Microsoft shares hover near $520 as analysts raise targets before Oct 28 earnings
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The gist
Microsoft stock traded 0.19% lower at $520.07 on Oct 23, about 2% off its record $543.45 close.
Analysts cite Azure cloud demand ahead of fiscal Q1 results due Oct 28.
Background
Microsoft Corp. (NASDAQ:MSFT) is the software and cloud company whose stock is the subject here; it reports fiscal first-quarter 2027 results on October 28. The stock's rebound followed a strong fiscal fourth quarter: revenue rose 17.75% to $90.01 billion, EPS of $4.74 beat the $4.24 consensus, Azure grew 43%, and commercial RPO (remaining performance obligations, contracted revenue not yet booked) jumped 84% to $678 billion. Management guided for Azure growth of roughly 45% in constant currency this quarter, and analysts have been raising price targets into the earnings report.
How it unfolded
- Jun 30, 2026Microsoft's fiscal 2026 ended with adjusted EPS up 22% to $17.28, revenue up 18% to $331.8 billion, and free cash flow down about 6% to roughly $67 billion.
- Oct 13, 2026Microsoft closed at a record $543.45.
- Oct 22, 202624/7 Wall St. set a 12-month price target of $649.73, implying 22.3% upside, with a BUY rating.
- Oct 23, 2026Shares traded 0.19% lower at $520.07, about 2.1% above the 50-day moving average and 1.4% below the 20-day average, with RSI at 48.07.
- Oct 26, 2026Oppenheimer raised its target to $625 from $570, Scotiabank raised its to $625 from $615 and named the stock a Top Pick, and Truist raised its target to $600 from $575; shares traded at $524.51.
- Oct 28, 2026Microsoft is scheduled to report fiscal first-quarter 2027 results after the market closes.
Who’s saying what
- Bulls
- 24/7 Wall St. rates MSFT a buy with 90% confidence and a $649.73 target, citing Azure demand topping supply and a signed backlog.
- Analysts
- Oppenheimer says infrastructure availability, not demand, is the main constraint on Azure growth, and Scotiabank's Patrick Colville expects Azure growth of 47-48% in Q1 with a possible upside case above 49%.
- Caution
- The Motley Fool says about 31 times fiscal 2026 adjusted earnings is steep given guidance for slower growth and rising capex, and would buy at about $465 a share.
- Official
- CFO Amy Hood said customer demand continues to exceed available capacity and that Microsoft expects to remain free cash flow positive in FY27.
Still unverified
Options pricing suggests the stock could swing up to about 5% in either direction by the end of the earnings week, potentially reaching $549 or falling to $500, per one report; another cites options data suggesting a 4.6% move around the earnings report.