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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 $408.47, the stock is up 419704.73%. That would have turned a $1000 investment at Microsoft’s IPO into $4.20 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.
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.
![https://img.particlenews.com/image.php?url=25JINZ_0vEDVu2o00](https://img.particlenews.com/image.php?type=thumbnail_580x000&url=25JINZ_0vEDVu2o00)
Microsoft (MSFT) Stock Price Prediction in 2025 The current consensus 1-year price target for Microsoft stock is $480.90, which is a 17.73% upside from today’s stock price of $408.47. 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 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 ![https://img.particlenews.com/image.php?url=351c0k_0vEDVu2o00](https://img.particlenews.com/image.php?type=thumbnail_580x000&url=351c0k_0vEDVu2o00)
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 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 34.16% higher than the stock is trading today.
Going into 2026, we estimate the price to be $633.00. This represents a 54.97% gain over today’s share price of $416.74. We anticipate modest revenue gains offset by expanding margins and an EPS of $18.10, with Microsoft’s P/E ratio gradually declining through 2030.
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 59.62% from today’s stock price.
When predicting more than 3 years out, we expect Microsoft’s P/E ratio to drop 30x in 2028 but grow its top line by 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 65.99% 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 68.19% 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 75.53% higher than the current stock price of $412.80.
Year | Price Target | % Change From Current Price |
2024 | $495.00 | Upside of 21.18% |
2025 | $548.00 | Upside of 34.16% |
2026 | $633.00 | Upside of 54.97% |
2027 | $652.00 | Upside of 59.62% |
2028 | $678.00 | Upside of 65.99% |
2029 | $687.00 | Upside of 68.19% |
2030 | $717.00 | Upside of 75.53% |
![https://img.particlenews.com/image.php?url=2kCsE7_0vEDVu2o00](https://img.particlenews.com/image.php?type=thumbnail_580x000&url=2kCsE7_0vEDVu2o00)
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