Citi lifted its price target on Microsoft from $570 to $600 after the company's fiscal fourth-quarter 2026 earnings came in ahead of expectations. The bank's move follows Azure revenue growth of 43% year over year on a constant-currency basis, four percentage points above consensus estimates.
Azure growth drives optimism
Microsoft's cloud business continues to outpace Wall Street's forecasts. Management guided for 45% Azure growth in the current quarter, again exceeding consensus by four percentage points. Citi responded by raising its fiscal 2027 revenue and earnings per share estimates by more than 1% and boosting its Azure growth forecast to 45.5%.
The bank highlighted Microsoft's model-agnostic AI strategy as a competitive advantage. As smaller and open-source models gain traction, Microsoft's ability to offer multiple AI options through Azure gives it flexibility that some rivals lack.
Analyst consensus remains bullish
According to Seeking Alpha analyst data, Microsoft stock carries 39 Strong Buy, 14 Buy, and 3 Hold ratings. No analysts recommend selling. The broad support reflects confidence in the company's cloud and AI momentum.
Price predictions and outlook
CoinCodex's price prediction suggests Microsoft stock could consolidate between the low $410s and upper $480s through the end of 2026, then rise to $550–$600 by mid-2027, with a high projection of $623. Citi's $600 target aligns with that quantitative forecast, though the bank's new target sits at the upper end of the predicted range.
The current quarter's Azure growth numbers will be a key test of whether Microsoft can sustain its pace. With guidance already set at 45%, investors will be watching closely when the company reports next.
