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MSFT Earnings: Implied Move, History & IV Crush

How much does Microsoft move on earnings, how often does it actually beat its implied move, and what does that mean for options? Here’s the data — and how to read it.

EarningsWatcher Research 7 min read Data as of June 2026 · Education, not advice

Microsoft (MSFT) has a reputation as a steady, low-drama earnings name — and historically that’s true, but there’s a wrinkle worth knowing. Below is its earnings behaviour based on the last 16 reports (roughly the past 10 years), as of June 2026. The numbers describe history, so they’re useful whether you’re reading this months before a report or the week of one.

MSFT earnings at a glance

±5.0%
Avg move (10yr)
peak, day of release
±7.0%
Avg move (2yr)
regime: heating up
±9.4%
95th-pct tail
contained outliers

Here’s the wrinkle: MSFT’s decade-long average earnings move is a modest ≈±5.0%, but the last two years have run hotter at ≈±7.0% — a heating-up regime rather than the sleepy name many traders assume. The tail is still contained (95th percentile ≈±9.4%), so Microsoft isn’t explosive, but treating it like its old, calmer self is how traders get caught offside.

Does MSFT beat its implied move?

This is the question that decides whether buying or selling premium has an edge. The implied move is what the options market prices in before the report; the actual move is what happens. For MSFT it’s essentially a coin flip: the actual move has topped the implied move in about 50% of recent reports (roughly 8 of its last 16).

~50%
Beat rate
actual > implied (8 of 16)
Fairly
priced
Historical pricing
past implied ≈ actual avg
What this implies A ~50% beat rate means Microsoft’s options have, on average, been fairly priced — the implied move has been a reasonable estimate of what actually happens, with neither side showing an obvious historical edge. The part to note is the heating-up regime: recent moves have skewed larger than the 10-year average suggests.

How MSFT’s moves are distributed

0% 5% 10% 15% 10-yr avg ±5.0% ±1.4% 5th ±2.8% 20th ±4.7% median ±7.1% 80th ±9.4% 95th
The spread of MSFT’s earnings-day moves by percentile. Half of reports land within roughly ±4.7%; the 95th-percentile worst case is about ±9.4%.

The distribution is tight: half of MSFT’s earnings moves land within roughly ±4.7%, four in five stay under ±7.1%, and even the 95th-percentile outlier is about ±9.4%. With a standard deviation around ±2.7%, there’s little lottery-ticket character — the catch is that the recent two-year average (±7%) sits toward the upper half of that range.

Recent MSFT earnings

To make it concrete: in January 2026 Microsoft fell about −12.6% against an implied move of only ~5.2% — more than double what options priced in, and a vivid reminder that the “steady” reputation can break. The surrounding reports stayed inside the implied move, which is why the ~50% long-run rate, not any single quarter, is what to anchor on.

See the full history The complete report-by-report record — every past implied vs actual move, open/peak/close behaviour and post-earnings drift, plus the live implied move as the next date approaches — lives in the EarningsWatcher app.

IV rush and IV crush on MSFT

Implied volatility builds into the report (the IV rush) and collapses afterward (the IV crush). With a ~50% beat rate, Microsoft’s history shows the crush cutting both ways rather than reliably favoring one side — the central tension in holding options through earnings.

What MSFT’s earnings data means for options

These figures are a reference point, not a signal. Microsoft’s actual move has landed above and below its implied move about equally often (a ~50% beat rate), and the ±9.4% 95th-percentile figure marks the realistic worst case any position would need to withstand — sized for the hotter recent regime, not the sleepy ±5% average. The practical use is to compare a given quarter’s live implied move against this history, and to understand how each structure behaves around that move: a straddle or strangle needs the actual move to exceed the implied to pay, while an iron condor or butterfly needs it to stay smaller. You can test any of them against Microsoft’s full history in the EarningsWatcher app rather than relying on a rule of thumb.

On the “next” implied move There is no meaningful implied move far ahead of a report — it only firms up as the date nears. As a reference, MSFT’s recent implied moves have priced in the ~5–7% range. When the next report approaches, check the live implied move in the app and compare it to the ±5.0% history (and the hotter ±7% recent average).

Frequently asked questions

How much does MSFT move on earnings?

Over its last 16 earnings reports (roughly the past 10 years, as of June 2026), MSFT's average earnings-day peak move was about plus or minus 5.0%, with a median near plus or minus 4.7%. The last two years have been more volatile at about plus or minus 7.0%, so Microsoft's earnings reactions have been heating up. Tail risk is contained: the 95th-percentile move is about plus or minus 9.4%.

Does MSFT usually beat its implied move?

It is close to a coin flip. MSFT's actual move has topped its options-implied move in about 50% of recent reports (roughly 8 of its last 16). That balanced hit rate means neither buying nor selling premium has shown an obvious historical edge — the comparison that matters is the live implied move versus this history each quarter.

What is MSFT's implied move for earnings?

The implied move only firms up as an earnings date approaches, so there is no meaningful implied move far in advance. As a reference, MSFT's recent reports have priced implied moves of roughly 5% to 7%. Check the live implied move in the EarningsWatcher app as the next report nears, and compare it to the plus or minus 5.0% historical average.

When does Microsoft (MSFT) report earnings?

Microsoft reports quarterly, after the market close (AMC), typically in late January, late April, late July and late October. Confirm the exact upcoming date on a live earnings calendar before trading.

See MSFT’s live earnings data

Get Microsoft’s upcoming date, the live implied move as it firms up, and the full history of past moves.

Open MSFT in the app →