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Microsoft's next earnings report is due Wednesday afternoon, with traders anticipating a big move from the tech giant's stock following the results.

Revenue and profits are expected to grow year-over-year, with investors likely looking for updates on Microsoft's AI spending plans.

Microsoft is set to post its latest quarterly results after the closing bell on Wednesday, with the stock seen potentially hitting its highest point in months following the report.

Current options pricing indicates that traders expect Microsoft (MSFT) stock could move up to 6% in either direction by the end of that week. A move of that size from Friday's close could see the stock rise close to $450, which would be its highest point since Microsoft's last earnings report in late January, when worries about the company's AI spending and exposure to OpenAI sent shares tumbling. The low end of that range could drag the shares back to $391, giving up some of their gains in this month's tech rally.

Microsoft shares have recovered some of their losses in the past few weeks as big tech shares surged, but they remain about 12% lower for the year, and have lingered in negative territory for most of 2026 so far.

Microsoft's latest report, along with other big tech earnings due this week, could give investors the latest look at AI spending plans in the industry.

Ahead of the results, Bank of America analysts said they will be watching for growth in Microsoft's Azure cloud sales as it brings more AI computing capacity online, improvements in Copilot subscriber growth, and stability in the company's non-AI efforts that drive Microsoft's free cash flow.

Microsoft is projected to report adjusted earnings per share of $4.07 on a 16% year-over-year jump in revenue to $81.42 billion for its fiscal third quarter, according to estimates compiled by Visible Alpha.

Analysts are overwhelmingly bullish on Microsoft. Fifteen of the 16 analysts with current ratings tracked by Visible Alpha have issued "buy" ratings for the stock, with one neutral rating. Their mean target around $583 would suggest close to 40% upside, implying a full recovery to new highs in the next 12 months.

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