Microsoft to Report Earnings with Focus on Spending Plans
Microsoft is set to report its fiscal fourth-quarter earnings after Wednesday's market close, drawing attention for potential updates to its capital spending projections following Alphabet’s recent increase. Analysts expect adjusted earnings per share of $4.24 and revenue of $87.62 billion, with year-over-year growth anticipated at 14.6% in the quarter ending June 30 and expected acceleration to 15.4% for the September period. Investors are also watching how Microsoft balances its AI investments across Azure cloud computing, research initiatives like Copilot, and OpenAI partnerships amid rising competition from open-source models. The company has faced market pressure this year as traditional software stocks have underperformed due to concerns over generative AI disruption. Additionally, Microsoft shares have declined nearly 19% in 2026 compared to an 8.5% gain for the S&P 500. During the quarter, Microsoft launched a cost-efficient AI coding model and appointed LinkedIn’s Dan Shapero as its new head of operations while lowering Xbox Game Pass subscription prices.
Tickers: $MSFT
Topics: AI Models Earnings Report Microsoft Stock Performance