Microsoft fiscal 2027 first quarter earnings outlook

Ahead of Microsoft’s fiscal 2027 first-quarter earnings report scheduled for October 28, 2026, Wall Street analysts have expressed optimism by raising price targets. Firms such as UBS, Jefferies, Citi, and TD Cowen have increased their estimates, with UBS setting a high target of $675. This bullish sentiment follows strong previous performance, including a quarter where Microsoft reported $90 billion in revenue and Azure cloud services saw a 43 percent increase.

Investors are focusing on the company’s artificial intelligence strategy and cloud computing growth. Management has targeted Azure growth of approximately 45 percent in constant currency for the upcoming quarter, even as infrastructure investments are expected to reach $50 billion. Key areas of interest include the Copilot generative AI platform, which surpassed 30 million paid seats in the fourth quarter of fiscal 2026, and the company’s ongoing partnership with OpenAI.

As the reporting date approaches, new guidance suggests a potential cooling in growth. For the September quarter, Microsoft anticipates revenue between $89.85 billion and $90.95 billion, with operating income projected to grow between 14% and 17% compared to the same quarter last year. This follows a strong fiscal 2026, where the company reported $331.8 billion in revenue, an 18% increase, and operating income of $155.2 billion. Analysts are currently monitoring whether the stock, which has recently traded near $530, will maintain its upward trend or undergo a pullback.