Stock Market Today, Sept. 25: Microsoft Stock Jumps 4% After Revamping Copilot With Code Generation and Agentic AI Tools

Microsoft (MSFT) rose 4.00% to $517.86 on Friday, driven by AI and cloud optimism. The company announced a redesigned Copilot product, with analysts maintaining positive outlooks and price targets. Azure revenue surpassed $100 billion, and Microsoft 365 Copilot reached 30 million paid seats, highlighting AI's role in cloud and subscription software.

Microsoft's Copilot AI tool received a significant update, integrating features like Chat, Cowork, Code, and Autopilot into one app. The stock rose over 4% on the news, outperforming the broader software sector. CEO Satya Nadella called it the 'biggest update to Copilot to date.' Analysts at Piper Sandler view the updates favorably, suggesting it aligns with market speculation of a 'super app.'

Microsoft (MSFT) updated its Copilot app on 25 September 2026, adding a coding tool and AI agent features. The redesign integrates Word, Excel, and PowerPoint, with new capabilities like Code and Autopilot. Microsoft shares traded at $508.89, up 2.47%, near a 20-day high. The company reported Q3 2026 revenue of $82.89bn and net income of $31.78bn. No pricing details were disclosed for the new features.

U.S. Treasury yields rose, with the 30-Year yield at 5.51% and the 10-Year at 5.21%, impacting housing stocks like D.R. Horton (DHI), Zillow (Z), and Lennar (LEN). Datadog (DDOG) rose 7%, Akamai (AKAM) secured a $12B AI deal, and Zscaler (ZS) fell 8.6% on AI cybersecurity concerns. Meta (META) dropped 3.4%, while Microsoft (MSFT), Dell (DELL), and Qualcomm (QCOM) saw gains.

Microsoft's stock rose 4% to $516.39 after Oppenheimer raised its price target to $570, citing increased enterprise AI adoption. The company's Copilot pivot focuses on corporate customers, with a pay-as-you-go billing model for agentic work. Microsoft's YTD gain is 7%, lagging the Technology Select Sector SPDR Fund's 37%. Alphabet's shares also ticked up 0.68%.

Microsoft shares rose 3.15% to $513.60 on Friday, driven by a broader market rally and a recent buy upgrade from Stifel. The stock has seen mixed performance over the past year, down 2%, despite strong financial results, including Q4 earnings of $4.74 per share. Microsoft's market cap is around $3.7 trillion, with a focus on its cloud business and AI investments.