Microsoft Corporation (NASDAQ:MSFT) is expected to highlight growth from AI and cloud services when the technology giant reports its fourth-quarter financial results on Wednesday after the market close.
Here are the earnings estimates, what experts are saying, and key items to watch.
Earnings Estimates: Analysts expect Microsoft to report fourth-quarter revenue of $73.8 billion. That’s up from $64.7 billion in last year’s fourth quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates for revenue in nine straight quarters.
Analysts expect Microsoft to report fourth-quarter earnings per share of $3.37, up from $2.95 in last year’s fourth quarter. The company has beaten analyst estimates for earnings per share in 11 straight quarters.
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What Experts Are Saying: Microsoft has been a standout tech stock in 2025. Its shares are up 22% year-to-date and trading at all-time highs, as highlighted by Freedom Capital Markets Chief Global Strategist Jay Woods.
“The question is—can they keep the momentum going?” Woods asks in a weekly newsletter.
Woods expects investors to ask how Microsoft is integrating its AI spending into products and whether it’s boosting revenue.
Another key focus is Microsoft’s cloud services performance, Woods says, noting how Azure will “bolster” cloud operations.
Wedbush analyst Dan Ives reiterated an Outperform rating and $600 price target ahead of Microsoft’s quarterly results.
“We expect more good news next week from Redmond as Nadella & Co. will deliver another robust quarter driven by the AI Revolution,” Ives said in a recent analyst note.
Ives said Microsoft is “firing on all cylinders” ahead of the earnings report.
In his latest note, Ives said the $600 price target could be “conservative.” Microsoft will be the next company to join the $4 trillion market capitalization club this summer and possibly hit $5 trillion in the next 18 months, he predicts.
Here are some other recent analyst ratings on Microsoft and their price targets:
- Raymond James: Maintained Outperform rating, raised price target from $490 to $570
- Stifel: Maintained Buy rating, raised price target from $500 to $550
- Evercore ISI Group: Maintained Outperform rating, raised price target from $515 to $545
- Loop Capital: Maintained Buy rating, raised price target from $550 to $600
- UBS: Maintained Buy rating, raised price target from $500 to $600
Key Items to Watch: Microsoft’s earnings report comes as the company is investigating whether a leak from its early alert system for cybersecurity companies may have contributed to hackers being able to exploit flaws in the SharePoint service.
The company may provide an update on the cybersecurity item and the potential financial ramifications of the hack.
Investors and analysts will likely center on AI and cloud when Microsoft reports results and management share commentary on the results and future guidance. Microsoft saw growth across its main segments in the third quarter with Intelligent Cloud revenue up 21% year-over-year, the most of any main segment.
Overall cloud revenue is up 20% year-over-year.
“Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth,” Microsoft CEO Satya Nadella said at the time. “From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.”
Microsoft’s earnings report could have a huge impact on some of the largest stock market indexes and ETFs. The stock is a member of the S&P 500, Dow Jones Industrial Average and Magnificent 7.
With its high stock price, Microsoft is the second largest weighting (7.0%) in the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), which tracks the price-weighted Dow Jones Industrial Average.
Microsoft is also the second-largest holding in the SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500 at 7.0% of assets.
In the Roundhill Magnificent Seven ETF (BATS:MAGS), Microsoft is the fifth-largest holding at 13.9% of assets.
Microsoft is one of several Magnificent 7 stocks that will report during the week and could be one of the most important stocks given its prominence in these key indexes along with its presence among key growth sectors like AI and cloud.
MSFT Price Action: Microsoft stock is up 0.3% to $514.04 on Tuesday versus a 52-week trading range of $344.79 to $518.29. Microsoft stock is up 22.8% year-to-date, outperforming the S&P 500 (+8.8%) and Dow Jones Industrial Average (+5.3%).
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