Highlights
• Mizuho raises Microsoft’s price target to USD 640, maintaining “Outperform” rating.
• Consensus rating remains “Moderate Buy” with average target at USD 618.97.
• Q2 earnings beat expectations with USD 76.44 billion in revenue, up 18.1% year-over-year.

Microsoft (NASDAQ:MSFT) has seen a series of upward revisions in analyst price targets following recent earnings performance. Mizuho raised its target price from USD 625 to USD 640 in its latest report, maintaining an “Outperform” rating. This implies a potential upside of around 25% from the previous closing price.

Other major brokerages have echoed similar sentiment. Wall Street Zen upgraded Microsoft from “Hold” to “Buy” on October 11. Cantor Fitzgerald raised its target from USD 581 to USD 639 with an “Overweight” rating. Wells Fargo & Company increased its target to USD 675, maintaining an “Overweight” outlook. Royal Bank of Canada reiterated a “Buy” rating with a USD 640 target, while Stifel Nicolaus raised its price objective from USD 500 to USD 550.

Consensus and Market View

According to MarketBeat data, one analyst has rated Microsoft as “Strong Buy,” thirty-one as “Buy,” and two as “Hold.” The consensus rating stands at “Moderate Buy” with an average price target of USD 618.97. Analysts highlight continued growth in cloud, enterprise software, and AI-related services as key drivers of valuation adjustments.

Earnings Performance

In its most recent quarterly report released on July 30, 2025, Microsoft reported earnings per share (EPS) of USD 3.65, surpassing consensus estimates of USD 3.35 by USD 0.30. Quarterly revenue reached USD 76.44 billion, exceeding projections of USD 73.79 billion. The company’s return on equity was 32.44%, with a net margin of 36.15%.

Revenue increased 18.1% compared with the same quarter last year, when EPS was USD 2.95. Microsoft has provided guidance for Q1 2026 and is expected to post full-year EPS of approximately 13.08, according to sell-side forecasts.