Microsoft (MSFT) and Amazon (AMZN) will report quarterly results on July 29 and July 30, respectively. Both stocks carry Strong Buy ratings from Wall Street ahead of earnings. However, analysts see more upside in Microsoft, with about 46% upside, compared with about 37% for Amazon. Microsoft’s stronger upside suggests it looks more attractive ahead of earnings, according to analysts.
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200% short exposure to AMZN with AMZOAnalysts expect Azure and Copilot to support Microsoft’s growth, while Amazon is counting on strong AWS performance.
Let’s dig deeper.
Microsoft Stock Forecast: What Analysts Expect from Q4 Earnings
Microsoft is scheduled to announce its Q4 FY26 results after the market closes on Wednesday, July 29. MSFT stock has declined 21% year-to-date amid concerns about returns on the company’s heavy AI spending. Wall Street expects Microsoft to report earnings per share (EPS) of $4.24 for Q4 FY26, reflecting 16% year-over-year growth. Revenue is estimated to grow about 15% to $87.62 billion.
Ahead of the earnings report, Truist analyst Terry Tillman reiterated a Buy rating on MSFT stock with a $575 price target. He expects Microsoft to report solid results and provide a strong outlook. Tillman remains bullish on Azure’s long-term growth and expects AI revenue to rise as more customers adopt Copilot. He also sees growth from Microsoft’s own AI products and third-party AI services.
Likewise, Bernstein analyst Mark Moerdler reiterated an Outperform rating on MSFT stock with a $646 price target. He expects Microsoft to report a solid quarter but believes the bigger question is whether the results can ease investor concerns about AI.
Overall, MSFT has 36 Buys and one Hold from analysts with an average price target of $571.29.
AMZN Stock Forecast: What Analysts Expect from Q2 Earnings
Amazon is scheduled to announce its Q2 2026 results after the market closes on Thursday, July 30. Currently, Wall Street expects the company to report EPS (earnings per share) of $1.81 for Q2 2026, implying about 8% growth from the prior-year quarter. Revenue is estimated to rise about 17% to $196.8 billion.
Ahead of Amazon’s Q2 earnings, BofA Securities analyst Justin Post kept a Buy rating on the stock with a $310 price target. He raised his Q2 revenue and EBIT estimates and now expects Amazon Web Services (AWS) revenue to grow 33% year over year. Post said stronger demand for Anthropic and OpenAI models is driving AWS growth. He also said Amazon could raise its 2026 capital spending outlook to $210 billion.
Likewise, Truist Securities analyst Youssef Squali kept a Buy rating on Amazon with a $320 price target. He said the second-quarter results should show “further growth acceleration at AWS” and “above-industry growth across eCommerce and Digital Ads.” Squali expects AWS revenue to grow 30%, up from 28% in the first quarter. He also said the firm’s card data shows North America marketplace sales rose about 13% from a year ago.
AMZN stock carries 45 Buys and one Hold from analysts with an average price target of $318.98.
Conclusion
Both Microsoft and Amazon have Strong Buy ratings from Wall Street ahead of earnings. However, Microsoft offers higher upside based on analysts’ average price targets. Investors will now watch whether both companies can deliver strong results and reassure the market that their AI investments are paying off.