Going Into Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?

Microsoft MSFT is set to release its fiscal third-quarter 2026 earnings report on April 29. Here’s Morningstar’s take on what to look for in Microsoft’s earnings and the outlook for its stock.

Key Morningstar Metrics for Microsoft

• : $600.00
• : ★★★★★

• Morningstar Economic Moat Rating

  : Wide

• Morningstar Uncertainty Rating

  : Medium

Microsoft Earnings Release Date

• Wednesday, April 29, after the close of trading

What to Watch for in Microsoft’s Fiscal Q3 Earnings

• We believe Azure has been generally strong but capacity-constrained. Management has been talking about the capacity issues fading away, but the timing keeps getting pushed out. Business has been booming because of artificial intelligence. Last quarter, Azure was ahead of guidance, but the March-quarter guidance was slightly shy. The big controversy was the company’s plan to dedicate some portion of Azure usage to internal demand.
• We’ll look for any commentary about remaining performance obligations after the surge…