Deep Dive Into Microsoft Stock: Analyst Perspectives (25 Ratings)

Microsoft Corporation -0.46%

Microsoft Corporation

MSFT

407.52

-0.46%

Providing a diverse range of perspectives from bullish to bearish, 25 analysts have published ratings on Microsoft (NASDAQ:MSFT) in the last three months.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 9 14 2 0 0
Last 30D 0 0 1 0 0
1M Ago 8 12 0 0 0
2M Ago 0 1 0 0 0
3M Ago 1 1 1 0 0

Analysts have recently evaluated Microsoft and provided 12-month price targets. The average target is $596.32, accompanied by a high estimate of $665.00 and a low estimate of $392.00. A 5.29% drop is evident in the current average compared to the previous average price target of $629.62.

price target chart

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Microsoft. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Brad Reback Stifel Lowers Hold $392.00 $540.00
Tyler Radke Citigroup Lowers Buy $635.00 $660.00
Gil Luria DA Davidson Maintains Buy $650.00 $650.00
Rishi Jaluria RBC Capital Maintains Outperform $640.00 $640.00
Patrick Colville Scotiabank Lowers Sector Outperform $600.00 $650.00
Brad Reback Stifel Raises Buy $540.00 $520.00
Dan Ives Wedbush Lowers Outperform $575.00 $625.00
Michael Turrin Wells Fargo Lowers Overweight $615.00 $630.00
Kirk Materne Evercore ISI Group Lowers Outperform $580.00 $640.00
Thomas Blakey Cantor Fitzgerald Maintains Overweight $590.00 $590.00
Jackson Ader Keybanc Lowers Overweight $600.00 $630.00
Hannah Rudoff Piper Sandler Lowers Overweight $600.00 $650.00
Brad Sills B of A Securities Lowers Buy $520.00 $640.00
Karl Keirstead UBS Lowers Buy $600.00 $650.00
Michael Turrin Wells Fargo Lowers Overweight $630.00 $665.00
John Difucci Guggenheim Maintains Buy $586.00 $586.00
Tyler Radke Citigroup Lowers Buy $660.00 $690.00
Gregg Moskowitz Mizuho Lowers Outperform $620.00 $640.00
Derrick Wood TD Cowen Lowers Buy $625.00 $655.00
Raimo Lenschow Barclays Lowers Overweight $610.00 $625.00
Michael Turrin Wells Fargo Lowers Overweight $665.00 $700.00
Daniel Ives Wedbush Maintains Outperform $625.00 $625.00
Gil Luria DA Davidson Maintains Buy $650.00 $650.00
Alex Haissl Rothschild & Co Lowers Neutral $500.00 $560.00
William Power Baird Announces Outperform $600.00 -

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Microsoft. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Microsoft compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Microsoft's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Microsoft's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Microsoft analyst ratings.

Unveiling the Story Behind Microsoft

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal computing (Windows Client, Xbox, Bing search, display advertising, and Surface laptops, tablets, and desktops).

Understanding the Numbers: Microsoft's Finances

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Microsoft's revenue growth over a period of 3M has been noteworthy. As of 31 December, 2025, the company achieved a revenue growth rate of approximately 16.72%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Microsoft's net margin is impressive, surpassing industry averages. With a net margin of 47.32%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Microsoft's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.2% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Microsoft's ROA stands out, surpassing industry averages. With an impressive ROA of 5.91%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.15, Microsoft adopts a prudent financial strategy, indicating a balanced approach to debt management.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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