Microsoft Expected to Report Q3 Earnings Amid AI Investments

Microsoft is set to report its fiscal third-quarter earnings, with analysts forecasting revenue of around $68.4 billion and earnings per share near $3.22, reflecting strong year-over-year growth driven largely by its investments in artificial intelligence and cloud computing. The company's Intelligent Cloud segment, including Azure, is expected to post robust gains, and investors are keen to assess how AI initiatives like Copilot are contributing to profit margins. While Microsoft continues to expand its AI capabilities and integration across products, questions remain about the impact of high capital expenditures, evolving tariff policies, and potential headwinds from supply chain costs. Wall Street sentiment remains bullish, with consensus price targets suggesting notable upside and the stock maintaining a Strong Buy rating from most analysts. However, some analysts have trimmed price targets due to anticipated near-term challenges in AI adoption and tariff effects. Overall, Microsoft's earnings will serve as a key indicator of both the company's AI-driven growth trajectory and its ability to navigate macroeconomic pressures.