Microsoft is set to announce its fiscal third-quarter results on Wednesday, with analysts showing strong optimism about the company’s future. The consensus from all 20 analysts tracked by Visible Alpha remains positive, with each issuing “buy” or similar recommendations. Despite a 7% decline in Microsoft’s stock so far in 2025, analysts are projecting an impressive recovery, with a price target of $492, signaling more than 25% upside from its current price of about $391.
Microsoft Q3 2025 Earnings: Bullish Forecast Amid AI Growth
While some analysts have lowered their price targets, such as Wedbush, who reduced theirs from $550 to $475 due to concerns over tariffs, they remain confident in Microsoft’s long-term growth potential. Their positive outlook is rooted in the company’s ability to capitalize on AI opportunities, particularly in the cloud space. Wedbush believes that the monetization prospects from AI deployment in the cloud present a transformative shift, with Microsoft positioned as an industry leader.
Microsoft Q3 2025 Earnings: Strong Revenue and Cloud Expansion
Goldman Sachs also maintains its “buy” rating on Microsoft, although they adjusted their price target to $450 from $500. They acknowledge the uncertainty in the current economic environment but highlight Microsoft’s unique position to benefit from AI. Additionally, Morningstar analysts emphasize Microsoft’s solid standing compared to other tech firms, given its minimal exposure to retail, cyclical hardware, or physical supply chain risks. Analysts predict that Microsoft’s Q3 2025 earnings will reveal a 10% year-over-year increase in revenue, reaching $68.44 billion, with net income expected to rise to $23.94 billion, or $3.21 per share.
Table of Contents
Source: www.investopedia.com
