Bernstein Reiterates Outperform Rating on Microsoft (MSFT)

Bernstein SocGen Group analyst Mark Moerdler reiterated an Outperform rating and $540.00 price target on Microsoft (NASDAQ: MSFT).

The analyst commented: "After a great Q3 what does Microsoft do for an encore? Microsoft is scheduled to report 4FQ25 after the market closes on July 30th. Q3 was a surprisingly strong quarter (Link) with solid results and a big Azure beat. While investors sentiment improved questions continue as to Azure growth, CAPEX, the OpenAI partnership and overall fundamentals. We have written this preview to help investors prepare for the earnings as Q4 should continue to validate Azure growth and slowing CAPEX and potential stronger FX tailwind.

The focus will not only be on the quarter but also Q1 and FY26 guide. FX could be more of a tailwind than expected as seen negatively in SAP’s 2Q results. At a high-level we believe the street will focus, beyond the reported numbers on: 1) The AI revenue run rate exiting Q4 and color on likely on the run rate going forward; 2) Azure and CAPEX; 3) additional commentary on the OpenAI partnership and 4)high-level guidance for FY26."

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $512.50 yesterday.

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