Microsoft (NASDAQ:MSFT) Given New $540.00 Price Target at Piper Sandler

Key Points

• Piper Sandler raised its price target on Microsoft to $540 (about a 27% upside) with an "overweight" rating, while the analyst consensus averages a $563.33 target and a "Moderate Buy" stance with most analysts at Buy.
• Microsoft beat Q3 expectations with $4.27 EPS (vs. $4.04 est.) and $82.89 billion in revenue, up 18.3% year‑over‑year, driven by Azure/cloud and AI momentum.
• Near‑term risks include a materially higher capex outlook (~$190B for 2026), a ~$900M voluntary‑retirement charge and reduced OpenAI exclusivity, factors that have pressured the stock despite the earnings beat.

Microsoft (NASDAQ:MSFT - Get Free Report) had its target price raised by equities research analysts at Piper Sandler from $500.00 to $540.00 in a research note issued on Thursday,Benzinga reports. The brokerage presently has an "overweight" rating on the software giant's stock. Piper Sandler's price target points to a potential upside of 27.22% from the company's current price.

Other equities analysts have also recently issued reports about the company. HSBC lifted their price target on Microsoft from $588.00 to $593.00 and gave the company a "buy" rating in a research report on Tuesday. New Street Research lifted their price target on Microsoft from $670.00 to $675.00 and gave the company a "buy" rating in a research report on Tuesday, March 31st. Daiwa Securities Group reduced their price target on Microsoft from $630.00 to $600.00 and set a "buy" rating for the company in a research report on Wednesday, February 4th. Guggenheim reiterated a "buy" rating and issued a $586.00 price target on shares of Microsoft in a research report on Thursday, April 23rd. Finally, UBS Group reiterated a "buy" rating on shares of Microsoft in a research report on Friday, April 24th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $563.33.

Microsoft Stock Performance

NASDAQ:MSFT opened at $424.46 on Thursday. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.39 and a quick ratio of 1.38. The business has a fifty day simple moving average of $395.09 and a two-hundred day simple moving average of $448.65. Microsoft has a 1 year low of $356.28 and a 1 year high of $555.45. The company has a market capitalization of $3.15 trillion, a P/E ratio of 26.55, a P/E/G ratio of 1.60 and a beta of 1.11.

Microsoft (NASDAQ:MSFT - Get Free Report) last released its earnings results on Wednesday, April 29th. The software giant reported $4.27 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.04 by $0.23. Microsoft had a return on equity of 32.34% and a net margin of 39.04%.The business had revenue of $82.89 billion during the quarter, compared to the consensus estimate of $81.30 billion. During the same period last year, the business posted $3.46 earnings per share. The business's revenue for the quarter was up 18.3% on a year-over-year basis. On average, analysts expect that Microsoft will post 16.54 earnings per share for the current year.

Insider Activity

In other news, Director John W. Stanton purchased 5,000 shares of the company's stock in a transaction on Wednesday, February 18th. The stock was purchased at an average price of $397.35 per share, with a total value of $1,986,750.00. Following the completion of the purchase, the director directly owned 83,905 shares in the company, valued at approximately $33,339,651.75. This trade represents a 6.34% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Kathleen T. Hogan sold 12,321 shares of Microsoft stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $409.52, for a total value of $5,045,695.92. Following the sale, the executive vice president directly owned 137,933 shares of the company's stock, valued at approximately $56,486,322.16. This trade represents a 8.20% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.03% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Longfellow Investment Management Co. LLC increased its holdings in shares of Microsoft by 51.3% in the second quarter. Longfellow Investment Management Co. LLC now owns 59 shares of the software giant's stock worth $29,000 after buying an additional 20 shares during the period. Bernzott Capital Advisors purchased a new position in Microsoft during the 4th quarter valued at about $34,000. Timmons Wealth Management LLC purchased a new position in Microsoft during the 4th quarter valued at about $36,000. Bayforest Capital Ltd purchased a new position in Microsoft during the 3rd quarter valued at about $38,000. Finally, Fairway Wealth LLC increased its holdings in Microsoft by 287.0% during the 4th quarter. Fairway Wealth LLC now owns 89 shares of the software giant's stock valued at $43,000 after purchasing an additional 66 shares during the period. Hedge funds and other institutional investors own 71.13% of the company's stock.

Microsoft News Roundup

Here are the key news stories impacting Microsoft this week:

• Positive Sentiment: Q3 results beat expectations: EPS $4.27 and $82.9B revenue, with Azure/cloud and AI momentum (AI revenue growth, Copilot adoption). This underpins Microsoft’s durable growth thesis. Microsoft Q3 Highlights
• Positive Sentiment: Wall Street remains broadly bullish — multiple analysts reiterated Buy ratings and several raised price targets (examples include Wells Fargo, BofA, Mizuho, Piper). That supports longer-term upside despite near-term volatility. Analyst Lifts Microsoft Price Target to $625
• Neutral Sentiment: CEO Satya Nadella framed a multi‑year shift to “agentic computing” and announced further multi‑billion AI investments — strategic for long‑term positioning but adds execution and ROI uncertainty near term. Agentic Computing Will Destroy Old Tech Stacks | Satya Nadella
• Neutral Sentiment: Share buybacks and amended OpenAI terms provide offsetting positives — recent buybacks (~$20B over 12 months) and Barclays calling the OpenAI amendment “favorable” (extended revenue rights) help support shareholder returns and expected AI revenue streams. Why Microsoft May Have Quietly Improved Its Position
• Negative Sentiment: Surging capex: Microsoft lifted its 2026 capex outlook toward ~$190B (data center buildout) — capex up sharply, free cash flow pressured. Large, sustained infrastructure spending is a near‑term profit/cash‑flow headwind that worried investors. Microsoft CFO Says Supply Chain Limits Can Be Managed As MSFT Lifts CapEx Outlook
• Negative Sentiment: Weak investor reaction / stock slid after earnings — commentators point to the spending cadence (capex, AI investments) and one‑time charges as the reason for the pullback despite the beat. That explains today's downward pressure. Microsoft Stock Slides After Earnings
• Negative Sentiment: OpenAI relationship reset / competitive access: OpenAI models are appearing on rival clouds (Amazon Bedrock) and UBS warns Microsoft ceded some ground — reduced exclusivity raises competitive risk for MSFT’s unique AI advantage. OpenAI Models on Amazon Bedrock
• Negative Sentiment: Near‑term charges and workforce changes: Microsoft disclosed a ~$900M voluntary‑retirement charge and expects headcount to fall in coming quarters — short‑term costs and restructuring can pressure sentiment. Microsoft Puts a Price on Its Voluntary Retirement Program

About Microsoft

Microsoft Corporation is a global technology company headquartered in Redmond, Washington. Founded in 1975 by Bill Gates and Paul Allen, Microsoft develops, licenses and supports a broad range of software products, services and devices for consumers, enterprises and governments worldwide. Its operations span personal computing, productivity software, cloud infrastructure, enterprise applications, developer tools and gaming.

Microsoft's product portfolio includes the Windows operating system and the Microsoft 365 suite of productivity and collaboration tools (Office apps, Outlook, Teams).

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