Microsoft Earnings: AI Growth And Cloud Demand Are Front & Center
Microsoft Inc. is scheduled to report earnings after Wednesday's close. The stock just hit another fresh record high just above $518/share and is currently trading near that level. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
MSFT Daily chart courtesy of MarketSurge Inc.
Earnings Preview
The company is expected to report a gain of $3.35/share on $73.71 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $3.51/share. The Whisper number is the Street's unofficial view on earnings.
A Closer Look At The Fundamentals
The company has grown its earnings nicely over the last several years. In 2020 the company earned $5.76/share. In 2021, the company earned $7.97. In 2022, earnings grew to $9.21 and in 2023 earnings came in at $9.81. In 2024, the company earned $11.80. Looking forward, earnings are expected to grow to $13.42 in 2025 and grow to $15.21 in 2026. Meanwhile, the stock sports a price to earnings ratio of 40 which is 1.7x the S&P 500.
A Closer Look At The Technicals
Technically, the stock is acting great and just hit a fresh record high. The stock is trading above its 50 and 200 day moving average lines which are the next levels of support to watch. After earnings, the bulls want to see the stock gap up and rally and the bears want to see it gap down and fall.
Company Profile
Microsoft Corporation develops and supports software, services, devices and solutions worldwide.
The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services, such as azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services.
The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories.
Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; and search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates.
The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been previously featured on stock market membership site: FindLeadingStocks.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
Boeing expected to fly 777-9 for first time in nearly five years, Air Current editor says
(Reuters) -Boeing is expected to conduct the first flight of its 777-9 jet in about five years as early as August 5, Air Current editor Jon Ostrower said on Monday in a post on X, citing two people familiar with the matter. Reuters could not independently verify the report. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10 minutes ago
- Yahoo
Trump Administration Posts Guidance on Tariff Rollout
(Bloomberg) -- President Donald Trump's expanded reciprocal tariffs will not apply to any products loaded onto a vessel for transport into the US before 12:01 a.m. New York time on Thursday, according to guidance issued by US Customs and Border Protection. PATH Train Service Resumes After Fire at Jersey City Station Chicago Curbs Hiring, Travel to Tackle $1 Billion Budget Hole Seeking Relief From Heat and Smog, Cities Follow the Wind Mayor Asked to Explain $1.4 Billion of Wasted Johannesburg Funds The notice, posted by the federal government on Monday, outlines implementation of the tariffs Trump announced last week, which are expected to ratchet up levies on dozens of trading partners. Expected exemptions for products under the US-Mexico-Canada free trade agreement negotiated by the president during his first term are included in the document, as are exemptions for relief items like food, clothing and medicine set to be distributed as aid. So is the president's threatened penalty of a 40% tariff on goods deemed by the federal government to be transshipped to avoid country-specific duties. Taken together, the average US tariff rate will rise to 15.2% if rates are implemented as announced, according to Bloomberg Economics. That's up from 13.3% earlier and significantly higher than the 2.3% in 2024 before Trump took office. Trump's country-based tariffs have been billed as the centerpiece of his plan to shrink trade deficits and pressure companies to shift manufacturing jobs and investment to the US. Trump previously delayed his so-called reciprocal tariffs, first announced in April, to allow time for negotiations as nations sought to obtain better trade terms. Some countries, including Switzerland and India, are still attempting to negotiate deals to lower their duties ahead of Thursday's deadline. Trump is expected to unveil separate tariffs on imports of pharmaceuticals, semiconductors, critical minerals and other key industrial products in the coming weeks, meaning ongoing uncertainty for companies and investors. And on Monday, he also threatened to impose 'substantially' higher levies on Indian exports to the US over New Delhi's purchases of Russian oil. While his tariffs are already bringing in billions in revenue for the US government, the longterm economic impacts remain unclear, with critics saying they will raise costs for US consumers and businesses and exacerbate inflation. (Updates with additional details, background throughout) AI Flight Pricing Can Push Travelers to the Limit of Their Ability to Pay Government Steps Up Campaign Against Business School Diversity What Happens to AI Startups When Their Founders Jump Ship for Big Tech How Podcast-Obsessed Tech Investors Made a New Media Industry Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off ©2025 Bloomberg L.P.
Yahoo
10 minutes ago
- Yahoo
Sen. Warren issues call to Schumer, Jeffries: Get on the Mamdani affordability train
NEW YORK — Sen. Elizabeth Warren said Monday that Democratic Party leaders who've been slow to back mayoral nominee Zohran Mamdani need to get on board because the upstart candidate's focus on affordability offers a blueprint as Dems across the country are facing electoral setbacks. Mamdani has struggled to shore up support from establishment New York Democrats, including U.S. House Minority Leader Hakeem Jeffries, U.S. Senate Minority Leader Chuck Schumer and Gov. Hochul, despite winning the June 24 Democratic primary. 'New York City is the place to start the conversation for Democrats on how affordability is the central issue, the central reason to be a Democrat, and that delivering on it in meaningful, tangible ways that will touch working families is why we're here,' Warren said at a Mamdani campaign stop in Manhattan on Monday. The progressive, who ran for president in 2020, said her message was to elected officials hesitating to back Mamdani, while slamming former Gov. Andrew Cuomo, who's running as an independent in November's mayoral election, as' bending a knee' to billionaires. New York City is seen as a bellwether for the country's politics, and the success to date of Mamdani's campaign, which features policy proposals aimed at affordability, populist messaging and ground outreach, has attracted attention from across the country as national Democrats struggle to find a clear vision. But, citing concerns about Mamdani's pro-Palestinian stance and call to raise taxes, some mainstream party leaders have been slow to embrace his candidacy. Mamdani and Warren appeared together Monday at a childcare campaign event at the DC37 union's downtown Manhattan headquarters. Childcare advocates gathered to talk about the high cost of childcare and the need for more affordable, or free, options. Expanding free childcare has been a core tenet of Mamdani's campaign. Contrasting Mamdani with Cuomo, the Massachusetts senator said the former governor's strategy is to 'go to a handful of billionaires, have 'em give you a bunch of money and hope that you will be able to flood the city with a bunch of negative ads and somehow that's going to float him to the top.' That strategy, Warren said, is ripped from a tired political playbook. Mamdani also attacked Cuomo's reliance on wealthy donors, including some who support President Trump, during the primary race. 'What New Yorkers showed by a record margin in a democratic primary was that they wanted a vision of this city that would make it affordable for each and every New Yorker,' Mamdani said. Talking to reporters in Midtown Manhattan, Cuomo challenged Warren's claim that he's focused on catering to billionaires. 'I don't even know what that means … I represented the people of this state, I fought more for the working families of this state and accomplished more for the working families of this state than either of them, frankly,' he said before listing off some of his gubernatorial accomplishments, like raising New York's minimum wage and jacking up taxes on millionaires in 2021. 'What did they actually do?' he continued. 'I'm a pragmatic progressive. I don't just talk about it, I do it.' _____
