Wall Street analysts project Microsoft to report strong earnings and revenue numbers for Q2.

From Nasdaq: 2025-01-24 09:15:03

Wall Street analysts project Microsoft (MSFT) to report earnings of $3.13 per share, up 6.8% year-over-year, with revenues expected to reach $68.7 billion, a 10.8% increase. Analysts have revised EPS estimates down by 0.5% over the last 30 days, indicating a reassessment of initial forecasts before the earnings report.

It is crucial to consider changes in earnings projections before a company reveals its earnings, as these revisions can impact investor reactions. Analysts’ forecasts for key metrics can provide valuable insights into how a business may have performed during the quarter, influencing short-term stock price movements.

Analysts predict specific Microsoft metrics, with estimates for ‘Revenue- Intelligent Cloud’ at $25.75 billion (-0.5% YoY), ‘Revenue- More Personal Computing’ at $14.13 billion (-16.4% YoY), and ‘Revenue- Productivity and Business Processes’ at $28.85 billion (+49.9% YoY). Additional forecasts include ‘More Personal Computing- Search and news advertising,’ ‘More Personal Computing- Revenue from Gaming,’ and ‘Intelligent Cloud- Enterprise Services and partner service.’

The collective assessment of analysts points to an estimated ‘Percentage Change in Revenue Y/Y’ of 10.9%, with specific estimates for ‘Intelligent Cloud’ and ‘Productivity and Business Processes’ showing significant changes. Long-term and short-term unearned revenue predictions are also provided, offering a comprehensive view of Microsoft’s financial outlook.

Shares of Microsoft have shown a +2% return over the past month compared to the Zacks S&P 500 composite’s +2.5% change. With a Zacks Rank #4 (Sell), MSFT is expected to underperform the overall market in the near future. Investors can explore Zacks Rank #1 (Strong Buy) stocks for potential investment opportunities.



Read more at Nasdaq: Insights Into Microsoft (MSFT) Q2: Wall Street Projections for Key Metrics