Microsoft prepares to announce record earnings report with $3.38 per share

In the United States, Microsoft (NASDAQ: MSFT) is scheduled to announce its earnings report on July 30, 2025. Analysts predict that the company will report earnings of $3.38 per share and total revenues of $73.81 billion. This forecast shows a significant increase compared to the same quarter last year, where Microsoft reported earnings of $2.95 per share with revenues of $64.73 billion. Over the past twelve months, Microsoft has demonstrated strong financial performance, generating $270 billion in revenue, with $122 billion in operating profits and a net income of $97 billion, highlighting its robust profitability. In examining historical trends, Microsoft's stock has shown a slight tendency towards negative one-day returns following earnings announcements over the past five years. Among 19 earnings data points from this timeframe, there were nine positive and ten negative one-day returns. However, this ratio drops to 36% positive returns when considering just the last three years. This data indicates that traders may want to be cautious when approaching the earnings report, as immediate stock movements may not yield consistent positive results. The median positive return was found to be 4.2%, while the median negative return was -3.3%. For event-driven traders, both pre-earnings and post-earnings positioning strategies can be utilized based on historical returns. Pre-earnings positioning involves analyzing the likelihood of a stock movement based on past performance, while post-earnings positioning entails evaluating stock response immediately after the earnings announcement to inform subsequent trading strategies. It is advised that traders monitor correlations between one-day, five-day, and twenty-one-day returns to identify potential trading opportunities based on strong historical correlations. Lastly, analyst projections for Microsoft's upcoming earnings signal confidence in its continued growth in a competitive technology market. Despite the historical patterns of stock movements, the company's underlying financial health indicates that many investors might still find value in holding or acquiring shares. As the earnings date approaches, market participants will be closely watching not only Microsoft's performance but also how it compares to the performance of peer companies reporting around the same time.