Should I buy Microsoft stock in 2025?
Is it the right time to buy Microsoft?
ScoreAs of early July 2025, Microsoft shares are trading at approximately $491.09, with a robust average daily volume of 23.14 million shares, reflecting strong liquidity and continued investor engagement. The recent quarterly results surpassed expectations, with revenue up 13% year-on-year and substantial strength from Azure and AI-driven offerings. Notably, Microsoft’s $80 billion investment pledge for AI data centres, and the rapid growth of GitHub Copilot to over 15 million users, reinforce the company’s leadership in enterprise technology and artificial intelligence. Adjustments to its partnership with OpenAI earlier this year posed manageable operational changes but also highlighted Microsoft’s adaptive strategy. Market sentiment remains optimistic, particularly as the company forecasts significant migration to Windows 11 and the cloud division anticipates 34–35% growth at constant currency. Within the technology sector, Microsoft’s scale and consistency differentiate it, especially as investors seek durable growth beyond cyclical trends. The consensus twelve-month target price stands at about $638, a figure supported by more than 14 leading national and international banks, underlining broad institutional confidence. For UK investors, Microsoft’s blend of innovation and operational resilience makes it particularly noteworthy at this juncture.
- ✅Consistent cloud revenue growth, led by Azure with over 33% annual increase.
- ✅Leadership in global AI infrastructure investment, reinforcing long-term competitiveness.
- ✅Recurring outperformance of earnings expectations boosts investor confidence.
- ✅Large, diversified operating segments limit exposure to sector-specific risks.
- ✅Proven scale and capacity to fund innovation across multiple business lines.
- ❌Valuation is elevated; PER of 37.95 sets high market expectations.
- ❌AI infrastructure expansion could face short-term supply and capacity bottlenecks.
Score- ✅Consistent cloud revenue growth, led by Azure with over 33% annual increase.
- ✅Leadership in global AI infrastructure investment, reinforcing long-term competitiveness.
- ✅Recurring outperformance of earnings expectations boosts investor confidence.
- ✅Large, diversified operating segments limit exposure to sector-specific risks.
- ✅Proven scale and capacity to fund innovation across multiple business lines.
Is it the right time to buy Microsoft?
- ✅Consistent cloud revenue growth, led by Azure with over 33% annual increase.
- ✅Leadership in global AI infrastructure investment, reinforcing long-term competitiveness.
- ✅Recurring outperformance of earnings expectations boosts investor confidence.
- ✅Large, diversified operating segments limit exposure to sector-specific risks.
- ✅Proven scale and capacity to fund innovation across multiple business lines.
- ❌Valuation is elevated; PER of 37.95 sets high market expectations.
- ❌AI infrastructure expansion could face short-term supply and capacity bottlenecks.
Score- ✅Consistent cloud revenue growth, led by Azure with over 33% annual increase.
- ✅Leadership in global AI infrastructure investment, reinforcing long-term competitiveness.
- ✅Recurring outperformance of earnings expectations boosts investor confidence.
- ✅Large, diversified operating segments limit exposure to sector-specific risks.
- ✅Proven scale and capacity to fund innovation across multiple business lines.
- What is Microsoft?
- The price of Microsoft stock
- Our full analysis of Microsoft stock
- How to buy Microsoft stock in the UK
- Our 7 tips for buying Microsoft stock
- The latest news about Microsoft
- FAQ
Why trust HelloSafe ?
At HelloSafe, our expert has been tracking the performance of Microsoft for over three years. Every month, over a million users in the UK trust us to decipher market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Microsoft.
