The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 38 | 25.4x | 20.1x | Near average | |
Growth | 54 | 17.9% | 5.6% | Near average | |
Quality | 65 | 31.8% | 7.6% | Near average | |
Safety | 80 | -0.2x | 0.4x | Above average | |
Capital Return | 41 | 0.83% | 2.19% | Near average | |
Momentum | 40 | — | — | Near average | |
Sentiment | 93 | — | — | Above average |
This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.
Recent analyst reviews for Microsoft stock have shown remarkable stability in the average price target at $551.96, with a slight increase of 0.04% over the past 30 days. These figures reflect continued optimism despite the wide Dispersion between the high of $680 and the low of $415, indicating a gap in fair value estimation among the 18 analysts covering the stock.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Microsoft Corporation is one of the largest technology companies globally, with an operating philosophy centered on delivering advanced cloud computing services, business productivity solutions, and developing artificial intelligence infrastructure. The company generates its revenues through three main segments: the Intelligent Cloud segment, which includes the Azure platform; the Productivity and Business Processes segment, which includes the Microsoft 365 software suite, LinkedIn, and Dynamics; and the broader More Personal Computing segment, which includes the Windows operating system, gaming via Xbox, and search advertising.
During the third quarter of fiscal year 2026, Microsoft achieved strong financial results that exceeded expectations, with total revenues reaching $82.9 billion, a growth of 18% (15% in constant currency) compared to the prior year. Gross profit for the quarter was $56.1 billion, while net income recorded $31.8 billion, achieving earnings per share of $4.27 (an increase of 21% when adjusted for the impact of the OpenAI investment). The company's operating margin remained robust at 46%, supported by the exceptional performance of cloud services.
On a segment performance level, the Intelligent Cloud segment led the growth with revenues of $34.7 billion (30% growth), driven by a qualitative jump in Azure and other cloud services revenues by 40%. The Productivity and Business Processes segment achieved revenues of $35 billion, a growth of 17%, supported by the acceleration of Microsoft 365 Copilot commercial subscription sales. In contrast, the More Personal Computing segment experienced a slight decline of 1% to record $13.2 billion, affected by memory pricing pressures and declining device and Windows OEM sales.
Microsoft stock is currently trading at $450.24, which represents a clear discount compared to the average price target by analysts of $551.96, indicating promising upside growth potential for the stock. The company enjoys a strong consensus analyst recommendation of "Buy", with the target range for analyst prices spanning from a minimum of $415 to a highly optimistic maximum of $680.
In the third quarter of fiscal year 2026, Microsoft achieved total revenues of $82.9 billion, a growth of 18% compared to the prior year. The company's net income during this quarter reached $31.8 billion, resulting in earnings per share (EPS) of $4.27. These results were supported by the strong growth of cloud computing services and the rapid expansion of the artificial intelligence business.
Microsoft expects to invest approximately $190 billion in capital expenditures (CapEx) during the entire calendar year 2026 to support cloud and artificial intelligence infrastructure. This amount includes about $25 billion as an impact resulting from rising prices of technological components and chips. These massive investments aim to double the total capacity of data centers in just two years to meet growing demand.
The Annualized Recurring Revenue (ARR) run rate for Microsoft's AI business surpassed the $37 billion threshold during the third quarter of fiscal year 2026. This figure represents an exceptional year-over-year growth of 123% compared to the same quarter of the prior year. This business contributes directly to boosting the sales margins of the Intelligent Cloud segment and the Azure platform.
Automated analysis for informational purposes only — not investment advice.
The Microsoft 365 Copilot product recorded a record year-over-year growth in paid seats of 250%, bringing total paid seats to over 20 million in the third quarter of fiscal year 2026. Adoption of the product expanded among major global companies, with Accenture now owning more than 740,000 seats, while companies like Bayer and Mercedes committed to 90,000 seats or more each.
Microsoft expects More Personal Computing segment revenues to range between $11.75 billion and $12.25 billion in the fourth quarter. Estimates indicate that Windows OEM and devices revenues will decline by a percentage in the mid-to-high teens. This decline is due to the impact of the prior year's comparison, which benefited from the end of support for Windows 10, channel inventory adjustments, and higher PC prices due to memory costs.