Microsoft (MSFT) is set to report its fiscal fourth-quarter earnings on Wednesday, July 30. Ahead of the release, Wall Street remains strongly optimistic about the tech giant’s performance.
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MSFT stock has seen a strong upward trend, climbing over 20% year-to-date. The stock reached an all-time high of $518.20 last week. The rally highlights the company’s robust growth, fueled by rising demand for its AI and cloud services.
What to Expect from Microsoft’s Q4 Earnings
Wall Street analysts expect Microsoft to report an EPS (earnings per share) of $3.38 for Q4, up from an EPS of $2.95 in the same quarter last year. Meanwhile, analysts project Q4 revenues at $73.8 billion, marking a growth of 14% year-over-year.
Meanwhile, analysts will closely watch Microsoft’s plans for AI investments in fiscal year 2026, which started this month. Earlier in April, CFO Amy Hood stated that capital spending will rise in FY26, though the growth will be slower compared to FY25.
Overall, Cloud continues to be a major growth driver for Microsoft. Despite some capacity limitations, Azure is expected to post strong performance in Q4 results. Management has guided Intelligent Cloud revenue between $28.75 billion and $29.05 billion for the quarter.
Analysts Stay Bullish
Last week, Citi’s four-star-rated analyst Tyler Radke increased his price target from $605 to $613, citing Microsoft’s exceptional pricing power and margin strength in the enterprise software market.
Likewise, top-rated analyst Daniel Ives at Wedbush raised his price target for Microsoft to $600. According to Wedbush, the company is entering a new phase of AI monetization, driven by growing adoption of its Copilot chatbot and Azure cloud platform.
Is Microsoft Stock a Good Buy?
According to TipRanks, MSFT stock has received a Strong Buy consensus rating, with 31 Buys and three Holds assigned in the last three months. The average Microsoft stock price target is $553.30, suggesting a potential upside of 8% from the current level.
