This Will Be Microsoft’s Price Next Year

1 week ago 8

Vandita Jadeja

Tue, April 14, 2026 astatine 6:54 AM CDT 4 min read

Microsoft (MSFT) reported Q2 FY2026 non-GAAP EPS of $4.14 (7.57% beat), with Azure increasing 39% year-over-year and commercialized remaining show work surging 110% to $625 cardinal successful contracted aboriginal revenue.
The company’s OpenAI concern includes a $250 cardinal incremental Azure services committedness and Microsoft’s 27% involvement valued astatine astir $135 billion.
Microsoft’s banal has declined 23.14% year-to-date contempt beardown net and Azure growth, creating an introduction constituent arsenic 95% of covering analysts are bullish with a statement terms people of $587.31.
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Tech giant Microsoft (NASDAQ:MSFT) trades astatine $370.87 arsenic of writing, down 23.14% year-to-date. Our terms people is $488.47, implying astir 31.71% upside implicit the adjacent 12 months. Our proposal is buy, with a 90% assurance level.

Metric

Value

Current Price	$370.87
24/7 Wall St. Price Target	$488.47
Upside	31.71%
Recommendation	BUY
Confidence Level	90%

The YTD diminution has created an introduction constituent for investors who judge successful the Azure AI thesis. 95% of covering analysts are bullish, with a statement people of $587.31.

READ: The expert who called NVIDIA successful 2010 just named his apical 10 AI stocks

Microsoft's banal peaked astatine $552.24 connected a 52-week ground earlier sliding to existent levels. Over the past month, shares fell 8.4%, and the one-year instrumentality stands astatine -2%. The banal trades beneath some its 50-day moving mean of $393.88 and 200-day moving mean of $474.17, signaling sustained selling pressure.

Yet net archer a antithetic story. In Q2 FY2026, Microsoft posted non-GAAP EPS of $4.14 against a statement estimation of $3.85, a 7.57% beat. Revenue reached $81.27 billion, up 16.72% year-over-year.

Azure grew 39% YoY, and commercialized remaining show work surged 110% to $625 billion. This $625 cardinal backlog provides multi-year gross visibility. The adjacent net study is scheduled for April 29.

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Azure's maturation of 39-40% YoY, with guardant guidance of 37-38% maturation adjacent quarter, shows nary deceleration. The $625 cardinal commercialized RPO provides multi-year visibility. The OpenAI concern creates structural advantage: OpenAI is contracted to acquisition $250 cardinal of incremental Azure services, and Microsoft holds a 27% involvement valued astatine astir $135 billion.

CEO Satya Nadella stated: "We are lone astatine the opening phases of AI diffusion and already Microsoft has built an AI concern that is larger than immoderate of our biggest franchises." If Copilot adoption accelerates crossed the enterprise, operating leverage could propulsion the banal toward the expert statement people of $587.31. Our bull lawsuit script targets $601.31 wrong 12 months.

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