Microsoft Corporation (MSFT) Announces Changes to Financial Reporting Structure

Microsoft Corporation (NASDAQ:MSFT) announced that it will change the reporting of its financial results to reflect the company’s strategy and ambitions to build best-in-class platforms and productivity services for a mobile-first, cloud-first world. Beginning in fiscal year 2016, the company will report revenue and operating income based on three operating segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

The Productivity and Business Processes segment includes results from Office and Office 365 for commercial and consumer customers, as well as Dynamics and Dynamics CRM Online.

The Intelligent Cloud segment includes results from public, private and hybrid server products and services such as Windows Server, SQL Server, System Center, Azure, and Enterprise Services.

The More Personal Computing segment includes results from licensing of the Windows operating system, devices such as Surface and phones, gaming including Xbox consoles, and search.

The company will announce its financial results for the first quarter on October 22, 2015, and will report financial performance based on these three operating segments. To aid investors with the transition, for the first quarter results only, revenue and gross margin will also be provided for the operating segments that Microsoft reported during fiscal year 2015. (Original Source)

Shares of Microsoft closed today at $43.29, down $0.65 or 1.48%. MSFT has a 1-year high of $50.05 and a 1-year low of $39.72. The stock’s 50-day moving average is $44.19 and its 200-day moving average is $44.61.

On the ratings front, Microsoft has been the subject of a number of recent research reports. In a report issued on September 15, Piper Jaffray analyst Katherine Egbert maintained a Buy rating on MSFT, with a price target of $53, which implies an upside of 22.4% from current levels. Separately, on September 14, Evercore ISI’s Kirk Materne reiterated a Buy rating on the stock and has a price target of $54.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Katherine Egbert and Kirk Materne have a total average return of 1.4% and 13.9% respectively. Egbert has a success rate of 53.1% and is ranked #1735 out of 3759 analysts, while Materne has a success rate of 70.0% and is ranked #718.

Overall, 2 research analysts have rated the stock with a Sell rating, 4 research analysts have assigned a Hold rating and 12 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $53.45 which is 23.5% above where the stock opened today.


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