Microsoft (MSFT, Financials) is set to release its fiscal third-quarter results on April 30 after markets close, with analysts adjusting their expectations ahead of the report.
Wall Street forecasts Microsoft will post earnings of $3.22 per share for the quarter, up from $2.94 a year earlier. Revenue is projected to reach $68.44 billion, representing an increase of more than 10% year-over-year. Analysts expect the company's Intelligent Cloud segment, which includes Azure, to report revenue of $26.13 billion, an 18% gain from the prior year.
Several analysts have recently lowered their near-term price targets on the stock, citing challenges ranging from macroeconomic pressures to uncertainty surrounding artificial intelligence adoption. Despite these headwinds, sentiment toward Microsoft's long-term prospects remains positive.
Piper Sandler analyst Brent Bracelin cut his target on Microsoft to $435 from $520 while maintaining a Buy rating. Bracelin said investor confidence in application software companies has weakened amid a slowdown in industry growth for the fourth consecutive year, although he noted that tariffs have had little direct impact on software business models.
Goldman Sachs analyst Kash Rangan reduced his price target to $450 from $500, also maintaining a Buy recommendation. Rangan pointed to uneven customer behavior across Microsoft's business units due to broader macro volatility, but expressed confidence in the company's ability to achieve its 11% revenue growth goal for fiscal 2025.
Citi analyst Tyler Radke similarly lowered Microsoft's price target to $480 from $497 while retaining a Buy rating. Radke said checks on Microsoft's performance showed mixed trends, with early renewals for Azure but disappointing uptake for its CoPilot product. Reflecting expectations of a broader economic slowdown, Citi also trimmed its fiscal 2026 projections for Microsoft across its main business lines.
Shares of Microsoft have fallen about 7% year-to-date as investors weigh potential risks, including reports suggesting the company may revisit its capital spending plans for 2025.
