Microsoft Q3 Preview: $4.06 EPS, $81.9B Revenue Forecast and Investor Pullback
Investors are trimming Big Tech stakes ahead of Microsoft’s fiscal Q3 report after OpenAI reportedly fell short of growth targets, pressuring shares by nearly 12% year to date. Analysts forecast EPS of $4.06 on $81.9 billion revenue (up 16.2%), while concerns linger over Azure growth, GPU supply and Copilot adoption.
1. Investor Sell-Off Before Earnings
Shares of Microsoft have faced selling pressure as institutional investors reduce Big Tech positions ahead of the fiscal third-quarter report, driven by reports that OpenAI fell short of growth expectations and a nearly 12% year-to-date decline in the stock.
2. Q3 Financial Outlook
Analysts project earnings per share of $4.06 on revenue of $81.9 billion, marking 16.2% year-over-year growth, with Microsoft aiming to leverage strength in its Intelligent Cloud and Productivity segments.
3. Cloud and AI Challenges
Market watchers flag potential headwinds from decelerating Azure growth, GPU supply constraints and the pace of Copilot adoption relative to competing AI platforms, risks that could shape next quarter’s results and investor sentiment.