Microsoft Earnings Preview: What to Expect

Company Overview - Microsoft Corporation (MSFT) has a market cap of $3.5 trillion and operates in software, services, devices, and solutions across productivity, cloud computing, and personal computing [1] Financial Performance - Analysts forecast Microsoft to report an adjusted EPS of $3.86 for fiscal Q2 2026, representing a 19.5% growth from $3.23 in the same quarter last year [2] - For fiscal 2026, the expected adjusted EPS is $15.86, an increase of 16.3% from $13.64 in fiscal 2025 [3] - Microsoft reported Q1 2026 adjusted EPS of $4.13 and revenue of $77.67 billion, but shares fell 2.9% the following day due to profitability pressures from AI investments, including $3.1 billion in losses related to OpenAI [5] Stock Performance - Over the past 52 weeks, Microsoft shares have gained 11.8%, underperforming the S&P 500 Index's 16.2% rise and the State Street Technology Select Sector SPDR ETF's 22.9% return [4] Analyst Ratings - The consensus view on MSFT stock is bullish, with a "Strong Buy" rating from 39 out of 48 analysts, while five recommend "Moderate Buys" and four suggest "Holds" [6] - The average analyst price target for Microsoft is $630.07, indicating a potential upside of 31.7% from current levels [6]