Latest quarter Q2 2026 · Written Oct 14, 2026 08:15 ET · from lgf report in Discord
Strong earnings growth consistent with analyst expectations
Analysts expect EPS of $4.72 ($4.43 to $4.83) on revenue of $90.7B ($89.6B to $92.7B). Options price a move of ±6.1% the session after. After its last 48 reports the stock moved 4.3% on average, up 58% of the time.
Futures put 80% on no change and 20% on a 0.25-point hike, for a rate of about 3.93% after it.
Shares bought from this day on miss the next dividend, paid Thu Dec 10 (the last was $0.91 a share).
Futures put 85% on a 0.25-point hike and 15% on no change, for a rate of about 4.14% after it.
Futures put 59% on no change and 41% on a 0.25-point hike, for a rate of about 4.25% after it.
AI verdict: unchanged, bullish
| Metric | Then | Now | Change |
|---|---|---|---|
| Price | $543.45 | $543.45 | 0.0% |
| EPS (latest quarter) | $4.74 | $4.74 | 0.0% |
| EPS surprise | +11.8% | +11.8% | 0.0 pts |
| Revenue (TTM) | $331.84B | $331.84B | 0.0% |
| Profit margin | 40.3% | 40.3% | 0.0 pts |
| Operating margin |
Microsoft Corporation's recent earnings performance has been strong, with the company beating EPS estimates by an average of 11.8% in Q2 2026, followed by a 4.9% beat in Q1 2026 and a 5.7% surprise in Q4 2025. The trend direction suggests that Microsoft's ability to deliver strong earnings growth is consistent with analyst expectations, as the company has consistently beaten estimates over the past few quarters. However, it's worth noting that estimate revisions have been mixed over the past 90 days, with analysts raising estimates five times and cutting them six times.
In terms of revenue and profitability trajectory, Microsoft has demonstrated solid growth in recent quarters, with Q2 2026 revenue exceeding consensus estimates by 2.7%. The company's profit margin remains strong at 40.3%, while its operating margin is even higher at 45.1%. Microsoft's return on equity and assets are also impressive, indicating a healthy balance sheet. However, the company's debt capacity is relatively high at $128.81B, which may be a concern for some investors.
Microsoft's liquidity position appears solid, with a cash runway of $76.84B and free cash flow generation of $66.99B. The company's current ratio is 1.23x, indicating that it has sufficient liquid assets to cover its short-term obligations. However, the debt-to-equity ratio is relatively high at 0.29x, which may be a concern for some investors. Overall, Microsoft's financial fundamentals suggest a strong position in terms of revenue and profitability growth, but also highlight the need for careful management of debt and liquidity.
The full analysis is in the PDF.
Wikipedia: Amazon Web Services · “As of 2023 Q1, AWS has 31% market share for cloud infrastructure while the next two competitors Microsoft Azure and Google Cloud have 25%, and 11% respectively, according to Synergy Research Group.”
Written by the Last Guard bot from SEC filings and Yahoo Finance data, with an AI model drafting the analysis. Not investment advice.
| 45.1% |
| 45.1% |
| 0.0 pts |
| Free cash flow | $16.55B | $66.99B | +304.9% |
| P/E (trailing) | — | 30.3x | — |
| Analyst target | $589.60 | $589.60 | 0.0% |
| Report's base case | $653.17 | $653.17 | 0.0% |
| DCF fair value | — | $282.66 | — |