--- title: "Microsoft Heads Into 'Biggest Earnings Day Ever' Near The Bottom Of The Mag 7" type: "News" locale: "en" url: "https://longbridge.com/en/news/284583054.md" description: "Microsoft is set to report earnings in what is termed the \"biggest earnings day ever,\" with four members of the Magnificent 7, including Microsoft, Meta, Alphabet, and Amazon, reporting after the bell. Microsoft shares have fallen 22% from their 52-week high, and analysts expect earnings per share of $4.06 and revenue of $81.36 billion, reflecting year-over-year growth. Key points for investors include AI capacity and capital expenditures, as Microsoft has guided $80 billion in AI data center spending this fiscal year. The stock closed at $429.25, with analysts projecting a median price target of $571.64." datetime: "2026-04-29T13:18:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284583054.md) - [en](https://longbridge.com/en/news/284583054.md) - [zh-HK](https://longbridge.com/zh-HK/news/284583054.md) --- # Microsoft Heads Into 'Biggest Earnings Day Ever' Near The Bottom Of The Mag 7 **Microsoft Corp.** (NASDAQ:MSFT) headlines what one analyst is calling “the biggest earnings day ever,” with four members of the Magnificent 7 reporting after Wednesday’s closing bell. - _MSFT stock is moving ahead of earnings._ See the price action here.  Heading into the print, Microsoft is one of the laggards of the group. Shares have fallen roughly 22% from their 52-week high of $555.45, leaving the software giant with ground to make up against its mega-cap peers. ## What Wall Street Expects For its fiscal third quarter, Microsoft is expected to report: - Earnings per share: $4.06 - Revenue: $81.36 billion That’s according to consensus estimates compiled by Benzinga Pro and would represent year-over-year growth of 17.6% and 16.2%, respectively.  ## The Big Picture: Four Mag 7 Names In One Night “It’s the biggest earnings day ever. Four of the Mag 7 stocks are reporting on Wednesday. And Microsoft is near the bottom of the group. It’s down 22% from its 52-week high,” **Stephen Callahan,** trading behavior specialist at Firstrade, told Benzinga. With Microsoft, **Meta Platforms** (NASDAQ:META), **Alphabet Inc.** (NASDAQ:GOOGL) (NASDAQ:GOOG) and **Amazon.com Inc.** (NASDAQ:AMZN) all reporting on the same evening, “we will learn a lot in a short period of time,” Callahan said. ## What Microsoft Investors Should Watch The number one item on the checklist: capacity.  “Microsoft investors need to watch for signs that the company can keep up with AI demand. Last quarter, the company said its growth was hampered by capacity constraints,” Callahan said. That theme has been building for several quarters.  CFO **Amy Hood** warned on the previous earnings call that Microsoft would be “a little tight” on AI capacity heading into the back half of fiscal 2025, and Azure has restricted new subscriptions in parts of Virginia and Texas through 2026 as demand outpaces buildout.  ## AI Compute: The Engine — And The Bottleneck Callahan framed why this matters for the broader market. “AI Compute refers to the quantity of hardware and software infrastructure needed to train and run AI models. It’s the engine driving AI progress … The demand has increased to the point where these companies don’t have enough capacity to fill the demand,” he said. That dynamic is why Wednesday’s prints will double as a read on consumer and enterprise demand — and why tech remains a magnet for capital.  The Firstrade strategist pointed to two central questions hanging over the group: how the earnings results will indicate the overall health of consumer demand, and why tech firms are likely to remain attractive to investors despite the recent pullback. ## Capex: Can They Spend It All? The other big tell: capital expenditures. Microsoft has guided to roughly $80 billion in AI data center spending this fiscal year, and the Street wants to know if that money is actually getting deployed.   “All four of these builders of data centers are going to tell us whether they will be able to spend all the capex they’ve allocated,” Callahan said. ## MSFT Price Action Microsoft shares closed at $429.25 on Tuesday, well off the 52-week high of $555.45 set last year. Despite the pullback, 37 analysts tracked by Benzinga have a median price target of $571.64, implying meaningful upside if the company can convince investors that the AI capacity wall is a near-term issue rather than a structural one.  Microsoft has beaten EPS expectations in each of the past four quarters and Wednesday’s results will show whether that streak — and the AI trade carrying it — has another leg. **MSFT Price Action:** Microsoft shares were down 0.54% at $426.94 during Wednesday’s premarket trading, according to Benzinga Pro data. _Photo: FellowNeko / Shutterstock_ ### Related Stocks - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [FBL.US](https://longbridge.com/en/quote/FBL.US.md) - [MSFX.US](https://longbridge.com/en/quote/MSFX.US.md) - [METW.US](https://longbridge.com/en/quote/METW.US.md) - [AMZW.US](https://longbridge.com/en/quote/AMZW.US.md) - [METU.US](https://longbridge.com/en/quote/METU.US.md) - [MSFU.US](https://longbridge.com/en/quote/MSFU.US.md) - [XSW.US](https://longbridge.com/en/quote/XSW.US.md) - [MSFO.US](https://longbridge.com/en/quote/MSFO.US.md) - [AMZU.US](https://longbridge.com/en/quote/AMZU.US.md) - [MSFY.US](https://longbridge.com/en/quote/MSFY.US.md) - [MSFL.US](https://longbridge.com/en/quote/MSFL.US.md) - [DTCR.US](https://longbridge.com/en/quote/DTCR.US.md) - [AMZP.US](https://longbridge.com/en/quote/AMZP.US.md) - [GOOW.US](https://longbridge.com/en/quote/GOOW.US.md) - [GGLL.US](https://longbridge.com/en/quote/GGLL.US.md) - [AMZZ.US](https://longbridge.com/en/quote/AMZZ.US.md) ## Related News & Research - [3G Capital Exits Microsoft Stock in Major Portfolio Shift. MSFT Is Still One of the Best AI Plays Now.](https://longbridge.com/en/news/286947824.md) - [OpenAI and Anthropic now sit at the center of Big Tech’s AI cloud backlog](https://longbridge.com/en/news/287469015.md) - [Why Meta is cutting thousands while betting on AI](https://longbridge.com/en/news/287397055.md) - [As Meta lays off 10%, 7,000 employees will be moved into AI roles, source says](https://longbridge.com/en/news/286970396.md) - [Meta Platforms, Inc. $META Stake Lowered by Kepler Cheuvreux Suisse SA](https://longbridge.com/en/news/287031347.md)