Prediction: This Will Be Microsoft's Stock Price at the End of 2026

• Microsoft is taking a neutral presumption successful the AI buildout.

• Copilot inactive needs to beryllium its worthy to its users.

• Microsoft carries a premium valuation.

• 10 stocks we similar amended than Microsoft ›

Microsoft (NASDAQ: MSFT) had a beardown 2025, rising from astir $420 per stock astatine the commencement of 2025 to astir $490 by December. That's astir a 17% return, making it a beardown banal prime successful mean years. However, the S&P 500 (SNPINDEX: ^GSPC) besides had a large year, rising astir 18%. This means that Microsoft's banal mislaid to the marketplace contempt an awesome year.

Looking up to 2026, volition Microsoft beryllium capable to outperform the market? Or volition it beryllium different twelvemonth of market-matching to market-losing performance? Let's fig retired what Microsoft's banal terms could beryllium to extremity 2026, and spot if that volition beryllium bully capable to bushed the market.

There are respective varieties of companies progressive successful the artificial quality realm. Microsoft is much of an AI facilitator alternatively than a developer, which could person its benefits and drawbacks arsenic we determination person to an AI-first world.

One of Microsoft's large components that isn't discussed capable is its Azure unreality computing business. Azure is the second-largest unreality computing work down Amazon Web Services (AWS), but it whitethorn not enactment determination for agelong with its accelerated maturation rate. In first-quarter fiscal twelvemonth 2026 (ended Sept. 30, 2025), Azure's gross roseate 40% twelvemonth implicit year, doubling AWS' 20% growth. Azure's show apt has to bash with the information that it's neutral successful what generative AI models it offers to users.

Although Microsoft has a 27% OpenAI stake, that's not the lone exemplary it offers connected Azure. Developers tin deploy competing models similar xAI's Grok oregon Anthropic's Claude, oregon take a cost-efficient exemplary from DeepSeek. Because Microsoft isn't tying its occurrence to 1 model, it tin payment from the rising tide of accrued AI usage.

One country wherever accrued AI usage has benefited Microsoft is its Office products. Its Copilot add-on, which gives users generative AI capabilities specifically for these platforms, has go fashionable and helped present 17% Microsoft 365 commercialized maturation and 26% 365 user growth.

All these trends that existed successful 2025 aren't apt to vanish successful 2026, and Wall Street expert projections backmost that presumption up. For FY 2026 (ending June 30, 2026), expect Microsoft to present 16% income growth. For FY 2027 (ending June 30, 2027), the statement estimation for Microsoft's gross maturation is 15%. That's beauteous overmuch connected par with wherever Microsoft has been implicit the past 5 years.