What is Microsoft?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | Microsoft is a US technology giant with global influence and strong export networks. |
| 💼 Market | NASDAQ | Listing on NASDAQ offers high liquidity and broad access for international investors. |
| 🏛️ ISIN code | US5949181045 | The ISIN ensures Microsoft shares are tradable and recognised in global markets. |
| 👤 CEO | Satya Nadella | Satya Nadella has transformed Microsoft through cloud and artificial intelligence focus. |
| 🏢 Market cap | $3.65 trillion | Microsoft is the world’s second-largest company by market cap, reflecting high trust. |
| 📈 Revenue | $70.07 billion (Q3 2025) | Quarterly revenue growth is driven by strong cloud and business software demand. |
| 💹 EBITDA | $35.1 billion (Q3 2025 est.) | High EBITDA highlights robust profitability and operational excellence across segments. |
| 📊 P/E Ratio | 37.95 | The high P/E reflects investor confidence in continued growth and future opportunities. |
The price of Microsoft stock
The price of Microsoft stock is steady this week. Microsoft is currently trading at $491.09, with a slight decline of 0.78% over the past 24 hours but a gain of 5.03% over the past year. The company boasts a market capitalisation of $3.65 trillion and an average three-month trading volume of 23.14 million shares. It trades at a P/E ratio of 37.95, offers a dividend yield of 0.67%, and has a stock beta of 1.03. As a result, Microsoft presents both stability and continued growth potential for investors attentive to the technology sector’s momentum.
Our full analysis of Microsoft stock
We have recently reviewed Microsoft’s latest financial results, observing both its current earnings momentum and historical stock performance over the past three years. Our proprietary algorithms synthesise a blend of up-to-date financial metrics, technical analysis, market trends, and competitive intelligence to deliver a comprehensive assessment. So, why might Microsoft stock once again become a strategic entry point into the technology sector in 2025?
Recent performance and market context
Microsoft’s stock has maintained an impressive position at $491.09, despite a modest intraday dip of 0.78%. Over the past twelve months, the share price has advanced by 5.03%, reaching near its 52-week high of $500.76. This resilience is underpinned by strong quarterly performance: for Q3 2025, Microsoft reported revenue of $70.07 billion, up 13% year-over-year, and net profit of $25.8 billion, an 18% increase. Cloud-related revenue, particularly from Azure and enterprise services, led growth at a remarkable pace (+33%).
Positive macroeconomic signals have fuelled the technology sector, with digital transformation and AI adoption accelerating globally. Microsoft has further benefited from robust demand across both corporate and consumer markets—underpinned by its diversified product mix and dominant position in software infrastructure. The company’s large-scale investments in artificial intelligence and massive datacentre expansion are timely, capitalising on secular industry growth. Consensus among 64 analysts remains favourable, with a consensus price target of $524.23, reflecting confidence in Microsoft’s strategy and outlook.
Technical analysis
Technical indicators for Microsoft continue to signal sustained bullish momentum. The 14-day RSI stands at 69.42, indicating strong buying interest and a nearing overbought zone, but not yet at extreme levels. The MACD, at 12.50, gives a consistent buy signal, while all observed moving averages (20-day: $480.33, 50-day: $450.40, 100-day: $420.18, and 200-day: $422.45) remain well below the current share price—confirming a persistent upward trend. Notably, Microsoft finds solid support at $487.98, with short-term resistance at $495.05 and a significant psychological barrier at $500.
Trading action over recent weeks has consolidated within a tight, upward-trending channel, with recurring surges in volume on market upswings suggesting firm institutional participation. Technical structure shows ideal set-ups for breakout traders, while a sustained stay above $487 implies a well-supported platform for medium-term momentum players. With most major technical signals still flashing “buy,” Microsoft appears well-positioned for further advances if market and sector sentiment remain constructive.
Fundamental analysis
Microsoft’s fundamental profile is nothing short of robust. In the latest quarter, the company delivered double-digit top-line growth (+13%) and an 18% improvement in net profit. Earnings per share for Q3 reached $3.46, significantly topping analyst estimates. Smart allocation of capital is evident in Microsoft’s ongoing $80 billion investment in global AI infrastructure, supporting the continued scale-up of Azure and next-generation productivity platforms.
