With a market cap of $3.5 trillion, Microsoft Corporation (MSFT) is a global technology company that develops and supports a wide range of software, services, devices, and solutions across productivity, cloud computing, and personal computing. It serves consumers, businesses, and partners worldwide through products such as Microsoft 365, Azure, Windows, LinkedIn, Dynamics, Xbox, and Surface devices.
The Redmond, Washington-based is slated to announce its fiscal Q2 2026 results soon. Ahead of this event, analysts forecast MSFT to post an adjusted EPS of $3.86, a 19.5% growth from $3.23 in the year-ago quarter. It has exceeded Wall Street's earnings expectations in the past four quarters.
For fiscal 2026, analysts predict the software maker to report adjusted EPS of $15.86, an increase of 16.3% from $13.64 in fiscal 2025.
Shares of Microsoft have gained 11.8% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 16.2% rise and the State Street Technology Select Sector SPDR ETF's (XLK) 22.9% return over the same period.
Despite beating expectations with Q1 2026 adjusted EPS of $4.13 and revenue of $77.67 billion on Oct. 29, Microsoft’s shares fell 2.9% the next day. Investors focused on profitability pressures from AI investments, notably $3.1 billion ($0.41 per share) in losses related to OpenAI that weighed on GAAP results.
Analysts' consensus view on MSFT stock remains bullish, with a "Strong Buy" rating overall. Out of 48 analysts covering the stock, 39 recommend a "Strong Buy," five "Moderate Buys," and four "Holds." The average analyst price target for Microsoft is $630.07, indicating a potential upside of 31.7% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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