Oppenheimer Keeps $630 Price Target on Microsoft

Oppenheimer analyst Brian Schwartz reiterated on October 30, 2025, an ‘Outperform’ rating and $630 price target on Microsoft.

“Microsoft’s F1Q results beat consensus estimates.

Azure and other Cloud Services revenue grew 39% in CC, which is strong growth at a large scale, but a slight decel from last quarter.

Additionally, the F2Q guidance for this metric implies further deceleration despite an easier y/y comparison.

The issue is capacity constraint.

Positively, management is accelerating Capex in FY26 to double the data center footprint in two years to lessen the capacity issue this fiscal year.

Bottom Line: MSFT shares are likely to retreat off the Azure F2Q guide and after moving up into the F1Q print.

Nevertheless, we recommend buying the weakness with Microsoft highly entrenched and strategically positioned for the next waves (Cloud and AI) of application modernization and expansion.

Maintain Outperform, $630 PT.”

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