Analysts’ Perspectives on Microsoft Stock Before Earnings Report

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Key Takeaways

Microsoft is poised to announce its fiscal third-quarter earnings after the close of trading on Wednesday. Expectations indicate a significant growth in revenue and profits, largely driven by Microsoft’s Intelligent Cloud division. Analysts have a unified positive outlook, with all 20 analysts monitored by Visible Alpha rating the stock as a “buy” or its equivalent.

Microsoft (MSFT) is set to release its fiscal third-quarter results following Wednesday’s market close, and analysts are showing strong confidence in the tech powerhouse’s stock performance.

All analysts tracked by Visible Alpha have given Microsoft “buy” ratings, despite the stock experiencing a 7% decline so far in 2025. The consensus price target is approximately $492, indicating a potential upside of over 25% based on Monday’s closing price of around $391.

Analysts at Wedbush have recently revised their price target down to $475 from $550 due to concerns regarding tariffs imposed by President Trump. However, they maintain a positive long-term outlook for Microsoft, highlighting the transformative potential of AI in cloud deployment. They noted, “It has become crystal clear to us that the monetization opportunities around deploying AI in the cloud represent a transformational opportunity across the industry, with Redmond remaining in the driver’s seat.”

Goldman Sachs has reiterated a “buy” stance for Microsoft, while adjusting their price target to $450 from $500. They recognize the current economic landscape as presenting a “wide range of different outcomes,” yet express confidence in Microsoft’s ability to leverage AI opportunities effectively.

According to analysts from Morningstar, Microsoft may hold a stronger competitive position compared to many peers in the technology sector. They point out the company’s “minimal risk exposure to retail, advertising spending, cyclical hardware, or physical supply chains.”

As per estimates from analysts surveyed by Visible Alpha, Microsoft is expected to report third-quarter revenues of around $68.44 billion, reflecting an increase of over 10% from the previous year. Projected net income is $23.94 billion, equating to $3.21 per share, up from $21.94 billion, or $2.94 per share, a year prior. Anticipated revenue from the Intelligent Cloud segment, which includes the Azure cloud computing platform, is forecasted to rise by 18% to reach $26.13 billion.

UPDATE—April 28, 2025: This article has been updated to incorporate the latest analyst estimates and stock price information.

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