Microsoft Analysis: Earnings Beat Expectations

On 29 July 2026, Microsoft reported its results for the fourth quarter of fiscal year 2026. Revenue reached $90 billion, up 18% year-on-year, while adjusted earnings per share came in at $4.74, comfortably ahead of analysts' expectations of $4.24. The company exceeded consensus forecasts for both revenue and its cloud business, reflecting continued strong demand for AI infrastructure. The earnings release came after months of pressure on the stock, driven by investor concerns over the scale of capital expenditure required to expand Microsoft's cloud and AI capabilities.

Technical Analysis of Microsoft

Since the beginning of June, the MSFT chart has developed a clear short-term downtrend. After peaking near $465, the stock declined sharply along a descending trendline before finding support around $350 on 25 June. An unusually large bullish trading volume was recorded during the rebound from this area.

Since then, the stock has entered a recovery phase and is now trading between the POC (Point of Control) at $389.5 and the upper boundary of the current market profile at $400.5. The $405 resistance level sits just above the profile boundary and could reinforce resistance in this area.

Below the current price, two nearby support levels stand out: the lower boundary of the profile at $373.5 and the support level at $367. The RSI + MAs indicator currently shows readings of 50, 49 and 50, with all three values positioned in the middle of the neutral zone. Such a configuration is typically associated with a period of consolidation before the market develops its next directional move.

Summary

The near-term performance of Microsoft shares is likely to depend more on how investors reassess the company's recently reported operating results than on the reaction to individual technical levels. For now, the debate surrounding capital expenditure on AI infrastructure remains the dominant fundamental theme shaping market sentiment.

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