Microsoft's Earnings Expectations for Q2 2026

Microsoft is set to release its fiscal second-quarter earnings after the market closes on January 28, 2026. Analysts anticipate that the company will report an adjusted earnings per share of $3.97 and revenue of $80.27 billion.

This revenue figure indicates a 15% increase compared to the same quarter last year, which ended on December 31, 2025.

Cloud Growth Projections

Investors are particularly focused on Microsoft's Azure cloud services. Analysts surveyed expect Azure's growth to slow down, with projections of 39.4% growth from one source and 38.9% from another.

This follows a significant 40% growth in the previous quarter, marking three consecutive quarters of acceleration. As companies increasingly adopt cloud technologies, Microsoft's services are under close scrutiny.

Capital Expenditures on the Rise

Microsoft's capital expenditures and finance leases are projected to reach approximately $34.31 billion for the quarter, representing a notable 52% increase.

This surge is attributed to Microsoft's ongoing investments in data centers and cloud infrastructure, which are necessary to support its growing cloud business and the demand for artificial intelligence capabilities.

Market Performance and Stock Trends

In recent months, Microsoft has faced challenges in the stock market, with its shares falling around 10% in the past three months.

This decline contrasts with the S&P 500 index, which has seen a modest gain of 1% during the same period. Investors are closely watching how the upcoming earnings report will impact Microsoft's stock performance.

Looking Ahead

During the quarter, Microsoft announced a $250 billion cloud commitment from OpenAI, further solidifying its position in the artificial intelligence and cloud sectors.

This partnership is expected to enhance Microsoft's capabilities and expand its cloud service offerings. Additionally, the company has also indicated plans to raise prices on commercial Office productivity software subscriptions, which could affect revenue moving forward.

The analyst conference call, where Microsoft executives will discuss the earnings results and provide guidance, is scheduled to take place at 5:30 p.m. ET on January 28, 2026. Investors and analysts alike will be keen to hear updates on Microsoft's cloud strategy, growth outlook, and responses to market conditions.