{"id":4633,"date":"2026-04-29T15:15:25","date_gmt":"2026-04-29T15:15:25","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=4633"},"modified":"2026-04-29T15:15:25","modified_gmt":"2026-04-29T15:15:25","slug":"microsoft-stock-down-1-ahead-of-earnings-what-to-expect","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=4633","title":{"rendered":"Microsoft stock down 1% ahead of earnings: what to expect?"},"content":{"rendered":"
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Shares of Microsoft edged lower ahead of its earnings report, with the stock down around 1% in early trading on Wednesday.<\/p>\n

The move comes as investors positioned for key updates on cloud growth, capital spending, and artificial intelligence monetisation.<\/p>\n

Microsoft\u2019s earnings are expected to provide a critical update on whether its aggressive AI strategy is beginning to deliver tangible financial returns.<\/p>\n

The broader market was also subdued<\/a>. The S&P 500 and Nasdaq Composite were little changed, while the Dow Jones Industrial Average fell 232 points, or 0.5%. <\/p>\n

The sentiment was dampened amid rising oil prices linked to a US blockade of Iranian ports and anticipation around monetary policy developments.<\/p>\n

What to expect for MSFT earnings<\/h2>\n

Microsoft is scheduled to report its fiscal third-quarter results<\/a> after the market close, with analysts surveyed by FactSet expecting adjusted earnings of $4.05 per share on revenue of $81.4 billion.<\/p>\n

This compares with earnings of $3.46 per share on revenue of $70.1 billion in the same period last year, reflecting continued expansion driven by cloud computing and AI-related services.<\/p>\n

Microsoft remains one of several major technology companies investing heavily in artificial intelligence infrastructure, including data centres and advanced computing capabilities.<\/p>\n

While Wall Street initially welcomed these investments, sentiment has shifted as investors increasingly demand evidence of returns, particularly as elevated spending has weighed on free cash flow.<\/p>\n

Analysts expect Microsoft to report capital expenditure of $37.5 billion for the quarter, significantly higher than $21.4 billion a year earlier. <\/p>\n

Free cash flow is projected at $15.4 billion, down from $20.3 billion in the prior-year period.<\/p>\n

Azure growth seen as key indicator<\/h2>\n

A central focus for investors will be the growth trajectory of Microsoft\u2019s Azure cloud business, which serves as a key proxy for demand for AI services.<\/p>\n

Wall Street expects Azure revenue growth of 39.7%, slightly above the prior quarter\u2019s 39% expansion. <\/p>\n

Any shortfall could weigh on the stock, given the importance of cloud performance to Microsoft\u2019s overall valuation.<\/p>\n

However, capacity constraints remain a potential limiting factor. <\/p>\n

Deutsche Bank analyst Brad Zelnick said supply limitations could cap near-term growth as companies race to expand infrastructure. <\/p>\n

He added that capital expenditure growth may moderate through fiscal 2027.<\/p>\n

Analysts on MSFT stock<\/h2>\n

In a note cited by Investing.com, TD Cowen reiterated a Buy rating on Microsoft with a $540 price target, citing the company\u2019s amended partnership agreement with OpenAI.<\/p>\n

The firm estimates Microsoft could benefit from reduced revenue-sharing payments to OpenAI, amounting to approximately $700 million in fiscal 2026 and rising to $5.1 billion by fiscal 2030. <\/p>\n

Previously, Microsoft was estimated to have paid around 20% of Azure OpenAI Services revenue to OpenAI.<\/p>\n

TD Cowen said the revised structure could add 1% to 2% to Azure growth in fiscal 2027, while also easing capital expenditure pressures and reducing reliance on a single customer.<\/p>\n

The agreement also allows OpenAI to diversify its infrastructure partnerships, with recent deals involving Google, Amazon, and Oracle.<\/p>\n

The post Microsoft stock down 1% ahead of earnings: what to expect?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Microsoft edged lower ahead of its earnings report, with the stock down around 1% in early trading on Wednesday.The move comes as investors positioned for key updates on cloud growth, capital spending, and artificial intelligence monetisation.Microsoft\u2019s earnings are expected to provide a critical update on whether its aggressive AI strategy is beginning to…<\/p>\n","protected":false},"author":1,"featured_media":4634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/4633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4633"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/4633\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/4634"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}