With a market cap of $2.8 trillion, Microsoft Corporation (MSFT) is a global technology company that develops and supports a wide range of software, services, devices, and cloud-based solutions for individuals and businesses. It operates across segments, including productivity tools, intelligent cloud services, and personal computing products.
The Redmond, Washington-based company is slated to announce its fiscal Q3 2026 results soon. Ahead of this event, analysts forecast MSFT to post an adjusted EPS of $4.04, a 16.8% growth from $3.46 in the year-ago quarter. It has exceeded Wall Street's earnings expectations in the past four quarters.
For fiscal 2026, analysts predict the software maker to report adjusted EPS of $16.46, an increase of 20.7% from $13.64 in fiscal 2025.
Shares of Microsoft have gained 3.6% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 30.3% surge and the State Street Technology Select Sector SPDR ETF's (XLK) 50% jump over the same period.
Despite reporting better-than-expected Q2 2026 adjusted EPS of $4.14 and revenue of $81.27 billion on Jan. 28, Microsoft shares tumbled nearly 10% the next day as investors fixated on Azure growth slowing to 39% year-over-year, down from 40% last quarter. The reaction was compounded by weakness in the More Personal Computing segment, which posted $14.25 billion in revenue, missing the estimate and signaling softness in Windows, Surface, and gaming.
Analysts' consensus view on MSFT stock remains bullish, with a "Strong Buy" rating overall. Out of 49 analysts covering the stock, 41 recommend a "Strong Buy," four "Moderate Buys," and four "Holds." The average analyst price target for Microsoft is $589.95, indicating a potential upside of 58.2% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
- What Is the ‘1984 Tax Trap’ That Retiree Investors Now Face on Social Security Payouts?
- UnitedHealth Stock Is Poised to Break Through 100-Day Moving Average on CMS 2027 Rate Updates. Should You Buy UNH Here?
- As Broadcom Expands AI Deals With Google and Anthropic, Should You Buy AVGO Stock?
- An All-Time High Plus Great Revenue and Earnings Has This Tech Stock Towering Above the Rest
