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Microsoft exceeded Wall Street expectations for its fiscal fourth quarter as stronger-than-expected Azure cloud growth and rising adoption of its artificial intelligence products helped ease investor concerns over the company's massive spending on AI infrastructure.

Shares of Microsoft MSFT rose about 3.5% in extended trading after the results were released, with investors responding positively to robust cloud performance and continued momentum in AI-related services.

Azure growth tops expectations as AI demand remains strongMicrosoft reported that Azure cloud-computing revenue increased 43% in the fiscal fourth quarter, outperforming analyst expectations of roughly 40%, according to Visible Alpha.

The cloud business generated $39.3 billion in revenue during the quarter.

The company also disclosed that Azure's annual revenue surpassed $100 billion for the first time, highlighting continued enterprise demand for cloud infrastructure and AI services.

Chief Executive Officer Satya Nadella said, "Azure revenue surpassed $100 billion for the first time, and Microsoft 365 Copilot reached over 30 million paid seats, reflecting the confidence customers are placing in us to power their AI transformation."

Microsoft 365 Copilot subscriptions were 20 million in the previous quarter and the results were ahead of analyst expectations of 26.9 million, according to Reuters calculations based on estimates from several brokerages.

The company also reported a contracted cloud backlog of $678 billion at the end of the quarter, compared with $627 billion in the prior quarter.

Microsoft posted quarterly revenue of $90 billion, an 18% increase from a year earlier, exceeding analyst estimates of $87.42 billion.

Net income increased 31% to $35.8 billion during the quarter.

Adjusted earnings came in at $4.81 per share, ahead of consensus expectations of $4.2 per share.

The results reinforced investor confidence that Microsoft's AI investments are translating into stronger financial performance despite concerns over the industry's heavy spending on data centers.

Microsoft remains among the companies leading the AI boom through its long-standing partnership with OpenAI, while also expanding its own AI capabilities by developing in-house models and incorporating technology from companies such as Anthropic into its offerings.

AI infrastructure spending remains elevatedMicrosoft continued investing aggressively in AI infrastructure during the quarter.

Capital expenditures rose more than 70% year over year to $41 billion, reflecting continued spending on data centers and high-performance computing infrastructure needed to support AI services.

Although the figure was slightly below market expectations of $42.37 billion, it represented a significant increase from the $31.9 billion spent in the previous quarter.

The company has forecast approximately $190 billion in spending during the current calendar year as part of broader AI infrastructure investments across the technology industry.

Microsoft has previously said cloud growth remains constrained by limited computing capacity, a situation it expects to continue through at least the end of 2026.

The company has also been expanding capacity through partnerships beyond its own data center buildout, including a recent agreement with French AI startup Mistral.

Despite Wednesday's earnings beat, Microsoft shares remain down about 18% this year.

by Todd Bishop on Jul 29, 2026 at 1:51 pmJuly 29, 2026 at 2:15 pm

GeekWire File Photo Microsoft’s Azure cloud business grew 43% last quarter, blowing past the company’s own forecast and surpassing $100 billion in annual revenue for the first time, providing fresh evidence of the potential for artificial intelligence to fuel new growth for the tech giant.

The company’s results for its fiscal fourth quarter also showed the price of that growth: capital spending hit a record $41 billion, largely to support the company’s AI buildout, and free cash flow sank 23% even as operating profits jumped 18%.

And in a new twist, Microsoft shares rose more than 3% in initial after-hours trading, in contrast with the recent pattern in which the company’s strong results were met with selloffs that pushed its stock near a one-year low.

Companywide results: Overall, Microsoft reported revenue of $90 billion for the quarter, up 18% from a year ago, and net income of $35.8 billion, up 31%. Analysts had expected $87.7 billion in revenue, a figure that was already at the top of Microsoft’s own guidance range.

Earnings were $4.81 per share, topping the $4.24 that analysts expected. But that included a 27-cent benefit from one-time items, largely a $3.2 billion gain on Microsoft’s investment in Anthropic. Even excluding those items, the company said, it exceeded expectations across revenue, operating income and earnings per share.

Microsoft 365 Copilot surpassed 30 million paid seats, up from 20 million last quarter. That’s still less than 7% of the roughly 450 million commercial Microsoft 365 seats, a gap that has drawn investor skepticism all year.

Windows OEM and Devices revenue declined 7%, hurt by slower PC demand and a tough comparison with last year’s Windows 10 upgrade wave. The decline would have been steeper, but PC makers built more machines to get ahead of rising memory prices, and Microsoft collects its Windows fee when a PC is built rather than when it’s sold.

Xbox content and services revenue fell 10% and Xbox hardware fell 13%. Microsoft also wrote down the value of unspecified Xbox assets. The company grouped that charge with severance costs and savings from its retirement program — a net $500 million hit to operating income — and declined to say how much of it was Xbox or what was written down.

Previous StoryVC is changing dramatically — what’s a founder to do? 

By PYMNTS  |  July 29, 2026

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Regulators in the United Kingdom are investigating whether Microsoft misled customers about its subscription options pricing, according to a Wednesday (July 29) press release.

The investigation comes in response to concerns that consumers might not have been given clear information about subscription options when Microsoft changed its Microsoft 365 Personal and Family plans, the U.K.’s Competition and Markets Authority said in the release.

“When a business changes its subscription plans, customers need clear and timely information about their options,” Hayley Fletcher, the CMA’s senior director for consumer protection, said in the release. “Our investigation will consider whether Microsoft customers were misled and ended up paying more as a result. As people rely more and more on AI tools like Copilot, it’s important that everyone is able to access these through fair and transparent practices and understand when they have the opportunity to shop around and make choices about which products they want to use.”

Microsoft last year automatically began giving customers access to new features like Copilot for no added cost for the remainder of their subscription period, according to the release. When that period ended, customers were automatically placed on a plan with the new features at a higher price, unless they canceled or picked another plan.

Microsoft offered Personal and Family plan customers a limited-time option to switch to a Classic plan, offering the same features as before at the same price, per the release. For annual Microsoft 365 Personal and Family Plan customers, the plan was 25 pounds (about $33) a year more than the Classic version.

“The CMA is looking into whether Microsoft’s communications with customers before renewal were misleading,” the release said. “The investigation will examine whether customers were given key information about the plans and the difference in cost to understand the options available to them before making a decision.”

The CMA has not yet concluded whether Microsoft broke the law, according to the release.

“Consumer trust and transparency are priorities for Microsoft, and we are reviewing the CMA’s claims in detail,” a spokesperson for the company said in a statement to PYMNTS. “We remain committed to working constructively with the regulator as their inquiry progresses.”

PYMNTS Intelligence found that among consumers who use a dedicated AI platform for at least one task, 30% reported using Copilot, compared to 83% for OpenAI’s ChatGPT and 48% for Google’s Gemini.

Characteristics and Risks of Standardized Options: https://bit.ly/2v9tH6D. "We're back in CapEx season," says Kevin Hincks, believing Microsoft's (MSFT) figures will be watched by investors once the Mag 7 giant reports earnings.

The AI trade has spent the past several weeks unraveling, but the selling has spread far beyond Silicon Valley. Chip designers in the U.S., foundries in Taiwan, memory manufacturers in South Korea, equipment suppliers in Europe, materials companies in Japan, and advanced packaging firms across Southeast Asia have all moved lower together. 

