Microsoft Earnings: Analysts Push ‘Reset’ to AI Adoption Amid 11% YTD Drop

Microsoft enters its April 28, 2026 earnings with analysts (Jefferies, Bernstein) calling for a 'reset,' pivoting investor attention from Azure capacity issues to AI-driven growth in Microsoft 365 and Copilot adoption metrics. Shares are down 11% year-to-date, compressing the multiple, while FactSet consensus forecasts $4.05 adjusted EPS (vs. $3.46 last year), $81.4 billion revenue (+16% YoY), Azure growth at 38% for March quarter and ~37% for June. Strong AI commentary could lift sentiment and spark recovery, but weak adoption or guidance risks prolonging downside pressure. Coverage has emphasized this shift across two updates today.