Why did Microsoft (MSFT) stock move recently?

On 7/1/2026, Microsoft moved +3.0% — Microsoft shares rose on rotation into AI software plays from chip stocks, plus fresh bullish analyst coverage from Citizens (outperform, $550 target) and Wells Fargo (overweight, target raised to $650), along with a new AI/analytics partnership with Haleon. This is MarketChacha's decoded reason from filings and credible news; it is education, not buy/sell advice.

Is Microsoft (MSFT) overvalued or fairly valued?

MarketChacha shows Microsoft's valuation in context — a trailing P/E of about 21.7, a forward P/E of about 20.3, a price-to-book of about 7.1 — alongside its revenue and profit growth and whether reported profit converts into operating cash, so you can judge value for yourself. MarketChacha does not issue ratings, price targets, or buy/sell advice.

Does Microsoft's reported profit turn into cash?

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash. MarketChacha computes this cash-conversion check (1.30×) from reported figures — education, not a rating.

What is Microsoft's revenue?

Microsoft reported revenue of $281.7B for FY2025, with net profit of $101.8B, per official filings.

What is the share price of Microsoft (MSFT)?

Microsoft last traded at $390.54 (-0.7% on the day), as of 7/29/2026 — a delayed quote shown for education, not investment advice.

Microsoft

MSFT · NASDAQ · Technology · United States

Snapshot

TickerMSFT

ExchangeNASDAQ

SectorTechnology

IndustrySoftware - Infrastructure

CountryUnited States

Employees228,000

HeadquartersRedmond, United States

Websitewww.microsoft.com

Filings tracked12

About Microsoft

Microsoft Corporation develops and supports software, services, devices, and solutions worldwide. The Productivity and Business Processes segment offers Microsoft 365 commercial, enterprise mobility + security, windows commercial, power BI, exchange, sharepoint, Microsoft teams, security and compliance, and copilot; Microsoft 365 commercial products, such as Windows commercial on-premises and office licensed services; Microsoft 365 consumer products and cloud services, including Microsoft 365 consumer subscriptions, office licensed on-premises, and other consumer services; LinkedIn; dynamics products and cloud services, such as dynamics 365, cloud-based applications, and on-premises ERP and CRM applications. Its Intelligent Cloud segment provides Server products and cloud services comprising Azure and other cloud services, GitHub, Nuance Healthcare, virtual desktop offerings, and other cloud services; server products, including SQL and windows server, visual studio and system center related client access licenses, and other on-premises offerings; enterprise and partner services, such as enterprise support and nuance professional services, industry solutions, Microsoft partner network, and learning experience. The Personal Computing segment provides windows and devices, such as Windows OEM licensing and devices and surface and PC accessories; gaming services and solutions, such as Xbox hardware, content, and services, first- and third-party content Xbox game pass, subscriptions, and cloud gaming, advertising, and other cloud services; search and news advertising services. It sells its products through OEMs, distributors, and resellers; and online and retail stores. The company has a strategic collaboration with Mayo Clinic, Inc. for the development of a frontier AI model for healthcare; and Global Objects, Inc. to build a retrieval-grounded generative AI world model. The company was founded in 1975 and is headquartered in Redmond, Washington.

Who owns it

Insiders0.1%
Institutions75.7%
Public & other24.2%

8,077 institutional holders

Ownership breakdown from public market data.

Top holders

Blackrock Inc.7.99%
Vanguard Capital Management LLC6.50%
State Street Corporation4.13%
FMR, LLC2.56%
Geode Capital Management, LLC2.54%
Vanguard Portfolio Management LLC2.25%
JPMORGAN CHASE & CO1.71%
Morgan Stanley1.68%

Largest institutional holders — last updated 3/31/2026.

Forensic scorecard

No major accounting red flags in the fundamentals we have — profit is backed by cash and returns look healthy.

Cash conversion1.30×

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash.

Net margin trend34.1% → 36.1%

Margin has expanded by about 2.0 points — the business is getting more profitable.

Return on equity29.6%

Latest ROE of 29.6% — capital is generating a healthy return.

Growth qualityrev 15% · PAT 19%

Profit growth is broadly tracking revenue growth — the earnings trend looks operational rather than one-off.

