Microsoft Corp. (NASDAQ: MSFT) continues to reaffirm its position as a technology leader, thanks in large part to robust growth in cloud services, massive investments in artificial intelligence, and innovative product initiatives. In July 2025, it surpassed a market capitalization of $4 trillion, becoming the second publicly traded company in history to reach this milestone.
Financial Results and Stock Development
In the fiscal quarter Q4 FY2025, Microsoft reported the following key metrics:
– Revenue: $76.4 billion (+18% year-over-year growth)
– Net Income: $27.2 billion ($3.65 per share, above expectations)
– Azure: +39% year-over-year, with annual revenue of over $75 billion
– MSFT stock: currently $527.75, after recent peak of $555-558; YTD growth of over 20%
The company maintains a healthy P/E ratio of 28.88, which is conservative compared to some other AI titles (e.g. NVIDIA with a P/E over 50). Analysts at major investment houses such as Oppenheimer, Piper Sandler, and Cantor Fitzgerald have set price targets between $625-675, mostly with “Buy” or “Overweight” recommendations.
Strategic focus on AI
Microsoft continues to invest heavily in AI infrastructure. For the first quarter of FY2026, the company plans to allocate $30 billion to develop computing capabilities, data centers and model development. Longer term, it plans to channel up to $120 billion into AI.
An interesting feature is the prototype AI agent “Project Ire”, which has been designed for autonomous detection of malicious files. In sample testing, it detected 90% of malicious files it classified as suspicious, with the potential to be integrated into Microsoft Defender.
Product News
Microsoft has announced the August update to Windows 11, which brings the following features:
– Quick Machine Recovery
– AI “Click to Do” assistant to simplify setup
– Enhanced user interface and new features in Microsoft Teams
Microsoft 365 also received new collaboration and scheduling features, such as meeting timers and expanded search capabilities.
Internal Changes and Outlook
Starting in January 2026, Microsoft is considering a new “3+ days in the office” policy for Redmond-based employees. This move reflects an effort to restore productivity and teamwork after the hybrid work era.
Alongside this, the company announced a reduction of 9,000 jobs, primarily in games and non-core divisions. The Xbox gaming segment is undergoing a restructuring, with the closure of some studios and the termination of development of non-core projects.
Conclusion
Microsoft is on the cusp of a new phase of growth, underpinned by solid financial performance, AI innovation and the ability to respond to changing technology market dynamics. If the company is able to continue to consolidate its position in the cloud while effectively monetizing its AI investments, the stock price could continue to rise over the next year.
Graph Source : www.zacks.com
The company also pays regular quarterly dividends to its shareholders. The dividend yield is currently $0.83 per share. The actual dividend has been approved by the company’s AGM at 0.63% p.a. The date for payment of the dividend is also currently known. The so-called Ex-Dividend-Date hatched is set for August 21, 2025. The dividend payment will take place on September 11, 2025.
The average target price for the short-to-medium term investment horizon was set at $618.44 per share by analysts at Zacks.com.
