Microsoft (MSFT) Expected to Report 18% Revenue Growth in Q2 FY2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Significant Revenue Growth: Microsoft achieved an 18% revenue increase across all businesses, reaching $77.7 billion, demonstrating strong performance in cloud computing and AI, thereby boosting investor confidence in its long-term growth potential.
- High Gross Margin: With a gross margin of 69% on $77.7 billion in revenue, Microsoft reflects efficient operations and maintains strong profitability in a competitive market, which is crucial for sustaining investor interest.
- Dividend Appeal: Microsoft pays a quarterly dividend of $0.91, providing an attractive option for investors seeking a balance of growth and income, despite its stock price rising only 1% over the past 12 months.
- Long-Term Investment Value: Although the stock has seen over a 6% decline year-to-date, Microsoft remains a premier choice for long-term investors, particularly as part of the Magnificent 7, driven by its cloud and AI strategies.
Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 451.140
Low
500.00
Averages
631.36
High
678.00
Current: 451.140
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