That broad decline reflects something bigger than one disappointing earnings report — it highlights how tightly connected the global AI supply chain has become. Investors now have one event that could determine whether this downturn marks the start of a semiconductor bust or simply a pause before the next leg higher: Microsoft’s (NASDAQ:MSFT | MSFT Price Prediction) fiscal fourth-quarter earnings release.

Microsoft’s Spending Drives the Entire AI Ecosystem Microsoft’s June quarter carries more weight than a typical earnings report because it closes the company’s fiscal year. More importantly, management’s guidance will offer one of the first detailed roadmaps for AI infrastructure spending during the first half of calendar 2027.

Here’s what investors will be watching in Microsoft’s earnings release and conference call:

Category Why It Matters Capital expenditures Indicates whether AI infrastructure investment continues accelerating Azure growth Measures enterprise demand for AI services AI capacity commentary Reveals whether demand still exceeds available compute Infrastructure outlook Signals future purchases across the semiconductor supply chain The reason is simple. Microsoft sits near the center of the AI economy. Its capital spending determines demand for Nvidia‘s (NASDAQ:NVDA) AI accelerators, Advanced Micro Devices‘ (NASDAQ:AMD) CPUs, networking equipment from Broadcom (NASDAQ:AVGO) and Marvell Technology (NASDAQ:MRVL), high-bandwidth memory from SK hynix (NASDAQ:SKHY) and Micron Technology (NASDAQ:MU), optical components from Coherent (NASDAQ:COHR), advanced packaging at Taiwan Semiconductor Manufacturing (NYSE:TSM), and semiconductor manufacturing equipment from ASML Holdings (NASDAQ:ASML) and Applied Materials (NASDAQ:AMAT).

That makes Microsoft’s capital budget one of the most closely watched figures in global technology investing.

One Capex Number Could Change the Entire Narrative Many semiconductor stocks have retreated not because demand has collapsed, but because investors questioned whether hyperscale cloud providers could continue increasing spending after two years of record investment.

According to Microsoft’s prior earnings release, capital expenditures have already climbed at one of the fastest rates in company history as it races to build AI data centers. If management now projects another 30% to 40% increase in AI infrastructure spending while reiterating that customer demand still exceeds available capacity, the recent decline may look less like the beginning of a semiconductor downturn and more like a temporary risk-off reset.

Ironically, that’s exactly what many investors may have overlooked. The AI supply chain isn’t weakening because one company missed expectations. Instead, fears have centered on financing conditions, elevated valuations, and whether cloud providers would eventually slow spending after committing hundreds of billions of dollars to AI infrastructure.

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Microsoft has the opportunity to answer that question today.

A single Capex number that could make or break the trillion-dollar AI trade. Microsoft isn't just reporting earnings—it's deciding the future of the global chip industry. © 24/7 Wall St. Why Concentration Is Becoming the Market’s Biggest Risk One surprising lesson from this earnings season is how dependent the global semiconductor industry has become on a handful of cloud companies.

Microsoft’s capital spending doesn’t just influence its own growth — it helps determine production schedules for factories spanning five continents.

If CEO Satya Nadella confirms AI demand remains constrained by available capacity rather than weakening customer interest, suppliers throughout the chain could regain investor confidence. If Microsoft instead signals that spending is leveling off, the pressure could extend from Nvidia to Taiwan Semiconductor, SK hynix, ASML, Tokyo Electron, and dozens of smaller suppliers.

Granted, that level of concentration creates risk. A single management team’s investment decisions now influence billions of dollars in manufacturing plans across multiple countries. Yet that’s also the reality of today’s AI economy.

Key Takeaway In short, Microsoft’s earnings are about much more than Azure growth or quarterly profits. They’re a referendum on whether the AI investment cycle remains intact.

Management’s guidance will provide the clearest evidence yet on whether hyperscale AI spending is still expanding fast enough to support the industry’s next growth phase. If capital expenditures continue rising by roughly 30% to 40% and management says demand still exceeds available computing capacity, the semiconductor selloff may prove to be a valuation reset rather than the end of the AI boom.

Ultimately, one capital spending figure from Microsoft now has the power to influence chipmakers across the United States, Taiwan, South Korea, Japan, Europe, and Southeast Asia. That’s an extraordinary level of concentration — and for investors, it’s exactly why today’s earnings report could become the most important AI event of the quarter.

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Contact [email protected] for any questions or corrections.

Microsoft is set to close out its fiscal year on Wednesday, July 29th, reporting fiscal fourth-quarter results after the closing bell.

On paper, the setup looks routine for a company that has made beating expectations a habit. Management has guided to total revenues of $86.7 billion to $87.8 billion, implying growth of 13% to 15%, with accelerating commercial growth partially offset by the consumer business.

The Zacks Consensus Estimate for revenues sits at $87.44 billion, indicating growth of 14.4% from the year-ago quarter. On the bottom line, consensus calls for earnings of $4.21 per share, up roughly 15.3% year over year. Those are strong numbers by any standard. But this quarter, the numbers may not be what decides the stock’s reaction.

The Alphabet Read-Through: Cloud Is Booming, But the Bill Is DueThe most instructive preview of Wednesday came last week from Mountain View. Alphabet reported second-quarter revenue of $119.8 billion, beating expectations, driven by 82% growth in its cloud business.

That figure deserves a second look — Google Cloud revenue surged 82% year over year to $24.8 billion, far exceeding analyst expectations of 63% growth. Its backlog swelled by more than $50 billion sequentially to $514 billion, and cloud operating margin more than tripled to 35.6%.

For Microsoft shareholders, this is genuinely encouraging. Enterprise appetite for AI-enabled cloud capacity is not merely holding up; it is accelerating, and margins on that business are expanding rather than eroding. Microsoft entered this quarter with Azure and other cloud services growing 40% in constant currency and Microsoft Cloud revenue reaching $54.5 billion, up 29%. If Alphabet’s demand signal translates, Azure should have had a very good spring.

Yet there’s certainly reason to temper enthusiasm heading into Wednesday evening. Alphabet beat, and the stock fell anyway. Shares dropped around 7% after the company raised its 2026 capital expenditure forecast to $195 billion to $205 billion, up from prior guidance of $180 billion to $190 billion, having reported second-quarter capex of $44.9 billion — a 101% increase from the prior year — and warned that 2027 spending will “significantly increase.”

Free cash flow also turned deeply negative. The message from the market was unambiguous: after three years of granting Big Tech near-unlimited license to spend on AI, investors have started demanding evidence that the spending converts to cash. A revenue beat no longer buys forgiveness for a capex surprise.

Microsoft Faces the Same Question — With Its Own ComplicationsMicrosoft walks into Wednesday carrying an identical burden, and arguably a heavier one. Capital expenditures are expected to exceed $40 billion in the fiscal fourth quarter, with the sequential increase including roughly $5 billion from higher component pricing as well as the impact from finance leases.

That component-pricing detail is worth pausing on — it is a direct pass-through from the memory and semiconductor shortages, and it means Microsoft is paying more for the same compute.

The cash-flow math is already showing strain: free cash flow fell 22% year over year to $15.8 billion in the fiscal third quarter on $31 billion of quarterly capex. The market’s verdict on this is visible in the tape. Shares have retreated roughly 19% year to date, with the decline largely stemming from mounting anxiety over the company’s aggressive AI infrastructure investments.

