Barclays maintains Microsoft at Overweight, raises price target to $610 from $600

Microsoft (MSFT) reported Q1 earnings of $4.89 EPS on $92.28B revenue, beating estimates. Azure revenue grew 48% YoY. Analysts praised results, raising price targets to $650 (TD Cowen), $630 (Cantor, BofA), and $625 (Citizen).

DA Davidson reaffirmed its Buy rating on Microsoft and increased its price target to $650 from $550, citing a 22.4% upside from the Oct 28 close of $531.01. Recent analyst price targets for Microsoft range from $610 to $650.

Microsoft (MSFT) shares fell 1.4% despite strong Q1 FY2027 results, with revenue up 19% YoY to $92.3B, beating expectations. Azure grew 48%, outpacing forecasts. Bank of America raised its price target to $630, citing AI opportunities, but noted higher capital spending may impact future performance.

Scotiabank kept Microsoft at Sector Outperform, raising its price target to $650 from $625, citing a 22.4% upside from the Oct 28 close. Recent analyst targets range from $610 to $750.

Microsoft plans to raise at least $25 billion in its first U.S. bond sale since 2017, according to Bloomberg. The final amount may change based on investor demand.

Microsoft reported a 19% revenue increase to $92.3B, with $36.6B profit, driven by cloud growth. The company plans voluntary buyouts for 60,000 employees amid AI investments. Cloud revenue rose 30%, while free cash flow declined to $18.6B. Shares gained 2.9% after-hours.