
Microsoft (MSFT) Stock Forecast & Price Target
Microsoft (MSFT) Analyst Ratings
Bulls say
Microsoft's financial outlook remains positive due to strong demand for its cloud services, particularly Azure, which has continued to demonstrate impressive growth, outperforming competitors such as Google Cloud and AWS. The expected acceleration in capital expenditures and leasing for FY26 indicates a proactive approach to addressing capacity constraints, with particular emphasis on short-lived assets like GPUs and CPUs to meet increasing demand. Additionally, metrics such as commercial RPO and commercial bookings reflecting 51% and 111% year-over-year growth, respectively, further underscore the company's robust positioning and its ability to leverage upsell opportunities within its infrastructure software sector.
Bears say
Microsoft's stock faces a negative outlook largely due to disappointing guidance for Azure growth, which fell short of investor expectations, resulting in a significant sell-off of shares. The company's ongoing substantial expenses related to OpenAI have contributed to notable volatility in its financial performance, including a significant drag on earnings per share. Additionally, the company's capital-intensive cloud infrastructure and the looming impact of regulatory changes, such as the Global Minimum Tax, pose further risks that may hinder its overall financial growth and stability.
This aggregate rating is based on analysts' research of Microsoft and is not a guaranteed prediction by Public.com or investment advice.
Microsoft (MSFT) Analyst Forecast & Price Prediction
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