Image Source: StockCharts

What the Zacks Model RevealsOur own framework counsels caution on the beat itself. Microsoft carries an Earnings ESP of -0.44% alongside a Zacks Rank #3 (Hold). The Most Accurate Estimate sitting below the Zacks Consensus Estimate suggests analysts have recently turned somewhat more bearish on the company’s near-term earnings prospects.

To be clear about what this does and does not mean: a negative ESP is not a prediction of a miss, and our research shows it is difficult to forecast beats with confidence for stocks in this configuration. It simply means the statistical edge that a positive ESP and favorable rank would provide is absent here.

Set against that, Microsoft has beaten consensus EPS estimates in each of the past fifteen quarters — a track record that argues the operational bar will likely be cleared even if the model is agnostic.

The Metrics That Will Actually Move the StockGiven all of the above, the line items to watch are narrower than usual. Azure’s growth rate remains the headline — sustaining something in the high-30% to 40% range would validate that Alphabet’s (GOOGL - Free Report) cloud acceleration is an industry phenomenon and not a Google-specific share gain.

Segment guidance calls for Productivity and Business Processes revenues of $37 billion to $37.3 billion, roughly 12% to 13% growth, and Microsoft 365 Commercial cloud growth guided at 15% to 16% in constant currency.

On AI monetization specifically, Copilot paid seats surpassed 20 million last quarter with seat additions up 250% year over year, and a $627 billion commercial backlog provides multiyear revenue visibility. But the number that likely determines Thursday’s open is fiscal 2027 capex guidance. If Microsoft (MSFT - Free Report) follows Alphabet in guiding spending sharply higher without a commensurate free-cash-flow bridge, the stock will likely struggle regardless of how good the quarter was.

Bottom LineThe valuation argument has quietly become interesting. Microsoft trades at a forward P/E of roughly 20.3, modest by Microsoft’s own historical standards and reasonable for a company compounding earnings at this rate.

The bull case is straightforward: cloud demand is accelerating across the industry, Microsoft’s AI monetization is further along than most, the backlog is enormous, and the stock has already absorbed a 19% drawdown. The bear case is equally coherent: capital intensity keeps rising, component costs are inflating, free cash flow is contracting, and the market has plainly stopped rewarding spending narratives on faith.

A Zacks Rank #3 (Hold) feels like the honest posture. Wednesday will not settle the debate about whether the AI buildout pays off — but it will tell us whether Microsoft can grow into its spending faster than its peers can.

NEW YORK, July 29, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ: MSFT) and certain of its officers.

This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Microsoft securities between May 1, 2025 and January 28, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/MSFT.

Microsoft Case Details

The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements because they failed to disclose that:

(1) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; 
(2) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; 
(3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit (“GPU”) and central processing unit (“CPU”) capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development (“R&D”); and 
(4) as a result of the above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft’s Copilot offerings had lost market share to rival products, a trend that was increasing.

What's Next for Microsoft Investors?

A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/MSFT. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Microsoft you have until August 11, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.

No Cost to Microsoft Investors

We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.

Why Bronstein, Gewirtz & Grossman, LLC for Microsoft Securities Class Action?

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com

"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.

Follow us for updates on LinkedIn, X, Facebook, or Instagram.

Contact Info

Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]

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Prior results do not guarantee similar outcomes.

Microsoft is set to report fiscal fourth-quarter results after Wednesday's closing bell.

Here's what analysts are looking for, according to LSEG consensus:

Earnings per share: $4.24 adjustedRevenue: $87.62 billionAt that level, analysts are looking for 14.6% growth year over year in the quarter, which ended on June 30. They see growth speeding up a bit to 15.4% in the September quarter.

As of Tuesday's close, the software maker's shares have given up about 19% so far in 2026, while the S&P 500 index has gained 8.5%. Investors have squeezed longstanding software stocks this year, acting on fears of disruption from generative artificial intelligence models.

Meanwhile, Microsoft is confronting "some concentration risk" with its OpenAI relationship, especially with the ascent of open-source models, Deutsche Bank analysts, who recommend buying Microsoft stock, said in a note last week. Microsoft said in January that around 45% of its $625 billion in commercial remaining performance obligations were tied to OpenAI.

Read more CNBC tech newsAmazon, Meta and Microsoft face skeptical investors this week after Google report sparked sell-offAMD, Micron and Nvidia extend losses as chip stocks get clobberedApple plans to lease iPhones for $17.99 a month through partnership with KlarnaSam Altman to meet with Trump administration, Senators this week. Here's what he plans to sayWhen it comes to allocating computing capacity, CEO Satya Nadella has been trying to balance the needs of the Azure cloud, research and applications such as the Microsoft 365 Copilot assistant. If researchers get ahold of more AI chips for model training, that means fewer will be available for cloud clients.

Analysts polled by CNBC and StreetAccount are looking for 40% and 40.2% Azure growth at constant currency.

Investors will be looking to see if Microsoft raises its forecast on capital expenditures and finance leases for data center expansion, after Alphabet lifted its 2026 range by $15 billion last week. Analysts polled by Visible Alpha were targeting $190.5 billion from Microsoft, just above the $190 billion guidance from April.

During the quarter, Microsoft introduced a cost-efficient AI coding model, picked LinkedIn executive Dan Shapero to take over the business social network and lowered Xbox Game Pass subscription prices.

Executives are scheduled to discuss the results with analysts and issue guidance on a conference call starting at 5:30 p.m. ET.

Microsoft stock chart.

watch now

Posted by Defense World Staff on Jul 29th, 2026

Center for Financial Planning Inc. boosted its holdings in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 10.8% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 26,463 shares of the software giant’s stock after buying an additional 2,577 shares during the quarter. Microsoft accounts for about 1.0% of Center for Financial Planning Inc.’s portfolio, making the stock its 12th largest holding. Center for Financial Planning Inc.’s holdings in Microsoft were worth $9,796,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of MSFT. WFA Asset Management Corp boosted its holdings in Microsoft by 27.0% in the first quarter. WFA Asset Management Corp now owns 1,016 shares of the software giant’s stock valued at $427,000 after purchasing an additional 216 shares during the last quarter. Ironwood Wealth Management LLC. grew its position in Microsoft by 0.3% during the 2nd quarter. Ironwood Wealth Management LLC. now owns 12,658 shares of the software giant’s stock worth $5,658,000 after purchasing an additional 38 shares during the period. Discipline Wealth Solutions LLC raised its stake in shares of Microsoft by 410.4% during the 3rd quarter. Discipline Wealth Solutions LLC now owns 2,659 shares of the software giant’s stock valued at $1,144,000 after buying an additional 2,138 shares during the last quarter. Wealth Group Ltd. raised its stake in shares of Microsoft by 1.2% during the 4th quarter. Wealth Group Ltd. now owns 2,374 shares of the software giant’s stock valued at $1,000,000 after buying an additional 28 shares during the last quarter. Finally, Eagle Capital Management LLC lifted its holdings in shares of Microsoft by 0.4% in the 4th quarter. Eagle Capital Management LLC now owns 23,097 shares of the software giant’s stock valued at $9,735,000 after buying an additional 96 shares during the period. 71.13% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets In other news, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total value of $519,111.08. Following the sale, the executive vice president owned 46,003 shares in the company, valued at $18,922,874.02. This trade represents a 2.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Takeshi Numoto sold 4,500 shares of the business’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the sale, the executive vice president directly owned 47,468 shares of the company’s stock, valued at $19,122,009.12. This represents a 8.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 23,762 shares of company stock worth $10,508,361. Company insiders own 0.03% of the company’s stock.

