Microsoft to Report Q2 Results on Jan 28, AI Business May Be Turning Point
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Should l Buy MSFT?
Source: Fool
- Earnings Report Anticipation: Microsoft is set to announce its fiscal 2026 second-quarter results on January 28, with investors looking for further growth in its AI-related software and cloud businesses, especially after an 11% decline in stock price over the last three months, which could mark a turning point.
- Copilot Adoption Update: As of the fiscal 2026 first quarter, 90% of Fortune 500 companies are using Copilot, with global enterprises paying for over 400 million licenses for the 365 platform, indicating strong market demand that is expected to drive Microsoft's revenue growth.
- Azure Growth Acceleration: Microsoft's Azure cloud computing platform achieved a 40% revenue growth in the fiscal 2026 first quarter, with demand for AI data center capacity outstripping supply, resulting in a $392 billion order backlog, leading to plans to double data center capacity over the next two years.
- Stock Attractiveness: With Microsoft’s stock down 11% from its record high and a P/E ratio of 34.1, analysts project earnings of $15.75 per share by the end of fiscal 2026, suggesting a realistic 15% price increase potential over the next six months if growth continues.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 399.410
Low
500.00
Averages
631.36
High
678.00
Current: 399.410
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.
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- Market Potential Exploration: Currently, Microsoft has only 15 million paying Copilot accounts, while there are 450 million Microsoft 365 commercial customers, indicating significant potential for Microsoft to tap into a larger pool of high-paying AI customers who have yet to upgrade.
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- Labor Shortage Crisis: Randstad's analysis indicates a 107% increase in demand for robotic technicians and a 67% rise for HVAC engineers from 2022 to 2026, highlighting the escalating labor shortage as AI infrastructure demand surges, which may lead to overall wage increases in the sector.
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