By Todd Bishop
Publication Date: 2026-04-27 12:00:00
The last time Microsoft reported earnings, it seemed to do everything right, at least by the traditional metrics. Revenue was up 17%, profits soared 24%, and the company’s closely watched Azure cloud business beat internal forecasts.
And then it got absolutely punished.
Microsoft’s stock dropped 10% the next day, wiping out $357 billion in market value. Investors looked past the traditional numbers, focusing on the company’s record $37.5 billion in quarterly capital spending, an AI revenue backlog heavily dependent on OpenAI, and a Copilot product that had reached just 3.3% of Microsoft 365’s commercial base.
The stock still hasn’t recovered, finishing last week down 22% from its 52-week high.
On Wednesday, Microsoft gets another chance, reporting its fiscal Q3 results after the market closes. Here’s a preview of the key numbers and storylines to watch.
Core earnings estimates: Analysts expect Microsoft…