Key Microsoft News Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Microsoft unveiled its first in-house cybersecurity AI model, MAI-Cyber-1-Flash, along with Project Perception, an agentic platform designed to detect and respond to AI-powered attacks. The products could strengthen Microsoft’s enterprise security position and create additional demand for Azure and security services. Microsoft launches AI cybersecurity model and defense platform Positive Sentiment: Analysts remained bullish ahead of earnings. Citizens JMP reaffirmed a Market Outperform rating with a $550 target, while Piper Sandler maintained an Overweight rating and a $540 target—well above Microsoft’s recent trading range. Microsoft stock moves higher Positive Sentiment: Microsoft’s expanding partnerships and integrations across Azure, Dynamics 365 and Microsoft 365 Copilot support the argument that its broad enterprise ecosystem can monetize AI spending over time. Morgan Stanley estimates major technology companies could achieve 25%–50% returns on AI investments. AI capital expenditure plans Microsoft Stock Up 1.1% Shares of MSFT opened at $393.35 on Wednesday. The firm has a market cap of $2.92 trillion, a P/E ratio of 23.41, a PEG ratio of 1.19 and a beta of 1.13. Microsoft Corporation has a 12 month low of $349.20 and a 12 month high of $555.45. The stock’s 50 day moving average is $397.04 and its two-hundred day moving average is $406.36. The company has a current ratio of 1.28, a quick ratio of 1.27 and a debt-to-equity ratio of 0.08.

Microsoft (NASDAQ:MSFT – Get Free Report) last announced its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping the consensus estimate of $4.06 by $0.21. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.44 billion. During the same period in the prior year, the company posted $3.46 EPS. The business’s quarterly revenue was up 18.3% on a year-over-year basis. Analysts predict that Microsoft Corporation will post 16.7 earnings per share for the current fiscal year.

Microsoft Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be issued a $0.91 dividend. This represents a $3.64 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s payout ratio is presently 21.67%.

Analysts Set New Price Targets A number of analysts have recently commented on MSFT shares. Tigress Financial upped their target price on Microsoft from $595.00 to $680.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. China Renaissance decreased their price target on Microsoft from $630.00 to $550.00 and set a “buy” rating for the company in a report on Monday, May 4th. DA Davidson reissued a “buy” rating and issued a $550.00 price target on shares of Microsoft in a report on Monday, July 6th. Mizuho lowered their price objective on Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 15th. Finally, BMO Capital Markets raised their price objective on shares of Microsoft from $500.00 to $515.00 and gave the stock an “outperform” rating in a research note on Tuesday, July 7th. Forty-two equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $554.73.

Read Our Latest Stock Report on Microsoft

Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

Further Reading Five stocks we like better than Microsoft These 3 Stocks Have Soared in 2026—Can They Keep Climbing? Hasbro’s Earnings Beat Shows Why This Is No Longer Just a Toy Story Rambus: Another AI Phoenix Ready to Rise From the Ashes of Correction Chips & Clips: Memory Tariffs Rewire Tech Supply Chains Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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Posted by Defense World Staff on Jul 29th, 2026

Bleakley Financial Group LLC boosted its stake in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 7.8% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 284,019 shares of the software giant’s stock after acquiring an additional 20,617 shares during the quarter. Microsoft makes up approximately 1.6% of Bleakley Financial Group LLC’s holdings, making the stock its 12th biggest holding. Bleakley Financial Group LLC’s holdings in Microsoft were worth $105,135,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in MSFT. Taylor Securities Services Inc. acquired a new stake in Microsoft in the 4th quarter valued at approximately $2,616,000. Werba Rubin Papier Wealth Management raised its holdings in shares of Microsoft by 15.7% in the fourth quarter. Werba Rubin Papier Wealth Management now owns 12,492 shares of the software giant’s stock valued at $6,041,000 after purchasing an additional 1,698 shares during the last quarter. World Investment Advisors lifted its position in shares of Microsoft by 22.1% in the fourth quarter. World Investment Advisors now owns 272,424 shares of the software giant’s stock worth $131,750,000 after purchasing an additional 49,371 shares in the last quarter. Centennial Wealth Advisory LLC lifted its position in shares of Microsoft by 25.3% in the first quarter. Centennial Wealth Advisory LLC now owns 8,648 shares of the software giant’s stock worth $3,201,000 after purchasing an additional 1,745 shares in the last quarter. Finally, XY Planning Network Inc. boosted its holdings in Microsoft by 73.0% during the fourth quarter. XY Planning Network Inc. now owns 3,034 shares of the software giant’s stock worth $1,467,000 after purchasing an additional 1,280 shares during the last quarter. Institutional investors and hedge funds own 71.13% of the company’s stock.

Microsoft Stock Performance Shares of MSFT opened at $393.35 on Wednesday. The firm has a 50-day moving average of $397.04 and a 200-day moving average of $406.36. Microsoft Corporation has a one year low of $349.20 and a one year high of $555.45. The company has a market cap of $2.92 trillion, a PE ratio of 23.41, a price-to-earnings-growth ratio of 1.19 and a beta of 1.13. The company has a debt-to-equity ratio of 0.08, a current ratio of 1.28 and a quick ratio of 1.27.

Microsoft (NASDAQ:MSFT – Get Free Report) last issued its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.06 by $0.21. The company had revenue of $82.89 billion for the quarter, compared to analysts’ expectations of $81.44 billion. Microsoft had a net margin of 39.34% and a return on equity of 31.94%. Microsoft’s quarterly revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.46 EPS. As a group, equities analysts forecast that Microsoft Corporation will post 16.7 earnings per share for the current year.

Microsoft Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Thursday, August 20th will be given a dividend of $0.91 per share. This represents a $3.64 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s payout ratio is 21.67%.

More Microsoft News Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Microsoft unveiled its first in-house cybersecurity AI model, MAI-Cyber-1-Flash, along with Project Perception, an agentic platform designed to detect and respond to AI-powered attacks. The products could strengthen Microsoft’s enterprise security position and create additional demand for Azure and security services. Microsoft launches AI cybersecurity model and defense platform Positive Sentiment: Analysts remained bullish ahead of earnings. Citizens JMP reaffirmed a Market Outperform rating with a $550 target, while Piper Sandler maintained an Overweight rating and a $540 target—well above Microsoft’s recent trading range. Microsoft stock moves higher Positive Sentiment: Microsoft’s expanding partnerships and integrations across Azure, Dynamics 365 and Microsoft 365 Copilot support the argument that its broad enterprise ecosystem can monetize AI spending over time. Morgan Stanley estimates major technology companies could achieve 25%–50% returns on AI investments. AI capital expenditure plans Insiders Place Their Bets In other news, EVP Takeshi Numoto sold 4,500 shares of Microsoft stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the completion of the transaction, the executive vice president directly owned 47,468 shares in the company, valued at approximately $19,122,009.12. The trade was a 8.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Amy Coleman sold 1,262 shares of Microsoft stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $411.34, for a total value of $519,111.08. Following the transaction, the executive vice president owned 46,003 shares of the company’s stock, valued at $18,922,874.02. This represents a 2.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 23,762 shares of company stock valued at $10,508,361 over the last 90 days. 0.03% of the stock is currently owned by insiders.

