Microsoft Corp. (NYSE: MSFT) will report its fiscal 2024 third-quarter effects after the market closes on Thursday, marking the week’s peak earnings report.
The world’s largest company has a roughly $3 trillion market and is ultimately “uniquely positioned to increase revenue from AI generation without structurally converting its profitability profile,” according to Goldman Sachs analysts Kash Rangan and Henry Dane.
“Microsoft is well-positioned to meet its estimates of 15% earnings growth, 28% Azure growth, and $2. 87 earnings consistent with participation,” Goldman Sachs wrote.
The tech giant will most likely expand due to growing demand for new tech projects and a focus on productivity, though IT budgets could tighten, according to Goldman Sachs.
“We, Microsoft, are one of the most exciting investment opportunities in the generation sector and across all sectors,” the analyst wrote.
Goldman Sachs has a “Buy” score with a 12-month value target of $450.
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