Microsoft is expected to announce strong earnings, with analysts predicting increased profit, but stock prices have lagged.

From Nasdaq: 2025-01-09 09:50:31

Microsoft Corporation, a software giant with a $3.1 trillion market cap, is set to announce second-quarter earnings. Analysts predict a profit of $3.13 per share, up 6.8% from last year. The company has consistently beaten Wall Street’s expectations. For fiscal 2025, analysts expect an EPS of $12.92, rising to $14.76 in fiscal 2026.

Despite strong earnings, Microsoft’s stock prices have lagged behind the S&P 500 and Technology Select Sector SPDR Fund. Following a 6.1% drop after Q1 results, the company reported a 16% revenue growth and a record EPS of $3.30. However, guidance for the next quarter fell short, causing investor uncertainty.

Analysts remain bullish on Microsoft’s long-term prospects, with a consensus “Strong Buy” rating. Of the 41 analysts covering the stock, 34 recommend “Strong Buy.” The mean price target of $508.31 suggests a 19.7% upside potential.



Read more at Nasdaq: Here’s What to Expect from Microsoft’s Next Earnings Report