Microsoft (MSFT, $239.63) beats fiscal Q2 earnings expectations; but disappoints on intelligent cloud revenue outlook
Microsoft posted its fiscal second quarter earnings late Tuesday, beating analysts’ expectations. However, it forecast current quarter revenues for its intelligent cloud division which missed analysts’ expectations (according to Refinitiv survey).
The tech behemoth’s adjusted earnings slipped -6.5% from the year-ago quarter to $2.32 per share, topping the Street consensus forecast of $2.30 per share.
Revenues climbed +1.9% from the year-ago quarter to $52.7 billion, but were slightly below analysts' expectations of $52.97 billion.
Revenues for Azure, its flagship cloud segment, surged +31% year-over-year, exceeding the Street forecasts. However, the rate of growth slowed from earlier gains in the mid to high 40-percent range.
Productivity and business division sales (which includes Office 365) were up +7% to $17 billion. Intelligent Cloud revenues grew +18% to $21.5 billion. More Personal Computing revenues, which includes Windows, were down -19% to $14.2 billion.
The group projected current quarter revenues for its intelligent cloud division in the range of $21.7 billion to $22 billion, that’s below Refinitv forecasts.
Earlier, Microsoft announced plans to layoff around 5% of its global workforce as it seeks to align costs with customer demand and boost investment in areas such as AI and other advanced technologies. According to the company, severance payments and other costs linked to the job cuts were $800 million.
Momentum Indicator for MSFT turns positive, indicating new upward trend
MSFT saw its Momentum Indicator move above the 0 level on September 12, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 87 similar instances where the indicator turned positive. In of the 87 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for MSFT just turned positive on September 15, 2025. Looking at past instances where MSFT's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MSFT advanced for three days, in of 336 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
MSFT moved below its 50-day moving average on September 16, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for MSFT crossed bearishly below the 50-day moving average on August 29, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MSFT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
MSFT broke above its upper Bollinger Band on September 15, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for MSFT entered a downward trend on September 16, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (11.013) is normal, around the industry mean (16.894). P/E Ratio (37.320) is within average values for comparable stocks, (154.978). Projected Growth (PEG Ratio) (2.230) is also within normal values, averaging (2.763). Dividend Yield (0.007) settles around the average of (0.025) among similar stocks. P/S Ratio (13.495) is also within normal values, averaging (130.037).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MSFT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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a developer of software and harware products
Industry ComputerCommunications
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