# Analysts Raise Microsoft Price Targets Ahead of Q1 Earnings on Strong Azure Growth

- URL: https://stocks.freetheai.org/news/analysts-raise-microsoft-price-targets-ahead-of-q1-earnings-on-strong-azure-0dac10
- Published: 2026-10-15T15:36:08Z
- Category: analyst_ratings; sentiment: bullish; impact: medium
- Symbols: [NASDAQ:MSFT](https://stocks.freetheai.org/symbols/NASDAQ-MSFT)
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Financial firms raised their price targets on Microsoft Corporation (NASDAQ:MSFT) ahead of its upcoming first-quarter fiscal 2027 financial report. Wall Street analysts expect strong performance in the company's Azure cloud computing business to drive a larger revenue and earnings surprise than usual. Shares traded slightly higher on Thursday, up 0.84% to $538.20, extending a rally that has seen the stock gain nearly 40% since late July.

Analyst optimism centers on sustained demand for cloud and artificial intelligence infrastructure. Price target revisions include TD Cowen raising its target from $540 to $625, Jefferies boosting its target from $575 to $650, and UBS increasing its target from $525 to $675. Analysts noted that demand for AI services continues to outpace available supply, while growing contributions from OpenAI are expected to bolster cloud momentum. Microsoft 365 Commercial growth and resilient profit margins also support the constructive outlook despite heavy AI capital investments.

Investors will look for confirmation of this cloud momentum when Microsoft officially reports its Q1 results after the market closes on October 28. Wall Street consensus estimates call for quarterly revenue of $90.71 billion and earnings of $4.72 per share, compared to revenue of $77.67 billion and earnings of $4.12 per share in the same period last year.

## Key points

- Several financial firms increased their price targets for Microsoft Corporation (NASDAQ:MSFT) ahead of its Q1 fiscal 2027 earnings report.
- Analysts expect strong Azure cloud growth and AI demand to deliver a larger-than-normal earnings beat.
- TD Cowen, Jefferies, and UBS set new price targets ranging from $625 to $675 per share.
- Microsoft is scheduled to release its first-quarter results after the market close on October 28.

## Questions and answers

### When does Microsoft report Q1 fiscal 2027 earnings?

Microsoft is scheduled to release its first-quarter fiscal 2027 financial results after the market close on October 28.

### What are analysts expecting for Microsoft Q1 revenue and earnings?

Consensus estimates project quarterly revenue of $90.71 billion and earnings per share of $4.72, compared to $77.67 billion and $4.12 per share in the prior-year quarter.

### Why are analysts raising price targets on Microsoft stock?

Financial firms raised price targets due to expected strong growth in Azure cloud services and robust artificial intelligence compute demand.