Microsoft rises as investors await AI outlook

Microsoft MSFT.O shares climbed 0.6% on Wednesday, ahead of quarterly results after the bell, with focus on heavy spending on AI infrastructure.

• MSFT and other tech heavyweights have underperformed the broader market this year, in part because investors worry their AI-related capex has yet to deliver expected returns.
• The software and cloud giant is expected to report Q4 revenue up 15% to $87.62 billion and adjusted EPS of $4.24, versus $3.65 a year ago, per LSEG.
• The stock has fallen about 18% year to date, versus the Nasdaq's .IXIC 6% rise.
• MSFT recently traded at a forward P/E of 20, below its five-year average of 28.
• Of 63 analysts covering the company, 59 rate it "buy" or "strong buy" and four rate it "hold," with a median price target of $550 versus the current price of $395.64.
• The stock remains about 29% below its all-time intraday high of $555.45 reached on July 31, 2025.