Microsoft (MSFT) shares are up roughly 4% on Thursday after the company recorded blockbuster earnings for its fiscal fourth quarter. 

In its earnings release, the tech behemoth also revealed that a quarterly increase of 39% in Azure revenue pushed its overall cloud services sales past $75 billion in fiscal 2025. 

Including its post-earnings gain, Microsoft stock is up some 55% versus its year-to-date low set in April.   

Microsoft Stock Soars on Upbeat Guidance

Microsoft shares are pushing to the upside this morning also because management’s guidance for $75.25 billion in revenue in the current quarter came in better than the $74.09 billion consensus. 

More importantly, their outlook for 37% annualized growth in Azure was well above the 33.7% that the Street had called for. 

Microsoft’s guidance reflects confidence in enterprise demand, artificial intelligence (AI)-driven workloads, and sustained cloud adoption in the second half of 2025. 

It signals resilience across core segments, reinforcing the giant’s positioning as a key beneficiary of digital transformation and AI infrastructure spending, a compelling reason to stick with MSFT stock.  

KeyBanc announces $630 Price Target on MSFT Shares

KeyBanc’s senior analyst Jackson Ader upgraded Microsoft stock to “Overweight” following the company’s earnings release that he said has “bolstered the argument for positivity on almost every front.”

In addition to praising the reported and expected growth in Azure, Ader cited cost discipline for his bullish view on the AI stock, noting the Redmond-headquartered firm has laid off more than 10,000 employees in recent months. 

Moreover, “there was no material mention of macro headwinds on the call,” the analyst told clients in a research note today. 

On Thursday, he announced a $630 price target on Microsoft shares, indicating potential upside of another 14% from current levels. 

Microsoft Remains a Wall Street Favorite

Investors should note that other Wall Street analysts agree with Ader on Microsoft stock, given the consensus rating on the Nasdaq-listed firm currently sits at “Strong Buy.” 

While the mean target of $561 doesn’t represent meaningful further upside from here, it’s fair to assume that the Q4 earnings release will make analysts upwardly revise their estimates for MSFT shares in the coming days.