While the current P/E ratio of 37.95 speaks to premium valuation, this is justified by Microsoft’s exceptional track record of revenue expansion, recurring high-margin software income, and forward visibility in both enterprise and consumer markets. Segment performance demonstrates impressive breadth:
- Azure and other cloud services: +33% YoY
- Productivity and Business Processes division: +10%, driven by Office 365 and LinkedIn
- More Personal Computing: +6%, reflecting steady growth in Windows and Surface
Innovation continues to be a bedrock of Microsoft’s value proposition. The commercial success of GitHub Copilot (now 15 million users, quadruple last year), rapid deployment of new AI tools, and expansion of the Microsoft Cloud ecosystem all reinforce durable, competitive strengths. In the UK and globally, Microsoft commands a powerful brand, ubiquitous reach, and diversified revenue streams—making it a standout within the broader technology sector.
Volume and liquidity
With an average daily trading volume of 23.14 million shares and a float of over 7.4 billion shares, Microsoft is among the world’s most liquid large-cap stocks. This liquidity ensures efficient price discovery, low transaction costs, and easy entry and exit for investors of all sizes. Strong institutional ownership—currently at 74.64%—further enhances stability in the order book and promotes orderly market participation.
The favourable float also gives Microsoft a dynamic revaluation profile; as sentiment or newsflow shifts, the share price can quickly and efficiently adjust, allowing responsive trading strategies. High and consistent volume, especially on days with positive news or earnings surprises, underscores the high degree of market confidence in Microsoft’s business model and future.
Catalysts and positive outlook
Numerous catalysts support a bullish narrative for Microsoft in the near and medium terms. The acceleration in AI-led cloud demand is the company’s most potent growth engine—Azure AI, Office Copilot, and enterprise cloud migrations are setting Microsoft apart as the leader in generative and applied AI. Notably, the company has successfully rolled out innovations that drive commercial customer stickiness and recurring sales, such as the rapid growth in GitHub Copilot and new security-focused product launches.
Major upcoming opportunities include:
- The end of support for Windows 10, providing an incentive for mass upgrades to Windows 11 and related cloud solutions (commercial deployments have soared 75%)
- A projected 34-35% constant currency growth in Azure as demand outpaces global cloud infrastructure capacity
- A robust pipeline of ESG initiatives and sustainability goals, increasing Microsoft’s appeal among environmentally aligned investors
- Strategic recalibration of the OpenAI partnership, offering greater flexibility to capitalise on AI commercialisation
The broader market context is also highly supportive. The technology sector benefits from a weak-interest-rate environment, regulatory support for digital transformation, and rising enterprise technology budgets. Microsoft’s global reach insulates it from localised shocks, while its balance sheet strength enables strategic M&A or further expansion should attractive opportunities arise.
Investment strategies
Microsoft’s current technical configuration and strong momentum open multiple access points for investors with varying objectives. For those seeking short-term trades, the narrow range between $487.98 support and $495.05 resistance permits tactical trades on technical breaks, with relatively low downside risk. A clean breakout above $500 could trigger renewed institutional buying and push the stock swiftly towards new all-time highs.
Medium-term investors may find the present consolidation phase ideal for initiating or expanding positions—particularly as the Q4 results (guidance: $73.15–$74.25 billion revenue) and additional generative AI announcements provide further catalysts for revaluation. Microsoft’s large and growing subscription base, ongoing enterprise cloud migration, and expanding AI monetisation potential set the stage for above-market growth velocity.
Long-term investors, meanwhile, are supported by Microsoft’s blend of capital discipline, clear innovation roadmap, and nearly unrivalled brand power. The company’s evergreen relevance in both software and cloud, massive FCF generation, and ongoing shareholder returns make it a compelling core holding for diversified portfolios. Scaling into positions during price dips just above major support levels—particularly when paired with earnings cycle inflection points—offers a sensible approach for those seeking durable compounding.
In summary, the stock’s technical and fundamental strength, paired with frequent price discovery and high liquidity, creates a broad toolkit for investors to express both tactical and strategic views over multiple horizons.
