By Vandita Jadeja
Publication Date: 2026-05-19 11:52:00
Quick Read
Microsoft (MSFT) reported Q3 FY26 revenue of $82.89B (up 18.3% YoY) with EPS at $4.27 beating estimates, Azure growing 40%, and AI business reaching a $37B annual run rate up 123% YoY. Bill Ackman disclosed a multi-billion-dollar stake citing attractive valuation.
Microsoft trades at a 25x trailing multiple for a business growing earnings 23%, supported by a $627B contracted revenue backlog and potential margin expansion from GitHub Copilot’s shift to usage-based billing on June 1, 2026.
The analyst who called NVIDIA in 2010 just named his top 10 stocks and Microsoft wasn’t one of them. Get them here FREE.
Microsoft (NASDAQ:MSFT) trades at $421.92 after a rough start to 2026, down 11.26% year to date and 8.54% over the past 12 months. Our 24/7 Wall St. price target for Microsoft is $510, implying roughly 20.9% upside over the next 12 months. Our recommendation is buy, with a confidence level of 70%. The AI capex story still has more runway than the…
