Cantor Fitzgerald Raises Microsoft Price Target to $639

Cantor Fitzgerald analyst Thomas Blakey raised the price target on Microsoft (NASDAQ: MSFT) to $639 (from $581) while maintaining an Overweight rating.

“We reiterate our OW rating on MSFT shares and increase our PT to $639 (from $581), or 13.5x EV/C26E rev (vs.

12.5x, previously), a premium to its 11x one-year average NTM multiple, along with increasing our above-Street (Visible Alpha) estimates post a beat/raise F4Q25 report.

F4Q25 saw demand acceleration, with demand continuing to outstrip supply for cloud services, with equilibrium once expected for end of F25 pushed out to EOY C26.

Azure posted 39% y/y growth in F4Q25 (as reported and cc), beating 34.5% cc guide as well as increasing buyside expectations of ~36%.

Strength in Azure was driven by Microsoft’s largest customers’ core infrastructure (i.e., CPU) business as new cloud and AI workloads are built and scale across services.

Further, Microsoft stated migrations remain strong as customers apparently upticked modernization efforts, likely related to AI, in our view.

Azure AI contribution to growth was not given this quarter and we would not expect this metric to be given going forward either.

Rather, management commented this business was generally in line with expectations in F4Q25.

Recall, our end-of-quarter checks included a large SI that highlighted a “pause and slowdown” in AI business in C2Q25 but remained bullish on an acceleration in Azure and Azure AI services in 2HC25 (HERE).

We note further AI (i.e., GPU) business could have been negatively impacted by DC, power constraints in the quarter.

F1Q26 total revenue guide is 3% above the Street on cc basis with Azure guided to 37% cc growth, 350 bps ahead of Street at 33.5%.

Alongside strong Azure demand commentary, capex was guided to >$30b (>50% growth) for F1Q26 vs.

Street (Visible Alpha) at $23.75b, and for perspective, the Street is currently $99.2b, +14%, for F26E.”

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