Are Wall Street Analysts Bullish on Microsoft Stock?

Core Insights - Microsoft Corporation (MSFT) is valued at a market cap of $4 trillion and is recognized as a global technology leader, known for products like Windows, Microsoft 365, Azure, LinkedIn, and Xbox [1] Performance Summary - Over the past 52 weeks, Microsoft shares have increased by 25.4%, outperforming the S&P 500 Index, which gained 18.1%. Year-to-date, Microsoft stock is up 28.5%, compared to the S&P 500's 17.2% increase [2] - However, Microsoft has underperformed the Technology Select Sector SPDR Fund (XLK), which returned 30.4% over the past 52 weeks and 30.8% year-to-date [3] Financial Results - On October 29, Microsoft reported Q1 results that exceeded expectations, with revenue rising 18.4% year-over-year to $77.7 billion, surpassing consensus estimates by 3.6%. Adjusted EPS was $4.13, up 22.6% from the previous year and 13.2% above analyst expectations [4] Future Outlook - For fiscal 2026, analysts project Microsoft's EPS to grow by 12.9% year-over-year to $15.40. The company has a strong earnings surprise history, exceeding consensus estimates in the last four quarters [5] - Among 48 analysts covering Microsoft, the consensus rating is a "Strong Buy," with 41 "Strong Buy," five "Moderate Buy," and two "Hold" ratings [5] Analyst Ratings and Price Targets - Mizuho Financial Group's analyst maintained a "Buy" rating on Microsoft with a price target of $640, indicating an 18.9% potential upside. The mean price target is $630.20, representing a 17% premium, while the highest target of $682 suggests a 26.7% upside potential [6]