Will Microsoft's Q2 Earnings support analysts upbeat view?
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Microsoft (NASDAQ:MSFT) is scheduled to announce Q2 earnings results on Tuesday, January 25th, after market close.
The consensus EPS Estimate is $2.32 and the consensus Revenue Estimate is $50.78B (+17.9% Y/Y).
Quick look at Profitability Grade and underlying metrics:




Over the last 2 years, MSFT has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 20 upward revisions and 3 downward. Revenue estimates have seen 25 upward revisions and 0 downward.
Microsoft expects FQ2 Windows commercial products and cloud services revenues to grow in the low double-digit range, driven by demand for Microsoft 365 and advanced security solutions.
Its gaming segment is seen benefitting from increases in adoption of Game Pass subscription service and Xbox Live monthly active users; revenues are expected to be up in high-single digits.
Last week, Microsoft announced that it is buying Activision for $68.7B in one of its biggest moves it has ever made in the videogame market; deal expected to close in FY23.
"Based on our recent checks we believe the company saw another robust performance in the December quarter led by Azure/Office 365 with our expectations to see a ~3% top-line beat and upside across the board which should be a major boost in the arm for the overall tech sector looking ahead," Wedbush analyst Dan Ives commented as cited by Barrons.
Ives believes major cloud deals are up more than 50% at Microsoft, with âclear momentumâ into 2022 as deal sizes also increase. Read more.
Last week, Bank of America analyst Brad Sills reiterated his upbeat view of Microsoft due to expectations for "sustained strength" across the company's key business franchises.
Recent earnings Analysis from our contributors: Microsoft Earnings Preview: Will Good Be Good Enough?

While on YTD basis the stock lost 12%, in today's trading session MSFT touched a low of $276.42 in its intraday trading ahead of its Q2 earnings.

Wall Street Analysts rating stands at Strong Buy for the stock.