Computed by MarketChacha from reported figures (SEC XBRL). Education, not a rating or recommendation.

What's expected next

Next quarter

Rev $89.7B · EPS 4.61

Est. earnings growth +11.7%

Next fiscal year

Rev $384.8B · EPS 19.39

Est. earnings growth +15.6%

Analyst consensus estimates — not the company's own guidance.

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P/E ROE ROCE Margins Market cap

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Financials at a glance

Source: SEC XBRL

Annual

Quarterly · last 8

Revenue (FY2025)

$281.7B

Net margin

36.1%

ROE

29.6%

Revenue CAGR (2y)

+15.3%

Profit CAGR (2y)

+18.6%

EPS (FY2025)

13.64

Net profit (FY2025)

$101.8B

Ask MarketChacha about MSFT

Get a cited, plain-English answer — the “why”, not just data. Finance research only, never buy/sell advice.

Why it moved

Jul 1, 2026
Microsoft shares rose on rotation into AI software plays from chip stocks, plus fresh bullish analyst coverage from Citizens (outperform, $550 target) and Wells Fargo (overweight, target raised to $650), along with a new AI/analytics partnership with Haleon.
source 1 ↗source 2 ↗· confidence: high
Jun 26, 2026
Microsoft shares rose sharply today amid reports of hedge fund manager Michael Burry disclosing a strategic long-term call option position and news of Xbox console price increases.
source 1 ↗source 2 ↗· confidence: medium
Jun 25, 2026
Microsoft shares fell as part of a broader tech pullback and after Stifel cut its price target to $400 from $415 while maintaining a hold rating, citing Azure margin pressure from heavy AI spending ahead of July earnings.
source 1 ↗source 2 ↗· confidence: medium
Jun 22, 2026
Microsoft shares fell amid investor concerns over escalating AI-related capital expenditures, highlighted by a new 20-year natural gas power deal with Chevron for a major Texas data center that underscores the scale of infrastructure spending.
source 1 ↗source 2 ↗source 3 ↗· confidence: medium

Daily moves with the verified reason behind them. Education only — not investment advice.

On MarketChacha

Posts about MSFT

Financials

Yearly

Period	Revenue	Net profit	EPS	Net margin	ROE
FY2025	$281.7B	$101.8B	13.64	36.1%	29.6%
FY2024	$245.1B	$88.1B	11.80	36.0%	32.8%
FY2023	$211.9B	$72.4B	9.68	34.1%	35.1%

Quarterly

Period	Revenue	Net profit	EPS	Net margin
2026Q2	$90.0B	$35.8B	4.81	39.8%
2026Q1	$82.9B	$31.8B	4.27	38.3%
2025Q4	$81.3B	$38.5B	5.16	47.3%
2025Q3	$77.7B	$27.7B	3.72	35.7%
2025Q1	$70.1B	$25.8B	3.46	36.9%
2024Q4	$69.6B	$24.1B	3.23	34.6%
2024Q3	$65.6B	$24.7B	3.30	37.6%
2024Q1	$61.9B	$21.9B	2.94	35.5%
2023Q4	$62.0B	$21.9B	2.93	35.3%
2023Q3	$56.5B	$22.3B	2.99	39.4%
2023Q1	$52.9B	$18.3B	2.45	34.6%

Figures as reported, in reporting currency. Source: SEC XBRL.

Filings & announcements

2026

8-K — Executive/director change
SEC6/5/2026material
8-K — Executive/director change, Exhibits
SEC5/14/2026material
8-K — Results of operations, Exhibits
SEC4/29/2026material
10-Q filing
SEC4/29/2026
8-K — Results of operations, Exhibits
SEC1/28/2026material
10-Q filing
SEC1/28/2026

2025

8-K — Executive/director change, Shareholder vote results
SEC12/8/2025material
8-K — Results of operations, Reg FD disclosure, Exhibits
SEC10/29/2025material
10-Q filing
SEC10/29/2025
8-K — Executive/director change
SEC9/30/2025material
8-K — Results of operations, Exhibits
SEC7/30/2025material
10-K filing
SEC7/30/2025

In the news

Education and discussion only — not investment advice. Financials from official filings (SEC/BSE) and reported company statements; market figures (delayed market data) are delayed and shown for reference only. Verify with the linked sources before acting.