Microsoft reports fiscal first-quarter 2027 results after the close on Wednesday 28 October 2026, and the year-end path from Friday’s official close is a $771.98 bull and a $520.19 bear. Nasdaq’s daily history puts the 23 October close at $524.51. The base on that same 47-session path is $609.17. That trio is the distribution from the last 90 log-returns, not a Street target.
Consensus coverage treats the week as an Azure beat-and-raise story. What the 29 July call still shows, and what the 7 October date release and the 14 October shareholder letter do not revise, is narrower. Amy Hood said calendar-2026 investment expectations were unchanged outside a useful-life update, and that a shift from finance leases to operating leases adjusts the reported figure to about $175 billion. First-quarter capital expenditure is still guided above $50 billion. The year-end bear sits only $4.32 under Friday’s close because the 30 July rebound is still about half the sum of those 90 daily log-returns.
Key facts
- Microsoft will publish fiscal 2027 first-quarter results after the close on Wednesday 28 October 2026, webcast at 2:30 p.m. Pacific, per its 7 October 2026 release.
- Nasdaq’s official daily close on Friday 23 October 2026 was $524.51, up $3.43, or 0.66 percent, from $521.08. The range was $515.70 to $525.77, on 13,681,070 shares.
- On that same daily series, the 20-day average is $526.70 and the 50-day average is $508.43. The close is $2.19 below the first and $16.08 above the second.
- On the 29 July 2026 call, Amy Hood guided revenue to $89.85 billion to $90.95 billion and Azure to about 45 percent in constant currency, with capex above $50 billion.
- The same call put commercial remaining performance obligation at $678 billion, up 84 percent, and up 25 percent excluding OpenAI. All sequential growth was from customers outside frontier model companies.
- StockAnalysis, citing 56 analysts polled by S&P Global and checked 23 October 2026, shows an average target of $599.24, a low of $440, and a high of $870.
- The Federal Reserve calendar, updated 7 October 2026, lists an FOMC meeting on 27 and 28 October, with no Summary of Economic Projections mark. December 8 and 9 has one.
What just happened
Friday was a bounce, not a new fundamental. Thursday 22 October closed at $521.08 after a session that opened at $533.14, traded as high as $533.596, and printed a low of $520.30 on 21,266,610 shares. From Wednesday’s $532.95 close, that was a drop of $11.87, or 2.23 percent. Friday opened at $517.745, traded down to $515.70, and closed at $524.51. The official gain was $3.43. The low of the day was still under the prior five-session low.
The prior five sessions, 16 October through 22 October, ranged from a $543.82 high to a $520.30 low. Friday’s close is $19.31 under that high and $4.21 above that low. The file’s highest close is still 13 October, at $543.45. Nasdaq lists a 52-week range of $349.20 to $553.72. The $349.20 low is 25 June 2026, when the close was $352.83. The 19, 20, and 21 October closes were $533.52, $531.87, and $532.95.
The obvious reading is that the stock has settled into a $520 to $535 box and that Wednesday is a routine Azure check. The 7 October release sets a date and a webcast. It names Jonathan Neilson, vice president of investor relations, at (425) 706-4400. It does not update revenue, Azure, or capital expenditure. The 14 October letter restates the year and adds Maia 300. It does not replace Hood’s first-quarter ranges.
A second wrong reading is that “about $175 billion” is a spending retreat. On 29 July Hood extended the estimated useful lives of datacenters and office buildings from 15 years to 25 years, effective at the start of fiscal 2027. She said the fiscal 2027 operating-income benefit is minimal, and that the larger effect is classification. Her sentence: “Outside of this useful life impact, our calendar year 2026 CapEx investment expectations remain unchanged. However, the shift from finance to operating leases adjusts our expectation to approximately $175 billion.”
Fourth-quarter capex was $41 billion, about two thirds of it short-lived CPUs and GPUs. Finance leases were $5.6 billion. Cash paid for property and equipment was $35.8 billion. Cash from operations was $55.4 billion, up 30 percent, and free cash flow was $19.6 billion. The first-quarter capex guide, over $50 billion, already includes the lease reclassification.
