Wolfe Research Raises Microsoft Price Target to $675

Wolfe Research analyst Alex Zukin raised the price target on Microsoft (NASDAQ: MSFT) to $675 (from $650) while maintaining an Outperform rating.

“At close, MSFT shares are up 22% YTD, outperforming the IGV up 13%.

MSFT trades at a ~30x CY26E P/E multiple, a ~15% premium to Mega Cap peers who trade at a median ~26x CY26E P/E multiple, and a ~66% premium to the S&P 500 CY26E P/E that trades at 18x.

Our $675 PT represents a 40x CY26E P/E multiple, a ~50% premium to Mega Cap Peers, as we see best-in-class fundamentals coupled with faster revenue and EPS growth (3pp / 4pp, respectively) supporting MSFT’s premium valuation.

MSFT reported strong 4Q25 results, with Azure growth of 39% CC (4.5pp above guidance) and guided Azure revenue growth of 37% ahead of expectations, sending the stock up ~8% AH.

The key driver of strong Azure growth in 4Q was driven by strengths across all workloads.

These results were exactly what MSFT needed to get investors excited about its growth outlook, and we continue to believe that strong business fundamentals, coupled with AI tailwinds, will persist and catalyze positive revenue and EPS revisions into FY26.

We reiterate OP and increase our PT to $675.”

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