Microsoft Corporation’s Quarterly Earnings Preview: What You Need to Know

Microsoft Corporation (MSFT) is a global technology company with a market cap of about $2.9 trillion. It develops software, cloud services, AI solutions, business applications, devices, gaming platforms, and productivity tools worldwide. The Redmond, Washington-based company operates through three business segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.

MSFT is scheduled to report its FY2026 Q4 earnings soon. Ahead of the release, analysts expect the company to report diluted EPS of $4.21, up 15.3% from $3.65 in the year-ago quarter. Microsoft has also beaten Wall Street's EPS estimates in each of the past four quarters, highlighting its consistent earnings performance.

For fiscal 2026, which ended in June, analysts expect MSFT to report an EPS of $16.76, up 22.9% from $13.64 in fiscal 2025. Additionally, its EPS is projected to increase another 15.1% year over year to $19.29 in fiscal 2027.

MSFT stock has plunged 20.5% over the past 52 weeks, significantly underperforming the S&P 500 Index ($SPX), which returned 20.2%, and the State Street Technology Select Sector SPDR ETF (XLK), which gained 42.4% over the same period.

On July 2, 2026, Microsoft shares rose 1.6% after the company announced a $2.50 billion investment in Microsoft Frontier Co., a new AI implementation unit. The initiative aims to help enterprises deploy customized AI systems, address data security concerns, accelerate AI adoption, and strengthen Microsoft's competitive position, boosting investor confidence in its long-term AI growth prospects.

Analysts remain very bullish on MSFT, with the stock carrying a consensus rating of “Strong Buy.” Among the 50 analysts covering the stock, 42 rate it a “Strong Buy,” three recommend a “Moderate Buy,” and five suggest a “Hold.” Furthermore, the average analyst price target of $552.27 implies a potential upside of 41.4% from the current price levels.