Griffin Securities Lowers Microsoft Q2 2026 EPS Forecast

Analysts at Griffin Securities have revised their earnings per share (EPS) estimates for Microsoft Corporation (NASDAQ: MSFT) for the second quarter of 2026. In a note shared with investors on November 3, 2023, analyst J. Vleeschhouwer now anticipates that Microsoft will earn $3.56 per share, a decrease from the previous estimate of $3.79. This follows a broader trend as the consensus estimate for Microsoft’s full-year earnings stands at $13.08 per share.

In addition to the Q2 estimates, Griffin Securities forecasted Microsoft’s Q4 2026 earnings at $3.59 per share and the fiscal year 2026 earnings at $14.77 per share. These adjustments come in light of several recent analyses regarding the company’s financial performance and share value.

On October 30, 2023, DA Davidson set a target price of $650.00 for Microsoft shares. Similarly, Wells Fargo & Company upgraded its price objective from $675.00 to $700.00, assigning the company an “overweight” rating in a report released on the same date. Melius Research also raised its target price from $595.00 to $625.00 on September 25, 2023. Furthermore, Wolfe Research assigned a target price of $675.00 and an “outperform” rating on October 28, 2023.

Overall, the market has responded positively, reflecting a consensus rating of “Buy” from analysts, with one rating the stock as a Strong Buy and thirty-seven rating it as Buy. The consensus target price currently stands at $634.59 according to data from MarketBeat.

Microsoft’s Recent Stock Performance

As of Thursday, Microsoft shares opened at $497.10, marking a 2.0% decline. Over the past year, the stock has seen significant fluctuations, with a low of $344.79 and a high of $555.45. The company’s fifty-day moving average is $514.07, while the two-hundred day moving average is $490.60.

Financially, Microsoft boasts a market capitalization of $3.69 trillion, a price-to-earnings (P/E) ratio of 35.36, and a beta of 1.02. Its debt-to-equity ratio stands at 0.12, with both quick and current ratios at 1.35. In the most recent quarterly earnings report released on October 29, Microsoft reported an EPS of $4.13, exceeding the consensus estimate of $3.65 by $0.48. The company achieved a revenue of $77.67 billion, surpassing analyst expectations of $75.49 billion.

This reflects a robust return on equity of 33.47% and a net margin of 35.71%, contributing to an 18.4% increase in quarterly revenue compared to the same period last year, when EPS was $3.30.

Dividend Announcement and Insider Trading

In related news, Microsoft has announced a quarterly dividend of $0.91, set for payment on December 11, 2023. Shareholders on record as of November 20, 2023, will receive this dividend, which translates to an annualized payout of $3.64 and a yield of 0.7%. This increase from the previous quarterly dividend of $0.83 reflects the company’s ongoing commitment to returning value to its shareholders. The ex-dividend date is also November 20, 2023, with a dividend payout ratio of 25.89%.

On the insider trading front, Bradford L. Smith, an insider, sold 38,500 shares of Microsoft on November 3, 2023, at an average price of $518.64, totaling approximately $19,967,640.00. Following this transaction, he retains ownership of 461,597 shares valued at approximately $239,402,668.08, marking a 7.70% decrease in his holdings.

Additionally, Takeshi Numoto, Executive Vice President, sold 4,850 shares on August 12, 2023, for about $2,557,502.00, leading to an 11.03% reduction in his share ownership. Over the last three months, insiders have sold a total of 192,555 shares valued at approximately $97,840,842, with insiders holding 0.03% of the company’s stock.

Institutional investors account for a significant portion of Microsoft’s stock, owning approximately 71.13% of the company. Recent activity shows various institutions adjusting their positions, with WFA Asset Management Corp increasing its stake by 27.0% during the first quarter.

Microsoft continues to play a pivotal role in the technology landscape, developing and supporting a wide array of software, services, and solutions globally, including popular products such as Microsoft 365 and Microsoft Teams. As the company navigates upcoming quarters, analysts will closely monitor its performance amidst changing market conditions.