Microsoft (MSFT) Down 7.3% Since Last Earnings Report: Can It Rebound?

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• Microsoft 365 commercial paid seats grew 6% year over year, with installed base expansion occurring across all customer segments, concentrated primarily in small and medium business offerings and frontline worker categories

  80% confidence

• More than 90% of Fortune 500 organizations now utilize Microsoft 365 Copilot, with major enterprise customers deploying tens of thousands of seats

  80% confidence

• Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising

  80% confidence

• Microsoft Fabric revenues grew 60%, outpacing other data and analytics platforms in the industry, with the customer base expanding to 28,000 paid subscribers

  80% confidence

• For Q3 FY2026, Productivity and Business Processes segment is expected to generate revenues between $34.25-$34.55 billion, indicating growth of 14-15%

  80% confidence

• The commercial remaining performance obligation reached $625 billion, marking 110% year-over-year growth, with the balance nearly tripling over a two-year period

  80% confidence

• Microsoft Cloud revenues totaled $51.5 billion, crossing the $50 billion quarterly threshold for the first time and growing 26% year over year

  80% confidence

• Capital expenditure is expected to decrease sequentially in fiscal third quarter due to normal variability from cloud infrastructure buildouts and timing of delivery of finance leases

  80% confidence

• The company now expects fiscal 2026 operating margins to rise slightly for the full year, aided by first-half investment prioritization and favorable impacts from revenue mix shifts

  80% confidence

• Microsoft has a Zacks Rank #3 (Hold), with expectation of an in-line return from the stock in the next few months

  80% confidence

• Commercial bookings surged 230% (228% in constant currency), significantly exceeding projections, reflecting substantial Azure commitments and expansion in large contracts exceeding $100 million

  80% confidence

• Microsoft 365 consumer subscriptions expanded to more than 90 million users

  80% confidence

• Azure and other cloud services revenue growth is expected to reach approximately 37-38% in constant currency for Q3 FY2026, as demand continues to significantly exceed available capacity

  80% confidence

• The company now counts 900 million monthly active users of AI features across its products, with over 150 million monthly active users of first-party Copilots

  80% confidence

• The company now expects to remain capacity-constrained through at least fiscal year-end, with demand exceeding current infrastructure buildout, resulting in lost revenue opportunities for Azure

  80% confidence

• Azure AI Foundry now serves a customer base exceeding 80,000 organizations, including 80% of Fortune 500 companies, with access to over 11,000 models

  80% confidence

• For Q3 FY2026, Intelligent Cloud segment revenues are projected between $32.65-$32.95 billion, suggesting growth of approximately 27-28%

  80% confidence

Data points we hold from this source