Evercore ISI raised the firm’s price target on Microsoft (MSFT) to $545 from $515 and keeps an Outperform rating on the shares. The bar is raised but the firm believes the combination of Azure acceleration, an initial FY26 operating margin guide that balances higher COGS with lower opex growth, and normalizing capex growth should keep a bid under shares into FY26. Microsoft is slated to report its Q4 results on Wednesday, July 30th and Evercore believes the company is well-positioned to report solid results, headlined by Azure growth of 34%-35%, with the buyside whisper number at the high end of the range. With shares up a whopping 45% since April, investors may need some patience as a better Azure outcome is largely baked in, but the firm sees Microsoft continuing to grind higher in the second half of 2025 based on.
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