"Microsoft's stock dropped 9.99% on the day despite beating EPS estimates by 7.57% and posting revenue of $81.27 billion against an $80.28 billion estimate. The culprit behind this massive selloff was the company's capital expenditure spending, which nearly doubled year-over-year to $29.88 billion in Q2, raising a legitimate question: is Azure growing fast enough to justify the bill?"
"Analysts covering the stock show a consensus with 10 Strong Buy ratings, 45 Buy ratings, and 3 Hold ratings, indicating confidence in Microsoft's quality despite near-term uncertainties. The bull thesis rests on three pillars, including a 110% year-over-year surge in commercial remaining performance obligation to $625 billion in Q2."
Microsoft's stock is currently priced at $372.29, with an average analyst price target of $587.31, indicating a 58% upside potential. The company operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. Despite beating earnings estimates, the stock fell 9.99% after Q2 FY2026 results due to increased capital expenditures, raising concerns about Azure's growth. Analysts maintain positive ratings, with no Sell ratings, reflecting confidence in Microsoft's long-term potential despite short-term challenges.
Read at 24/7 Wall St.
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