Microsoft Reports Earnings After the Bell: Here Are the 3 Biggest Questions I Have

It's a large time successful the tech world, with respective companies successful the "Magnificent Seven," including Microsoft (NASDAQ: MSFT), acceptable to study net results aft the marketplace closes today.

As astir investors know, it's been a hard twelvemonth for Microsoft, which closed retired its worst 4th since 2008 successful the archetypal quarter, with shares down astir 23%. Since then, arsenic tensions successful the Iran warfare person somewhat de-escalated, the banal has bounced backmost and is present down lone astir 10% this year.

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Wall Street analysts are expecting Microsoft to study net per stock of $4.06 connected gross of astir $81.4 cardinal successful the company's fiscal 2026 3rd quarter. Management antecedently guided for yearly gross maturation of 37% to 38% successful its Azure unreality part connected a changeless currency ground successful the 3rd quarter, suggesting a akin level to the erstwhile quarter, erstwhile Azure experienced 38% growth.

The large questions I person heading into net are each astir artificial intelligence, including however the broader assemblage looks done Microsoft's lens and however AI initiatives are progressing astatine the company.

Azure, Copilot, and OpenAI

The astir evident archetypal question I person is regarding maturation successful Microsoft's Azure and different unreality services division, which has been incredibly beardown successful caller quarters and reflects however the institution tin payment financially from AI.

Companies wage Microsoft to usage its Azure unreality services for a assortment of purposes, including information centers and AI services that assistance bid and deploy AI models. This is great, but it besides depends connected the AI assemblage continuing its astounding growth.

For instance, past quarter, Microsoft disclosed that 45% of its Azure backlog is from OpenAI, the genitor institution of ChatGPT, which Microsoft has invested billions in.

Recent reports suggest OpenAI whitethorn beryllium struggling to conscionable gross targets. While I don't deliberation determination volition beryllium immoderate existent interaction connected Microsoft's upcoming net report, I volition beryllium funny to spot if absorption offers immoderate insights into wide compute demand.

Speaking of OpenAI, the institution and Microsoft precocious some announced that they person revised their concern agreement.

Microsoft volition stay the company's superior unreality spouse and volition proceed to person revenue-share payments from OpenAI done 2030. However, OpenAI volition present beryllium capable to service customers connected immoderate unreality provider, portion the statement for Microsoft to licence the intelligence spot for its models and products volition nary longer beryllium exclusive.