Microsoft (MSFT) Expected to Announce Earnings on Wednesday

Key Points

• Microsoft (MSFT) will report Q2 2026 results after the close on Jan. 28 (earnings call 5:30 PM ET), with analysts forecasting $3.86 EPS and roughly $80.28 billion in revenue.
• The company beat the prior quarter (EPS $4.13 vs. $3.65 expected; revenue $77.67B), has a market cap of $3.38T and a P/E of 32.33, and declared a quarterly dividend of $0.91 (ex‑dividend Feb. 19, yield ~0.8%).
• Major catalysts/risks: upside from Microsoft’s AI exposure (OpenAI partnership, Azure) and planned data‑center energy cuts that could help margins, versus downside sensitivity to slowing Azure growth, higher AI capex, and broader tech market weakness.

Microsoft (NASDAQ:MSFT - Get Free Report) is anticipated to release its Q2 2026 results after the market closes on Wednesday, January 28th. Analysts expect the company to announce earnings of $3.86 per share and revenue of $80.2758 billion for the quarter. Interested persons may visit the the company's upcoming Q2 2026 earning results page for the latest details on the call scheduled for Wednesday, January 28, 2026 at 5:30 PM ET.

Microsoft (NASDAQ:MSFT - Get Free Report) last announced its quarterly earnings results on Wednesday, October 29th. The software giant reported $4.13 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.65 by $0.48. Microsoft had a net margin of 35.71% and a return on equity of 32.45%. The firm had revenue of $77.67 billion for the quarter, compared to the consensus estimate of $75.49 billion. During the same period in the prior year, the firm posted $3.30 earnings per share. The firm's quarterly revenue was up 18.4% compared to the same quarter last year. On average, analysts expect Microsoft to post $13 EPS for the current fiscal year and $15 EPS for the next fiscal year.

Microsoft Stock Down 1.2%

MSFT opened at $454.52 on Wednesday. The company has a fifty day moving average of $481.96 and a two-hundred day moving average of $502.15. The stock has a market capitalization of $3.38 trillion, a price-to-earnings ratio of 32.33, a PEG ratio of 1.72 and a beta of 1.07. Microsoft has a fifty-two week low of $344.79 and a fifty-two week high of $555.45. The company has a debt-to-equity ratio of 0.10, a quick ratio of 1.39 and a current ratio of 1.40.

Microsoft Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Thursday, February 19th will be paid a $0.91 dividend. This represents a $3.64 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Thursday, February 19th. Microsoft's payout ratio is currently 25.89%.

Analyst Ratings Changes

A number of equities analysts recently weighed in on the company. Wolfe Research reduced their price target on Microsoft from $675.00 to $625.00 and set an "outperform" rating for the company in a report on Monday, December 15th. Cowen set a $625.00 price objective on Microsoft in a research report on Tuesday. Barclays reduced their target price on Microsoft from $625.00 to $610.00 and set an "overweight" rating for the company in a research note on Monday, January 12th. Royal Bank Of Canada reissued a "buy" rating on shares of Microsoft in a research note on Monday, January 5th. Finally, Melius Research boosted their price target on shares of Microsoft from $595.00 to $625.00 in a report on Thursday, September 25th. Three analysts have rated the stock with a Strong Buy rating, thirty-six have issued a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, Microsoft presently has a consensus rating of "Moderate Buy" and a consensus target price of $629.46.

Key Headlines Impacting Microsoft

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Bristol Myers Squibb partners with Microsoft to deploy AI imaging tools to accelerate early lung‑cancer detection — strengthens MSFT’s healthcare AI revenue pipeline and commercial credibility. Bristol Myers partners with Microsoft for AI-driven lung cancer detection
• Positive Sentiment: OpenAI (Microsoft‑backed) reportedly hit ~$20B revenue in 2025 — a direct upside to Microsoft’s AI exposure through cloud compute, licensing and partnership arrangements. Microsoft‑Backed OpenAI Hits $20B Revenue Target in 2025
• Positive Sentiment: Microsoft is pushing to cut data‑center energy use and Nadella warns energy costs will decide the AI race — could reduce future operating/AI infra costs and support margins if successfully executed. Microsoft Wants to Lower Data Center Energy Use. Does That Help the Bull Case for MSFT Stock?
• Neutral Sentiment: TD Cowen trimmed its price target (from $655 to $625) but kept a Buy — signals continued long‑term conviction but acknowledges nearer‑term valuation/nearterm risk. TD Cowen adjusts price target on Microsoft to $625 from $655, maintains buy rating
• Neutral Sentiment: Microsoft Marketplace gains incremental ecosystem wins (Cobalt Teams integration)—small revenue/engagement boost but limited immediate stock impact. Cobalt Microsoft® Teams® Integration Now Available in the Microsoft Marketplace®
• Neutral Sentiment: Jan. 28 earnings is the next major catalyst — investors will focus on Azure growth, AI-related capex and guidance. Dear Microsoft Stock Fans, Mark Your Calendars for January 28
• Negative Sentiment: Reports that Azure cloud growth and forward guidance fell short of expectations have pressured the stock — investors are sensitive to any signs of decelerating cloud revenue or rising AI‑related costs. Microsoft (MSFT) Traded Lower as Its Reported Azure Cloud Growth and Forward Guidance Fell Short of Expectations
• Negative Sentiment: Microsoft researchers published a list of jobs most exposed to AI, and related headlines have contributed to short‑term investor and public sentiment concerns — this helped headlines driving intraday weakness. Microsoft researchers have revealed the 40 jobs most exposed to AI—and even teachers make the list
• Negative Sentiment: Broader market/geo‑political headlines and a tech sector selloff (Magnificent Seven weakness) amplified pressure on MSFT today — macro risk is dragging even well‑funded AI leaders. America's Biggest Tech Stocks Lead Tuesday's Selloff as Trump's Greenland Rhetoric Rattles Markets

Insiders Place Their Bets

In other news, EVP Takeshi Numoto sold 2,850 shares of the company's stock in a transaction on Thursday, December 4th. The shares were sold at an average price of $478.72, for a total transaction of $1,364,352.00. Following the completion of the sale, the executive vice president owned 55,782 shares of the company's stock, valued at $26,703,959.04. This represents a 4.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Judson Althoff sold 12,750 shares of the stock in a transaction dated Tuesday, December 2nd. The shares were sold at an average price of $491.52, for a total transaction of $6,266,880.00. Following the completion of the sale, the chief executive officer owned 129,349 shares of the company's stock, valued at $63,577,620.48. This trade represents a 8.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 54,100 shares of company stock valued at $27,598,872 in the last 90 days. 0.03% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in MSFT. Longfellow Investment Management Co. LLC increased its stake in shares of Microsoft by 51.3% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after acquiring an additional 20 shares during the last quarter. University of Illinois Foundation purchased a new stake in shares of Microsoft in the second quarter valued at about $50,000. LSV Asset Management acquired a new stake in Microsoft during the fourth quarter worth about $44,000. ROSS JOHNSON & Associates LLC raised its stake in Microsoft by 155.7% during the first quarter. ROSS JOHNSON & Associates LLC now owns 156 shares of the software giant's stock worth $59,000 after purchasing an additional 95 shares during the period. Finally, HFM Investment Advisors LLC acquired a new position in Microsoft in the 1st quarter valued at about $73,000. 71.13% of the stock is currently owned by institutional investors and hedge funds.

About Microsoft

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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