Microsoft price target raised to $650 from $600 at DA Davidson

Investing.com - DA Davidson raised its price target on Microsoft (NASDAQ:MSFT) to $650 from $600 on Thursday, while maintaining a Buy rating on the stock following the company’s fourth-quarter 2025 earnings report. The stock, currently trading at $535.70, is near its 52-week high, with InvestingPro data showing Microsoft’s market capitalization at nearly $4 trillion.

The research firm cited Microsoft’s strong quarterly performance, which exceeded expectations for both revenue and earnings. With revenue growth of 14.13% and an impressive gross profit margin of 69%, Microsoft continues to demonstrate robust financial health. DA Davidson specifically highlighted a notable acceleration in the company’s Azure cloud computing business.

Microsoft’s management indicated during its earnings report that the company is experiencing significant usage across its core hyperscaler services, according to DA Davidson’s analysis.

The firm also noted that Microsoft reported strong adoption of its artificial intelligence-related services, contributing to the positive quarterly results.

This price target increase represents an 8.3% boost from DA Davidson’s previous $600 target for the technology giant, reflecting increased confidence in Microsoft’s growth trajectory.

In other recent news, Microsoft reported impressive fourth-quarter fiscal 2025 earnings, with total revenue reaching $76.4 billion, marking a 17% year-over-year growth in constant currency. This figure significantly surpassed analyst expectations of $73.8 billion. The company’s Azure cloud services demonstrated robust performance, growing by 39%, which was well above analyst projections and company guidance. As a result of these strong earnings, several analyst firms have raised their price targets for Microsoft. Stifel increased its target to $650 from $550, Cantor Fitzgerald adjusted its target to $639 from $581, and Mizuho (NYSE:MFG) raised its target to $625 from $540. Scotiabank (TSX:BNS) also lifted its target to $650 from $500, highlighting the strong performance of Azure cloud services. Additionally, CoreWeave, another AI hyperscaler, benefited from increased capital expenditure plans by tech giants Meta Platforms (NASDAQ:META) and Microsoft. Meta raised its 2025 capital expenditure forecast, and Microsoft announced plans to spend over $30 billion in the current quarter.

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