Wall Street's top analysts are loving Microsoft's Q1 results

Microsoft (MSFT) reported a 22% decline in Windows OEM revenue for the September quarter, citing inventory drawdowns and weaker PC demand. The company expects a mid-30s decline in the December quarter. Despite this, shares rose 2.90% in after-hours trading due to strong cloud performance. HP (HPQ) and Dell (DELL) also faced PC shipment declines due to memory price increases.

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.

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.