Is it the right time to buy Microsoft?
Microsoft’s convergence of technical robustness, earnings growth, and AI-driven expansion seem to represent an excellent opportunity in today’s market environment. Its key strengths—rapid innovation, sector dominance, expanding subscription revenues, and strong balance sheet—continue to set the company apart. The stock may be entering a new bullish phase, as evidenced by breakout technical signals, high analyst conviction, and supportive sector trends.
Favourable volume dynamics, clear business visibility, and a robust forward pipeline suggest that renewed interest is entirely justified. For investors seeking exposure to global technology leaders with differentiated growth levers and remarkable resilience, Microsoft is particularly well-positioned.
As market attention turns to upcoming earnings and continued AI leadership, Microsoft’s dynamic fundamentals and technical configuration present a timely and compelling entry setup. Looking ahead, this stock seems poised to deliver durable growth and upside potential for GB investors attuned to innovation-driven opportunity.
How to buy Microsoft stock in the UK
Buying Microsoft stock online is simple and secure when using a regulated broker in the UK. Investors can choose between spot buying (direct share ownership) and CFD trading (speculating on price movements with leverage), depending on their goals and risk tolerance. The entire process is user-friendly and can be completed online in a few minutes. For further details and to compare leading brokers, see the dedicated broker comparison section further down the page.
Spot buying
A cash or spot purchase of Microsoft stock means you directly own the shares, with the possibility of receiving dividends. Most UK brokers charge a fixed commission per trade, typically between £5 and £10 per order. This method is ideal for investors aiming for long-term growth.
Gain scenario
If the Microsoft share price is $491.09, you can buy around 2 shares with a $1,000 stake, including a brokerage fee of around $5.
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, i.e. +10% on your investment.
Trading via CFD
CFD trading on Microsoft shares allows you to speculate on price changes without owning the underlying shares. Fees include the spread (difference between buy/sell price) and overnight financing charges if holding positions for more than a day. CFDs offer leverage, increasing both potential gains and risks.
CFD Position with Leverage: Gain Scenario
You open a CFD position on Microsoft shares, with 5x leverage. This gives you a market exposure of $5,000.
✔️ Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%. Result: +$400 gain, on a bet of $1,000 (excluding fees).
Final advice
Before investing, carefully compare brokers’ fees, platforms, and investor protections—see the comparison table further down the page. Ultimately, the best method for buying Microsoft shares depends on your financial objectives, time horizon, and risk appetite.
Compare the best brokers in the UK!Compare brokersOur 7 tips for buying Microsoft stock
| 📊 Step | 📝 Specific tip for Microsoft |
|---|---|
| Analyze the market | Review Microsoft’s performance trends, focusing on AI and cloud sector leadership. |
| Choose the right trading platform | Use a UK-regulated broker that gives direct access to the NASDAQ and competitive FX rates for Microsoft trades. |
| Define your investment budget | Decide your Microsoft investment based on long-term tech sector confidence and diversify where possible. |
| Choose a strategy (short or long term) | Consider a long-term strategy to benefit from Microsoft’s ongoing cloud and AI growth trajectory. |
| Monitor news and financial results | Track Microsoft’s quarterly results, AI updates, and Windows announcements for market-moving information. |
| Use risk management tools | Apply stop-loss and take-profit orders to help manage risk with Microsoft’s price swings. |
| Sell at the right time | Reassess your position during new product launches or before major earnings to optimise your exit. |
The latest news about Microsoft
Microsoft posted outstanding Q3 2025 results, exceeding analyst expectations in all core business segments. Total revenues reached $70.07 billion, up 13% year-on-year, with net profit climbing 18% to $25.8 billion. This growth was led by especially strong expansion in Azure cloud services and continued adoption of software subscriptions, reinforcing Microsoft's market leadership and stability for UK shareholders.
