Microsoft Corporation

Microsoft Corporation

MSFT

Market Cap$3.04T
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Microsoft CorporationMicrosoft Corporation32.70.57%30%120.4

Earnings Call Q2 2025

January 29, 2025 - AI Summary

Strong Cloud Growth: Microsoft Cloud revenue reached $40.9 billion, a 21% increase year-over-year. The AI business achieved an annual revenue run rate of $13 billion, growing 175% year-over-year. This highlights the company's leading position in the cloud and AI sectors, with expectations for continued strength driven by scalable AI infrastructure and demand across enterprise deployments.
Commercial Bookings Surge: Commercial bookings rose 67% (75% in constant currency), significantly surpassing expectations. Higher demand for Azure commitments, particularly from partnerships like OpenAI, reflects strong market confidence. However, challenges remain in the Azure non-AI services segment, where execution issues were noted, signaling ongoing adjustments in go-to-market strategies.
Mixed Outlook and Guidance Adjustments: For Q3, Microsoft expects total revenue growth to be impacted by foreign exchange rates, anticipating a two-point decrease. Productivity and Business Processes revenue projected growth between 11-12%, and Intelligent Cloud revenue is expected to grow 19-20%. This underlines the potential for continued cloud growth but acknowledges pressure from FX.

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$461.00

Target Price by Analysts

12.7% upsideMicrosoft Target Price DetailsTarget Price
$368.51

Current Fair Value

9.9% downside

Overvalued by 9.9% based on the discounted cash flow analysis.

Share Statistics

Market cap$3.04 Trillion
Enterprise Value$3.13 Trillion
Dividend Yield$2.33 (0.5704771931542739%)
Earnings per Share$11.86
Beta0.9
Outstanding Shares7,435,000,000

Return

Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio32.74
PEG307.16
Price to Sales12.03
Price to Book Ratio10.22
Enterprise Value to Revenue12.32
Enterprise Value to EBIT27.56
Enterprise Value to Net Income34
Total Debt to Enterprise0.04
Debt to Equity0.38

Revenue Sources

No data

Insider Trades

ESG Score

No data

About Microsoft Corporation

166,475 employees
CEO: Satya Nadella

Microsoft enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.