NASDAQ:MSFT
Microsoft Corp (MSFT)
Financials 
Technical Analysis 
Aug 6, 2026, 12:00 amThis summary was created by AI, based on 129 opinions in the last 12 months.
Microsoft Corp (MSFT) continues to garner mixed reviews from analysts as it navigates challenges within the AI landscape and its software business. While the stock has faced notable volatility, including a recent dip tied to concerns over its increased capital expenditures for AI and underwhelming Azure growth, many experts still highlight its strong balance sheet, solid cash flow, and growth potential in various sectors such as cloud and productivity software. The company's ongoing integration of AI technologies into its offerings, including the Co-Pilot feature, is viewed as a long-term growth driver, despite initial setbacks. There is a strong consensus that MSFT remains a fundamentally sound investment, attributed to its diverse revenue streams and robust market positioning. Analysts suggest that the current stock price may offer a compelling entry point, especially given its historical context and growth trajectory, making it an attractive hold for long-term investors.
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Premium contentWe reiterate the global computing workhorse as a TOP PICK. With almost three-quarters of the world's desktops using their operating system one can understand how they command a 32% ROE. Its investment into the AI space is paying dividends as cash flow continues to grow as debt is retired and shares bought back. They have just re-worked their partnership with OpenAI (developer of ChatGPT) to include a for-profit agreement for their partner, which should ensure access to their technology for some time to come. We continue to recommend a stop at $453, looking to achieve $625 -- upside potential of 22%. Yield 0.6%
(Analysts’ price target is $625.53)
A leader on many fronts. Return on data-centre capex is impressive. Not trading at an excessive multiple. Trades at a premium, but also growing at a premium.
Gordon ReidNo concerns at all. Hold on. Perfect candidate to write some shorter-dated calls at 4-5% higher, but also sell some puts. This strategy will make you some income on both sides. If you get hit on the put, it's probably a pretty good buy.
Kim BoltonThe company he'd be owning 5 years from now. Partnership with OpenAI is most consequential company of our time. Totally ahead on AI. Absolute beast when it comes to distribution. Wide-reaching tentacles across every Fortune 500 company. Path of least resistance when it comes to adopting AI -- security platform, Office 365, Copilot powered by ChapGPT. Yield is 0.66%.
(Analysts’ price target is $624.70)
Nick Mersch, CFAAre beating the other AI cloud companies, including Amazon. Their adoption of Co-pilot is ramping up. Well-managed. It remains good value at 34x PE. Is growing rapidly and consistently. We're in the early innings of AI.
(Analysts’ price target is $624.70)Gordon Reid12-month price target of $620. Hasn't trimmed, still second-largest holding in his fund. Earnings were very strong, especially coming out of the cloud. So many strong horses in the race. Very strong in AI participation.
Buy in thirds here, under $500, and ~$470.
Kim BoltonPremium contentOne has to look past its high valuation as it trades at 38x earnings and 11x book, but with a ROE of 33% it demonstrates its dominance in the space. Recently reported earnings beat analysts estimates for revenues (by 4%) and EPS (by 9%). Cash reserves are growing, while shares are aggressively bought back and debt is retired. Management reports its strategy to cloud computing and AI are yielding good returns. We continue to recommend a stop at $453, looking to achieve $607 -- upside potential of 16%. Yield 0.6%
(Analysts’ price target is $606.61)Revenue is so consistent. Everything it does is recurring revenue. 18% revenue growth for one of the largest companies on the planet, best recurring revenue model ever built. On the leading edge of everything. Product suite is unbelievable. Stock buybacks. Might well be his favourite Mag 7. Yield is 0.63%.
(Analysts’ price target is $623.23)
Matt Kacur
EPS of $3.65 beat estimates of $3.37; revenue of $76.44B beat estimates of $73.89. EBITDA of $45.5B beat estimates by 15%. Microsoft's commercial remaining performance obligations of $368 billion in fiscal 4Q, more than $50 billion above 3Q, gives confidence in another year of mid-double-digit sales growth. Estimates for 13% gains next year will likely move up, led by Azure, which could expand 34-36% in 2026. Capital-spending consensus including leases is another metric that may see an upward revision, with analysis suggesting $118 billion for 2026, up 34%. AI workloads gaining scale and double-digit sales growth could help lift 2026 operating margin above 2025. In addition, tight cost control, particularly on head count, could offset any gross-margin pressure from a shift in sales mix to lower-margin cloud infrastructure and greater depreciation. We think AI is a big factor here, as the company, while spending lots of money, is getting good customer traction. But we think underlying customer growth is very much a part of the good results as well.
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If offers the most diversified distribution of software technology around the world. Not really an AI company, but a distribution platform for the Fortune 5000. Not a compelling bargain today, more of a hold. You have to look long term for 5-10 years -- it will have a role to play, no matter which way the technology goes.