Microsoft's Q2 Earnings Expectations Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: CNBC
- Earnings Forecast: Microsoft is set to report its fiscal Q2 results after market close on Wednesday, with analysts expecting adjusted earnings per share of $3.97 and revenue of $80.27 billion, indicating a potential year-over-year growth of 15%.
- Cloud Service Growth: Although analysts project a slowdown in growth rates for Azure cloud infrastructure and other cloud services to 39.4% and 38.9%, respectively, Azure revenue still achieved a 40% increase in the first quarter, demonstrating strong market demand.
- Increased Capital Expenditures: Analysts expect Microsoft's quarterly capital expenditures and finance leases to reach $34.31 billion, up approximately 52% year-over-year, reflecting the company's ongoing investment in cloud computing infrastructure.
- Subscription Price Increase: Microsoft announced plans to raise prices for commercial Office productivity software subscriptions this quarter, aiming to boost revenue while addressing a 10% decline in stock price over the past three months.
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Analyst Views on CRWV
Wall Street analysts forecast CRWV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CRWV is 123.23 USD with a low forecast of 68.00 USD and a high forecast of 180.00 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.
25 Analyst Rating
12 Buy
13 Hold
0 Sell
Moderate Buy
Current: 106.020
Low
68.00
Averages
123.23
High
180.00
Current: 106.020
Low
68.00
Averages
123.23
High
180.00
About CRWV
CoreWeave, Inc. is a cloud infrastructure technology company. The Company offers the CoreWeave Cloud Platform, which consists of software and cloud services that deliver the automation and efficiency needed to manage complex artificial intelligence (AI) infrastructure. Its CoreWeave Cloud Platform is an integrated solution that is purpose-built for running AI workloads such as model training and inference. Its solutions include infrastructure services, managed software services, and application software services. Its Infrastructure Services provide its customers with access to advanced graphics processing unit (GPU) and central processing unit (CPU) compute, highly performant networking, and storage. Its Managed Software Services include CKS, a flexible virtual private cloud and a bare metal service that runs kubernetes directly on high-performance servers. Its Application Software Services build on top of its infrastructure and managed software services, integrating additional tools.
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.
CoreWeave Emerges as a Leader in Cloud Computing
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- Surging Customer Demand: As of Q3 2025, CoreWeave's backlog exceeded $55 billion, a significant increase from $30 billion three months prior, reflecting strong customer preference for its AI-specific cloud offerings over those of larger hyperscalers.
- Financial Challenges and Investment: In the first nine months of 2025, CoreWeave booked nearly $3.6 billion in revenue, a 204% year-over-year increase, but operating expenses surged by 267%, highlighting the company's substantial investments in infrastructure to meet demand.
- Capital Structure Optimization: CoreWeave issued $2.2 billion in convertible notes at a low 1.75% interest rate to finance its operations, and despite facing $14 billion in debt, its low price-to-sales ratio and robust revenue growth suggest promising future growth potential.
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CoreWeave AI Stock Shows Significant Rebound
- Strong Market Demand: CoreWeave meets the high demand for AI workloads by providing access to Nvidia GPUs, resulting in triple-digit revenue growth and contracts with tech giants like Meta and OpenAI.
- Investment Support: Nvidia recently purchased $2 billion in CoreWeave's Class A common stock to support its plan to build 5 gigawatts of AI factories by 2030, while also committing to buy any remaining CoreWeave capacity through April 2022.
- Stock Price Volatility Reasons: Despite a 172% increase since its IPO, concerns over CoreWeave's debt levels and potential slowdown in AI spending led to a decline in stock price in late 2025.
- Optimistic Future Outlook: CoreWeave's stock has risen over 50% since the beginning of this year, and if AI spending continues to grow, the company is expected to achieve significant growth in the coming months.
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