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Key Takeaways
- Microsoft is scheduled to report its fiscal third quarter earnings after the closing of Wednesday’s bell.
- Revenue and profits are expected to jump year-over-year, thanks in part to Microsoft's Intelligent Cloud segment.
- All of the 20 analysts covering Microsoft tracked by Visible Alpha have a "buy" or equivalent rating for the stock.
Microsoft (MSFT), a tech giant, will report its fiscal third quarter results after the markets close on Wednesday. Analysts have a bullish outlook for the stock.
Visible Alpha’s 20 analysts have all given the stock a “buy” rating or an equivalent one. The stock has lost 7% in 2025. Their consensus price targets slightly above $492 would suggest a 25 percent increase over Friday’s $391.85 closing price.
Wedbush analysts have recently lowered their price targets to $475, from $550, amid concerns about President Trump’s Tariffs. However, they said that they “remain bullish long-term” on Microsoft and pointed to its AI potential. The analysts said that it was “clear to us” that the monetization potential around AI in the cloud represents a transformational opportunity for the entire industry, with Redmond in the driving seat.
Goldman Sachs analysts, who similarly maintained a "buy" rating for Microsoft but lowered their price target to $450 from $500, said the current economic environment has created a "wide range of different outcomes," but that they believe Microsoft could be "well positioned to capitalize" on AI opportunities.
Morningstar analysts believe that Microsoft is in a stronger position compared to many other tech companies. This is because Microsoft “has minimal exposure to retailing, advertising expenditures, cyclical equipment, or physical supply chain.”
Visible Alpha’s analysts polled on average expect Microsoft third-quarter revenues of $68.44 Billion, up over 10% year-over year, with a net profit of $23.94 Billion, or $3.21 for each share. This compares to $21.94 Billion, or 2.94 per share a year ago. Revenue from Microsoft's Intelligent Cloud segment, which includes its Azure cloud computing platform, is expected to jump 18% to $26.13 billion.