Analyst Ratings Changes Several brokerages have issued reports on MSFT. Mizuho lowered their price target on shares of Microsoft from $515.00 to $490.00 and set an “outperform” rating on the stock in a research note on Wednesday, July 15th. Rothschild & Co Redburn decreased their price objective on Microsoft from $450.00 to $400.00 and set a “neutral” rating for the company in a report on Thursday, April 23rd. Dbs Bank lowered their target price on Microsoft from $678.00 to $573.00 in a research report on Thursday, May 7th. Citizens Jmp reiterated a “market outperform” rating and set a $550.00 target price on shares of Microsoft in a report on Tuesday. Finally, DZ Bank reissued a “buy” rating on shares of Microsoft in a research report on Thursday, April 30th. Forty-two investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $554.73.

Get Our Latest Research Report on MSFT

Microsoft Profile (Free Report)

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

Read More Five stocks we like better than Microsoft These 3 Stocks Have Soared in 2026—Can They Keep Climbing? Hasbro’s Earnings Beat Shows Why This Is No Longer Just a Toy Story Rambus: Another AI Phoenix Ready to Rise From the Ashes of Correction Chips & Clips: Memory Tariffs Rewire Tech Supply Chains Want to see what other hedge funds are holding MSFT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Microsoft Corporation (NASDAQ:MSFT – Free Report).

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Empirical Financial Services LLC d.b.a. Empirical Wealth Management reduced its position in shares of Microsoft Corporation (NASDAQ:MSFT – Free Report) by 3.9% in the first quarter, according to its most recent filing with the SEC. The fund owned 220,717 shares of the software giant’s stock after selling 8,886 shares during the quarter. Microsoft comprises approximately 1.4% of Empirical Financial Services LLC d.b.a. Empirical Wealth Management’s holdings, making the stock its 13th largest holding. Empirical Financial Services LLC d.b.a. Empirical Wealth Management’s holdings in Microsoft were worth $81,703,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. Norges Bank purchased a new stake in shares of Microsoft during the 4th quarter valued at about $50,664,631,000. Auto Owners Insurance Co increased its stake in Microsoft by 56,160.8% during the fourth quarter. Auto Owners Insurance Co now owns 60,116,384 shares of the software giant’s stock worth $29,073,486,000 after acquiring an additional 60,009,531 shares during the last quarter. Nuveen LLC purchased a new stake in Microsoft during the first quarter valued at approximately $18,733,827,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Microsoft by 500.0% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 59,543,261 shares of the software giant’s stock valued at $30,840,432,000 after purchasing an additional 49,618,571 shares during the period. Finally, Laurel Wealth Advisors LLC lifted its stake in shares of Microsoft by 49,640.3% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 29,967,038 shares of the software giant’s stock valued at $14,905,904,000 after purchasing an additional 29,906,791 shares during the last quarter. 71.13% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes A number of brokerages have recently commented on MSFT. BMO Capital Markets lifted their target price on Microsoft from $500.00 to $515.00 and gave the stock an “outperform” rating in a report on Tuesday, July 7th. Robert W. Baird lowered their price target on Microsoft from $540.00 to $500.00 and set an “outperform” rating for the company in a research report on Wednesday, April 15th. TD Cowen reaffirmed a “buy” rating and set a $540.00 price objective on shares of Microsoft in a research note on Thursday, June 4th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Microsoft in a research report on Monday, July 20th. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of Microsoft in a research note on Thursday, April 30th. Forty-two equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, Microsoft presently has an average rating of “Moderate Buy” and a consensus price target of $554.73.

Check Out Our Latest Stock Analysis on Microsoft

Microsoft Stock Performance Shares of Microsoft stock opened at $393.35 on Wednesday. The stock’s fifty day moving average is $397.04 and its two-hundred day moving average is $406.36. The company has a market capitalization of $2.92 trillion, a PE ratio of 23.41, a price-to-earnings-growth ratio of 1.19 and a beta of 1.13. The company has a quick ratio of 1.27, a current ratio of 1.28 and a debt-to-equity ratio of 0.08. Microsoft Corporation has a 52 week low of $349.20 and a 52 week high of $555.45.

Microsoft (NASDAQ:MSFT – Get Free Report) last released its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share for the quarter, topping analysts’ consensus estimates of $4.06 by $0.21. The business had revenue of $82.89 billion for the quarter, compared to analyst estimates of $81.44 billion. Microsoft had a return on equity of 31.94% and a net margin of 39.34%.The business’s revenue was up 18.3% compared to the same quarter last year. During the same quarter last year, the firm posted $3.46 earnings per share. As a group, analysts expect that Microsoft Corporation will post 16.7 earnings per share for the current year.

Microsoft Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Thursday, August 20th will be paid a $0.91 dividend. This represents a $3.64 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Thursday, August 20th. Microsoft’s dividend payout ratio (DPR) is currently 21.67%.

Key Stories Impacting Microsoft Here are the key news stories impacting Microsoft this week:

Positive Sentiment: Microsoft unveiled its first in-house cybersecurity AI model, MAI-Cyber-1-Flash, along with Project Perception, an agentic platform designed to detect and respond to AI-powered attacks. The products could strengthen Microsoft’s enterprise security position and create additional demand for Azure and security services. Microsoft launches AI cybersecurity model and defense platform Positive Sentiment: Analysts remained bullish ahead of earnings. Citizens JMP reaffirmed a Market Outperform rating with a $550 target, while Piper Sandler maintained an Overweight rating and a $540 target—well above Microsoft’s recent trading range. Microsoft stock moves higher Positive Sentiment: Microsoft’s expanding partnerships and integrations across Azure, Dynamics 365 and Microsoft 365 Copilot support the argument that its broad enterprise ecosystem can monetize AI spending over time. Morgan Stanley estimates major technology companies could achieve 25%–50% returns on AI investments. AI capital expenditure plans Insider Activity at Microsoft In related news, EVP Takeshi Numoto sold 4,500 shares of Microsoft stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $402.84, for a total transaction of $1,812,780.00. Following the completion of the sale, the executive vice president owned 47,468 shares in the company, valued at $19,122,009.12. This trade represents a 8.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Amy Coleman sold 1,262 shares of the business’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $411.34, for a total transaction of $519,111.08. Following the completion of the sale, the executive vice president directly owned 46,003 shares of the company’s stock, valued at approximately $18,922,874.02. This trade represents a 2.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 23,762 shares of company stock worth $10,508,361 in the last 90 days. 0.03% of the stock is owned by corporate insiders.

Microsoft Company Profile (Free Report)

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft’s product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

See Also Five stocks we like better than Microsoft These 3 Stocks Have Soared in 2026—Can They Keep Climbing? Hasbro’s Earnings Beat Shows Why This Is No Longer Just a Toy Story Rambus: Another AI Phoenix Ready to Rise From the Ashes of Correction Chips & Clips: Memory Tariffs Rewire Tech Supply Chains

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Microsoft (MSFT, Financials), the software and cloud computing company, faces an unusually high-stakes earnings report as options traders price in a market value swing of about $190 billion.

