Microsoft Braced for Third-Quarter Earnings Report Amid Analyst Optimism
Anticipated Microsoft Stock Evaluations Prior to Financial Reporting
Get ready for Microsoft's (MSFT) fiscal third-quarter earnings report after the market closes on Wednesday. With analysts singing the tech titan's praises, the earnings release is set to be a spectacle.
Out of the 20 analysts surveyed by Visible Alpha, every single one of them has given Microsoft a "buy" or equivalent rating. This optimistic outlook could give the stock a 25% boost, pushing it beyond the $492 mark from its current $394.
Recent adjustments to price targets reflect a mix of excitement and caution. For instance, Wedbush analysts reduced their price target from $550 to $475, primarily due to concerns over President Trump's tariffs. However, they remain optimistic about Microsoft's AI potential, declaring, "It has become crystal clear to us that the monetization opportunities around deploying AI in the cloud is a transformational opportunity across the industry with Redmond remaining in the driver's seat."
Goldman Sachs shares the optimistic outlook, maintaining a "buy" rating but lowering their price target from $500 to $450. They acknowledge the volatile economic climate, stating, "The current economic environment has created a wide range of different outcomes, but we believe Microsoft could be well positioned to capitalize on AI opportunities."
Moreover, Morningstar analysts argue that Microsoft's position could be stronger than other tech companies due to minimal exposure to retail, advertising spending, cyclical hardware, or physical supply chains.
Analysts estimate Microsoft's third-quarter revenue to reach $68.44 billion, accounting for an increase of more than 10% compared to the previous year. Net income is expected to be $23.94 billion, equivalent to $3.21 per share, a significant jump from the $21.94 billion, or $2.94 per share, earned in the same period last year. The Intelligent Cloud segment, which houses the Azure cloud computing platform, is projected to grow by 18%, reaching $26.13 billion.
(Updated April 29, 2025, to reflect more recent analyst estimates and share price values.)
Remember to keep an eye on Microsoft's performance once the earnings report is out. Regardless of potential short-term volatility, experts agree that the company's AI-driven cloud growth is a key catalyst for the stock.
- Amid analyst optimism for Microsoft's (MSFT) fiscal third-quarter earnings report, every analyst surveyed by Visible Alpha has given the company a "buy" or equivalent rating.
- If the optimistic outlook holds true, the stock could see a 25% boost, pushing it beyond the $492 mark from its current $394.
- Despite reducing their price target from $550 to $475, Wedbush analysts remain optimistic about Microsoft's AI potential, stating that the monetization opportunities around deploying AI in the cloud is a transformational opportunity.
- Goldman Sachs shares the optimistic view, maintaining a "buy" rating but lowering their price target from $500 to $450, acknowledging the volatile economic climate but believing Microsoft could be well positioned to capitalize on AI opportunities.
- Morningstar analysts argue that Microsoft's position could be stronger than other tech companies due to minimal exposure to retail, advertising spending, cyclical hardware, or physical supply chains.
