By Katherine Hamilton
Microsoft is scheduled to report its fiscal third-quarter financial results after the market closes on Wednesday. Here is what to know.
REVENUE: The tech conglomerate is expected to report $81.40 billion in sales, compared with $70.07 billion in the previous third quarter, according to FactSet.
NET PROFIT: The Redmond, Wash., company is expected to post a profit of $30.25 billion, compared with a profit of $25.82 billion the year before, according to FactSet.
ADJUSTED EARNINGS PER SHARE: Adjusted earnings are expected to come in at $4.05 a share, compared with $3.46 a share the prior year.
The stock has fallen 11% over the past three months, and recently traded at $426.14.
WHAT TO WATCH
- Investor sentiment around Microsoft has been improving over the past couple of weeks after bottoming out due to broader fears about AI upending the software industry, Raymond James analysts say. The analysts expect a solid quarterly performance, as Azure looks like it is on track to meet expectations, which aren't as lofty as they have been in some prior quarters.
- One point of interest will be Microsoft's recent announcement that it is ending its exclusivity with OpenAI. Deutsche Bank analysts view the move as a push from Microsoft to forge its own independent future in AI, but note that more independence will be capital-intensive and put the onus on Microsoft to deliver tangible results.
- Microsoft's step back from its OpenAI partnership also improves investor visibility into how the company will monetize AI, Benchmark analysts say. The removal of revenue-sharing payments to OpenAI provides more clarity, they say. Still, Microsoft retained a roughly 27% stake in the chatbot maker, which the analysts view as having potential positives in the future.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
April 28, 2026 12:28 ET (16:28 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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