Microsoft (MSFT) stock has fallen 0.7% over the past week, dropped 11.7% in the last month, and is down 1.9% over the past year. Wall Street’s analysts are strongly bullish, forecasting a move toward a 12‑month price target of $594.02 from the last closing price of $398.46.
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Tyler Radke of Citi Research reiterated his Buy rating on MSFT on 2/20/2026, setting a price target of $635, implying substantial upside from current levels. This N‑star analyst ranks 3,883 out of 12,061, with a 44.93% success rate and an average return of 2.8% per rating.
Radke’s latest investor meetings with Microsoft’s IR team highlighted strong momentum in Copilot, now described as the primary growth driver for M365 Commercial, surpassing even the E5 tier. Management also addressed investor concerns around competition from Claude and CoWork, Microsoft’s positioning after the OpenAI developments, capacity allocation, and the capital expenditure trajectory.
According to the discussions, Azure growth is currently constrained by capacity rather than demand, with a clear framework guiding how resources are allocated. Microsoft expects Azure margins to remain sustainable over the long term, citing efficiency gains from in‑house Maia silicon, software and throughput improvements, and proprietary large language models, while maintaining a focus on free cash flow and gross profit dollars.
Management believes Microsoft’s deep data, workflow integration, and security advantages position it well to extend its lead in AI‑driven enterprise software, even as shares trade at what Radke notes are roughly decade‑low valuations versus the S&P 500 on forward P/E. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.