Who is exposed
The annual report states 74,199 registered holders of record on 23 July 2026, with the common stock on Nasdaq under MSFT. That count is not a float. The people who live with Wednesday’s print are those holders, plus the customers and suppliers named on the July call and in October posts.
OpenAI is the concentration Hood separated. Bookings grew 18 percent excluding OpenAI and 10 percent including its Azure commitments. Remaining performance obligation was $678 billion, up 84 percent, and up 25 percent excluding OpenAI, with a 2.3-year weighted duration. About 30 percent is due within 12 months, up 37 percent, and the rest was up 112 percent. All sequential RPO growth came from customers outside frontier model companies. Nearly 90 percent of cloud revenue, which surpassed $214 billion, came from outside that group.
Named demand sits outside that concentration. Satya Nadella, chairman and chief executive, posted on 22 October that Volkswagen Group is putting Copilot to work. The Microsoft News post he quoted says Volkswagen has brought Copilot to more than 330,000 employees. A day earlier he wrote that NHS England is expanding Copilot to as many as 500,000 clinicians and support staff. Those are seat counts, not Wednesday’s Azure percentage.
Georgia Butler at Datacenter Dynamics, on 14 October 2026, quoted Nick Ovenden, chief technology officer of Markerstudy Insurance, via Computing UK: “Every time we try and do something, we basically get ‘no, you can’t have that’, and we have to go and make a case to get it.” He said Microsoft told the insurer its data centers are constrained. That is one UK customer, and it matches Hood’s line that demand exceeds supply. The 14 October letter adds NVIDIA and Intel silicon, Maia 300 at 40 percent more tokens per watt, and Cobalt 200 at over 50 percent higher performance than the first custom processor. It gives no shipment invoice. Kyle Reidhead wrote on 19 October that a Morgan Stanley preview models Azure near 47 percent. Microsoft’s July sentence is approximately 45 percent in constant currency.
What the tape shows against the documents
The cash market and the July transcript are telling different clocks. The tape has spent October below the 13 October close. The transcript still describes a company that monetized extra Azure capacity inside the June quarter and that guided the September quarter to faster commercial growth, with a weaker PC line underneath.
| Item | Source | Figure | As of |
|---|---|---|---|
| Official close | Nasdaq daily history | $524.51 | 23 October 2026 |
| 20-day average | Same closes | $526.70, or $2.19 above the close | 23 October 2026 |
| 50-day average | Same closes | $508.43, or $16.08 under the close | 23 October 2026 |
| Prior five sessions | 16 to 22 October | High $543.82, low $520.30 | 22 October 2026 |
| Q1 revenue guide | Hood, 29 July | $89.85 billion to $90.95 billion | 29 July 2026 |
| Azure guide | Hood, 29 July | About 45 percent, constant currency | 29 July 2026 |
| Q1 capex guide | Hood, 29 July | Over $50 billion, lease shift included | 29 July 2026 |
| Calendar-2026 capex | Hood, 29 July | About $175 billion after reclassification | 29 July 2026 |
| Street average | StockAnalysis, S&P Global poll | $599.24, low $440, high $870 | Checked 23 October 2026 |
| This base case | 47-session log-return maths | $609.17 | From the 23 October close |
Fourth-quarter revenue was $90 billion, up 18 percent, with adjusted earnings per share of $4.74. Discrete items added 27 cents, including a $3.2 billion Anthropic gain. Gross margin was 67 percent. Azure grew 43 percent, Intelligent Cloud was $39.3 billion, and Copilot paid seats topped 30 million. For the new quarter Hood guided Intelligent Cloud at $40.95 billion to $41.25 billion, Azure at about 45 percent in constant currency, and Windows OEM and Devices down in the low twenties. Cost of goods sold is $29.6 billion to $29.8 billion. Operating expense is $16.8 billion to $16.9 billion. Other income, excluding OpenAI, is roughly negative $100 million. She still expects full-year capex to grow and free cash flow to stay positive.
