Morgan Stanley: Microsoft’s profit margin steadily increases, raising the target price to $582
Morgan Stanley analyst Keith Weiss released a research report, raising Microsoft's target price from $530.00 to $582.00, while maintaining an "Overweight" rating. Weiss stated that Microsoft's profit margins are steadily increasing, with the company's operating margin reaching 45.6% by the end of fiscal year 2025. Weiss also noted that Microsoft's capital expenditures have been quite strong, and the revenue contribution from its cloud business is continuously increasing. Analysis shows that the company's current gross margin is 100 basis points higher than the level in fiscal year 2020. Weiss mentioned that Microsoft is enhancing its profit margins by integrating internal operations, extending the lifespan of its infrastructure, and optimizing low-growth businesses. Weiss stated, "With the number of employees remaining largely unchanged in fiscal year 2025, and management expecting the operating margin for fiscal year 2026 to remain stable, this trend seems likely to continue." He also indicated that given the ongoing growth in productivity, business processes, and cloud computing, the market is clearly far from fully pricing Microsoft
According to Zhitong Finance APP, Morgan Stanley analyst Keith Weiss released a research report, raising the target price for Microsoft (MSFT.US) from $530.00 to $582.00, while maintaining an "Overweight" rating. Weiss stated that Microsoft's profit margins are steadily increasing, with the company's operating profit margin reaching 45.6% by the end of fiscal year 2025.
Weiss also noted that Microsoft's capital expenditures have been quite strong, and the revenue contribution from its cloud business is continuously increasing. Analysis shows that the company's current gross margin is 100 basis points higher than the level in fiscal year 2020.
Weiss indicated that Microsoft is enhancing its profit margins by integrating internal operations, extending the lifespan of its infrastructure, and optimizing low-growth businesses.
Weiss stated, "With the number of employees remaining relatively stable in fiscal year 2025, and management expecting the operating profit margin for fiscal year 2026 to remain steady, this trend seems likely to continue." He also mentioned that considering the ongoing growth in productivity, business processes, and cloud computing, the market clearly has not yet fully priced Microsoft
