Microsoft Corp. (NASDAQ: MSFT) is set to launch its second-quarter 2026 incomes on Wednesday, with financiers and experts carefully enjoying cloud development, AI financial investments, and capital investment amidst a six-month stock downturn.
Experts Anticipate Strong Cloud Efficiency
For the 2nd quarter, Wall Street anticipates Microsoft to report incomes per share of $3.86 and earnings of $80.26 billion, up from $3.23 EPS and $69.63 billion earnings in the exact same quarter in 2015, according to Benzinga Pro information.
The business has a performance history of regularly going beyond expectations, having actually beaten EPS and earnings quotes for 11 successive quarters.
Financiers are especially concentrated on Azure, Microsoft’s flagship cloud platform, which continues to be a crucial development engine.
Microsoft Q1 Earnings, EPS Beat Quotes
In October 2025, Microsoft revealed first-quarter earnings of $77.7 billion, marking an 18% boost compared to the exact same duration in 2015 and going beyond the Street’s agreement quote of $75.3 billion, according to Benzinga Pro information.
The business published incomes per share of $4.13, likewise beating experts’ forecast of $3.67.
At the time, Microsoft supplied Q2 assistance, forecasting earnings in between $79.5 billion and $80.6 billion (14%– 16% development).
The tech giant likewise kept in mind that business cloud margins might stay under pressure, with greater capital investment and continuous capability restrictions anticipated through completion of the .
AI Investments, Capital Investing In Focus
Financiers will likewise be enjoying Microsoft’s capital investment carefully.
The business has actually dealt with analysis over its heavy costs on AI facilities, which can weigh on short-term margins however possibly position Microsoft for long-lasting supremacy in expert system services.
Goldman Sachs expert Gabriela Borges repeated a Buy ranking on the stock with a rate target of $655, keeping in mind the risk/reward stays beneficial ahead of the incomes report.
Likewise, Wedbush expert Dan Ives kept an Outperform ranking and a $625 cost target, pointing out Azure development and AI efforts as essential motorists.
Maia 200 AI Chip: Microsoft’s Next-Gen AI Hardware
Previously today, Microsoft revealed its Maia 200 chip, created to speed up AI work for business and cloud applications.
The chip includes over 100 billion transistors, provides 10 petaflops in 4-bit accuracy and approximately 5 petaflops in 8-bit efficiency, marking a substantial upgrade from the 2023 Maia 100.
The brand-new chip highlights Microsoft’s push to reinforce its Intelligent Cloud offerings and take on other tech giants in AI facilities. Experts state it might provide Azure a technological edge in running massive AI designs effectively.
Stock Outlook And Expert Belief
Microsoft shares have actually decreased 6.45% over the previous 6 months, however experts stay positive.
The agreement cost target amongst 34 experts is $615.91, with a high of $675 and a low of $490. The 3 most current scores recommend an indicated advantage of approximately 21%, sustained by continued cloud adoption and AI development.
Microsoft stock ratings high up on Benzinga Edge’s Quality ranking, revealing strong brief and long-lasting cost patterns regardless of a softer medium-term outlook.
Disclaimer: This material was partly produced with the assistance of AI tools and was examined and released by Benzinga editors.
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