Morgan Stanley Reiterates Overweight on Microsoft, $600 Price Target

July 30, 2026 Analyst: Adam Wood 1 min read Reproduced verbatim

Rating: Overweight; Unchanged
Target: $600; Unchanged
Upside: +13%; MSFT at $531 today

What the analyst said

Morgan Stanley analyst Adam Wood reiterated an Overweight rating and $600 price target on Microsoft (NASDAQ: MSFT).

“Microsoft’s 4Q26 results delivered broad-based upside, with $90.0B revenue (+18% YoY) and operating income of $40.60B beating consensus by 4.2%.

Azure growth accelerated four points sequentially to 43% (cc), beating the 39– 40% guide, with management citing CPU/GPU efficiency and faster build times.

Azure’s outlook strengthened, with guidance for ~45% constant-currency growth in 1Q27 and a reiteration that F1H27 growth should accelerate vs F2H26.

M365 Copilot reached over 30MM paid seats, up from over 20MM last quarter, as ~10MM net adds beat expectations closer to ~6MM by a wide margin.

Margins held up despite AI build: gross margin 67.2%, operating margin 45.1%; FY27 calls for double-digit EBIT growth and margins down less than one point.”

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Where the price stands

This target$600Highest$750Lowest$515Today$531Median$630At the note$391

MSFT trades at $531. The 28 analysts who set a target in the last 3 months range from $515 to $750, with a median of $630. This $600 target is 5% below the median.

Since the note MSFT has moved +36% (from $391). 12-month window: day 99 of 365, closes on July 30, 2027.

Track record

This callOpen: MSFT has not reached $600 yet. This 12-month target is scored on July 21, 2027. Same target as this firm’s July 21, 2026 note, so it is scored there.

Firm track recordMorgan Stanley: 82% of its 50 targets at least a year old were reached within 12 months (#8 of 26 firms); on Microsoft, 1 of 3. Accuracy ranking →

Earnings reactionOne of 18 notes after Microsoft’s Jul 29 results: 10 raised · 1 cut · 7 kept. See every call →