Can LinkedIn Revenue Growth Accelerate Microsoft Stock's Upward Trend?

Microsoft’s MSFT LinkedIn is emerging as a key growth driver beyond its core cloud and AI businesses. In the fourth quarter of fiscal 2025, LinkedIn’s revenues rose 9% year over year, contributing meaningfully to Microsoft’s Productivity & Business Processes segment. With expanding engagement and new AI-powered tools, LinkedIn is strengthening its position as a vital component of Microsoft’s broader growth strategy.LinkedIn now serves 1.2 billion members, marking four consecutive years of double-digit member growth. Engagement on the platform continues to climb, with comments increasing over 30% and video uploads rising 20% this year. The company expects LinkedIn’s revenues to grow in the high single digits in the near term, supported by its focus on productivity, hiring and marketing solutions.Recent AI advancements are transforming LinkedIn’s user experience and monetization potential. LinkedIn recently completed the global rollout of its AI Hiring Assistant, helping recruiters identify candidates faster and more efficiently. The platform also launched new AI-powered ad automation tools for small businesses, such as “Auto-Targeting” and “Draft with AI,” to enhance campaign effectiveness. Starting in November 2025, LinkedIn will use public user data to train AI models, improving content creation and personalization across posts and messaging.Per the Zacks model, LinkedIn’s product revenues are projected to grow 11% in fiscal 2026 and 14% in fiscal 2027, reflecting steady momentum. With strong member engagement, advancing AI integration and expanding monetization tools, LinkedIn’s growth trajectory is expected to help accelerate Microsoft’s stock’s upward trend.How Rivals Stack Up Against MSFT's LinkedInMeta Platforms META challenges LinkedIn through Facebook, Instagram and Threads, using its vast user base and AI-driven ad targeting to dominate business marketing. With Family of Apps revenues up 21.8% in the second quarter of 2025, Meta Platforms leverages tools like Business Suite and WhatsApp Business to engage small enterprises, blending scale, data and communication power to rival LinkedIn’s professional focus in networking and B2B engagement.Alphabet GOOGL rivals LinkedIn through Google Search, YouTube and Google Ads, as it leverages its dominance in digital visibility and intent-based marketing. With unmatched data analytics and cross-platform reach, Alphabet connects businesses and professionals through Google Workspace and AI-driven tools, giving it a powerful edge in audience targeting and engagement breadth that challenges LinkedIn’s specialized focus on professional networking and recruiting.MSFT’s Share Price Performance, Valuation & EstimatesMSFT shares have gained 20.9% in the year-to-date period, outperforming the Zacks Computer – Software industry’s growth of 20.6%, though slightly lagging behind the broader Zacks Computer and Technology sector’s growth of 22.8%.MSFT’s YTD Price PerformanceImage Source: Zacks Investment ResearchFrom a valuation standpoint, Microsoft trades at a premium with a forward 12-month Price/Sales ratio of 11.43X compared with the industry’s 8.61X. MSFT has a Value Score of D.MSFT’s ValuationImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for MSFT’s fiscal 2026 earnings is pegged at $15.40 per share, reflecting a 4-cent increase over the past 30 days. The estimate indicates 12.90% year-over-year growth.Image Source: Zacks Investment ResearchMicrosoft currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Meta Platforms, Inc. (META): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks