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Microsoft’s Fiscal Q1 Earnings Are Ahead - Here Are 6 Things Worth Watching

Microsoft shares moved lower Wednesday afternoon as investors awaited fiscal first-quarter results and weighed Azure-focused analyst calls.

By Damilola Esebame, CFEI® , Edited by Laura Hohenstein

Updated Oct. 28, 2026

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Microsoft (NASDAQ: MSFT) traded at $526.61 in Wednesday afternoon trading, a change of -$4.72, or -0.89%, from the previous close of $531.33. Because the stock anchors so many 401(k) and index portfolios, tonight's results could shift where you stand financially heading into year-end.

The stock is in focus because Microsoft is scheduled to report fiscal first-quarter 2027 results after the close, with Wall Street watching Azure growth and AI spending.

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Shares gave background

Microsoft opened at $531.79 and moved below its prior close during the session. The stock touched a day high of $534.57 before falling to a low of $526.47.

That left shares trading near the bottom of the day's range in the afternoon. The move came before the company's earnings release, not after it.

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Earnings arrive after close

Microsoft is scheduled to report fiscal first-quarter 2027 results after the market closes on October 28. The company's conference call webcast is set for 2:30 p.m. Pacific Time.

That timing puts the stock in focus across the technology sector today. The report will give investors fresh numbers on cloud demand, software sales, and the cost of building out AI infrastructure.

Estimates set the bar

Analysts expect Microsoft to report fiscal first-quarter revenue of $90.75 billion, based on estimates compiled by Fiscal.AI. They also expect adjusted earnings of $4.72 per share.

Those numbers are the baseline Wall Street will compare with the actual results. Guidance will also matter because the stock has already been trading near high levels ahead of the report.

Guidance is management's view of where the business is headed. It can shape how investors read the quarter even when the latest results beat expectations.

Azure is the pressure point

Oppenheimer raised its Microsoft price target to $625 from $570 and kept an 'Outperform' rating ahead of the report. Truist analyst Terry Tillman raised his target to $600 from $575 and kept a 'Buy' rating.

Both target hikes were tied to the outlook for Azure and Microsoft 365 growth, while analysts also focused on AI demand and infrastructure capacity. Azure is Microsoft's cloud computing platform.

Cloud computing lets companies rent computing power, storage, and software over the internet instead of running everything on their own hardware. Azure is central to Microsoft's AI story because many AI services run in the cloud.

Recent beats were not enough

Microsoft has beaten estimates in each of the last four quarterly reports listed in recent earnings setup data. The stock still fell after three of those four reports.

The January report showed why the bar is high. Azure growth of 38% beat guidance, but the stock still fell about 10% after the report.

That history puts extra attention on the company's forward-looking comments. Market watchers are likely to separate the headline earnings beat or miss from the details on Azure, AI demand, and spending.

Buyouts add cost focus

Microsoft also offered voluntary buyouts to around 60,000 employees. Reuters reported that the offer covers more than a quarter of its global workforce, although the final number of departures will depend on participation.

Voluntary buyouts are offers that pay employees to leave under agreed terms. The move puts cost control in focus at a time when Microsoft is spending heavily on AI infrastructure.

That spending includes data centers, chips, and other systems needed to support AI products. Reuters reported that Microsoft has forecast $175 billion in capital expenditures for the 2026 calendar year.

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Bottom line

MSFT was lower in Wednesday afternoon trading while the market waited for Microsoft's fiscal first-quarter results. The report is a key data point for anyone deciding whether to start investing in big-tech names riding the AI wave. The main questions are whether Azure growth supports recent optimism, whether AI spending stays manageable, and how management frames demand for the rest of the fiscal year.

This article is for informational purposes only and should not be considered investment advice.

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