Should I Buy MSFT? MSFT 2026 Analysis

Should You Buy Microsoft Corp (MSFT) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

481.630

1 Day change

0.22%

52 Week Range

555.450

Analysis Updated At

2026/01/26

Microsoft Corp (MSFT) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive sentiment from Congress trading data, and growth in AI and cloud infrastructure make it a compelling long-term investment, despite some mixed technical indicators.

Technical Analysis

The MACD is below 0 and negatively contracting, indicating a bearish trend. RSI is neutral at 55.037, suggesting no overbought or oversold conditions. Moving averages are bearish (SMA_200 > SMA_20 > SMA_5). Key support is at 444.353, and resistance is at 476.677. The stock has an 80% chance to increase by 1.11% in the next day and 9.11% in the next month.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Congress trading data shows significant buying activity with 11 purchase transactions and minimal selling.
Revenue increased by 18.43% YoY, driven by AI demand.
Analysts remain bullish on Azure growth and AI adoption, with multiple Buy ratings and high price targets.
Upcoming earnings report on January 28 could act as a catalyst.

Neutral/Negative Catalysts

Mixed technical indicators with bearish moving averages and a negative MACD histogram.
Analysts have lowered price targets recently, reflecting some caution.
Gross margin dropped slightly by 0.43% YoY.

Financial Performance

In Q1 2026, Microsoft reported an 18.43% YoY revenue increase to $77.67B, a 12.49% YoY net income increase to $27.75B, and a 12.73% YoY EPS increase to $3.72. However, gross margin slightly declined to 69.05% (-0.43% YoY).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are generally bullish, with most maintaining Buy or Outperform ratings. Recent price target adjustments reflect some caution but still indicate significant upside potential. UBS, Citi, and Mizuho highlight strong AI and Azure growth as key drivers, while Rothschild & Co maintains a Neutral stance.

34 Analyst Rating

Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500 USD and a high forecast of 678 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

32 Buy

2 Hold

0 Sell

Strong Buy

Current: 480.580

Low

500

Averages

631.36

High

678

Current: 480.580

Low

500

Averages

631.36

High

678

Barclays

Raimo Lenschow

Overweight

maintain

$610 -> $600

AI Analysis

2026-01-29

New

Reason

Barclays

Raimo Lenschow

Price Target

$610 -> $600

AI Analysis

2026-01-29

New

maintain

Overweight

Reason

Barclays analyst Raimo Lenschow lowered the firm's price target on Microsoft to $600 from $610 and keeps an Overweight rating on the shares. The firm says the Microsoft story "will see a slight rethink" post the fiscal Q2 report. While AI momentum and extra capacity drove higher Azure growth, the company is now using new capacity for more of its first-party offerings like Copilot, which means upside "will need to show up differently," the analyst tells investors in a research note.

Baird

William Power

Outperform

NULL

downgrade

$600 -> $540

2026-01-29

New

Reason

Baird

William Power

Price Target

$600 -> $540

2026-01-29

New

downgrade

Outperform

NULL

Reason

Baird analyst William Power lowered the firm's price target on Microsoft to $540 from $600 and keeps an Outperform rating on the shares. The company's fiscal Q2 results were solid overall, but Azure growth fell slightly below Street expectations, dropping the shares in after-hours, the analyst tells investors in a research note. The firm says that while Microsoft's OpenAI concentration has been a concern, it is encouraged with the 28% commercial remaining performance obligation growth excluding OpenAI.

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MSFT Should I Buy

MSFT Should I Buy

Should You Buy Microsoft Corp (MSFT) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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