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Microsoft (MSFT) Price Prediction and Forecast

24/7 Wall Street

Everyone knows Microsoft (NASDAQ: MSFT) and its best known products, including Windows operating system, 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 $454.40, the stock is up 456,400%. That would have turned a $1000 investment at Microsoft’s IPO into $4.66 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.

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Microsoft’s 10-Year Market Smashing Results  

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.   

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Key Drivers of Microsoft’s Stock 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 3rd party applications have embeds, making switching costs high for this business line. LinkedIn also does not have a solid competitor in the professional networking space. 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, 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 close to 30% of Microsoft’s revenue and grew 30% over the past year alone. The future of Microsoft will depend on Azure and its competition with Amazon’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 is 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 not likely to dwindle), Microsoft search and devices will be facing a steep uphill battle over the coming years. Its acquisition of Activision is a positive for its gaming line but personal computing will play an ancillary part in Microsoft’s future.

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Microsoft (MSFT) Stock Price Prediction in 2025

The current consensus 1 year price target for Microsoft stock is $480.90, which is 5.83% upside from today’s stock price of $454.40.
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.  

Microsoft (MSFT) Stock Forecast Through 2030 

YearRevenueNet IncomeEPS
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

Microsoft Share Price Estimates 2025-2030

Source: 24/7 Wall Street

 

Microsoft Price Forecast and Prediction for 2025: We expect to see revenue growth 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 20.60% higher than the stock is trading today.

Microsoft Price Forecast and Prediction for 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 39.31% gain over today’s share price of 454.40.

Microsoft Price Forecast and Prediction for 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 43.49% from today’s stock price.

Microsoft Price Forecast and Prediction for 2028: We expect Microsoft’s P/E ratio to drop to 30x in 2028 but growing 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 49.21% over the current stock price.

Microsoft Price Forecast and Prediction for 2029: 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 51.19% over today’s price.

Microsoft Price Forecast and Prediction for 2030: 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 57.79% higher than the current stock price of 454.40.

YearPrice Target% Change From Current Price 
2024$495.00Upside of 8.94%
2025$548.00Upside of 20.60%
2026$633.00Upside of 39.31%
2027$652.00Upside of 43.49%
2028$678.00Upside of 49.21%
2029$687.00Upside of 51.19%
2030$717.00Upside of 57.79%

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Recent Microsoft Stock Updates and News

7/12/2024

DMO Capital analyst Keith Bachman, who has Microsoft as an “Outperform” stock, raised the 1 year price target for the stock to $500, up from $465. Bachman is impressed with Microsoft’s cloud demand and projects a 31% year-over-year Azure growth for the current quarter and sees upside potential over that estimate.

7/11/2024

Microsoft’s stock, up 95% since early last year, is poised for further growth due to its AI advancements. The company aims for mid-teens revenue growth, potentially reaching $371 billion by 2027. With a five-year average price-to-sales multiple of 11, Microsoft’s market cap could hit $4 trillion, driven by expanding AI applications in cloud computing, workplace productivity, and PC markets.

7/10/2024

Both Microsoft and Apple have withdrawn their observer seat to OpenAI’s board to steer clear of regulatory scrutiny and will instead meet with OpenAI in a less formal, regularly scheduled meetings.

Microsoft has invested $13 billion in OpenAI in addition to providing computing power and cloud storage.

7/9/2024

Apple (NASDAQ: AAPL) has once again moved ahead of Microsoft as the the most valuable company in the world. While the top rankings will continue to shift on daily price movements, Apple, Microsoft and NVIDIA continue to via for the top spot.

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