Microsoft stock rises 3% as analysts cite AI, Azure momentum

Microsoft shares rose about 3% Wednesday after analysts reiterated bullish views ahead of the company’s fiscal fourth‑quarter earnings report on July 29.

Evercore ISI raised its price target to $525 from $510 and kept an Outperform rating. The firm expects double‑digit revenue and operating income growth in fiscal 2027, citing continued investment in artificial intelligence and improving momentum for Azure cloud and Copilot. Evercore forecast fiscal 2027 cash capital expenditures near $210 billion, above the Street estimate of about $180 billion, noting capex growth could begin to normalize in 2027 while still supporting infrastructure and AI capacity.

Citi Research cut its price target to $570 from $620 but maintained a Buy rating. Analyst Tyler Radke wrote that Microsoft is positioned to optimize token spend and AI efficiency and cautioned that investors should expect higher AI spending in fiscal 2027 while anticipating stronger returns as Azure and M365 Copilot growth accelerates. Wells Fargo described its stance as constructive, citing mixed expectations for the quarter and noting that improved Azure growth, AI adoption and tighter expense control could support a stronger fiscal 2027 outlook. Mizuho lowered its target to $490 from $550 while reporting channel checks that showed sustained public cloud demand and robust AI adoption.

Analysts and investors are watching three near‑term indicators ahead of the July 29 report: the pace of Azure revenue acceleration, the monetization path for Microsoft Copilot, and the direction of capital spending after a heavy investment cycle. Consensus estimates compiled by Fiscal AI project fiscal fourth‑quarter earnings of $4.24 per share on revenue of $86.66 billion. Market coverage remains largely positive: 53 of the 56 analysts tracking Microsoft rate the stock as a Buy or stronger, with the remainder at Hold.

Shares rose as the market absorbed analyst updates and target adjustments ahead of the quarterly results. The July 29 report will include revenue and margin details for Azure, updates on Copilot rollouts and customer traction, and guidance on capital spending and operating expenses.