Microsoft (NASDAQ:MSFT) recently reported earnings for its first quarter of Fiscal Year 2023. Earnings per share came in at $2.35, which beat analysts’ consensus estimate of $2.31 per share. In the past nine quarters, the company has beaten estimates eight times.
Sales increased 10.6% year-over-year, with revenue hitting $50.1 billion compared to $45.317 billion. This was also higher than the $49.689 billion that analysts were looking for.
However, the company demonstrated some operating deleverage since its operating margin contracted from 44.7% to 42.9%. Nonetheless, the company’s operating income grew from $20.238 billion in the comparable period to $21.5 billion now.
Is Microsoft Stock a Buy, Sell, or Hold?
Microsoft has a Strong Buy consensus rating based on 28 Buys, three Holds, and zero Sells assigned in the past three months. The average MSFT stock price target of $315.36 implies 25.64% upside potential.
