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Microsoft (NASDAQ: MSFT) reported a 16.5% increase in stock value in May 2025, following its fiscal 2025 third-quarter earnings announcement on April 30, which brought it near its all-time high. The company’s revenue continues to be supported by its three segments: “more personal computing,” “productivity and business processes,” and “intelligent cloud,” with significant growth reported in cloud computing through Azure.
Microsoft boasts an ultra-elite balance sheet with AAA rating from S&P Global and Aaa from Moody’s, holding twice as much in cash and short-term investments as its long-term debt. Its capital return strategy includes the distribution of more total dividends than any other U.S. company, with a consistent history of 15 consecutive years of dividend increases and significant share buybacks.
As of June 2025, Microsoft has a price-to-earnings (P/E) ratio of 35.6, higher than the S&P 500’s average of 28.2, though it is consistent with its 10-year median. Analysts endorse Microsoft as a buy given its diversified business model, high-margin segments, and robust financial health, positioning it well for ongoing long-term growth despite higher valuation metrics.
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