Microsoft Corporation (NASDAQ:MSFT) is one of several Magnificent Seven stocks reporting quarterly financial results this week. Tech analyst Dan Ives says Microsoft’s report could be the most important. Here’s why.
Analysts expect Microsoft to report first-quarter revenue of $90.68 billion, up from $77.67 billion in last year’s first quarter, according to data from Benzinga Pro.
Analysts expect Microsoft to report first-quarter earnings per share of $4.72, up from $4.13 last year.
Overall, the company has posted 14 straight double beats through the fourth quarter and is going for its 15th straight double beat on Wednesday.
Considering trying out virtual dating RN? We got you. Here are some tips to turn you into a video dating pro — instantly.
Dan Ives on Microsoft Stock
Microsoft represents the “cleanest demand proxy for enterprise AI,” Ives said in a new investor note.
“In our view, it is the most important print of the week for the tech trade,” Ives said.
The Yorkville Ives analyst maintained an Outperform rating on Microsoft with a price target of $615 ahead of the print.
Are You Taking One of These 9 “Memory Erasing” Prescriptions? [ad]
You may think your memory loss is just a sign of getting older, but one of these 9 drugs could actually be damaging your brain... These 9 prescription drugs have now been linked to Alzheimer's disease diagnoses. If you're over the age of 60, and you're taking even 1 of these 9 drugs, your brain could be at risk. Click here to learn more.
The analyst said Azure is where frontier labs and Fortune 500 companies buy compute and the company’s commercial backlog is contracted.
“Azure is the number that moves the stock.”
Ives highlights the company’s guidance for Azure to grow 45% year-over-year in the quarter with analysts expecting year-over-year growth of 44.8%.
The analyst said the company’s backlog last quarter didn’t include OpenAI or Anthropic. Ives will watch how much capacity landed this quarter.
If you can’t decide whether to get the 2-in-1 Windows tablet hybrid, traditional laptop, or desktop, we’re here to help.
“This is also the first print under the two-segment structure and the first with Azure reported in dollars.”
Ives said Microsoft’s Copilot will be another area to watch with the monetization story becoming clearer.
“Microsoft’s ability to fund the same build from operations with double-digit operating income growth is what makes it our top pick.”
Microsoft Stock Price Action
Microsoft stock is down 0.5% to $528.57 on Wednesday versus a 52-week trading range of $349.20 to $551.15. Microsoft shares are up 11.7% year-to-date in 2026.
Image via Shutterstock
