Abstract
MicroStrategy Inc. Perpetual Stretch Preferred will report quarterly results on February 05, 2026 Post Market; this preview consolidates the latest financial metrics, segment trends, and consensus expectations to frame the outcome and key stock drivers in the near term.
Market Forecast
Consensus for the current quarter points to total revenue of $118.48 million (-3.87% YoY), EBIT of $6.75 billion with an implied sharp increase on a reported basis, and EPS of $24.81 (YoY +331.73%). Forecast commentary suggests a stable gross profit margin and a high reported net margin, with adjusted EPS improving sharply year over year. The main business highlight remains “Product Licenses and Subscription Services,” with revenue scale supported by steady enterprise demand and recurring subscriptions; “Product Support” is expected to provide durable maintenance and services revenue with continued renewal activity. The most promising segment is “Product Licenses and Subscription Services” at $63.35 million, where subscription conversion and license upsell support mixed near‑term growth dynamics on a YoY basis.
Last Quarter Review
Last quarter MicroStrategy Inc. Perpetual Stretch Preferred reported revenue of $128.69 million (+10.87% YoY), a gross profit margin of 70.46%, GAAP net profit attributable to the parent company of $2.79 billion with quarter‑on‑quarter growth of -72.21%, a net profit margin of 2,164.12%, and adjusted EPS of $8.42 (+5.90% YoY). A key highlight was resilience in software operations with gross profitability holding firm alongside a material reported net margin uplift. Main business highlights: Product Licenses and Subscription Services delivered $63.35 million, Product Support posted $51.12 million, and Other Services contributed $14.23 million, collectively demonstrating a balanced revenue mix.
Current Quarter Outlook
Main Business: Product Licenses and Subscription Services
The company’s core revenue engine is anchored in Product Licenses and Subscription Services, which last quarter generated $63.35 million. The revenue mix indicates that recurring subscription streams and enterprise license activity underpin baseline performance, while pipeline conversion and renewal rates guide quarter-to-quarter variability. In the current quarter, the forecast for total company revenue suggests a moderate year-over-year decline, implying that the license cycle may be softer relative to the strong comparison, or that subscription conversion is pacing more gradually. With gross profit margins previously at 70.46%, the software profile provides ample contribution to overall profitability, and any quarter-specific promotional dynamics or deal timing should be monitored for their effect on margin continuity. Customer expansion inside large accounts is likely the most incremental lever, supported by upgrades and cross-module adoption, although macro procurement cycles may introduce occasional timing delays that can be reflected in intra-quarter bookings.
Most Promising Business: Product Support
Product Support delivered $51.12 million last quarter, reflecting the durability of maintenance and services tied to installed base software. Its recurring nature generally smooths revenue fluctuations and can support cash generation even if license timing introduces short-term variability. For the current quarter, stable renewals and moderate upsell attached to support tiers could help buffer broader top-line volatility; this is particularly relevant given the guided YoY decline in overall revenue. The gross margin structure typically remains favorable due to high-value service delivery and scaled customer support processes, which, when sustained, can preserve the company’s profitability profile despite variations in new license activity. Continued satisfaction scores and renewal rates are critical watches because they underpin predictable revenue and the capacity to cross-sell advanced support features or integrated services.
Key Stock Price Drivers This Quarter
Revenue and EPS trajectory against consensus will be the most immediate stock drivers. The forecast indicates total revenue of $118.48 million (-3.87% YoY) and EPS of $24.81 (+331.73% YoY), setting up a scenario where the market will parse underlying software performance versus reported profitability metrics. Visibility into backlog, pipeline conversion, and renewal rates will influence investor views on sustainability of revenue, particularly within the enterprise software backdrop. Profitability drivers, including EBIT estimated at $6.75 billion, will be assessed for the quality of earnings and repeatability, with gross margin behavior a key corroborating signal. Management commentary around demand conditions and pricing, plus insights into customer cohorts and deal sizes, will likely shape sentiment for the remainder of the year.
Analyst Opinions
Across recent institutional commentary, the majority view is cautiously bullish, with supportive notes centered on the company’s strong profitability prints, resilient gross margin profile, and the predictability embedded in support and subscription revenue. Analysts point to the ability of the software model to sustain high margins and to leverage maintenance revenues even in quarters when license growth moderates, aligning with the current forecast for a slight YoY revenue decline paired with marked EPS expansion. Coverage from well-followed institutions emphasizes the importance of the upcoming quarter’s execution on renewals and the cadence of enterprise deal closures. The bullish camp highlights the upside potential if adjusted EPS lands near or above the $24.81 estimate and if gross margin remains near prior levels, reinforcing the cash generative characteristics of the software operations. The constructive stance is grounded in both the last quarter’s outperformance on revenue and adjusted EPS and the company’s consistent delivery of support profitability, setting expectations for a credible result relative to consensus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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