Microsoft (MSFT) has reportedly hit strong sales targets for its Copilot AI tool after shifting to a paid subscription model instead of bundling it for free. According to Bloomberg, citing company executives, Microsoft set “big, audacious goals” for Copilot sales and largely achieved them in the latest quarter.
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MSFT stock is down nearly 23% year to date. Despite the dip, Wall Street remains upbeat. Analysts continue to back Microsoft’s broader cloud and AI strategy, with an average price target of $582, implying about 56% upside. The bull case goes even higher, with targets around $678 suggesting over 80% potential upside.
Microsoft’s Strategy Shift Pays Off
Judson Althoff, who heads Microsoft’s commercial business, reportedly told employees that the company changed how it sells its Microsoft 365 Copilot AI tool after feedback from analysts following its January update.
At that time, Microsoft said only about 3% of customers were paying for Copilot, showing slow early adoption. Earlier, the company focused on offering Copilot for free to existing Office users, along with paid plans, but it is now putting more emphasis on paid subscriptions. Althoff said the company has set new, ambitious targets for the June quarter and added that he feels “very confident” about hitting them.
What Lies Ahead for MSFT Stock?
MSFT stock has started 2026 on a rough note, with shares under pressure as investors take profits after a strong run. Broader weakness in tech and concerns over heavy AI spending are also weighing on sentiment. Despite the pullback, Wall Street remains bullish, with 34 out of 37 analysts still rating the stock a Buy.
Last week, Piper Sandler analyst Billy Fitzsimmons said “sentiment has shifted” around Copilot. He pointed to Microsoft’s recent upgrade to Researcher, a deep-reasoning AI agent within its Microsoft 365 Copilot system, as a positive sign. Fitzsimmons reaffirmed his Buy rating on MSFT stock, implying around 60% upside.
Meanwhile, BofA’s five-star analyst Tal Liani also reiterated a Buy rating on MSFT stock. While he pointed out that the slower rollout of Copilot tools remains a concern, he still sees Microsoft as well-positioned in the AI race. Liani believes Microsoft’s key strength is how it integrates AI into its existing products. Since tools like Office, security, and data platforms are already widely used, the company can easily add AI into daily workflows—helping drive higher usage and boost revenue per user over time.
Is Microsoft a Good Stock to Buy Now?
According to TipRanks, MSFT stock has received a Strong Buy consensus rating, with 34 Buys and three Holds assigned in the last three months. The average Microsoft stock price target is $582.17, suggesting a potential upside of 56% from the current level.
