Microsoft Corp. (NASDAQ:MSFT) is gearing up to report third-quarter earnings on Wednesday. While MSFT stock is flashing green, the mood around enterprise spending might be a bit more gray.

After shedding nearly 7% year to date and slipping 2.76% over the past year, Microsoft has shown some recent life – rising 4.2% this past month.

The question now is whether Azure can lift the whole ship, or if it's simply keeping it afloat.

AI, Cybersecurity: Where The Real Spending Is, Says Link

Wall Street analysts expect earnings per share of $3.22 on $68.44 billion in revenue, but it's not just the headline numbers that matter – it's where the growth is coming from.

Stephanie Link, chief investment strategist at Hightower Advisors, cuts straight to the point: "55% of revs are enterprise/PC – and this isn't really where CTOs are aggressively spending" in comments shared with Benzinga via email. The real excitement is in cloud and AI, and Link expects Azure to grow 30% – but she warns that's "actually decelerated from last Q's 40%."

Read Also: Stock Of The Day: Will Microsoft Take The Entire Market Higher?

MSFT Charts Flash Bullish – But Long-Term Resistance Looms

Chart created using Benzinga Pro

Still, Microsoft's technical setup is looking solid. The stock is trading above its eight-day, 20-day and 50-day simple moving averages, all of which suggest bullish momentum. MSFT stock, at $391.16, has comfortably cleared its short- and mid-term averages.

However, it remains below the 200-day simple moving average of $414.99, keeping long-term sentiment cautious.

The Moving Average Convergence Divergence (MACD) indicator sits at a slightly negative 0.96, and the Relative Strength Index (RSI) at 55.55 shows light buying pressure – not yet overbought, but not screaming undervalued either.

Microsoft's cloud narrative may be holding up, but with decelerating growth and lackluster enterprise demand, earnings will need to show that AI and security are doing the heavy lifting. The street will be watching closely to see if Azure can justify the bullish tone in the charts – or if Microsoft's momentum is just a head fake.

• Microsoft, Meta, Amazon, Apple Gear Up For 'AI Revolution' Week As Tariff Storm Brews

Photo: Shutterstock