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With a market cap of $2.8 trillion, Microsoft Corporation (MSFT) is a global technology company that develops and supports a wide range of software, services, devices, and cloud-based solutions for individuals and businesses. It operates across segments, including productivity tools, intelligent cloud services, and personal computing products.
The Redmond, Washington-based company is slated to announce its fiscal Q3 2026 results soon. Ahead of this event, analysts forecast MSFT to post an adjusted EPS of $4.04, a 16.8% growth from $3.46 in the year-ago quarter. It has exceeded Wall Street's earnings expectations in the past four quarters.
For fiscal 2026, analysts predict the software maker to report adjusted EPS of $16.46, an increase of 20.7% from $13.64 in fiscal 2025.
Shares of Microsoft have gained 3.6% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 30.3% surge and the State Street Technology Select Sector SPDR ETF's (XLK) 50% jump over the same period.
Despite reporting better-than-expected Q2 2026 adjusted EPS of $4.14 and revenue of $81.27 billion on Jan. 28, Microsoft shares tumbled nearly 10% the next day as investors fixated on Azure growth slowing to 39% year-over-year, down from 40% last quarter. The reaction was compounded by weakness in the More Personal Computing segment, which posted $14.25 billion in revenue, missing the estimate and signaling softness in Windows, Surface, and gaming.
Analysts' consensus view on MSFT stock remains bullish, with a "Strong Buy" rating overall. Out of 49 analysts covering the stock, 41 recommend a "Strong Buy," four "Moderate Buys," and four "Holds." The average analyst price target for Microsoft is $589.95, indicating a potential upside of 58.2% from the current levels.
