Tech giant Microsoft (MSFT) is set to report its second quarter Fiscal 2026 results after market close on Wednesday, January 28. The stock has risen about 7% in 2025 as investors remain upbeat about the company’s growth outlook and AI-led gains in its Azure cloud business. Wall Street expects Microsoft to post earnings of $3.91 per share, representing a 21% increase year-over-year. Meanwhile, revenues are expected to increase by 15% from the year-ago quarter to $80.28 billion, according to data from the TipRanks Forecast page.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
It’s important to note that Microsoft has a strong track record with earnings, having exceeded EPS estimates in all of the past nine consecutive quarters.
Analysts’ Views Ahead of MSFT’s Q2 Earnings
Ahead of its Q2 FY26 earnings, Wall Street analysts remain bullish on Microsoft, but several of them have lowered their price targets.
One such analyst is Karl Kierstead of UBS, who kept a Buy rating on Microsoft but lowered his price target to $600 from $650. He said Azure growth looks strong, supported by new AI data centers in Atlanta and Wisconsin. However, he lowered the price target mainly due to weaker valuations across the software sector, not because of weaker fundamentals at Microsoft.
At the same time, analysts at Cantor Fitzgerald, Wells Fargo, and Mizuho Securities reiterated a Buy-equivalent overweight rating on MSFT stock but trimmed their price targets, citing rising concerns about valuation pressure across the software sector.
Options Traders See 5.41% Earnings Swing in MSFT Stock
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 5.41% move in either direction in Microsoft stock in reaction to Q2 results.
Is MSFT Stock a Buy, Sell, or Hold?
Currently, Wall Street has a Strong Buy consensus rating on Microsoft stock based on 32 Buys and two Hold recommendations. The average MSFT stock price target of $626.14 indicates 34.38% upside potential.
