Options Bulls Target Microsoft Stock Before Earnings

Microsoft Corp (NASDAQ:MSFT) is scheduled to report fiscal fourth-quarter earnings after the close on Wednesday, July 29. According to Zacks Research, analysts expect earnings of $4.21 per share on revenue of $87.42 billion, representing year-over-year growth of 15.3% and 14.4%, respectively. Wall Street will be eager for updates on Microsoft's AI initiatives, as the company continues to expand its portfolio through Copilot, Azure AI services, and infrastructure investments.

On the charts, MSFT recently bounced off its June 25, 52-week low of $349.20, though the 60-day moving average has emerged as pressure at $45. Last seen up 2.1% at $401.95 today, the Big Tech stock is down 16.9% since the start of 2026. 

Options traders are pricing in a 13.7% post-earnings move, regardless of direction, which is far above Microsoft's average post-earnings swing of 5.2% over the last eight quarters. The software giant has closed lower after six of its last eight quarterly reports, including back-to-back declines of 3.9% and 10.1%.

Options traders are firmly in the bullish camp. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Microsoft's 50-day call/put volume ratio of 3.35 ranks higher than 96% of readings from the past year. 

This sentiment has remained strong over the past couple weeks. Per Schaeffer's Quantitative Analyst Rocky White's list of stocks sporting the most active options over the past two weeks, Microsoft saw over 4.8 million calls and more than 1.6 million puts exchanged during this time frame, with the most activity seen at the July 400 call.