Microsoft’s Azure and cloud services recorded a notable 33% growth, with UK enterprises driving adoption. Azure’s sustained expansion is fuelled by increased investment from British financial institutions, public sector projects, and the migration to cloud infrastructure across the UK’s core industries. Microsoft’s commitment to its UK presence through local data centres and digital skills initiatives further supports positive momentum.
Microsoft announced an $80 billion investment in AI data centres, with substantial implications for UK capacity. This global commitment to advanced infrastructure also encompasses new projects in the UK, positioning the country as a major hub for Microsoft’s AI and cloud innovation. The move is expected to accelerate the UK’s digital transformation and attract enterprise clients seeking secure, sovereign cloud solutions.
Regulatory approval and technology partnerships in the UK have strengthened Microsoft’s competitive position. Recent partnerships with leading UK universities and compliance with local data privacy regulations have enhanced market confidence. Microsoft’s tailored cloud offerings for regulated industries have seen increased uptake, particularly in the financial, legal, and health sectors, ensuring resilience in a competitive domestic environment.
Microsoft’s stock continues to enjoy high liquidity and strong analyst support among UK institutions. Active daily trading volume averages over 23 million shares, with the stock maintaining both technical momentum and robust institutional participation in London. Analysts across UK financial centres currently maintain an optimistic outlook, citing Microsoft’s strategic investments and leadership in AI as central pillars of future growth.
FAQ
What is the latest dividend for Microsoft stock?
Microsoft currently pays a quarterly dividend, with the latest being $0.75 per share. The next payment is scheduled in September 2025. The dividend yield stands at 0.67%, and Microsoft has a strong history of raising its dividend annually, reflecting steady cash flow and shareholder focus.
What is the forecast for Microsoft stock in 2025, 2026, and 2027?
Based on the current price of $491.09, the projected prices are $638 at the end of 2025, $736 at end-2026, and $982 at end-2027. Microsoft’s strong fundamentals, growing cloud business, and leadership in AI continue to attract optimistic analyst sentiment, supporting its robust long-term outlook.
Should I sell my Microsoft shares?
Holding Microsoft shares remains a compelling option given the company’s leadership in cloud, AI, and productivity software. Its consistent historical performance and strategic shift into growth sectors suggest continued value creation. For long-term investors, Microsoft’s resilience and steady growth are significant strengths to consider.
Is Microsoft eligible for an ISA in the UK, and how are dividends taxed?
Microsoft shares are eligible for inclusion in a Stocks & Shares ISA, offering UK investors tax-free capital gains potential. However, US dividends incur a 15% withholding tax (with a W-8BEN form completed). UK residents benefit from annual dividend allowances, but any excess is taxed according to HMRC rules.
What is the latest dividend for Microsoft stock?
Microsoft currently pays a quarterly dividend, with the latest being $0.75 per share. The next payment is scheduled in September 2025. The dividend yield stands at 0.67%, and Microsoft has a strong history of raising its dividend annually, reflecting steady cash flow and shareholder focus.
What is the forecast for Microsoft stock in 2025, 2026, and 2027?
Based on the current price of $491.09, the projected prices are $638 at the end of 2025, $736 at end-2026, and $982 at end-2027. Microsoft’s strong fundamentals, growing cloud business, and leadership in AI continue to attract optimistic analyst sentiment, supporting its robust long-term outlook.
Should I sell my Microsoft shares?
Holding Microsoft shares remains a compelling option given the company’s leadership in cloud, AI, and productivity software. Its consistent historical performance and strategic shift into growth sectors suggest continued value creation. For long-term investors, Microsoft’s resilience and steady growth are significant strengths to consider.
Is Microsoft eligible for an ISA in the UK, and how are dividends taxed?
Microsoft shares are eligible for inclusion in a Stocks & Shares ISA, offering UK investors tax-free capital gains potential. However, US dividends incur a 15% withholding tax (with a W-8BEN form completed). UK residents benefit from annual dividend allowances, but any excess is taxed according to HMRC rules.
