38 Analysts Have This To Say About Microsoft

In the preceding three months, 38 analysts have released ratings for Microsoft (NASDAQ: MSFT), presenting a wide array of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $616.84, a high estimate of $675.00, and a low estimate of $540.00. Observing a 10.95% increase, the current average has risen from the previous average price target of $555.97.

Interpreting Analyst Ratings: A Closer Look

The perception of Microsoft by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Microsoft. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Microsoft compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Microsoft's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Microsoft's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Microsoft analyst ratings.

All You Need to Know About 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 Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Over the 3M period, Microsoft showcased positive performance, achieving a revenue growth rate of 18.1% as of 30 June, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Microsoft's net margin excels beyond industry benchmarks, reaching 35.63%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Microsoft's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.19%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Microsoft's ROA stands out, surpassing industry averages. With an impressive ROA of 4.61%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Microsoft's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.18.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

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.

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