Microsoft Corporation (MSFT  ) is in the spotlight Wednesday ahead of its second-quarter earnings report today after the market closes. Microsoft Heads Into Earnings With AI Initiatives In Focus

The earnings report comes amid its recent announcement of a significant partnership with Richtech Robotics Inc. (RR  ) in AI which adds both opportunity and pressure to the narrative. With shares down just over 6% in the past six months, the company must clear the high bar of $80.27 billion in revenue to justify its premium 34.2x valuation and reassure investors amid concerns about slowing growth.

Analysts also expect Microsoft to report earnings per share of $3.97.

The company has beat estimates in four of the last four quarters. In the most recent quarter on October 29 Microsoft delivered EPS of $4.13 against an estimate of $3.67, with revenue of $77.67 billion surpassing expectations. This followed a solid performance in July 2025, where it reported EPS of $3.65 versus an estimate of $3.37, and revenue of $76.44 billion, indicating a trend of strong earnings growth. Given the pattern of consistent beats, investors should watch for whether this momentum continues in the upcoming report.

Investors should also focus on Azure growth, which has been a key driver of Microsoft's revenue, and watch for any updates on AI spending, especially given the recent partnership with Richtech. Additionally, keep an eye on CapEx trends, as increased investments in infrastructure could signal confidence in future growth.

Analyst Changes: Ahead of the earnings report, multiple analysts issued price target adjustments.

  • B of A Securities analyst Brad Sills maintained a Buy rating on Microsoft and lowered the price target from $640 to $520.
  • UBS analyst Karl Keirstead maintained a Buy rating on Microsoft and lowered the price target from $650 to $600.
  • Wells Fargo analyst Michael Turrin maintained an Overweight rating on Microsoft and lowered the price target from $665 to $630.
  • Guggenheim analyst John Difucci reiterated a Buy rating on Microsoft and maintained a $586 price target.
  • Citigroup analyst Tyler Radke maintained a Buy rating on Microsoft and lowered the price target from $690 to $660.
  • Mizuho analyst Gregg Moskowitz maintained an Outperform rating on Microsoft and lowered the price target from $640 to $620.
Microsoft Shares Trade Flat

At the time of writing, Microsoft stock is trading 0.36% higher at $482.30, according to data from Benzinga Pro.