With a market cap of $3.9 trillion, Microsoft Corporation (MSFT) is a global leader in software, services, devices, and cloud solutions. It operates through key segments including Productivity and Business Processes, Intelligent Cloud, and More Personal Computing, offering a broad range of products from Microsoft 365 and Azure to Windows, Xbox, and Surface devices.
Shares of the Redmond, Washington-based company have outpaced the broader market over the past 52 weeks. MSFT stock has increased 25.7% over this time frame, while the broader S&P 500 Index ($SPX) has gained 14.5%. Moreover, shares of Microsoft have soared 24.3% on a YTD basis, compared to SPX’s 6.1% rise.
Looking closer, the software maker stock has also outperformed the Technology Select Sector SPDR Fund’s (XLK) return of over 22% over the past 52 weeks and 10.6% gain on a YTD basis.
Shares of Microsoft rose nearly 4% following its Q4 2025 results on Jul. 30 due to stronger-than-expected EPS of $3.65 and revenue of $76.4 billion, driven by a 39% surge in Azure revenue. The company also announced a record $30 billion in expected Q1 capital spending, signaling aggressive investment to meet booming AI demand, including Copilot reaching 100 million monthly active users. Additionally, Azure’s annualized sales exceeded $75 billion for the first time, reflecting strong AI-driven growth and helping fuel a broader $500 billion rally in AI stocks.
For the fiscal year, ending in June 2026, analysts expect MSFT’s EPS to grow nearly 12% year-over-year to $15.27. The company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 46 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 39 “Strong Buys,” five “Moderate Buy” ratings, and two “Holds.”
On Jul. 31, Truist analyst Joel Fishbein raised Microsoft’s price target to $650 while maintaining a “Buy” rating, citing strong Q4 results driven by accelerating Azure growth, AI workload expansion, and increased cloud migrations.
As of writing, the stock is trading below the mean price target of $600.80. The Street-high price target of $675 implies a potential upside of 28.8% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
