Intel, Ford and Target rise premarket; Deckers slumps
Investing.com - Microsoft (NASDAQ:MSFT), currently trading at $520.54 and near its 52-week high of $555.45, is expected to slightly exceed revenue expectations across all three business segments in its upcoming fiscal first quarter report, according to Guggenheim. InvestingPro data shows the company maintains a "GREAT" financial health score of 3.04.
The research firm maintained its Neutral rating on Microsoft stock ahead of the company’s scheduled October 29 earnings release for the fiscal first quarter of 2026.
Guggenheim noted that Microsoft’s Productivity and Business Processes segment will likely outperform mainly due to M365 Commercial, while the Intelligent Cloud segment should be driven by Azure, and More Personal Computing will benefit from Windows OEM strength.
The firm highlighted that Azure reported "decent growth" in fiscal third quarter 2025 and "very strong" performance in fiscal fourth quarter 2025 after three relatively lackluster quarters, suggesting positive momentum heading into the new fiscal year.
Despite the favorable outlook and continued strong demand for AI workloads, Guggenheim maintained its Neutral stance, stating that "the current valuation multiple seems reasonable given MSFT’s growth prospects."
In other recent news, Microsoft reported positive developments in its Azure cloud business, with UBS maintaining a Buy rating and a price target of $650. UBS analyst Karl Kierstead highlighted expectations of 39% revenue growth for Azure in the first quarter ending in September, surpassing previous forecasts. Additionally, Microsoft CEO Satya Nadella received a $96.5 million pay package for fiscal 2025, marking his highest compensation since becoming CEO, largely due to the company’s progress in artificial intelligence. About 90% of Nadella’s compensation is in Microsoft shares, with a base salary of $2.5 million.
In another development, Microsoft will exempt many sales roles from its return-to-office mandate, allowing more flexibility for certain client and partner-facing positions. Cantor Fitzgerald has reiterated an Overweight rating on Microsoft as the company ended support for Windows 10. This decision affects nearly 60% of corporate devices worldwide, as Microsoft discontinues updates and security patches for the operating system. These recent developments reflect Microsoft’s ongoing strategic adjustments and market positioning.
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