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 $417.30, the stock is up 428779.75%.
That would have turned a $1000 investment at Microsoft’s IPO into $4.29 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.
Key Points in this Article:
- Key growth drivers: Azure cloud services, productivity software, and LinkedIn dominate Microsoft’s future potential.
- Microsoft’s acquisition of Activision boosts its gaming segment, enhancing its competitive edge in the personal computing market.
- If you’re looking for an AI stock early in the AI growth cycle, grab a complimentary copy of our “The Next NVIDIA” report. It has a software stock that could ride dominance in AI to returns of 10X or more.
Recent Microsoft Stock Updates and News
10/17/2024
The CEO of Salesforce, Marc Benioff, openly criticized Microsoft’s Copilot AI, suggesting that it is not up to par and will be a disappointment to consumers.
10/15/2024
Microsoft released its fifth annual Digital Defense Report and announced that the number of ransomware attacks that successfully encrypt data has decreased significantly by 300% in the past two years.
10/14/2024
Microsoft’s share price increased by 1.6% today, reaching a high of $423.25. Trading activity was lower than usual, with around 3.37 million shares changing hands.
10/10/2024
Microsoft is introducing new tools and features to its healthcare cloud platform. These updates aim to improve patient care experiences, enhance teamwork among healthcare professionals, and provide valuable insights for clinical and operational decision-making.
10/9/2024
Microsoft is warning millions of Windows users about a surge in phising attacks targeting their defense mechanisms. The company has advised users to take specific precautions, including using Microsoft Edge to automatically identify and block malicious websites, in addition to the early warning system provided by Microsoft Defender SmartScreen.
10/8/2024
Investors are watching Microsoft closely as the company is scheduled to release its earnings report for the quarter. Analysts expect Microsoft to report earnings per share of $3.08, which would be 3.01% higher than compared to the same quarter last year. Microsoft’s revenue is predicted to be $64.42 billion, 13.98% higher than the same quarter last year.
10/7/2024
Microsoft is investing €4.3 billion into operations in Italy. The data center will be a key data hub for North Africa and the Mediterranean and will expand its AI infrastructure and cloud systems.
10/4/2024
Microsoft and the U.S. government stopped a group of Russian hackers called Star Blizzard, seizing over 100 website domain names used to steal information.
10/2/2024
Microsoft is building a data center in New Albany, Ohio. Construction on the $420 million center is scheduled to start in July and finish in 2027. The new data center will cover 245,000 square feet and create 30 jobs.
10/1/2024
Microsoft is making significant changes and upgrades to its AI assistant, Copilot. The new version will now be able to have more natural conversations with users, with the ability to actively listen and handle interruptions and pauses. It’s also designed to be more emotionally supportive and encouraging.
9/30/2024
KT Corporation is partnering with Microsoft in a deal valued at $450 million. One of the largest telecommunications companies in South Korea, KT Corporation will be working to strengthen Microsoft’s cloud services and global network infrastructure.
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.
Key Drivers of Microsoft’s Stock Performance
- 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.
- 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 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.
- 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 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.
Microsoft (MSFT) Stock Price Prediction in 2025
The current consensus 1-year price target for Microsoft stock is $500.00, which is a 19.82% upside from today’s stock price of $417.30. Of all the analysts covering Microsoft, the stock is a consensus buy, with a 1.39 “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
| 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
Microsoft Share Price Estimates 2025-2030
How Microsoft’s Next 5 Years Could Play Out
We expect to see revenue growth of just over 8% and EPS of $15.67 for 2025. 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 31.32% 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 steep down slowly each year through 2030. The stock price estimate would represent a 51.69% gain over today’s share price of $417.30.
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 56.24% 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 62.47% 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 64.63% over today’s price.
Microsoft Stocks Price Target 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 71.82% higher than the current stock price of 417.30.
| Year | Price Target | % Change From Current Price |
| 2024 | $495.00 | Upside of 18.62% |
| 2025 | $548.00 | Upside of 31.32% |
| 2026 | $633.00 | Upside of 51.69% |
| 2027 | $652.00 | Upside of 56.24% |
| 2028 | $678.00 | Upside of 62.47% |
| 2029 | $687.00 | Upside of 64.63% |
| 2030 | $717.00 | Upside of 71.82% |
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