Microsoft Share Price Surges 30% as Q4 Earnings Impress
UK investors who bought Microsoft (NASDAQ: MSFT) stock in April when it was trading at around $370 per share have reaped significant gains. The tech giant's share price surged 15.5% in one day last week, its best performance since 2008.
The company's Q4 FY26 earnings reported last week showed strong top-line growth of 18% year on year and expectations for free cash flow positivity this financial year. Additionally, Microsoft 365 Copilot reached over 30m paid seats, indicating traction with AI solutions.
With the average forecast now at $563, brokers have raised their price targets for the stock. Despite ongoing uncertainties, Microsoft's share price remains relatively cheap, with a P/E ratio of 24 using this year's EPS forecast and 20 using next year's.
Mark Rogers' team believes Microsoft still offers potential opportunities, despite AI disruption being a risk. The company has been around for over 50 years and has evolved significantly during that time.