Why I’m Staying on the Sidelines Headed Into Microsoft’s Earnings Report

Why I’m Staying on the Sidelines Headed Into Microsoft’s Earnings Report

By Daniel Sparks, The Motley Fool
Publication Date: 2026-04-25 17:21:00

Shares of Microsoft (NASDAQ: MSFT) have rallied recently, rising about 14% over the last 30 days as of this writing. The move comes ahead of the software and cloud giant’s fiscal third-quarter earnings report, which is scheduled for after the market closes on Wednesday, April 29.

A move like this suggests investors are optimistic about the stock headed into its earnings report on Wednesday. But are they right?

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While guessing how a stock will move following an earnings report is virtually impossible, we can at least look at the stock’s long-term attractiveness heading into the report: Is Microsoft’s recent business momentum strong enough to support the valuation investors are paying today?

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Microsoft’s fiscal second…