Wells Fargo Raises Microsoft Stock Price Target Following Strong Earnings
On July 29, 2026, Microsoft reported strong fiscal fourth-quarter results that exceeded expectations and led to a significant stock price rebound. The company's Azure cloud computing platform crossed $100 billion in annualized revenue with constant-currency growth of 43%, surpassing analyst forecasts. This performance prompted Wells Fargo analyst Michael Turrin to raise his price target for Microsoft from $625 back to $650, maintaining an Overweight rating. The stock surged nearly 9% following the earnings report as investors responded positively to signs that Microsoft's heavy capital spending on AI infrastructure is beginning to translate into tangible revenue growth. Turrin highlighted the company’s strategic moves in models and Copilot capabilities, suggesting improved positioning at the software layer. Additionally, a $3.2 billion gain from an investment in Anthropic contributed to earnings but was not central to the positive outlook. Microsoft's results helped shift investor sentiment away from concerns about capital spending sustainability toward optimism regarding its AI-driven growth trajectory.
Topics: AI Infrastructure Spending Cloud Revenue Growth Microsoft Wells Fargo