Overview
- RBC on Oct. 3 reiterated Microsoft as Outperform, citing monetization across infrastructure and applications, while BMO’s Keith Bachman maintained a Buy with a $650 target.
- Microsoft posted fiscal 2025 revenue of $281.7 billion and earnings of $101.8 billion, with both rising 15% year over year.
- In the latest quarter, Intelligent Cloud revenue, including Azure, grew 26% year over year, highlighting sustained AI-driven demand.
- The company has integrated OpenAI’s GPT-5 throughout its product lineup, a move reported to be boosting usage and cloud consumption.
- Shares are up over 20% in 2025 and more than doubled over three years, with consensus targets implying roughly 19% upside, though a potential slowdown in AI infrastructure spending remains a risk.