Institutional investors sold Microsoft shares in Q3 2025, but strong earnings and cloud growth fueled continued confidence.

Institutional investors reduced their stakes in Microsoft in Q3 2025, with My Personal CFO LLC cutting its holding by 96.5% and Ninety One North America selling 1,459 shares. Despite insider sales totaling 54,100 shares, including major exits by CEO Judson Althoff and Board Chair Bradford L. Smith, Microsoft posted strong Q3 earnings with $4.13 EPS and $77.67 billion in revenue, up 18.4% year-over-year. The company’s market cap stands at $3.39 trillion, with analysts maintaining a “Moderate Buy” consensus and a $630 target. Growth in Azure AI and enterprise cloud drives optimism, though rising AI costs and regulatory scrutiny in Europe remain concerns. Fiscal Q2 results on January 28, 2026, are seen as a key near-term catalyst.