The Memory Crunch Is Crushing Microsoft Windows PC Sales

Microsoft (MSFT) reported FQ1 FY2027 earnings with EPS of $4.89 (3.6% above estimates) and revenue of $92.28B (3.0% above estimates). Azure grew 48% Y/Y, and commercial RPO rose 73%. Operating margin was 50%, and guidance for Azure was set at 49-50%. The stock initially rose 4.01% after-hours but traded down 1.26% the next day. Key questions remain around capex, free cash flow, and supply capacity.

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.