Microsoft Stock Forecast: Citi Raises MSFT Target to $600 After Azure Earnings Beat

Microsoft (NASDAQ: MSFT) is back in focus after reporting stronger-than-expected fiscal fourth-quarter 2026 results, prompting Citi to raise its price target on the stock while reaffirming its bullish outlook.

The technology giant exceeded Wall Street expectations on both revenue and earnings, powered by another quarter of accelerating Azure growth. 

Following the results, Citi lifted its Microsoft price target to $600, while quantitative forecasts from CoinCodex now point toward a similar level over the next year.

Wall Street Remains Overwhelmingly Bullish on Microsoft Stock

Analyst sentiment toward Microsoft remains one of the strongest among large-cap technology companies. According to Seeking Alpha analyst data, the stock carries 39 Strong Buy, 14 Buy, and 3 Hold ratings, with no analysts currently recommending selling the shares.

The latest update came from Citi, which raised its price target on Microsoft from $570 to $600 after the company’s fiscal fourth-quarter earnings comfortably exceeded expectations.

The bank highlighted Azure as the biggest driver of the quarter, with revenue growing 43% year over year on a constant-currency basis, four percentage points ahead of consensus estimates. 

Management also guided for 45% Azure growth in the current quarter, again exceeding Wall Street expectations by four percentage points.

Following the results, Citi increased its fiscal 2027 revenue and earnings per share estimates by more than 1%, while raising its Azure growth forecast to 45.5%. 

The bank maintained its Buy rating, arguing that Microsoft’s strategy of giving customers access to multiple AI models continues to strengthen its competitive position as enterprise AI adoption accelerates.

Azure Continues to Drive Microsoft’s AI Growth

Microsoft’s latest earnings reinforced Azure’s role as one of the fastest-growing cloud businesses among hyperscale providers. Continued enterprise spending on artificial intelligence infrastructure has helped the company outperform expectations despite growing competition across the AI sector.

Citi also noted that Microsoft’s model-agnostic AI strategy has become an increasingly important advantage as smaller and open-source models continue gaining traction. 

Rather than relying on a single foundation model, Microsoft has positioned Azure as a platform capable of supporting a broad range of AI workloads, strengthening its appeal to enterprise customers.

The stronger-than-expected quarter has also eased investor concerns that AI spending could begin slowing, with Azure’s accelerating growth suggesting demand remains robust.

CoinCodex Microsoft Price Prediction

Investors looking beyond Wall Street forecasts can also review the latest Microsoft price prediction from CoinCodex.

According to the forecast, Microsoft could experience some consolidation during the second half of 2026, with average projected prices remaining largely between the low $410s and upper $480s through the end of the year.

Momentum is then expected to improve during the first half of 2027, with forecasts steadily climbing through the spring.

The strongest upside appears between May and July 2027, when average projected prices rise into the $550 to nearly $600 range, while the model’s highest projection reaches approximately $623.

Notably, CoinCodex’s outlook closely coincides with Citi’s newly raised $600 12-month price target. 

Although one forecast is generated through quantitative modeling and the other through fundamental equity research, both point to Microsoft approaching the $600 level if Azure continues to deliver above-consensus growth and AI demand remains strong.

Microsoft’s next earnings report will likely determine whether that bullish outlook remains intact, with investors expected to focus once again on Azure growth, AI monetization, and management’s forward guidance.