What is Scotiabank’s Estimate for Microsoft FY2027 Earnings?

Microsoft Corporation (NASDAQ:MSFT) – Equities researchers at Scotiabank upped their FY2027 earnings per share estimates for Microsoft in a report released on Monday, November 2nd. Scotiabank analyst P. Colville now forecasts that the software giant will post earnings of $19.76 per share for the year, up from their previous estimate of $19.21. Scotiabank currently has a “Sector Outperform” rating and a $650.00 target price on the stock. The consensus estimate for Microsoft’s current full-year earnings is $19.86 per share.

MSFT has been the subject of several other research reports. TD Cowen increased their price target on Microsoft from $625.00 to $650.00 and gave the stock a “buy” rating in a research note on Thursday, October 29th. UBS Group set a $700.00 price objective on shares of Microsoft in a research note on Thursday, October 29th. Mizuho upped their price objective on shares of Microsoft from $510.00 to $600.00 and gave the stock an “outperform” rating in a report on Thursday, October 15th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $600.00 target price on shares of Microsoft in a research report on Monday, October 12th. Finally, Sanford C. Bernstein raised their target price on shares of Microsoft from $662.00 to $722.00 and gave the company an “outperform” rating in a research note on Thursday, October 29th. One analyst has rated the stock with a Strong Buy rating, forty-five have given a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, Microsoft currently has a consensus rating of “Moderate Buy” and an average target price of $609.54.

Microsoft Stock Up 6.7%

Shares of Microsoft stock opened at $555.80 on Thursday. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.22 and a quick ratio of 1.21. Microsoft has a 1-year low of $349.20 and a 1-year high of $559.15. The business’s fifty day moving average price is $515.34 and its two-hundred day moving average price is $439.42. The company has a market capitalization of $4.13 trillion, a P/E ratio of 29.01, a PEG ratio of 1.54 and a beta of 1.05.

Microsoft (NASDAQ:MSFT) last posted its earnings results on Wednesday, October 28th. The software giant reported $4.89 EPS for the quarter, beating the consensus estimate of $4.72 by $0.17. Microsoft had a return on equity of 31.28% and a net margin of 41.17%. The firm had revenue of $92.28 billion for the quarter, compared to analysts’ expectations of $90.62 billion. During the same period last year, the firm earned $4.13 EPS. The firm’s revenue was up 18.8% compared to the same quarter last year.

Hedge Funds Weigh In On Microsoft

Several large investors have recently made changes to their positions in MSFT. State Street Corp boosted its position in Microsoft by 2.9% during the 2nd quarter. State Street Corp now owns 315,653,206 shares of the software giant’s stock worth $117,744,959,000 after acquiring an additional 8,944,917 shares during the period. Bank of America Corp DE acquired a new position in shares of Microsoft in the 2nd quarter valued at about $27,338,370,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Microsoft by 0.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 64,375,360 shares of the software giant’s stock valued at $24,013,297,000 after purchasing an additional 543,172 shares during the period. Legal & General Group Plc purchased a new stake in shares of Microsoft in the second quarter worth approximately $18,306,443,000. Finally, Amundi lifted its position in shares of Microsoft by 12.0% in the second quarter. Amundi now owns 46,694,778 shares of the software giant’s stock worth $17,418,076,000 after purchasing an additional 5,019,702 shares in the last quarter. Institutional investors own 71.13% of the company’s stock.

Insider Buying and Selling at Microsoft

In related news, CEO Satya Nadella sold 86,525 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $501.46, for a total transaction of $43,388,826.50. Following the completion of the transaction, the chief executive officer owned 486,763 shares of the company’s stock, valued at $244,092,173.98. This trade represents a 15.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Amy Hood sold 7,305 shares of Microsoft stock in a transaction dated Tuesday, October 13th. The stock was sold at an average price of $545.42, for a total value of $3,984,293.10. Following the transaction, the executive vice president directly owned 555,396 shares in the company, valued at approximately $302,924,086.32. The trade was a 1.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 135,504 shares of company stock valued at $68,138,024. Insiders own 0.03% of the company’s stock.

Microsoft Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Stockholders of record on Thursday, November 19th will be paid a $0.98 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $3.92 dividend on an annualized basis and a dividend yield of 0.7%. This is a boost from Microsoft’s previous quarterly dividend of $0.91. Microsoft’s dividend payout ratio (DPR) is presently 19.00%.

Key Stories Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Cloud and AI results supported the rally. Microsoft’s fiscal first-quarter revenue rose 19% year over year to $92.28 billion, beating estimates, while Azure growth accelerated and AI adoption continued to expand. Reports also highlighted a $677 billion commercial backlog as evidence of future demand. Article: MSFT Q1 Earnings Call Highlights Azure Growth and AI Spending
• Positive Sentiment: Broader market strength lifted mega-cap technology shares. Microsoft joined a post-election rebound as investors rotated back into AI leaders; the company also reached a record high during the session. Article: Microsoft Stock Hits Record High as Midterm Results Boost AI Infrastructure Bets
• Positive Sentiment: New analytics tools target AI-assisted shopping. Microsoft added features to Clarity that help merchants track how AI agents interact with websites and apps, extending the company’s offerings for businesses adopting agentic AI. Article: Microsoft Clarity Helps Merchants Welcome AI Shopping Agents
• Neutral Sentiment: Microsoft disclosed a $25 billion senior-notes offering. The debt issuance provides financing flexibility, but also adds borrowing and interest obligations. Article: Microsoft Announces $25 Billion Senior Notes Offering
• Negative Sentiment: AI investment remains a key risk. Analysts and commentary flagged substantial infrastructure spending, possible pressure on free cash flow and margins, and political calls for tighter data-center rules that could constrain future expansion. Article: Microsoft: Don’t Get Too Excited About Its Positive FCF

About Microsoft

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops software, cloud services, devices and digital platforms. Its products and services are used by consumers, businesses, governments and educational institutions worldwide.

The company’s principal offerings include the Windows operating system; Microsoft 365 productivity applications such as Word, Excel, Teams and Outlook; Azure cloud computing and infrastructure services; Dynamics business applications; and enterprise security solutions.