"The more things change, the more they stay the same," for the Washington-based software company, analysts said.
"Microsoft shares have rallied sharply over the past year driven by expectations for improved operational performance due to new management and the influence of activist shareholders. However, we believe the underlying issues are more related to challenging fundamentals that persist today," analysts said.
"We believe the 'new' Microsoft will look very much like the 'old' Microsoft for some time," analysts added.
Shares of Microsoft are up 0.35% to $48.87 in pre-market trading.
Separately, TheStreet Ratings team rates MICROSOFT CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."