Benzinga wrote on 24 October that Wall Street expects $4.72 of earnings per share on $90.69 billion of revenue. That is Benzinga’s compilation. Microsoft’s revenue range is $89.85 billion to $90.95 billion, so $90.69 billion sits inside it. The July remarks used here do not print a first-quarter earnings-per-share range. Beating $4.72 would not, by itself, mean Azure cleared 45 percent.
FinanceFeeds has already covered the separate tape and the separate OpenAI math. One news page is the Morgan Stanley warning on Microsoft AI capex. Another is the session in which Microsoft rose 1.6 percent as the Nasdaq 100 gained 2.8 percent. A third walks through Microsoft’s targeted return from OpenAI. None of those pages is the year-end pair in this piece.
What Hood and Nadella said, and what they did not update
Amy Hood, executive vice president and chief financial officer of Microsoft, said on the July call: “Customer demand continues to exceed available capacity.” In the Azure outlook she said demand “continues to exceed supply.” Of the full year she said “we expect to remain free cash flow positive in FY27.” No October document opened for this piece withdraws those lines.
In the shareholder letter dated 14 October 2026, Nadella wrote: “I am confident in the long-term returns on our investments.” On agents: “With agents, we can now macro delegate and micro steer. In other words, we define a goal and the system works on our behalf, returning for direction and judgment when needed.” The letter does not update the 28 October ranges.
What the company declined is the cost-cut story. Butler’s 14 October report said The Information had reported that Azure president Girish Bablani asked staff to find at least 20 percent cost cuts. A Microsoft spokesperson, unnamed in that piece, said: “Azure leadership has not directed teams to develop cost-cutting plans. Every responsible company prepares for a range of scenarios and market dynamics, both positive and negative. This is inaccurate and careless reporting.” The 20 percent figure is a denied allegation, not a fact in this piece.
The lease line, and a Fed meeting on the same two days
The financing tension is classification, not a new bond. Extending datacenter and office lives from 15 years to 25 years slows depreciation. Hood said the fiscal 2027 operating-income benefit is minimal. The capex optics are larger, because a lease that would have been a finance lease, and therefore capex, becomes an operating lease and leaves the capex total. The sentence to test on Wednesday is whether she still describes the $175 billion figure that way, and whether quarterly spend is still above $50 billion after the same adjustment. Fourth-quarter free cash flow was $19.6 billion against $55.4 billion of cash from operations. She still expects fiscal 2027 free cash flow to stay positive while capex grows.
The Federal Reserve meets on 27 and 28 October 2026. October has no Summary of Economic Projections mark. December 8 and 9 does. September’s minutes came out on 7 October, the day Microsoft set the earnings date. This piece does not guess the rate decision. The earnings clock is after the cash close, webcast at 2:30 p.m. Pacific. The formula uses the Nasdaq cash close. An after-hours print of $524.92 at 7:59 p.m. Eastern on 23 October, on StockAnalysis, is not the spot.
Bull, base, and bear
The title numbers use Friday’s $524.51 close and the last 90 daily log-returns, from 16 June 2026 through 23 October 2026. Mu, the mean, is 0.00318383. Sigma, the sample standard deviation with the n-1 divisor, is 0.02303244. N is 47 sessions through the 31 December 2026 close. The count skips only Thanksgiving on 26 November and Christmas on 25 December. Early closes on 27 November and 24 December count. October after Friday is five sessions, November is 20, and December is 22.
The base is the close times the exponential of N times mu, which rounds to $609.17. That is $84.66 above the close, or 16.14 percent. The bull adds 1.5 sigma times the square root of N on top of the drift, and rounds to $771.98. That is $247.47 above the close, or 47.18 percent. The bear subtracts 1.0 sigma times the square root of N from the drift, and rounds to $520.19. That is $4.32 under the close, or 0.82 percent.
