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Microsoft Wins $927M Contract from Department of Defense
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Shares of Microsoft Corporation (MSFT - Free Report) have outperformed the broader Zacks Computer Software industry over the last six months. While the broader index yielded a positive return of 13.0%, the stock generated a positive return of 24.6% over the same period.
The outperformance of the stock was primarily driven by Microsoft's continuing enterprise strength, benefits from the Office 365 subscription model, strong growth prospects of Azure and promising new products. Further, the LinkedIn acquisition is expected to boost Microsoft's presence in the social media market. The deal will also strengthen the company's enterprise business.
Meanwhile, per a Reuters report, the company has won a whopping $927 million contract from the United States Department of Defense (DoD) for providing technical support and consulting.
We note that this deal follows a Feb 2016 deal that Microsoft signed with the DoD to upgrade the operating systems of its four million employees in a span of 12 months. At that time, Microsoft stated that the Windows 10 deal was the company’s largest enterprise deal for the product ever.
As the tenure of PC upgrades is coming to an end, the DoD has again placed its trust in Microsoft to take care of the technical support for these systems and to ensure that everything keeps on running smoothly.
What Does this Mean for Microsoft?
When it comes to operating systems for PCs, Microsoft still rules the roost with its Windows operating platforms. However, there is stiff competition in the space with the presence of other major operating platforms such as Apple’s (AAPL - Free Report) Mac OS X, the open source Linux and Alphabet (GOOGL - Free Report) owned Google’s Chrome OS.
With big government organizations such as the DoD deciding to go with Microsoft’s operating platforms and technical support and consulting, the company’s long-term growth prospects seem bright.
Notably, the consensus estimate for Konami’s current year has improved to $1.67 from $1.59 over the last 30 days.
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Microsoft Wins $927M Contract from Department of Defense
Shares of Microsoft Corporation (MSFT - Free Report) have outperformed the broader Zacks Computer Software industry over the last six months. While the broader index yielded a positive return of 13.0%, the stock generated a positive return of 24.6% over the same period.
The outperformance of the stock was primarily driven by Microsoft's continuing enterprise strength, benefits from the Office 365 subscription model, strong growth prospects of Azure and promising new products. Further, the LinkedIn acquisition is expected to boost Microsoft's presence in the social media market. The deal will also strengthen the company's enterprise business.
Meanwhile, per a Reuters report, the company has won a whopping $927 million contract from the United States Department of Defense (DoD) for providing technical support and consulting.
We note that this deal follows a Feb 2016 deal that Microsoft signed with the DoD to upgrade the operating systems of its four million employees in a span of 12 months. At that time, Microsoft stated that the Windows 10 deal was the company’s largest enterprise deal for the product ever.
As the tenure of PC upgrades is coming to an end, the DoD has again placed its trust in Microsoft to take care of the technical support for these systems and to ensure that everything keeps on running smoothly.
What Does this Mean for Microsoft?
When it comes to operating systems for PCs, Microsoft still rules the roost with its Windows operating platforms. However, there is stiff competition in the space with the presence of other major operating platforms such as Apple’s (AAPL - Free Report) Mac OS X, the open source Linux and Alphabet (GOOGL - Free Report) owned Google’s Chrome OS.
With big government organizations such as the DoD deciding to go with Microsoft’s operating platforms and technical support and consulting, the company’s long-term growth prospects seem bright.
MICROSOFT CORP Price
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Zacks Rank and Key Picks
At present, Microsoft carries a Zacks Rank #2 (Buy).
A better-ranked stock in the broader technology space is Konami Holdings Corporation sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Notably, the consensus estimate for Konami’s current year has improved to $1.67 from $1.59 over the last 30 days.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>