24/7 Wall St sets Microsoft price target at $613.43
24/7 Wall St. issued a buy recommendation for Microsoft (MSFT) with a 12-month price target of $613.43, implying 22.85% upside from the current price of $495.22. The firm cites strong fiscal Q4 2026 results, where revenue reached $90.01 billion, up 17.8% year over year, and non-GAAP EPS of $4.74 beat estimates by 11.81%. A key driver is Azure, which crossed $100 billion in full-year revenue for…
Key points
- 24/7 Wall St. sets a $613.43 price target for Microsoft, implying 22.85% upside.
- Azure crossed $100 billion in full-year revenue, growing 43% in the latest quarter.
- Commercial RPO surged 84% to $678 billion, providing multi-year revenue visibility.
The bullish case relies heavily on Microsoft’s commercial remaining performance obligations (RPO), which surged 84% year over year to $678 billion. This backlog provides multi-year revenue visibility, supporting the view that AI investments are beginning to generate financial leverage. Microsoft 365 Copilot has also passed 30 million paid seats. CFO Amy Hood noted that demand for Azure capacity continues to exceed available supply.
However, the analysis acknowledges risks, particularly regarding capital expenditures, which ballooned to $115.95 billion in FY26, dragging free cash flow down by 6.46%. OpenAI-related investment losses widened to $3.1 billion in Q1 FY26. Despite these costs, the firm argues that the RPO backlog covers the buildout, and even the bear-case scenario projects a one-year price of $523.51, which remains above the current market price.
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Microsoft’s AI Investment Could Pay Off for Years. Here’s My Price Target
247wallst.com · 27 September 2026
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