Microsoft Corp. reported stronger-than-expected financial results for its fiscal first quarter. Despite a minor stock decline of just over 1% in after-hours trading, Wall Street analysts highly praised the company’s performance. The cloud giant recorded earnings per share (EPS) of $4.89 on revenue of $92.28 billion, topping Bloomberg consensus estimates of $4.73 per share and $90.63 billion, respectively.

The standout performer of the report was the Azure cloud division, whose revenue surged 48% year-over-year to $33.17 billion compared to $22.38 billion a year earlier. TD Cowen analyst Derrick Wood raised his fiscal 2027 Azure growth forecast from 43% to 48% and lifted Microsoft’s price target to $650 from $625, highlighting the company’s strengthening position in artificial intelligence.

Microsoft’s current stock price stood at approximately $530.14 per share, but investment banks are broadly revising their target prices upward. Specifically, Cantor Fitzgerald raised its price target to $630, Citizens bumped its target to $625, and BofA Global Research reiterated its “Buy” rating while boosting its price objective to $630 from $600 previously.

Experts note that even with a slight dip in the consumer segment (where revenue fell 3%), enterprise demand for Azure services continues to outstrip supply. Analysts broadly agree that Microsoft’s unique positioning across cloud infrastructure and AI makes the stock a highly attractive asset for long-term capital appreciation.