inc raised its holdings in shares of Microsoft by 169.2% during the 2nd quarter. Christopher J. Hasenberg Inc now owns 70 shares of the software giant’s stock valued at $31,000 after buying an additional 44 shares in the last quarter. Quarry LP bought a new position in Microsoft in the second quarter worth about $45,000. MidAtlantic Capital Management Inc. bought a new position in shares of Microsoft in the 3rd quarter worth about $62,000. Innealta Capital LLC purchased a new stake in shares of Microsoft in the 2nd quarter worth approximately $75,000. Finally, Bellevue Group AG boosted its stake in Microsoft by 47.5% in the 1st quarter. Bellevue Group AG now owns 180 shares of the software giant’s stock worth $76,000 after purchasing an additional 58 shares in the last quarter. Institutional investors own 71.13% of the company’s stock.

Insider Buying and Selling

In related news, CEO Satya Nadella sold 78,353 shares of Microsoft stock in a transaction that occurred on 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 transaction, the chief executive officer now directly owns 864,327 shares in the company, valued at approximately $353,189,942.01. The trade was a 8.31 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Amy Hood sold 38,000 shares of the stock in a transaction dated Thursday, September 5th. The stock was sold at an average price of $410.55, for a total value of $15,600,900.00. Following the sale, the chief financial officer now directly owns 496,369 shares in the company, valued at $203,784,292.95. This trade represents a 7.11 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 183,431 shares of company stock worth $74,956,968. 0.03% of the stock is owned by corporate insiders.

Microsoft announced that its board has approved a stock repurchase plan on Monday, September 16th that allows the company to buyback $60.00 billion in outstanding shares. This buyback authorization allows the software giant to purchase up to 1.9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Microsoft Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 12th. Shareholders of record on Thursday, November 21st will be paid a dividend of $0.83 per share. The ex-dividend date of this dividend is Thursday, November 21st. This represents a $3.32 dividend on an annualized basis and a yield of 0.80%. This is an increase from Microsoft’s previous quarterly dividend of $0.75. Microsoft’s payout ratio is 24.75%.

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.