Microsoft’s Upcoming Earnings Report: What to Expect
Microsoft is gearing up to unveil its fiscal fourth-quarter earnings after market close on Wednesday. This announcement has generated a wave of anticipation among analysts and investors alike.
Analyst Expectations for Microsoft
Analysts have provided insight into what they expect from Microsoft’s upcoming report, based on consensus forecasts from LSEG. Key figures on the radar include anticipated earnings per share (EPS) of $3.37 and total revenue projected at $73.81 billion. If these figures hold true, this would represent approximately 14% growth in revenue year-over-year, a notable increase from revenues of $64.73 billion reported during the same period last year.
Capital Expenditure Plans
In response to increasing demands in the tech sector, Microsoft has been aggressively expanding its data center capacity. This effort is primarily aimed at supporting a growing need for artificial intelligence (AI) services. Analysts from Visible Alpha predict that Microsoft’s capital expenditures for the 2026 fiscal year ending in June will reach $100.5 billion, reflecting a robust 14% growth in investments.
This trend in capital expenditure isn’t isolated; competitors such as Google, under Alphabet, have also increased their spending projections. Recently, Alphabet raised its forecast for 2025 capital expenditures by $10 billion to a total of $85 billion.
Growth of Azure Cloud Services
A significant aspect of Microsoft’s growth story lies in its Azure cloud computing segment. As more businesses transition from on-premises data centers to cloud platforms, Azure is experiencing remarkable growth. Analysts have forecast Azure’s growth at 34.4% according to a poll by StreetAccount, while CNBC’s consensus is slightly higher, at 35.3%. In the previous fiscal third quarter, Azure demonstrated a growth of 33%, a promising indication of its ongoing momentum.
Significant Developments This Quarter
This quarter has not only been about financial growth; it has been a period of considerable change for Microsoft. The company recently marked its 50th anniversary, a momentous occasion that coincided with the layoff of over 6,000 employees. Additionally, Microsoft has introduced a new feature in GitHub designed to facilitate task assignment for coding projects, utilizing the Copilot assistant. Furthermore, LinkedIn’s chief, Ryan Roslansky, has been given expanded duties to oversee Office productivity applications.
Microsoft’s Market Performance
As Microsoft prepares for its earnings announcement, the company has seen a solid increase in its stock value, with shares rising approximately 22% in 2025. In comparison, the S&P 500 index has experienced a more modest rise of 8% during the same timeframe.
Conference Call Update
Following the earnings report, Microsoft executives are set to discuss the results with analysts in a conference call scheduled to begin at 5:30 p.m. ET. This call will provide further insights into the company’s performance and strategic direction.
This upcoming earnings report is poised to be a crucial moment for Microsoft as it navigates the evolving landscape of technology and seeks to capitalize on growth opportunities in AI and cloud computing.
