Forecasts

Microsoft (NASDAQ: MSFT) Stock Price Prediction and Forecast 2025-2030 (July 2025)

Joel South

Published: July 4, 2025 7:45 am

Last Updated: July 4, 2025 7:50 am

Everyone knows Microsoft Corp. (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 near $500, the stock is up about 522,300%. That would have turned a $1,000 investment at Microsoft’s initial public offering into over $11 million today.

Though one of the most valuable companies in the world and one of the Magnificent 7 stocks, the only thing investors focus on is what the stock will do over the coming years. Wall Street analysts typically only provide stock predictions one year out. However, long-term investors want to know where Microsoft might be several years down the road.

24/7 Wall St. 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.

Microsoft’s Market-Smashing Results

Here’s a table summarizing performance in share price, revenues, and profits (net income) from 2014 to 2024.

Revenue and net income in $billions

In the past 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 half of the decade, a few key areas will determine its performance.

Key Drivers of Microsoft’s Performance

1. Productivity and Business Processes: Microsoft’s Office and Dynamics 365 solutions and its LinkedIn products currently make up around one-third of the company’s revenue. Office in particular holds a near monopoly in office productivity software and most third-party applications have embeds, making switching costs high for this business line. LinkedIn also faces little competition in the professional networking space. There are high growth rates in this segment, but Microsoft has the advantage of controlling its price on its high market share products.

2. Intelligence Cloud: Microsoft’s Azure, OpenAI, GitHub, and SQL, among other cloud businesses, make up close to half of the company’s revenue. But the crown jewel is Azure, which only makes up about 30% of Microsoft’s revenue but grew 30% over the past year alone. The future of Microsoft will depend on Azure and its competition with Amazon.com Inc.’s (NASDAQ: AMZN) AWS will determine which company will dominate the Platform-as-a-Service (PaaS) and reward shareholders handsomely in the process.

3. Personal Computing: Windows, gaming, search, and devices are currently 25% of Microsoft’s business, and this segment is the most open to competitors, eroding market share. Outside of Windows, which has a solidified market share (and is not likely to dwindle), Microsoft search and devices will face a steep uphill battle over the coming years. Its acquisition of Activision is a positive for its gaming line, but personal computing will play only an ancillary part in Microsoft’s future.

How Microsoft’s Next Five Years Could Play Out

The current consensus one-year price target for Microsoft stock has risen to $522.26, which represents 4.7% upside from today’s stock price. Of 60 analysts covering the stock, the consensus recommendation is overwhelming to buy shares, with 14 of them having Strong Buy ratings.

24/7 Wall St. expects to see revenue growth just over 8%, with Azure continuing its 20% or more growth, and EPS of $15.67 for the year. We expect the stock to trade at a similar multiple this year, putting our estimate for Microsoft’s stock price at just $532.78 at the end of 2025. That would be nearly 7% higher than the current share price.

Revenue and net income in $billions

Going into 2026, we estimate the price to be $597.30, with small revenue gains but margins expanding and an EPS of $18.10. We expect to see Microsoft’s P/E ratio step down slowly through 2030.

Heading into 2027, we expect earnings estimates of $20.40 per share, and the stock price target for the year is $673.20. That would be a year-over-year gain of 12% or so.

When predicting more than three years out, we expect Microsoft’s P/E ratio to be 32x in 2028 but 14% growth on its top line. In 2028, we have Microsoft’s revenue coming in at around $420 billion and an EPS of $22.62, suggesting a stock price estimate of $723.84.

24/7 Wall St. 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 32, the stock price in 2029 is estimated at $814.40.

We estimate Microsoft’s 2030 stock price to be $861.00 per share with a sub-10% year-over-year revenue growth. Our estimated stock price would be more than 72% higher than the current stock price.

Here is a look at how it gets there:

Microsoft May Be Pulling Ahead in the AI Race. Is It a Breakout Buy?