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Microsoft (MSFT) Price Prediction and Forecast 2025-2030
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Everyone knows Microsoft (NASDAQ: MSFT) and its best-known products, including the Windows operating system and Microsoft 365 suite of productivity apps, but its growing cloud computing platform, Azure, is the future of the company.
Microsoft stock has been a millionaire maker for decades, with a stock split-adjusted IPO price of $0.14, which means at today’s stock price of $436.05, the stock is up 448050.05%. That would have turned a $1000 investment at Microsoft’s IPO into $4.48 million today.
As one of the most valuable companies in the world, the only thing investors focus on is what the stock will do over the coming years. Wall Street analysts only go as far as 1 year out when giving a stock prediction. But long-term investors want to know where Microsoft might be several years down the road.
24/7 Wall Street aims to give you our assumptions on the stock and provide our insights around the numbers coming from Microsoft and which markets the company is operating in that are most exciting to us.
9/23/2024
Microsoft released a progress report today for the Secure Future Initiative, which will help protect U.S. government and public sector cloud accounts. Identity verification will be strengthened to prevent a repeat of last summer when Chinese hackers exploited a vulnerability to access government email accounts. Microsoft’s new tool will now automatically generate, store, and rotate token signing keys.
9/19/2024
Microsoft and Anduril Industries are joining forces to enhance the mixed-reality headsets used by the U.S. Army. The new and improved headsets will receive real-time updates from vehicles, drones, and defense systems, providing them with crucial information to make informed decisions on the battlefield.
9/17/2024
Microsoft’s stock price rose by 1.3% today, reaching a high of $441.85. The current price is $436.83, with trading volume significantly lower than average.
9/16/2024
Microsoft is adding more AI features to its Microsoft 365 productivity tools like Outlook, Teams, PowerPoint, and Excel as part of Microsoft’s Copilot Wave 2 rollout.
9/13/2024
Microsoft recently purchased a large piece of land in Pune, India, for about 453 million rupees. The land is located in Hinjewadi, a major technology area. It is Microsoft’s second major land purchase in Pune in the past month, totaling over 972 million rupees.
9/12/2024
Microsoft is investigating reports from thousands of users experiencing difficulties with certain Microsoft 365 products. Almost 5,000 users have reported issues with Teams, and another 24,000 have reported problems with Microsoft 365 in general.
9/11/2024
Microsoft’s stock saw a positive day of trading, with its shares increasing by 2.13% and closing at $423.04. This marked the third consecutive day of gains for Microsoft.
9/10/2024
Microsoft’s stock price rose by more than 2% today, outperforming the broader market. This gain was driven by positive news from a privately held company in which Microsoft has a significant investment.
9/9/2024
Microsoft’s valuation has nearly tripled in the last three years, hitting $3 trillion, but its stock has fallen over 12% since July 2023 and is underperforming the S&P 500 year-to-date. Despite impressive revenue growth of 15% and earnings per share of $2.95 in the last quarter, investors are concerned about slowing growth in its Azure cloud platform
9/6/2024
Microsoft’s stock closed at $408.39 yesterday and fell by 0.9% on today after an insider sold shares in the company. The lowest price it reached during the day was $404.60, and the last price it traded at was $404.73.
9/5/2024
Microsoft’s recent AI push, while facing competition and regulation, could fuel future growth for the company. Despite its modest stock performance of an 8.8% YTD gain, successful AI integration across Microsoft products could open new revenue streams and strengthen the company’s market position.
Here’s a table summarizing performance in share price, revenues, and profits (net income) from 2014 to 2018.
Share Price | Revenues | Net Income | |
2014 | $46.16 | $86.83 | $22.07 |
2015 | $46.70 | $93.58 | $12.19 |
2016 | $56.21 | $91.15 | $20.54 |
2017 | $72.26 | $96.57 | $25.49 |
2018 | $108.04 | $110.36 | $16.57 |
2019 | $138.06 | $125.84 | $39.24 |
2020 | $205.01 | $143.02 | $44.28 |
2021 | $286.50 | $168.09 | $61.27 |
2022 | $276.41 | $198.27 | $72.74 |
2023 | $330.72 | $211.92 | $72.36 |
TTM | $465.39 | $279.99 | $86.18 |
Revenue and net income in $billions
In the last decade, Microsoft’s revenue grew 222% while its net income went from $22.07 billion to over $86 billion (in the trailing 12 months). A big driver of profits over the past decade was Microsoft’s Intelligence cloud business, which grew 18% annually and drove operating profits of $37.88 billion in 2023 from $8.44 billion in 2014.
As Microsoft looks to the second of the decade, a few key areas will determine its performance.
The current consensus 1-year price target for Microsoft stock is $480.90, which is a 10.29% upside from today’s stock price of $436.05. Of all the analysts covering Microsoft, the stock is a consensus buy, with a 1.33 “Buy” rating.
24/7 Wall Street’s 12-month forecast projects Microsoft’s stock price to be $495. We see Azure continuing its 20+% growth and earnings per share coming in right at $11.80.
Year | Revenue | Net Income | EPS |
2024 | $244.97 | $88.93 | $13.32 |
2025 | $278.00 | $99.25 | $15.67 |
2026 | $321.63 | $115.65 | $18.10 |
2027 | $370.79 | $136.81 | $20.40 |
2028 | $416.08 | $151.87 | $22.62 |
2029 | $453.39 | $166.56 | $25.45 |
2030 | $503.13 | $181.71 | $28.70 |
Revenue and net income in $billions
We expect to see revenue growth of just over 8% and EPS of $15.67 for the year. We expect the stock to still trade at a similar multiple next year, putting our estimate for the stock price for Microsoft at $548.00 in 2025, which is 25.67% higher than the stock is trading today.
Going into 2026, we estimate the price to be $633.00, with small revenue gains but margins expanding and an EPS of $18.10. We expect to see Microsoft’s P/E ratio to steep down slowly each year through 2030. The stock price estimate would represent a 45.17% gain over today’s share price of 436.05.
Heading into 2027, we expect the stock price increase not to be as pronounced and earnings estimates of $20.40 per share, the stock price target for the year is $652.00. That is a 3% year-over-year gain from the previous year, but still up 49.52% from today’s stock price.
When predicting more than 3 years out, we expect Microsoft’s P/E ratio to drop to 30x in 2028 but grow its top line 14%. In 2028, we have Microsoft’s revenue coming in around $420 billion and an EPS of $22.62 suggesting a stock price estimate at $678.00 or a gain of 55.49% over the current stock price.
24/7 Wall Street expects Microsoft to continue its 10% revenue growth again and to generate $12.30 per share of earnings. With a price to earnings multiple of 35, the stock price in 2029 is estimated at $687.00, or a gain of 57.55% over today’s price.
We estimate Microsoft’s stock price to be $717.00 per share with a sub 10% year-over-year revenue growth. Our estimated stock price will be 64.43% higher than the current stock price of $436.05.
Year | Price Target | % Change From Current Price |
2024 | $495.00 | Upside of 13.52% |
2025 | $548.00 | Upside of 25.67% |
2026 | $633.00 | Upside of 45.17% |
2027 | $652.00 | Upside of 49.52% |
2028 | $678.00 | Upside of 55.49% |
2029 | $687.00 | Upside of 57.55% |
2030 | $717.00 | Upside of 64.43% |
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