Evaluating Microsoft Stock Ahead of Q1 Earnings: Is It a Good Time to Invest?

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Microsoft Corporation (MSFT) will report its first-quarter fiscal 2026 results on October 29. The Zacks Consensus Estimate for revenues stands at $74.96 billion, reflecting a 14.3% year-over-year increase, while earnings are estimated at $3.65 per share, suggesting 10.61% growth from the previous year.

Microsoft projects its Productivity and Business Processes revenues between $32.2 billion and $32.5 billion, seeing growth of 14% to 15%. In the Intelligent Cloud segment, revenues are expected to reach $30.1 billion to $30.4 billion, with growth projected at 25% to 26%.

The company’s Azure revenue growth is anticipated to be around 37%, supported by ongoing investments in AI infrastructure, amid expectations of a 67% gross margin percentage in its cloud operations. Microsoft’s share price has increased 24.2% year-to-date, compared to the Zacks Computer & Technology sector’s 25.9% growth.

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