Microsoft Corporation (MSFT) will be reporting its fiscal Q3 2024 earnings on Thursday after the market closes, marking a highly anticipated event for the week. With a market capitalization of nearly $3 trillion, Microsoft is the world’s largest corporation and is poised for significant growth in the coming quarters.
Analysts from Goldman Sachs, Kash Rangan and Henry Dane, believe that Microsoft is in a unique position to scale its Gen-AI revenue without making any structural changes to its profitability profile.
Analyst Expectations for Microsoft Earnings
According to data from the Benzinga Pro platform, Wall Street analysts predict that Microsoft will report earnings per share of $2.83 and revenue of $60.769 billion. Revenue is expected to increase by 15.1% year-over-year, while earnings are projected to grow by 15.98%. However, this represents a slight decrease of 1.9% and 3% compared to the previous quarter, respectively.
Microsoft has consistently surpassed Wall Street’s earnings expectations in its last six reports and exceeded revenue forecasts in five of those instances. The company’s 12-month average price target is currently set at $478, suggesting an 18% stock upside from current market levels.
Goldman Sachs’ Take on Microsoft
Goldman Sachs analysts remain bullish on Microsoft’s prospects. They believe the tech giant is well-positioned to execute against its estimates, driven by strong demand for new tech projects and its focus on improving productivity. Azure, Microsoft’s cloud platform, is expected to benefit from AI-driven workloads, efforts to improve efficiency, and cost savings.
Goldman Sachs rates Microsoft as a “Buy” with a 12-month price target of $450.
