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Investing.com - Barclays (LON:BARC) raised its price target on Microsoft (NASDAQ:MSFT) to $625.00 from $550.00 on Thursday, while maintaining an Overweight rating on the stock. The tech giant, currently trading at $513.24 and near its 52-week high of $518.29, is trading above its InvestingPro Fair Value.
The price target increase follows Microsoft’s strong Q4 FY25 results, which included a 3.5% revenue beat and 7% operating profit beat, with margins ahead by approximately 180 basis points. The company maintains impressive fundamentals with a 69.07% gross profit margin and 14.13% revenue growth over the last twelve months.
Barclays highlighted Azure’s performance as particularly impressive, with 39% year-over-year growth in constant currency, significantly exceeding both guidance of 34-35% and investor expectations. According to InvestingPro, Microsoft maintains a "GREAT" financial health score, with 18 additional exclusive insights available for subscribers.
The firm noted that Microsoft’s results confirm its "unique status in the software space," suggesting it will likely remain a core holding for investors despite its large size and the high expectations preceding the earnings report.
Barclays cited ongoing opportunities in both traditional cloud migrations and generative AI scaling, with capital expenditure and demand comments indicating continued momentum in upcoming quarters.
In other recent news, Microsoft Corporation reported its fourth-quarter earnings for fiscal year 2025, surpassing Wall Street expectations. The company achieved earnings per share of $3.65, exceeding the anticipated $3.37. Microsoft’s revenue also outperformed predictions, reaching $76.4 billion compared to the estimated $73.79 billion. These results highlight strong growth in Microsoft’s cloud and AI sectors. This positive performance has caught the attention of analysts, with several firms evaluating the company’s future prospects. Additionally, Microsoft’s recent activities continue to be a focal point for investors, as they assess the company’s strategic direction and financial health. The robust earnings report underscores Microsoft’s ongoing influence in the tech industry. Investors are closely monitoring these developments to gauge the company’s potential trajectory.
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