The company's options imply a move of roughly 6.6% in either direction after fiscal fourth-quarter results. That is above the average implied move of 4.8% across Microsoft's past 12 earnings cycles.

The elevated pricing reflects growing concern over whether heavy artificial intelligence spending is producing enough revenue and customer adoption.

Microsoft's fiscal third-quarter capital spending rose 49% from a year earlier to $31.9 billion. Investors will focus on Azure growth and demand for AI tools across the company's software ecosystem.

The stock has fallen 18.7% this year, compared with an 8.5% gain for the S&P 500, increasing pressure on management to show that infrastructure investments are generating returns.

Some traders remain bullish. One investor spent about $10.4 million on call options tied to a bet that Microsoft shares would rise above $450 by August.

Investors will now watch cloud growth, AI adoption and guidance for signs that Microsoft's spending cycle is beginning to translate into stronger cash flow.

Gil Luria of DA Davidson says Microsoft will be the key company to watch during this earnings season and it all has to do with spending on artificial intelligence and capex. Microsoft and Meta Platforms both report after the bell on Wednesday.

Microsoft is scheduled to report earnings after the closing bell today, with traders anticipating a big move from the software giant's stock.

Signage for Microsoft is seen through glass at National Retail Federation (NRF) 2026: Retail's Big Show, in New York City, U.S., January 12, 2026. REUTERS/Kylie Cooper/File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesMicrosoft's options imply 6.6% move post earnings, ORATS data showMicrosoft is seen as a key AI-related earnings storyInvestors watching for signs AI investments are translating into returnsNEW YORK, July 29 (Reuters) - Options traders expect a roughly $190 billion swing in Microsoft's (MSFT.O), opens new tab market value after it reports earnings ​on Wednesday, an unusually large move that underscores investors' growing eagerness to see if billions of dollars in AI spending ‌are beginning to pay off.

The tech company's options imply a move of about 6.6% in either direction after the company reports fourth-quarter results. By comparison, over the last 12 earnings cycles, Microsoft has averaged a 4.8% implied move and a 4.4% actual move, Option Research & Technology Services (ORATS) data showed.

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The significantly higher pricing this quarter suggests ​that investors view Microsoft — one of the hyperscalers whose massive AI capital spending is at the heart of this year's AI rally ​and the broader bull market — as central to the AI earnings story.

With the AI trade now faltering, investors who ⁠flocked to technology stocks are growing wary of ever-rising costs.

At their current trajectory, the hyperscalers are expected to spend more combined on capital ​expenditures than they generate in free cash flow by 2027, Reuters reported last week.

"The market is looking for results," said Seth Hickle, chief investment officer at ​Mindset Wealth Management. "This earnings season is about AI execution, not AI enthusiasm."

Microsoft's shares have fallen 18.7% this year, while the S&P 500 (.SPX), opens new tab is up 8.52%. Its fiscal third-quarter capital expenditure rose 49% year-over-year to $31.9 billion, down from the previous quarter's $37.5 billion.

Investors will be watching whether Microsoft's AI investments are translating into stronger enterprise adoption.

Beyond its Azure ​cloud computing platform growth, they are also eyeing whether customers are embracing Microsoft's AI tools within its ecosystem or turning to outside providers.

"Investors ​have seen the AI spending. Now they want to see the receipts," said Peter Andersen, founder and CEO of Andersen Capital Management. "FOMO 'Fear of Missing Out' is now 'Fear ‌of Massive ⁠Overbuilding'."

INVESTORS STILL BULLISH ON SECTORStill, many investors remain bullish. A trader spent about $10.4 million on Monday to buy 20,000 call options tied to Microsoft's stock ahead of earnings, betting the shares will rise above $450 by August, according to Chris Murphy, co-head of derivatives strategy at Susquehanna, a market maker. Calls give the buyer the right to purchase a stock at a set price by a specific date.

"Investors were willing to pay high ​option premiums for upside exposure," said ​Murphy, despite recent stock underperformance, ⁠which has prompted Microsoft to cut jobs and restructure its Xbox-related business.

Investors also made bullish bets on the software sector, buying 100,000 call options on the iShares Expanded Tech-Software Sector exchange-traded fund ahead of Microsoft's earnings and ​the Federal Reserve's meeting, reflecting confidence in both the stock and the broader software sector, Murphy said.

INVESTORS ALSO ​WATCHING META'S AI ⁠SPENDINGMeta (META.O), opens new tab options imply a 7.8% move after it reports results on Wednesday, slightly above the 7.3% average implied move over the last 12 earnings cycles, according to ORATS data. Historically, Meta's stock tends to move slightly more than options markets anticipate, averaging 7.9%.

Matt Amberson, founder of ORATS, said earnings-related volatility has ⁠increased over ​the past year, with particularly large reactions in the last three quarters.

Investors will focus ​on the strength of Meta's core advertising business, the impact of AI on engagement and advertising efficiency, and whether the returns from its expanding infrastructure investments can justify the level ​of spending, said Matthew Smart, chief investment officer at WWM Investments.

Reporting by Laura Matthews in New York; editing by Michelle Price and Rod Nickel

Our Standards: The Thomson Reuters Trust Principles., opens new tab

HomeEarnings AnalysisTech 

SummaryMicrosoft’s Q4 FY2026 earnings will test whether its massive AI investment cycle is translating into meaningful financial returns, with investors focused on Azure growth, Copilot monetisation, free cash flow, and forward guidance rather than headline EPS or revenue.Capital expenditure remains the biggest swing factor, as Microsoft’s Capex-to-Revenue ratio has climbed to a record high among the Magnificent 7. Any increase in AI spending without clear evidence of stronger monetisation could weigh on investor sentiment despite an earnings beat.Microsoft has lagged other AI beneficiaries during the latest market rally, underperforming semiconductor stocks that have benefited directly from hyperscalers’ AI infrastructure spending, raising questions over when Microsoft’s AI investments will deliver stronger shareholder returns.Technical indicators continue to favour a bearish medium-term outlook, with Microsoft trading below its 50-day moving average and forming a potential major Head & Shoulders topping pattern. A break below 372.10 could reinforce a broader corrective decline unless the stock reclaims 413.60. lcva2/iStock Editorial via Getty Images

By Kelvin Wong

Since the start of the current medium-term bullish trend phase of the US stock market from June 30, 2026 until July 28, 2026, the major US hyperscalers (part of the Magnificent 7 cohort of mega-cap

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Download this episode on Apple Podcasts/Spotify or listen below:

Meta's (META) record slide sets up earnings test. (00:14) All eyes on Microsoft (MSFT) earnings. (01:17) Amazon's (AMZN) grocery push is working. (02:31)

This is an abridged transcript.

Meta Platforms (META) reports second-quarter earnings after the closing bell today, following its longest losing streak on record.

The stock has fallen for nine consecutive trading sessions, sliding nearly 12% from its July intraday high of $681.90 to $593.41 ahead of the earnings release.

From a technical perspective, META is trading below its 50-day moving average ($605.62), 100-day moving average ($614.70), and 200-day moving average ($637.48), while its 14-day Relative Strength Index has fallen to 43, signaling weakening momentum.

Options traders are pricing in a move of about 6.95% in either direction following the results, reflecting expectations for elevated volatility.

