MSFT$511.14
$510.07
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Powered by LiveAIOverall Analysis
Strong BuyMicrosoft (MSFT) demonstrates strong fundamental health, significant thematic tailwinds driven by AI and cloud, but technical indicators suggest potential short-term consolidation. It is well-positioned for long-term growth.
Thematic
Microsoft is a leader in several high-growth secular themes, including AI, cloud computing, and digital transformation, which are expected to drive sustained revenue and profit growth.
Fundamental
Microsoft exhibits robust financial health with consistent revenue and profit growth, strong profitability margins, a healthy balance sheet, and effective cash flow generation. Valuation metrics are somewhat stretched but justified by growth prospects.
Technical
Microsoft's stock is in a strong uptrend but is nearing overbought conditions on several longer-term indicators. Short-term technicals show some signs of cooling momentum, suggesting a potential for consolidation or a minor pullback before further upside.
| Factor | Score |
|---|---|
| Artificial Intelligence Integration | 95 |
| Cloud Computing Dominance | 92 |
| Digital Transformation Enabler | 90 |
| Gaming & Metaverse | 80 |
| Regulatory & Antitrust Scrutiny | 65 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 95 |
| Revenue Growth | 85 |
| Balance Sheet Health | 90 |
| Cash Flow Generation | 90 |
| Dividend & Shareholder Returns | 70 |
| Factor | Score |
|---|---|
| Trend | 80 |
| Momentum | 60 |
| Volume | 70 |
| Support/Resistance | 75 |
| Oscillators | 55 |
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Powered by LiveAIBullish Points (6)
Strong Earnings Growth and Beat
Microsoft Corporation (MSFT) has consistently beaten earnings estimates, with a recent Q2 2025 EPS estimate of $3.22 reported at $3.46, a positive surprise of 7.45%. This indicates strong operational performance and effective management.
Favorable P/E Ratio Relative to TTM
The P/E ratio for 2024 (annual) is 43.1, while the trailing twelve months (TTM) P/E is 50.9. This suggests that recent earnings growth has helped to improve the valuation multiple relative to its own historical TTM performance, indicating potential value if growth continues.
Bearish Points (7)
High Forward P/E Ratio
Quarterly P/E ratios for 2025 are exceptionally high (e.g., Q1 2025 at 107.8, Q2 2025 at 172.3). While indicative of high growth expectations, these multiples suggest a premium valuation that could lead to significant downside if growth falters or market sentiment shifts.
Slowing Revenue Growth YoY
While annual revenue growth is positive, the quarterly growth figures in the income statement data (e.g., Q2 2024 vs Q2 2023) do not show a clear year-over-year increase when looking at the provided summary figures. Specific year-over-year quarterly revenue growth rates are not explicitly provided in a comparable format, making it difficult to assess deceleration without further data.
Calendar
July 2025
31
Next Earnings Date
H: $3.57
A: $3.38
L: $3.31
H: 74.46B
A: 73.81B
L: 72.57B
August 2025
21
Ex-Dividend Date
September 2025
11
Next Dividend Date
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. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services, such as azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services. The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories. Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates; and nature-based carbon removal credits. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.
Seasonals
Price Target
543.67 USD
The 39 analysts offering 1 year price forecasts for MSFT have a max estimate of 700.00 and a min estimate of 432.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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