Microsoft Stock Soars on Strong Q4 Report

Microsoft's stock has been on a roll after its blockbuster Q4 report, and Wall Street analysts are nearly unanimous in their predictions for the company's future. Of 54 analysts covering Microsoft, only three have a 'Hold' rating, while the rest recommend buying the stock. Our own model agrees with this assessment, predicting that Microsoft's price will rise to $604.39, which represents a 19.96% increase from its current price of $503.81.

The catalyst for this optimism was Microsoft's Q4 FY2026 report, in which it posted revenue of $90.01 billion, up 17.75% year-over-year. The company's Azure cloud service grew 43%, crossing the $100 billion mark in annual revenue for the first time. Commercial remaining performance obligations (RPO) also vaulted 84% to $678 billion.

Analysts point to Microsoft's RPO backlog as a key driver of future growth, with some predicting that the company will continue to convert this backlog into recognized revenue at a rate of around 40%. They also note that Microsoft's cloud operating margins are expected to remain in the mid-40s. However, there is one potential risk: capex (capital expenditures), which reached $115.95 billion in FY26 and may continue to grow rapidly.