Microsoft Stock Stagnant Despite Analysts' Strong Conviction in Company Growth
Microsoft's stock price has been stagnant for a year despite analysts' strong conviction in the company. A total of 52 analysts cover Microsoft, and none of them recommend selling the stock. In fact, the consensus target is $578.42, implying about 12.8% upside.
The 24/7 Wall St. price target for Microsoft stands at $627.63 over the next 12 months, which is 22.37% above the current price of $512.90. This target reflects the company's strong growth prospects, particularly in its Azure cloud computing business, which recently crossed a historic revenue threshold.
Azure grew 43% and passed $100 billion in annual revenue in Microsoft's fiscal Q4 2026 results. The company reported revenue of $90.01 billion, up 17.75%, beating the estimate. EPS of $4.74 also beat the estimate of $4.24.
Microsoft's CFO Amy Hood stated that demand continues to exceed available supply for Azure capacity, which is a key driver for the company's growth. Additionally, Microsoft's AI products, such as Microsoft 365 Copilot and GitHub Copilot, are making real money, with net additions more than doubling from the prior quarter.