Melius upgrades Microsoft stock to Buy with USD 665 target

Published on 10/07/2026 at 14:46 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Microsoft stock costs EUR 471.70 on October 7, 2026 after EUR 470.18, plus 0.32 percent. Fiscal 2026 revenue rose 18 percent to USD 331.8 billion.

Architectural photograph of a curved glass and wood technology campus building at golden hour, surrounded by Pacific Northwest evergreen forest, green roof, manicured lawn courtyard, pedestrians on pathways — Microsoft Corporation (US5949181045) Tech-Campus: moderne Glasfassade und grüner Innenhof im Pacific Northwest, Illustration mit AI erstellt.

Microsoft stock was at EUR 471.70 at Lang and Schwarz on October 7, 2026 at 2:37 p.m. CEST, up 0.32 percent from the EUR 470.18 prior close. Melius Research upgraded Microsoft to Buy from Hold and set a USD 665 price target in a note dated October 5, 2026, according to Yahoo Finance.

Melius lifts the target to USD 665

The Melius call adds to a broader run of analyst target increases, but its rating change is the clearest recent shift in the Microsoft debate. The firm argued that enterprise demand for secure artificial intelligence systems could strengthen Microsoft's position as companies assess risks tied to rapidly advancing AI models.

Yahoo Finance also reported that Wells Fargo raised its target from USD 700 to USD 725 and that Scotiabank lifted its target from USD 510 to USD 615 while retaining an Outperform rating. Those targets show a wide range of expectations, making Azure growth and AI monetization the key operating tests for the next report.

Fiscal 2026 revenue reaches USD 331.8 billion

Microsoft generated USD 331.8 billion of revenue in fiscal 2026, up 18 percent from USD 281.7 billion in fiscal 2025, according to Investing.com. Operating income rose to USD 155.2 billion from USD 128.5 billion, while GAAP net income increased to USD 133.7 billion from USD 101.8 billion.

The latest fiscal fourth quarter, which ended June 30, 2026, produced USD 90.01 billion of revenue, up 18 percent year over year. Azure and other cloud services revenue grew 43 percent, and Microsoft 365 Copilot exceeded 30 million paid seats, keeping cloud execution at the center of the valuation discussion.

Azure growth sets the next test

Microsoft guided fiscal first-quarter revenue to USD 89.85 billion to USD 90.95 billion, with a midpoint of USD 90.40 billion, according to Investing.com. Azure growth was guided at 45 percent in constant currency, above the 43 percent reported for the fiscal fourth quarter.

The comparison matters because the company is spending heavily to expand capacity while trying to convert AI demand into recurring revenue. Microsoft reported calendar 2026 capital spending expectations of USD 175 billion, so the next update must show whether accelerating Azure growth is keeping pace with that investment.

Microsoft stock remains below its yearly high

Microsoft's Lang and Schwarz quote stood at EUR 471.70 on October 7, 2026 at 2:37 p.m. CEST, plus 0.32 percent versus the EUR 470.18 prior close. The primary NASDAQ listing had a USD 349.20 to USD 553.72 52-week range and a USD 3.9 trillion market capitalization as of October 6, 2026. The further course of trading is shown by the continuously updated real-time quote of Microsoft stock.