Microsoft (NASDAQ: MSFT) Stock Price Prediction and Forecast 2025-2030 (May 2025)

Everyone knows Microsoft Corp. (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 $437.93, the stock is up 457,634%. That would have turned a $1,000 investment at Microsoft’s initial public offering into close to $6 million today.

Though one of the most valuable companies in the world and one of the Magnificent 7 stocks, the only thing investors focus on is what the stock will do over the coming years. Wall Street analysts only go as far as one 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 St. 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.

Microsoft’s Market-Smashing Results

Here’s a table summarizing performance in share price, revenues, and profits (net income) from 2014 to 2024.

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 Performance

1. 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.

2. 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.com Inc.’s (NASDAQ: AMZN) AWS will determine which company will dominate the Platform-as-a-Service (PaaS) and reward shareholders handsomely in the process.

3. 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.

How Microsoft’s Next Five Years Could Play Out

The current consensus one-year price target for Microsoft stock is $505.59, which is a 15.4% upside from today’s stock price. Of 61 analysts covering Microsoft, the consensus recommendation is overwhelming to buy shares, with 15 of them having Strong Buy ratings.

24/7 Wall St. expects to see revenue growth just over 8%, with Azure continuing its 20+% growth, and EPS of $15.67 for the year. We expect the stock to still trade at a similar multiple this year, putting our estimate for Microsoft’s stock price at $389.52 at the end of 2025. That would be 11.1% lower than the current share price.

Revenue and net income in $billions

Going into 2026, we estimate the price to be $426.16, 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.

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 $481.57. That is a 13% year-over-year gain.

When predicting more than three years out, we expect Microsoft’s P/E ratio to be 25x 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 $526.89.

24/7 Wall St. 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 25, the stock price in 2029 is estimated at $599.25.

We estimate Microsoft’s stock price to be $621.32 per share with a sub-10% year-over-year revenue growth. Our estimated stock price will be 41.9% higher than the current stock price of $423.39.

Here is a look at how it gets there:

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