Microsoft Q1 Revenue up 18.4% at $77.67B, EPS Beats by $0.48
Microsoft reported Q1 revenue of $77.67 billion, up 18.4% year-over-year, and earnings per share of $4.13, beating consensus estimates by $0.48. The company declared a quarterly dividend of $0.91 per share payable March 12, with an ex-dividend date of February 19.
1. Institutional Ownership Upticks
Several major investors increased their stakes in Microsoft during the third quarter, according to recent 13F filings. Apollon Financial LLC boosted its position by 4.3%, ending the period with 37,068 shares valued at approximately 19.2 million dollars. Vanguard Group raised its holding by 2.0%, accumulating 705,077,786 shares, while State Street Corporation added 1.1% more shares, bringing its total to 299,196,519. Geode Capital Management also lifted its stake by 2.0% to 179,001,751 shares, and Norges Bank initiated a new position worth roughly 50.5 billion dollars. Together, these moves underscore continued confidence from large institutions in Microsoft’s growth trajectory.
2. Insider Selling Activity
Insiders at Microsoft have executed sizable sales over the past three months, collectively disposing of 54,100 shares valued at 27.6 million dollars. CEO Judson Althoff led with the sale of 12,750 shares for proceeds of 6.27 million dollars, trimming his ownership by 8.97%. Executive Vice President Takeshi Numoto followed with the sale of 2,850 shares for 1.36 million dollars, a 4.86% reduction in his holding. These disclosures, filed with the SEC, bring total insider ownership to just 0.03% of outstanding shares.
3. Recent Quarterly Performance
In its latest quarterly report, Microsoft delivered earnings per share of 4.13, beating consensus estimates by 0.48, on revenue of 77.67 billion dollars, up 18.4% year-over-year. The company achieved a net margin of 35.71% and a return on equity of 32.45%. Cloud services and productivity software continued to drive growth, and analysts now project full-year earnings per share of 13.08 for the current fiscal year.
4. Dividend Policy and Analyst Sentiment
Microsoft declared a quarterly dividend of 0.91 per share, translating to an annualized payout of 3.64 and a yield of approximately 0.8%, with a payout ratio of 25.89%. The dividend is payable in March to shareholders of record in February. Analyst coverage remains broadly positive: out of 43 firms, two rate the stock as Strong Buy, thirty-seven as Buy, and four as Hold, resulting in a consensus rating of Moderate Buy.