‘Microsoft Stock Deserves a Street-High Target,' Joel Fishbein Says Following Earnings
Microsoft (NASDAQ:MSFT) has reclaimed the crown as the world's most valuable company. While it has often swapped places with Apple, the tech giant had recently fallen behind – until now. Its latest quarterly results have reignited investor enthusiasm, propelling Microsoft back to the No. 1 spot.
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The March-quarter (F3Q25) results didn't just exceed expectations, they put to rest fears the company will suffer against the current uncertain macro backdrop. Microsoft Cloud delivered once again, accompanied by a forecast that underscores the growing demand for AI.
Microsoft Cloud generated $42.4 billion in revenue, up 20% y/y and above the $42.22 billion estimate. Revenue from the Intelligent Cloud segment reached $26.8 billion, outpacing the forecast of $25.99 billion. Azure and other cloud services – key indicators watched closely by investors and analysts – grew 33% (35% cc), beating the 31% estimate.
Total revenue rose 13% year-over-year to $70.1 billion, outperforming the $68.44 billion expected on Wall Street. That came off the back of a 12% y/y increase in the previous quarter. EPS reached $3.46, exceeding the consensus estimate of $3.22.
Looking ahead to FQ4, fueled by robust demand across its range of services, Intelligent Cloud revenue is expected to land between $28.75 billion and $29.05 billion, with Azure revenue growth expected at 34% to 35% in cc. Overall, total revenue is expected to range from $73.15 billion to $74.25 billion, above consensus at $72.26 billion.
In the wake of these results, recession fears and tariff talk took a back seat – at least temporarily – as analysts rushed to praise Microsoft's performance. Truist's Joel Fishbein, who ranks amongst the top 3% of Wall Street stock experts, is no expectation.
'Microsoft delivered impressive results in their 3Q25 earnings report,' the 5-star analyst said. 'Azure growth beat the high end of guidance, as the company saw a rebound in performance across non- AI workloads. AI performance continued its momentum as well, driven by some capacity coming online earlier than expected, contributing 16 percentage points to Azure growth. We believe that the positive traction in AI could lead to a sustained Azure reacceleration as new resources come online in FY26.'
Bottom line, Fishbein backs MSFT with a Buy rating and a Street-high $600 price target, implying the stock could climb another 38% from current levels. (To watch Fishbein's track record, click here)
Elsewhere on the Street, MSFT claims an additional 28 Buys and 5 Holds, all coalescing to a Strong Buy consensus rating. The shares are expected to post 12-month growth of 16%, considering the average price target stands at $506.31. (See MSFT stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
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