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Investing.com - Truist Securities has reiterated its Buy rating and $675.00 price target on Microsoft (NASDAQ:MSFT) following the company’s first-quarter fiscal 2026 results. This aligns with the broader Wall Street sentiment, as Microsoft currently holds a strong consensus recommendation of 1.26 from analysts, with price targets ranging from $483 to $710.
The research firm expressed increased confidence in Microsoft’s Azure cloud platform and commercial bookings momentum, citing accelerating demand trends across various end markets and products. This optimism is supported by Microsoft’s robust revenue growth of 14.93% over the last twelve months, with the company generating $281.72 billion in revenue.
Truist Securities described Microsoft as "one of the best combined growth and profit AI pick and shovel stories" with significant balance sheet flexibility, recommending investors buy shares during the current weakness. InvestingPro data shows Microsoft maintains a "GREAT" overall financial health score of 3.12, though the stock is currently trading above its Fair Value, with a P/E ratio of 36.64.
Microsoft stock was trading down approximately 3% compared to smaller declines in broader market indices, with the S&P 500 and Nasdaq down 1% and 1.6% respectively at the time of the analyst note.
The firm’s analysis followed Microsoft’s quarterly earnings report and a subsequent callback with the company’s investor relations team, which covered topics including demand acceleration, capital expenditures, and the OpenAI partnership. For deeper insights into Microsoft’s financial health and over a dozen additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Microsoft has reported robust first-quarter fiscal 2026 earnings, surpassing expectations across most business segments. The company highlighted a 17% revenue growth in constant currency, outperforming the anticipated 14%. Microsoft’s Azure cloud services posted a 39% growth in constant currency, exceeding consensus estimates by 2 percentage points, though it remained flat compared to the previous quarter. Despite this, Azure’s growth is currently limited by capacity constraints rather than demand, a challenge noted by KeyBanc and expected to continue into fiscal 2026.
Cantor Fitzgerald reiterated its Overweight rating with a $639 price target, emphasizing Azure’s performance despite supply limitations. Similarly, DA Davidson maintained a Buy rating and set a $650 price target following the strong earnings results. TD Cowen raised its price target to $655, acknowledging the company’s significant revenue growth. Piper Sandler also maintained an Overweight rating with a $650 price target, though it noted Azure’s growth fell slightly short of investor expectations.
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