Wall Street expects Meta to report earnings per share of $7.40 on revenue of $60.29B. Investors will be watching for updates on AI-powered advertising tools, AI infrastructure spending, capital expenditures, and forward guidance as the company continues its aggressive investment in artificial intelligence.

Microsoft (MSFT) is also set to post earnings today after the bell.

For the fourth quarter, investors are keeping an eye on the Azure cloud business as well as capital spending for the year.

Wall Street expects Microsoft to post EPS of $4.24 on revenue of $87.63B, implying a rise of 14.8% during the quarter.

Traders are pricing in a post-earnings move of about 6.23% in either direction.

Tech giants including Microsoft, Alphabet (GOOG) (GOOGL), Meta Platforms (META) and Amazon (AMZN) are pouring hundreds of billions of dollars into cloud and AI infrastructure, aiming to capitalize on the rapidly growing demand. Although investors have so far rewarded these companies and their aggressive AI investment, some are now seeking tangible returns.

In calendar year 2026, Microsoft said it plans to invest about $190B in capital expenditures, which exceeds analyst forecasts for spending of over $150B.

Investors will closely monitor Microsoft Copilot monetization, especially after the company has come under scrutiny that the AI chatbot and assistant is falling behind.

Amazon (AMZN) saw the biggest increase in grocery market share in the U.S. over a one-year period that ended on June 30

According to tracking by Numerator, Costco (COST), Walmart (WMT), Trader Joe's, and Aldi also added market share, while H-E-B, Dollar General (DG), Publix, and Target (TGT) held steady for the same period.

Meanwhile, Kroger (KR), Albertsons (ACI) and Sam's Club (WMT), saw market share losses in the same period.

Amazon's (AMZN) grocery business is a hybrid of online delivery, physical stores, and marketplace-style grocery shopping, with the biggest emphasis now on online grocery and everyday essentials.

Amazon (AMZN) reports earnings tomorrow after the closing bell.

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Stock index futures are higher before the opening bell.

Crude oil is up 3.4% at nearly $82. Brent crude is up 3.5% at $87.

The FTSE 100 is little changed and the DAX is down 0.3%.

One stock on the biggest movers list: Avis Budget Group (CAR) -13% - Shares plunged after the car rental company missed Q2 revenue and earnings expectations, despite a sharp improvement in profitability and record fleet utilization.

Economic calendar:

2:00 pm FOMC Announcement

2:30 pm Fed Chair Press Conference

Programming note: Wall Street Lunch will be published after the FOMC announcement and press conference.

NEW YORK, July 28, 2026 (GLOBE NEWSWIRE) --

WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”), of the important August 11, 2026 lead plaintiff deadline.

SO WHAT: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.

DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit (“GPU”) and central processing unit (“CPU”) capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development (“R&D”); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft’s Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

-------------------------------

Contact Information:

        Laurence Rosen, Esq.
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        The Rosen Law Firm, P.A.
        275 Madison Avenue, 40th Floor
        New York, NY 10016
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Key Takeaways Bulls rally markets off morning lows amid geopolitical cooling.Tech is diverging from the broader market.High-stakes Wednesday catalysts loom. Wall Street Rebounds Ahead of FOMC & Big Tech EarningsToday’s Market Update:Tuesday, the wild summer volatility continued on Wall Street. However, unlike recent sessions, the bulls showed some fight and rallied stocks off the bloody red morning lows. A few positives helped to buoy equities today, including:

·       Geopolitical Cooling: Oil prices finally retreated sharply after a pause in military strikes between the U.S. and Iran and a resumption of peace talks. Lower prices have helped relieve immediate inflation fears.

·       Bullish Macro Data: Flash PMI data continues to show solid expansion in the U.S. manufacturing and services areas.

Currently, Wall Street is a tale of two markets: tech and everything else. Until the past month or so, tech stocks led the market higher. However, a combination of improving Chinese competition and credit and CAPEX spending concerns has brought many AI leaders back to earth. The divergence between tech and the general market is staggering, with the S&P 500 Index less than 3% off all-time highs. At the same time, the tech-heavy Nasdaq 100 Index ETF ((QQQ - Free Report) ) briefly went into correction territory Tuesday morning before paring losses. (defined as -10% off all-time highs).

Wednesday Will Be a Market-Moving DayBig Tech Earnings LoomAs if the market has not been volatile enough, Wednesday will be full of catalysts. Big tech giants Microsoft ((MSFT - Free Report) ) and Meta Platforms ((META - Free Report) ) will report earnings on Wednesday after the equity market closes. After the outsized post-EPS moves in reaction to increased CAPEX spending in Tesla ((TSLA - Free Report) ) and Alphabet ((GOOGL - Free Report) ), all eyes will be on CAPEX guidance. You can read my Q2 META EPS Preview here.

Key Fed Decision DayMeanwhile,Kevin Warsh will have a chance to prove his mettle as Fed Chair in a difficult environment. According to reports, Citadel expects the Fed to raise interest rates this week – which would be a huge surprise. That said, betting markets like Polymarket have high conviction that there will be no change in rate policy (80% odds). Typically, I defer to betting markets as they represent real dollars at risk.

Bottom Line

Tuesday offered some relief for beaten-down bulls. However, Wednesday will likely be another volatile session with big tech earnings and a Fed interest rate decision on deck.

Four Magnificent Seven stocks report quarterly financial earnings this week, setting up for potential high volatility among technology sectors and several of the top market indexes. A poll of Benzinga viewers picks which report may be the top one to watch.

Magnificent Seven Earnings on DeckIt’s a busy week for earnings, with many top names reporting quarterly financial results, including four Magnificent Seven stocks. Here are the reports to watch this week.

Meta Platforms (NASDAQ:META) Q2 earnings, Wednesday after market close Microsoft Corporation (NASDAQ:MSFT): Q4 earnings, Wednesday after market close Amazon.com Inc (NASDAQ:AMZN): Q2 earnings, Thursday after market close Apple Inc (NASDAQ:AAPL): Q3 earnings, Thursday after market close While all four reports could be important to investors and the overall markets, Benzinga asked its viewers to pick which report they might be most closely watching this week.

"Which Mag 7 earnings report are you watching closest this week?" Benzinga asked viewers of Tuesday’s "PreMarket Playbook" episode.

The results are:

AMZN: 33% AAPL: 26% MSFT: 23% META: 18% Of the more than 200 votes, Amazon.com won the poll with a third of the votes. This comes with Amazon one of the two Mag 7 stocks reporting this week that is currently up year-to-date. The other positive 2026 performer of the four (Microsoft) ranked second with 26% of the vote.

Overall, it was a fairly close vote.

"PreMarket Playbook" runs daily Monday through Friday on Benzinga’s YouTube page at 8 a.m. ET and is hosted by Ryan Faloona.

Importance to MarketsThe four Magnificent Seven stocks make up large percentages of three of the major stock market indexes and the ETFs that track them.

