Technology giant Microsoft Corporation (NASDAQ:MSFT) could report a 15th straight double beat with fiscal first-quarter financials coming Wednesday after hours. Here’s a look at the earnings estimates, what experts are saying and key items to watch.
67 billion in last year’s first quarter, according to data from Benzinga Pro. The company has beaten analyst revenue estimates in more than 10 straight quarters.
13 last year. The company has beaten analyst estimates for earnings per share in more than 10 straight quarters.
Overall, the company has posted 14 straight double beats through the fourth quarter and is going for its 15th straight double beat on Wednesday. Read Also: Microsoft's AI Data Center Misfire Exposes a Brutal Reality: Billions Can't Buy Time What Experts Are Saying With concerns about neocloud financing and capex by big technology companies, Yorkville Ives analyst Dan Ives sees pressure on the Magnificent Seven stocks like Microsoft ahead of earnings.
“This week will be an important one to gauge the demand trends/GPU building/enterprise capex-driven plans for the Big Tech stalwarts with all the markets watching,” Ives said. S.
over the next few years. The analyst sees hyperscalers such as Microsoft, Amazon and Alphabet as winners from this Fourth Industrial Revolution.
Ives highlights $850 billion of hyperscaler AI spend this year against a cloud backlog of more than $2 trillion, meaning capacity and not demand is the constraint. “Microsoft is the cleanest expression of that setup.
” Ives maintained an Outperform rating on Microsoft stock with a price target of $615. Freedom Capital Chief Market Strategist Jay Woods highlights Microsoft’s technicals in a weekly newsletter.
"The technical boundaries are quite clear, but quite wide. The $545-$555 area has become a stubborn ceiling, rejecting shares on three separate occasions, while the $340-$350 zone has repeatedly provided a floor," Woods said.
Woods said the stock has failed to break below its moving averages on several occasions. " The market expert said a failure to break out could see the stock land closer to $460 or fall to the $350 support level.
" Here are several other recent analyst ratings on Microsoft and their price targets: Oppenheimer: Maintained Outperform rating, raised price target from $570 to $625 Truist: Maintained Buy rating, raised price target from $575 to $600 Scotiabank: Maintained Sector Outperform rating, raised price target from $615 to $625 Guggenheim: Maintained Buy rating, with price target of $586 Key Items to Watch AI and cloud revenue will be key in Microsoft’s results and management commentary. The company reported Intelligent Cloud revenue up 32% year-over-year in the fourth quarter, outpacing overall company growth of 18%.
Overall cloud revenue was up 27% year-over-year for the company. Microsoft’s Azure revenue was up 43% year-over-year in the fourth quarter, with the key business surpassing $100 billion in revenue for the fiscal year for the first time.
Investors and analysts will want to see the AI- and cloud-related revenue continue to increase given heavy spending in both areas. Layoffs could be another key topic of interest with the company pitching employees on voluntary buyouts earlier this week.
S. stock market indexes, Microsoft’s earnings and stock reaction could create market volatility.
Here’s a look at the company’s weighting in three ETFs that track the top indexes. 20% of assets Microsoft is one of several Magnificent Seven stocks reporting earnings this week, and the company’s guidance and updated AI capex could ultimately overshadow results, but investors and analysts will also be watching the financials.
72. 3% year-to-date in 2026.
