Microsoft, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Tyler Radke from Citi maintained a Buy rating on the stock and has a $613.00 price target.
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Tyler Radke has given his Buy rating due to a combination of factors including Microsoft’s impressive performance in the recent quarter. The significant acceleration of Azure, which surpassed guidance by 4-5 percentage points and achieved a 39% year-over-year growth in constant currency, played a crucial role in this positive outlook. Additionally, the strong commercial bookings growth of 30% indicates a promising trajectory for continued growth into the fiscal year 2026.
Moreover, Microsoft’s total revenue exceeded expectations by approximately 3%, driven by widespread strength across all segments. The company also outperformed in profitability metrics, with gross profit and operating income surpassing street estimates by 4.5 and 7 percentage points, respectively. Despite some challenges in non-operating income, the overall financial results, including a GAAP EPS beat of 8.5%, reinforce confidence in Microsoft’s future performance, particularly in its core and AI Azure segments.
In another report released today, Barclays also maintained a Buy rating on the stock with a $625.00 price target.
Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MSFT in relation to earlier this year.