Ahead of Microsoft Earnings, Here's What Barchart Data Says Comes Next for MSFT Stock

Microsoft (MSFT) shares have already been in a sharp uptrend in recent months, but options traders believe the rally is not at all out of steam just yet. The company is expected to report $4.71 in earnings per share (EPS) for its first financial quarter on Oct. 28, representing about 14% growth on a year-over-year basis. 

Despite the recent artificial intelligence (AI) rout, Microsoft stock is up about 50% versus its YTD low in late June. 

Options Data Suggests MSFT Stock Will Rally After Earnings

Heading into the earnings event, traders are increasingly betting on call options — with the put-to-call ratio on contracts expiring Nov. 6 set at 0.40x as of this writing. Barchart’s latest data also pegs the upper price on those contracts at $560, indicating potential for a more than 5% post-earnings rally through the end of next week. 

Even from a technical perspective, MSFT shares currently sit decisively above their major moving averages (MAs), with an RSI in the late 50s indicating significant buying pressure that could drive them higher through the remainder of 2026.

Raymond James Raises Price Target on Microsoft Shares

Raymond James analyst Andrew Marok maintains an “Outperform” rating on Microsoft shares ahead of the titan’s fiscal Q3 earnings, which are scheduled to be reported after the market closes on Oct. 28. In his latest research note, Marok raised his price target on the Nasdaq-listed firm to $630, signaling potential upside of about 18% from current levels. 

His bullish view is based on continued AI-driven growth in MSFT’s cloud segment; Marok expects Azure to come in up 45% on a year-over-year basis, excluding foreign exchange effects. Moreover, the company is growing its capital expenditures more modestly than peers, which eases overspending concerns as well, the analyst added.  

How Wall Street Recommends Playing Microsoft

While not as bullish as Raymond James, other Wall Street analysts also favor owning MSFT stock heading into the quarterly release. 

The consensus rating on Microsoft sits at “Strong Buy” currently, with the mean price target of about $594 indicating nearly 12% upside from here. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.