Microsoft (NASDAQ:MSFT<\/a>) has been one of the cleanest setups in mega-cap tech this year. After a sharp pullback from last summer’s highs, the stock now trades where the analyst community, prediction markets, and our model align. Our 24\/7 Wall St. price target for Microsoft is $486.23, and our confidence in that number is high. <\/p>\n That implied 33% upside over the next 12 months reflects a stock punished by the broader AI capex debate while the underlying business keeps compounding. With 52 Buy ratings against 3 Hold and 0 Sell, Microsoft enjoys near-unanimous Wall Street support. <\/p>\n A 25% Drawdown Despite Accelerating Fundamentals <\/p>\n Microsoft is down 24.83% over the past year and 24.1% year to date, with a 12.69% slide in the past month alone. Shares sit roughly 2% off the 52-week high of $551.05 after retracing from $520 in August 2025. <\/p>\n The fundamentals tell a different story. Q3 FY26, reported April 29, 2026, delivered EPS of $4.27 against a $4.07 estimate and revenue of $82.89 billion, up 18.3% year over year. <\/p>\n Azure grew 40%, Microsoft Cloud reached $54.5 billion, and CEO Satya Nadella highlighted that “our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.” Commercial RPO sits at $627 billion, up 99%. <\/p>\n Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks \u2014 and Microsoft didn’t make the cut. Grab the names FREE today<\/a>. <\/p>\n The bull case rests on Azure and Copilot monetization compounding faster than sell-side models. With OpenAI committed to $250 billion of additional Azure spending and Microsoft holding a 27% OpenAI stake worth roughly $135 billion, the revenue pipeline is pre-funded. <\/p>\n Vanguard’s 2026 outlook notes that “U.S. technology stocks could well maintain their momentum given the rate of investment and anticipated earnings growth.” The Street’s average target of $561.39 is well above our base case, and our bull scenario points to $599.61, a 64% return. <\/p>\n Microsoft’s CapEx hit $30.88 billion in Q3 FY26, up 84.39% YoY, and OpenAI investment losses ballooned to $3.1 billion in Q1 FY26 from $523 million a year earlier. If AI ROI disappoints, multiple compression follows. <\/p>\n<\/a> MSFT Price Target \u2014 24\/7 Wall St. The 24\/7 Wall St. Price Target at a Glance <\/p>\n
<\/a> MSFT Earnings Explorer \u2014 24\/7 Wall St. Why Bulls See a Breakout Ahead <\/p>\n
<\/a> MSFT Analyst Ratings \u2014 24\/7 Wall St. What Could Go Wrong <\/p>\n