When Microsoft (MSFT) reports its fiscal fourth-quarter results on Tuesday, investors will be eager to see how Azure, its cloud infrastructure business, and Copilot, its artificial intelligence services, perform. The company's stock has been struggling and could benefit from positive news. Investors will also closely examine Microsoft's capital expenditures, particularly in data centers and AI capacity, for any signs of increased spending. According to analysts polled by FactSet, Microsoft is expected to earn $2. 93 per share, a 9% increase year over year, with sales of $64. 4 billion, a 15% increase, in the June quarter. These figures would reflect a second consecutive quarter of slower sales growth and the third consecutive quarter of decelerating earnings growth. For the September quarter, analysts project Microsoft to earn $3. 17 per share, a 6% increase year over year, with sales of $65. 1 billion, a 15% increase. Ahead of the report, UBS analyst Karl Keirstead reaffirmed his buy rating on Microsoft stock, setting a price target of 520. On Friday, Microsoft stock rose 1. 2% to 423. 44.

However, it had previously hit a record high of 468. 35 before declining due to a tech stock sell-off. Despite the recent decline, Keirstead mentioned that there is bullish sentiment around Azure's demand signals and potential upside from Copilot AI services, particularly in Office applications. TD Cowen analyst Derrick Wood is optimistic about Microsoft's prospects, given the low expectations. He expects Microsoft to surpass growth and margin forecasts and sees the company as well-positioned for AI monetization. Wood rates Microsoft as a buy with a price target of 495. Furthermore, Microsoft is listed on two IBD lists: Long-Term Leaders and Tech Leaders.