Overview
- Microsoft will report fiscal fourth‑quarter results after the market close on Wednesday with Wall Street expecting about $87.7 billion in revenue and roughly $4.24–$4.25 in earnings per share.
- Analysts say Azure and the Intelligent Cloud are the key barometers and that roughly 39–41% year‑over‑year Azure growth would help ease concerns about the company’s large AI spending.
- The company has told investors it plans about $190 billion in capital expenditures for calendar 2026, a level that has already pushed free cash flow lower and lifted scrutiny of future margin trends.
- Options traders price in potential stock swings of about plus or minus 6% around the report as shares trade roughly 18–20% below their January levels.
- Microsoft’s remaining performance obligations are expected to jump about 72% to roughly $647.6 billion, which shows a large backlog but also raises questions about how quickly contracted AI demand will convert into cash and margin gains.