Melius Research upgrades Microsoft to buy with $665 price target
Melius Research upgraded Microsoft to a buy rating and set a $665 price target, sending the shares up 2% to $527.29. The firm argues that corporate anxiety over AI security and governance is driving enterprises toward a trusted vendor, which it sees as Microsoft.
Key points
- Melius Research raised Microsoft to Buy with a $665 target; shares rose 2% to $527.29.
- Azure revenue grew 43% in Q4 FY2026 and commercial backlog rose 84% to $678 billion.
- Microsoft reported >30 million paid Copilot seats, ~40 million Agent 365 registrations, and expects FY2027 capex of about $175 billion.
Microsoft’s fiscal Q4 2026 results support the thesis: Azure revenue grew 43%, and commercial remaining performance obligations jumped 84% to $678 billion. The company also reported more than 30 million paid Microsoft 365 Copilot seats and nearly 40 million agents registered with Agent 365 in the two months after launch. It highlighted its MAI Cyber One Flash model, which it says outperformed a larger model at half the cost. However, the upgrade comes as Microsoft expects FY2027 capital expenditures of about $175 billion and saw Q4 free cash flow fall 23.2%. Guidance for Q1 FY2027 projects revenue between $89.85 billion and $90.95 billion, a key test for the AI‑trust narrative.
The story so far
3 episodes →- Melius Research upgrades Microsoft to buy with $665 price targetthis story
Microsoft Rises 2% as Melius Research Upgrades to Buy With $665 Target; Amazon and Alphabet Hold Steady
247wallst.com · 5 October 2026
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This text was published by 247wallst.com and written by David Moadel. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
Coverage and discussion
2sources- MSFT Gets A Bullish Call From Melius — Analyst Says AI Fears Could Benefit Leaders Like MicrosoftPress · finance.yahoo.com ·
The headline, key points and digest above were generated by Digest AI's editorial model from the linked sources. Automated summaries can contain errors: the sources are the record. Spotted a mistake? Tell us. Published by Martin K., who runs Digest AI and handles corrections.
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