Microsoft Poised for Strong Earnings Amid Analyst Optimism

REDMOND, Wash. — Microsoft is set to announce its fiscal fourth-quarter earnings after the market closes on Wednesday, with Wall Street expressing strong optimism about the software giant’s financial performance.

All 19 analysts covering Microsoft tracked by Visible Alpha have maintained a buy rating on the stock, which closed at a record high of $513.71 on Friday. Their consensus price target is around $578, indicating a potential 12% upside.

Wedbush analysts recently raised their price target to $600, citing the company’s advancements in AI and the success of its Copilot chatbot as key factors. They believe Microsoft is entering a new phase of monetization, driven by the adoption of its Azure cloud-computing platform.

Analysts expect Microsoft’s Intelligent Cloud segment revenue to grow by 22% to $28.96 billion. Citi analysts, who have named Microsoft their top pick, set a price target of $613, emphasizing the company’s significant pricing power and margin advantages in enterprise software.

Overall, analysts expect Microsoft to report quarterly revenue of $73.86 billion, representing a 14% increase year-over-year, along with a net income of $25.27 billion or $3.38 per share, compared to $22.04 billion or $2.95 per share a year earlier.

Investors will closely monitor updates regarding Microsoft’s plans for fiscal year 2026, which began this month. CFO Amy Hood previously mentioned a projected increase in capital expenditures, although at a slower rate than in fiscal 2025, which was anticipated to be around $80 billion.

Other tech giants, including Alphabet and Meta, are also scheduled to release their earnings on the same day as Microsoft, while Amazon and Apple will report the following day.