Microsoft (NASDAQ:MSFT) Shares Up 2.5% – Here’s Why

Microsoft Corporation (NASDAQ:MSFT)’s stock price shot up 2.5% during trading on Thursday . The stock traded as high as $501.56 and last traded at $499.86. Approximately 35,277,436 shares changed hands during trading, a decline of 7% from the average daily volume of 37,956,461 shares. The stock had previously closed at $487.46.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Azure and AI demand remain the primary catalysts. Microsoft reported fiscal fourth-quarter revenue of $90.01 billion and EPS of $4.74, exceeding estimates. Azure revenue rose 43%, and annual Azure sales surpassed $100 billion, suggesting that AI infrastructure investments are beginning to generate substantial returns. Microsoft Azure Fiscal 2026 Sales Exceed $100B
• Positive Sentiment: International cloud expansion supports longer-term growth. Microsoft opened its largest India data-center hub in Hyderabad and signed early customers including Adani Group and HDFC Bank. The company has committed roughly $20.5 billion to expanding its Indian operations, targeting the country’s growing AI and cloud market. Microsoft opens its largest India data center hub
• Positive Sentiment: Wall Street remains broadly constructive. Citi raised its forecast after the Azure sales acceleration, while Tigress Financial lifted its price target to $690. Recent reports also highlight strong adoption of Microsoft 365 Copilot, which has surpassed 30 million paid users. Citi raises Microsoft stock forecast
• Neutral Sentiment: OpenAI is a major growth driver but also a concentration risk. Reports suggest OpenAI may account for approximately 70% of Microsoft’s AI revenue. The relationship strengthens near-term monetization, but dependence on one partner and model provider could increase execution and competitive risks. OpenAI may account for 70% of Microsoft’s AI revenue
• Negative Sentiment: AI spending is pressuring margins and valuation. Analysts note that Microsoft’s exceptional profitability could face pressure from data-center construction, leases and other infrastructure commitments. After a sharp post-earnings rally, investors may demand continued growth to justify the stock’s elevated multiple.
• Negative Sentiment: Insider selling and legal headlines provide counterweights. EVP Takeshi Numoto sold 4,810 shares for approximately $2.4 million, reducing his direct holdings by about 10%. Separately, several law firms publicized a securities-fraud class action alleging misleading AI-related statements, with an August 11 lead-plaintiff deadline. Microsoft EVP sells shares

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on MSFT. Citizens Jmp restated a “market outperform” rating and set a $550.00 price objective on shares of Microsoft in a research note on Tuesday, July 28th. Wedbush restated an “outperform” rating and set a $575.00 price objective on shares of Microsoft in a research report on Wednesday, May 13th. Raymond James Financial lowered shares of Microsoft from a “market perform” rating to a “market perform” rating in a research note on Tuesday, May 5th. Oppenheimer restated an “outperform” rating and set a $515.00 price objective on shares of Microsoft in a research note on Wednesday, July 22nd. Finally, Arete Research upped their target price on Microsoft from $730.00 to $870.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Forty-two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Microsoft currently has an average rating of “Moderate Buy” and a consensus target price of $558.87.

Microsoft Price Performance

The stock has a market capitalization of $3.71 trillion, a PE ratio of 27.83, a P/E/G ratio of 1.59 and a beta of 1.11. The company has a quick ratio of 1.22, a current ratio of 1.23 and a debt-to-equity ratio of 0.07. The stock’s 50-day moving average is $402.41 and its 200 day moving average is $406.03.

Microsoft (NASDAQ:MSFT) last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.24 by $0.50. Microsoft had a net margin of 40.31% and a return on equity of 31.98%. The company had revenue of $90.01 billion during the quarter, compared to the consensus estimate of $87.62 billion. During the same quarter in the prior year, the firm earned $3.65 EPS. The company’s revenue was up 17.7% compared to the same quarter last year. As a group, equities analysts predict that Microsoft Corporation will post 19.56 earnings per share for the current year.

Microsoft Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be given a dividend of $0.91 per share. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $3.64 dividend on an annualized basis and a yield of 0.7%. Microsoft’s dividend payout ratio (DPR) is presently 20.27%.

Insiders Place Their Bets

In other news, CEO Judson Althoff sold 15,500 shares of Microsoft stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $460.99, for a total transaction of $7,145,345.00. Following the completion of the sale, the chief executive officer directly owned 110,477 shares in the company, valued at $50,928,792.23. The trade was a 12.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Takeshi Numoto sold 4,810 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $496.48, for a total value of $2,388,068.80. Following the completion of the sale, the executive vice president directly owned 42,677 shares of the company’s stock, valued at approximately $21,188,276.96. The trade was a 10.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 28,572 shares of company stock valued at $12,896,430 in the last three months. Insiders own 0.03% of the company’s stock.

Institutional Trading of Microsoft

A number of institutional investors have recently added to or reduced their stakes in MSFT. Longfellow Investment Management Co. LLC raised its position in shares of Microsoft by 51.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant’s stock valued at $29,000 after purchasing an additional 20 shares during the period. Bernzott Capital Advisors acquired a new position in Microsoft in the 4th quarter valued at $34,000. Frankly Finances LLC acquired a new position in Microsoft in the 2nd quarter valued at $35,000. Timmons Wealth Management LLC bought a new position in Microsoft in the 4th quarter worth $36,000. Finally, Fairway Wealth LLC lifted its position in Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant’s stock worth $43,000 after acquiring an additional 66 shares during the last quarter. 71.13% of the stock is currently owned by institutional investors and hedge funds.

About Microsoft

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).