One session dominates the sample, and it stays in. On 30 July 2026 the close was $451.10, from $390.54 the day before. That log-return, 0.144159, is 50.3 percent of the sum of the 90 returns and 6.26 times sigma. Dropping it would fake a calmer path. The drift over 47 sessions almost cancels one sigma of downside, which is why the bear is only $4.32 under Friday. The bull is the wide upside on the same drift. It is not a claim that Wednesday’s print is worth $771.98.
| Case | Price | Versus the $524.51 close | What has to be true |
|---|---|---|---|
| Bull | $771.98 | +$247.47, +47.18 percent | Drift plus 1.5 sigma holds for 47 sessions. 30 July stays in. Not a broker target. |
| Base | $609.17 | +$84.66, +16.14 percent | Drift only. Near the $599.24 average, and still a different number. |
| Bear | $520.19 | minus $4.32, minus 0.82 percent | Drift minus one sigma. July’s drift offsets most of that sigma. |
A three-session path through the 28 October close, using the same mu and sigma, is not the title. N is 3. That bull is $562.20, the base is $529.54, and the bear is $508.83. The year-end bull of $771.98 is $42.83 from $814.81. The bear of $520.19 is $2.39 from $517.80, and $771.98 is not within $1 of $628.53, $870, $650, $640, $675, or $560. The horizon stays 31 December. StockAnalysis lists Liani at $600, Bachman at $600, Fitzsimmons at $610, Wood at $600, and Moerdler at $662 as separate targets.
What happens next
Through the cash close on Wednesday 28 October, the three-session band is $508.83 to $562.20, with a base of $529.54. After the close, the document test is revenue against $89.85 billion to $90.95 billion, Azure against about 45 percent in constant currency, and capex against “over $50 billion,” plus whether $175 billion is still the lease reclassification. A print near those lines confirms July. It does not validate the $771.98 year-end bull. An Azure guide cut, or a statement that $175 billion means fewer dollars of capacity, is information this distribution does not contain. The webcast is 2:30 p.m. Pacific, and the FOMC’s second day is the same date.
Through the close on 31 December 2026, the title pair is the call: bull $771.98, base $609.17, bear $520.19, over 47 sessions. The base needs the recent daily drift to persist, which is a strong assumption because 30 July is half of that drift’s sum. The bear does not require a crash. It is a one-sigma miss on that drift, and it still sits only a few dollars under Friday.
Frequently asked questions
What is the Microsoft stock prediction through 31 December 2026?
The year-end bull is $771.98 and the bear is $520.19, from Friday’s $524.51 Nasdaq close, with a base of $609.17. Those three prices use the last 90 daily log-returns and 47 sessions through the 31 December close. They are not the Street average of $599.24. A three-session path through the 28 October close is a separate calculation, at $562.20, $529.54, and $508.83, and it is not the title pair.
When does Microsoft report fiscal first-quarter 2027?
Microsoft will publish the results after the close on Wednesday 28 October 2026, and the webcast is at 2:30 p.m. Pacific. That clock is the company’s 7 October release. The FOMC also meets on 27 and 28 October, and the October meeting is not marked for new economic projections. The earnings numbers are a separate document, after the cash close, so a policy line and an Azure line can hit the same afternoon.
Why is the bear only about $4 under the close?
The bear is $520.19, which is $4.32 under the $524.51 close, because the average daily log-return is strongly positive. One sigma of downside is almost offset by 47 sessions of that drift. The 30 July session, from $390.54 to $451.10, is about half of the sum of the 90 log-returns, and it was kept in the sample. Dropping it would invent a calmer path than the tape printed.
Did Microsoft cut calendar-2026 capital spending to $175 billion?
No. Hood said calendar-2026 investment expectations were unchanged outside the useful-life update, and that the shift from finance leases to operating leases adjusts the reported expectation to about $175 billion. Finance leases sit inside capital expenditure. Operating leases do not. First-quarter capex is still guided above $50 billion, including that reclassification. The 14 October letter does not replace those sentences.
How do these prices compare with analyst targets?
The title pair is the distribution, not a broker target. StockAnalysis, using 56 analysts polled by S&P Global and checked on 23 October, shows an average of $599.24, a median of $600, a low of $440, and a high of $870. The model’s base of $609.17 sits near that average and is still a different calculation. Bernstein’s $662, Piper Sandler’s $610, and the $600 marks at Bank of America, BMO, and Morgan Stanley are separate numbers.
This is not financial advice. The bull, base, and bear are a volatility calculation from Nasdaq’s official daily closes, not a recommendation to buy or sell Microsoft shares.