In the SPDR S&P 500 ETF Trust (NYSE:SPY), the four stocks make up 18%, with the following weightings:

Apple: 7.8%, second largest holding Microsoft: 4.5%, third largest holding Amazon.com: 3.6%, fourth largest holding Meta: 2.1%, eighth largest holding In the Invesco QQQ Trust (NASDAQ:QQQ), the four stocks make up 19.9% of assets, with the following weightings:

Apple: 8.3%, largest holding Microsoft: 4.8%, second largest holding Amazon.com: 4.2%, fifth largest holding Meta: 2.9%, 10th largest holding Three of the four stocks are also members of the Dow Jones Industrial Average. The three stocks in the index make up the following holdings in the SPDR Dow Jones Industrial Average ETF (NYSE:DIA):  

Microsoft: 4.4%, fifth largest holding Apple: 3.8%, ninth largest holding Amazon.com: 2.7%, 17th largest holding Based on percentages in the three ETFs, Apple would be the most important earnings report of the four this week. Microsoft ranks second and is a top five holding in all three ETFs.

Stock PerformanceThe poll emphasized the stocks with the best year-to-date performance in 2026. Here are the current YTD returns of the four stocks:

AMZN: +2.2% AAPL: +25.4% MSFT: -15.6% META: -8.6% While Benzinga readers are most interested in Amazon.com and Apple, an argument could be made that Microsoft and Meta stocks have more upside after a strong beat-and-raise and positive capex commentary, given the shares are currently lagging the overall market.

Watch Tuesday’s “PreMarket Playbook” episode below:

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Big Tech companies increasingly have to justify their heavy artificial-intelligence spending to investors, and Microsoft's stock has proven a major battleground for this trend.

"I would not jump to the alarm bell" when it comes to the AI trade's substantial selling action, says Ted Thatcher, pointing to Alphabet (GOOGL) as a bellwether for the Mag 7 in AI spending and ROI. He expects Microsoft (MSFT), Meta Platforms (META), and Amazon (AMZN) to all raise CapEx for 2026 but also sees these Big Tech giants benefitting from it long-term.

Here are the earnings estimates, what analysts are saying ahead of the report and key items to watch.

Microsoft Q4 Earnings EstimatesAnalysts are expecting the company to report revenue of $87.61 billion and earnings per share of $4.23, up from $76.44 billion and $3.65 year-over-year, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in 13 straight quarters and for earnings per share in 15 straight quarters.

What Analysts Are SayingCitizens analyst Patrick Walravens says a recent letter on open weights and AI leadership in America could be drawing battle lines in the AI sector.

The analyst maintains a Market Outperform rating and $550 price target on the stock ahead of earnings.

"While investors have concerns about competition from the frontier models, seat-based licenses, and the extent of capital expenditure in the next year, we continue to like the stock for several reasons," Walravens said.

The analyst said Microsoft CEO Satya Nadella has a differentiated vision of AI sovereignty, the company is building an end-to-end AI tech stack and the company’s total addressable market could be $5.1 trillion by 2030.

"Microsoft continues to have a very attractive financial profile, with revenue growth accelerating to 17% in FY26, from 15% in FY25."

The analyst said they like the "steady leadership" of Nadella.

Walravens says the stock is justified at a premium to its peer group with its growth, leadership team and vision on AI sovereignty.

Guggenheim analyst John DiFucci sees Microsoft meeting estimates for the fourth quarter, but sees some risk with the company’s Windows business.

"Most of the upside we expect for both upcoming quarters resides in Productivity and Business Processes and Intelligent Cloud," DiFucci said.

The analyst maintained a Buy rating and price target of $586 ahead of earnings.

While Windows could disappoint, DiFucci highlights the growth of the company’s Azure segment, estimating quarter growth of 39% to 40% year-over-year.

Key Items to WatchThe company said overall Microsoft Cloud revenue was up 29% year-over-year in the third quarter with Azure and other cloud services revenue up 40% year-over-year in the quarter.

Microsoft also highlighted its AI business hitting an annual revenue run rate of $37 billion.

Analysts and investors will be watching for cloud revenue and the AI annual revenue run rate. The company’s capex will also be one of the top-watched figures from the quarterly results.

One of four Magnificent Seven stocks reporting this week, Microsoft’s financial results could have a big impact on several market indexes and sector ETFs.

The company is the third-largest holding in the SPDR S&P 500 ETF Trust (NYSE:SPY) at 4.5% of assets.

In the SPDR Dow Jones Industrial Average ETF (NYSE:DIA), Microsoft is the fifth largest holding at 4.4% of assets.

In the Invesco QQQ Trust (NASDAQ:QQQ), Microsoft is the fourth largest holding at 4.7% of assets.

Overall, Microsoft is a top five holding across the S&P 500, Dow Jones Industrial Average and Nasdaq 100 ETFs, making it one of the most important reports of the week.

Microsoft Stock Price ActionMicrosoft stock is up 2.40% to $398.43 on Tuesday versus a 52-week trading range of $349.20 to $555.45. Microsoft stock is down 16.2% year-to-date in 2026.

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Microsoft (NASDAQ: MSFT | MSFT Price Prediction) and Meta (NASDAQ: META) both delivered blockbuster last quarters, yet investors are already looking past those beats to the July 29 reports.

Microsoft stock has retreated sharply in the past few months, moving from a record high of $556 in October last year to $390. This retreat has pushed its market capitalization from over $3.89 trillion to $2.9 trillion today. This article highlights what to expect as its fourth-quarter earnings loom.

MSFT stock has plunged in the past few months as investors remain concerned about its massive capital spending plans. 

In its last financial results, the company said that its capital expenditure will be $190 billion. That will be a 61% increase from what it spent last year, and is partly because of the rising cost of memory, semiconductors, and server costs. 

As we saw with Alphabet last year, a decision to boost its capex will likely drag the stock lower. Google stock has dropped by nearly 20% from its highest point this year.

Investors are concerned about the return on investment (RoI) of all these investments over time. Specifically, they are concerned about Copilot, its flagship AI product. Despite huge investments, which has a market share of about 10%. It severely lags behind other platforms like Claude and ChatGPT.

Most notably, many companies are not using the platform as widely expected. For example, while the platform has over 218 million users, only 15 million users are paying for the platform, and the growth may decelerate. 

There are also concerns about the disruption by other companies, especially the Chinese. Data shows that Kimi has become one of the most advanced models in the LLM industry. Other Chinese models like Qwen and GLM are also gaining market share. 

Analysts expect that Microsoft’s growth grew at a slower pace than it did in the past. The average estimate among analysts is that its revenue grew by 14.70% in the quarter to $87.67 billion. Its earnings growth is expected to come in at 16% to $4.24. 

In addition to the topline number, traders will watch out for the AWS growth. The most recent earnings showed that its intelligence cloud growth rose by 28% in the third quarter to $34.7 billion. Its productivity and business processes rose by 13% to $35 billion, while its more personal computing segment dropped by 3% to $13.2 billion.

Microsoft stock has become a bargain, with its forward price-to-earnings ratio falling to 22.76. This multiple is slightly lower than the sector median of 24 and the five-year average of 32. Similarly, the company has a rule-of-40 metric of 64%. These metrics mean that the company may decide to boost its dividends and buybacks.

Microsoft stock chart | Source: TradingView

The daily chart shows that Microsoft shares have been in a downtrend in the past few months. As a result, it has dropped below all moving averages, a sign that bears are in control.

The stock has formed a double-bottom pattern at $355 and a neckline at $465, its jighest point on June 1. This pattern often leads to a rebound. The two lines of the MACD indicator are about to cross the zero line.

Therefore, the stock will likely bounce back after its earnings report on Wednesday. The options market is pricing in a 8% move after its earnings, with its put-to-call option being at 0.42.