Microsoft (MSFT) Stock: Analysts Maintain Bullish Stance Ahead of Earnings
Microsoft is set to report its fiscal second-quarter earnings on January 28, with Wall Street anticipating robust growth. Analysts project earnings per share of $3.91, a 21% year-over-year increase, and revenue of $80.28 billion, up 15.3%. Despite some price target adjustments, the consensus remains bullish, with targets ranging from $600 to $675.
The stock surged 4.1% last Friday after UBS reaffirmed its Buy rating, albeit with a reduced target of $600. Key drivers include Microsoft's Azure cloud platform, which continues to show strong growth, and its $250 billion OpenAI and $30 billion Anthropic deals, expected to fuel a record quarter-over-quarter increase in remaining performance obligations (RPO).
New Fairwater AI data centers in Atlanta and Wisconsin are also seen as catalysts. While some analysts have trimmed estimates for non-Azure segments due to weaker PC demand, Azure's momentum keeps Microsoft a top mega-cap pick.
