Microsoft stock gains on 43 percent Azure growth

Published on 10/05/2026 at 21:17 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Microsoft stock traded at USD 528.26 on October 5, 2026, after Melius Research set a USD 665 target. Fiscal Q4 revenue reached USD 90.01 billion, with cash flow under pressure.

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Microsoft stock (ISIN US5949181045) was trading at USD 528.26 on Nasdaq at 3:16 p.m. ET on October 5, 2026, up 2.07 percent from the prior close. The move followed a fresh Melius Research upgrade, while Microsoft’s latest quarterly figures show why Azure growth remains central to the valuation.

Azure growth sets the tone

Microsoft reported fiscal fourth-quarter revenue of USD 90.01 billion for the period ended June 30, 2026, up 18 percent year over year, according to Investing.com on October 1, 2026. Non-GAAP diluted EPS was USD 4.74 against a USD 4.24 consensus, while GAAP EPS reached USD 4.81.

Azure and other cloud services revenue grew 43 percent in fiscal Q4, accelerating from 40 percent in the prior quarter. Commercial remaining performance obligations rose 84 percent to USD 678 billion, giving the company a large contracted base but also raising the execution bar for future capacity spending.

Analyst target reaches USD 665

Melius Research upgraded Microsoft from Hold to Buy and set a USD 665 price target on October 5, 2026, citing enterprise demand for AI security and governance, as Yahoo Finance reported. The target lies 25.9 percent above the Nasdaq price of USD 528.26, using the same session reference.

The broader consensus is also bullish. Markets Insider cited a Strong Buy consensus based on 35 Buy ratings and one Hold, with an average Microsoft target of USD 578.69, putting the price 8.7 percent below that average, on October 5, 2026.

Cash flow remains the counterweight

The growth story carries a cost. Fiscal 2026 capital spending reached USD 115.95 billion, while free cash flow fell 6.46 percent to USD 66.99 billion, according to Yahoo Finance on October 1, 2026. That tradeoff makes the next Azure growth reading more important than the headline revenue number alone.

Microsoft stock stays below yearly high

Microsoft stock was trading 4.6 percent below its 52-week high of USD 553.72 on October 5, 2026. The session volume stood at 16,528,874 shares, and the market capitalization was USD 3.9 trillion.