TLDR
- MSFT has climbed about 28% over the past seven trading sessions, moving the stock up around 4% year to date.
- Azure revenue grew 43% year over year in fiscal Q4, with management guiding for ~45% growth next quarter.
- Microsoft Cloud revenue hit $59.3 billion; Microsoft 365 Copilot topped 30 million paid seats.
- Q4 EPS came in at $4.74, beating estimates of $4.24, on revenue of $90.01 billion vs. estimates of $87.62 billion.
- 5-star Tigress analyst Ivan Feinseth has a Street-high $690 price target, while the consensus sits at $558.87 with a Moderate Buy rating.
Microsoft (MSFT) stock opened at $499.99 on Monday, August 10. The stock has a market cap of $3.71 trillion and a 52-week range of $349.20 to $553.72.
MSFT spent most of 2026 in the red before a strong fiscal Q4 earnings report on July 29 changed the conversation. The stock has now risen about 28% over seven trading sessions.
The quarter was straightforward: EPS of $4.74 beat the $4.24 consensus by $0.50, and revenue of $90.01 billion topped estimates of $87.62 billion. Revenue was up 17.7% year over year.
The number that got the most attention was Azure. Cloud revenue grew 43% year over year, and management guided for around 45% growth in the current quarter. Microsoft Cloud revenue as a whole reached $59.3 billion.
Microsoft 365 Copilot crossed 30 million paid seats, giving a concrete data point on AI monetization that investors had been waiting on.
What Analysts Are Saying
Tigress Financial analyst Ivan Feinseth, rated 5-stars, holds a Street-high $690 price target on MSFT. He describes the stock as a “compelling long-term compounder and core AI infrastructure holding.”
Feinseth believes the company can “convert today’s elevated capital investment cycle into higher returns on capital,” pointing to data center utilization and proprietary chips like Maia and Cobalt as efficiency drivers.
Of 35 analysts covering the stock, 34 rate it a Buy. The average price target is $558.87, pointing to about 12% upside from current levels.
Citi raised its price target to $600 following earnings. Scotiabank also raised its fiscal 2027 EPS estimate and kept an Outperform rating.
What Could Weigh on the Stock
The concerns that dragged MSFT lower earlier this year have not fully gone away. Heavy data center capital expenditures and lower cloud gross margins remain a potential pressure on cash flow.
One report suggests OpenAI may account for a large chunk of Microsoft’s AI revenue, raising customer concentration questions. A large AI backlog also does not guarantee equivalent future profit.
On the insider front, EVP Takeshi Numoto sold 4,810 shares on August 4 at an average price of $496.48, totaling around $2.39 million. Insiders sold $17.8 million in stock during the last quarter overall.
There is also an active securities class action with an August 11 lead-plaintiff deadline. No wrongdoing has been established.
CEO Satya Nadella said Microsoft’s custom AI chips can deliver efficiency gains of up to 40%, which could help protect Azure margins over time.
Microsoft also opened a major data center in Hyderabad, India, and committed approximately $20.5 billion to Indian cloud and AI operations. Early customers include Adani Group and HDFC Bank.
The company declared a quarterly dividend of $0.91 per share, payable September 10 to stockholders of record on August 20. The ex-dividend date is August 20.
Institutional investors own 71.13% of outstanding MSFT stock. Bill Ackman’s Pershing Square holds a reported $2.4 billion position in the company.
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