Wall Street Says Microsoft Can Hit $650. Here’s the Path

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Jeremy PhillipsSat, December 13, 2025 at 9:00 PM GMT+1 4 min read24/7 Wall St.Microsoft beat revenue estimates by $2.3B with Azure growing 40% year-over-year.56 of 57 analysts rate the stock a buy with a consensus target of $625.41.Reaching $650 requires a 35.7% gain and would value shares at 41x forward earnings.If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more hereMicrosoft (NASDAQ: MSFT) has delivered solid returns in 2025, but shares remain below their 52-week high of $553.50. The stock currently trades around $479.Despite the pullback, fundamentals remain robust. Microsoft reported revenue of $77.67 billion in its most recent quarter, beating estimates by nearly $2.3 billion and marking 18.4% year-over-year growth. Azure grew 40% as enterprises accelerate digital transformation.CEO Satya Nadella continues positioning Microsoft at the center of the AI revolution, with Copilot AI assistants embedded across its productivity suite. With momentum building around AI monetization and cloud growth, investors are wondering how high shares could climb in 2026.Analysts are decidedly bullish. The consensus 12-month price target sits at $625.41, implying 30.5% upside from current levels. That optimism reflects strong conviction: 56 of 57 analysts covering the stock rate it a buy or strong buy, with just one hold rating and zero sells.This near-unanimous support stems from Microsoft's impressive growth trajectory. Wall Street expects revenue growth to continue in the high teens, driven by Azure's expansion and increasing AI adoption across enterprise customers. Earnings per share estimates have been climbing, with analysts forecasting continued double-digit earnings growth as Microsoft scales its AI infrastructure investments. The company has beaten earnings expectations in 11 of the past 12 quarters, suggesting actual results will likely exceed forecasts.At today's price of $479, Microsoft trades at roughly 30x forward earnings. At $650, shares would trade at approximately 41x forward earnings. That represents a premium valuation, but it's not entirely unreasonable for a company growing earnings at 12.7% annually while maintaining a 48.9% operating margin and 35.7% profit margin.The S&P 500 trades around 22x forward earnings, meaning Microsoft would command nearly double the market multiple. However, Microsoft's combination of scale, profitability, and growth justifies a premium. The company generated $293.81 billion in trailing revenue while posting a 32.2% return on equity.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,827.41 -73.59 (-1.07%)Dow 3048,458.05 -245.96 (-0.51%)Nasdaq23,195.17 -398.69 (-1.69%)Russell 20002,551.46 -39.15 (-1.51%)VIX15.74 +0.89 (+5.99%)Gold4,328.30 +15.30 (+0.35%)Trending tickersBTC-USD Bitcoin USD 90,214.48 +50.82 (+0.06%)RBLX Roblox Corporation 88.51 -5.83 (-6.18%)ETH-USD Ethereum USD 3,110.00 +38.83 (+1.26%)OKLO Oklo Inc. 87.42 -15.58 (-15.13%)XRP-USD XRP USD 2.02 +0.02 (+0.84%)PortfolioSign in to access your portfolioSign inTop gainersYOU Clear Secure, Inc. 41.08 +4.82 (+13.29%)RIVN Rivian Automotive, Inc. 18.42 +1.99 (+12.11%)EVCM EverCommerce Inc. 12.08 +1.19 (+10.93%)LULU lululemon athletica inc. 204.97 +17.96 (+9.60%)VERA Vera Therapeutics, Inc. 49.80 +3.78 (+8.21%)Top losersFRMI Fermi Inc. 10.09 -5.16 (-33.84%)MOD Modine Manufacturing Company 139.88 -25.31 (-15.32%)OKLO Oklo Inc. 87.42 -15.58 (-15.13%)SEI Solaris Energy Infrastructure, Inc. 46.07 -8.01 (-14.81%)SNDK Sandisk Corporation 206.18 -35.43 (-14.66%)Most activeNVDA NVIDIA Corporation 175.02 -5.91 (-3.27%)BBAI BigBear.ai Holdings, Inc. 6.38 -0.36 (-5.34%)PLUG Plug Power Inc. 2.3200 -0.0400 (-1.69%)RIVN Rivian Automotive, Inc. 18.42 +1.99 (+12.11%)TSLA Tesla, Inc. 458.96 +12.09 (+2.71%)Top economic eventsEarnings eventsMy earnings eventsEarnings events