MSFT Earnings

MSFT reported its earnings on 2026-01-28, showcasing a revenue of 81.27B against an estimate of 80.16B, resulting in a 1.39% surprise. The EPS was 4.14, surpassing the expected 3.88 by 6.7%. The stock experienced a -9.99% price change on the earnings day and a -14.62% change over the next five days, reflecting market reactions to the results.

Following MSFT's earnings announcement on 2026-01-28, the stock price moved by -9.99% on the day of the release. Over the subsequent five days, it saw a -14.62% change. Historically, MSFT's stock price tends to shift by an average of -1.28% in the 10 days leading up to earnings and -0.51% in the 10 days following, providing insight into potential market.

For 2026/Q3, analysts estimate MSFT's annual revenue to reach 81.23B, while the EPS is projected at 3.97. These estimates reflect recent revisions, with revenue estimates unchanged by 0% and EPS estimates revised downward by -0.01% over the past three months, indicating analyst expectation in the company's performance.

The correlation between MSFT's stock price and earnings forecast revisions shows that positive revisions in revenue or EPS often strengthen the stock's fundamentals. Over the past three months, revenue estimates for FY2026 were unchanged by 0%, while EPS estimates moved revised downward by -0.01%. This trend suggests that price dips could present buying opportunities for investors.

Based on historical trends, MSFT's stock price typically moves by -1.28% in the 10 days before its earnings and -0.51% in the 10 days after. For the upcoming 2026/Q3 earnings, analysts expect an EPS of 3.97 and revenue of 81.23B.

The earnings report reveals strong financial performance with significant revenue and EPS growth, driven by demand across various segments. Despite a decline in free cash flow, commercial bookings surged, indicating robust future growth. The Q&A highlighted confidence in CapEx investments and AI-centric hardware, though some concerns about ROI and backlog durability were not fully addressed. Overall, the positive financial metrics and optimistic guidance, especially in AI and cloud services, suggest a likely stock price increase, despite some investor concerns.