Wedbush Estimates Microsoft’s Q3 Earnings (NASDAQ:MSFT)

Microsoft Co. (NASDAQ:MSFT) – Stock analysts at Wedbush decreased their Q3 2025 earnings per share (EPS) estimates for shares of Microsoft in a note issued to investors on Thursday, January 30th. Wedbush analyst D. Ives now anticipates that the software giant will post earnings per share of $3.22 for the quarter, down from their prior estimate of $3.34. Wedbush has a “Outperform” rating and a $550.00 price objective on the stock. The consensus estimate for Microsoft’s current full-year earnings is $13.03 per share. Wedbush also issued estimates for Microsoft’s Q4 2025 earnings at $3.44 EPS, FY2025 earnings at $13.19 EPS, Q2 2026 earnings at $3.73 EPS, Q3 2026 earnings at $3.70 EPS and FY2026 earnings at $15.09 EPS.

Microsoft (NASDAQ:MSFT) last issued its earnings results on Wednesday, January 29th. The software giant reported $3.23 earnings per share for the quarter, topping analysts’ consensus estimates of $3.15 by $0.08. Microsoft had a return on equity of 33.36% and a net margin of 35.43%. During the same period in the prior year, the company earned $2.93 earnings per share.

Other equities research analysts have also recently issued reports about the stock. Piper Sandler restated an “overweight” rating and issued a $520.00 price target on shares of Microsoft in a report on Monday, January 27th. JPMorgan Chase & Co. reduced their target price on Microsoft from $470.00 to $465.00 and set an “overweight” rating for the company in a research note on Thursday, October 31st. Stifel Nicolaus upped their price target on Microsoft from $475.00 to $515.00 and gave the stock a “buy” rating in a research note on Wednesday, December 18th. Cantor Fitzgerald reissued an “overweight” rating and issued a $509.00 price objective on shares of Microsoft in a research note on Wednesday, January 29th. Finally, UBS Group lowered their target price on Microsoft from $525.00 to $510.00 and set a “buy” rating on the stock in a research report on Thursday, January 30th. Three research analysts have rated the stock with a hold rating and twenty-seven have given a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $510.96.

Microsoft Stock Performance

NASDAQ:MSFT opened at $412.37 on Monday. The company has a quick ratio of 1.34, a current ratio of 1.35 and a debt-to-equity ratio of 0.13. Microsoft has a twelve month low of $385.58 and a twelve month high of $468.35. The company has a fifty day moving average of $432.37 and a 200-day moving average of $424.21. The firm has a market capitalization of $3.07 trillion, a P/E ratio of 33.20, a P/E/G ratio of 2.21 and a beta of 0.90.

Institutional Investors Weigh In On Microsoft

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Fiduciary Advisors Inc. bought a new position in Microsoft in the 4th quarter worth approximately $38,000. Christopher J. Hasenberg Inc lifted its position in shares of Microsoft by 35.7% during the third quarter. Christopher J. Hasenberg Inc now owns 95 shares of the software giant’s stock worth $39,000 after acquiring an additional 25 shares in the last quarter. Quarry LP bought a new position in shares of Microsoft in the second quarter worth $45,000. IFS Advisors LLC grew its position in shares of Microsoft by 53.8% in the fourth quarter. IFS Advisors LLC now owns 100 shares of the software giant’s stock valued at $42,000 after purchasing an additional 35 shares in the last quarter. Finally, Avondale Wealth Management grew its position in shares of Microsoft by 144.4% in the fourth quarter. Avondale Wealth Management now owns 110 shares of the software giant’s stock valued at $46,000 after purchasing an additional 65 shares in the last quarter. 71.13% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other Microsoft news, EVP Judson Althoff sold 25,000 shares of the business’s stock in a transaction on Friday, November 22nd. The stock was sold at an average price of $417.00, for a total value of $10,425,000.00. Following the sale, the executive vice president now directly owns 117,294 shares in the company, valued at $48,911,598. The trade was a 17.57 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Christopher David Young sold 7,200 shares of the stock in a transaction on Tuesday, November 12th. The stock was sold at an average price of $423.66, for a total value of $3,050,352.00. Following the transaction, the executive vice president now owns 103,366 shares of the company’s stock, valued at $43,792,039.56. The trade was a 6.51 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 41,200 shares of company stock valued at $17,383,892. 0.03% of the stock is owned by insiders.

Microsoft Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 13th. Stockholders of record on Thursday, February 20th will be paid a dividend of $0.83 per share. This represents a $3.32 dividend on an annualized basis and a dividend yield of 0.81%. The ex-dividend date of this dividend is Thursday, February 20th. Microsoft’s payout ratio is 26.73%.

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.