Where Will Microsoft Stock Be in 2030?
Earnings rose 22% last fiscal year. What's the stock worth if growth cools to 13%?
Microsoft's stock price is expected to reach around $730 by mid-2030. This projection is based on the company's projected non-GAAP earnings per share growing at approximately 13% annually and investors paying a price-to-earnings ratio of about 26 times earnings. Microsoft's financial performance, including a 22% increase in adjusted earnings per share during the fiscal year ending June 30, 2026, and a fiscal year revenue of $331.8 billion, supports this estimate.
However, the high cost of investing in data centers for artificial intelligence and increasing depreciation expenses may impact future earnings growth. Despite the optimism surrounding Microsoft's prospects, the stock's current price-to-earnings ratio of 31 indicates that investors are paying a premium for the company's growth potential.
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