Contents
TLDR
- Both Citi and Goldman Sachs continue recommending Microsoft stock as a Buy
- Second quarter revenue reached $81.3B with 17% YoY growth; net income jumped 60% to $38.5B
- Azure revenue climbed 39% year-over-year; Copilot paid users surged 160% to 15 million
- New Maia 200 processor delivers competitive performance against Amazon and Google alternatives
- Strong Buy ratings from 41 out of 50 Wall Street analysts; average price target stands at $595.60
Two major financial institutions are maintaining their optimistic stance on Microsoft (MSFT), with both Citi and Goldman Sachs doubling down on Buy recommendations in recent days.
Shares currently hover near $397 — representing a 30% decline from peak levels — even as the consensus analyst target price remains at $595.60.
Tyler Radke from Citi maintained his Buy stance following discussions with Microsoft’s investor relations leadership, emphasizing the company’s artificial intelligence strategy, cloud infrastructure expansion, and capital allocation plans.
Impressive Second Quarter Performance
Microsoft delivered second quarter revenue totaling $81.3 billion, marking a 17% year-over-year increase. Net income soared 60% to reach $38.5 billion.
For the first time ever, cloud services revenue exceeded $50 billion in a three-month period, representing 26% year-over-year expansion. Azure powered this performance with 39% growth.
The Microsoft 365 Copilot platform now serves 15 million paying subscribers, reflecting more than 160% annual growth. Radke highlighted this as a significant revenue catalyst for the company’s enterprise software segment.
GitHub Copilot attracted 4.7 million paid users, marking 75% year-over-year growth. Dragon Copilot, deployed in medical settings, now processes 21 million patient interactions quarterly.
More than 80% of Fortune 500 enterprises currently utilize AI agents powered by Microsoft’s technology stack.
Goldman Highlights Maia 200 Chip Advancement
Gabriela Borges from Goldman Sachs maintained her Buy rating with a $600 price objective following Microsoft’s Maia 200 chip reveal.
Prior to this release, Maia’s performance trailed competing processors with scarce benchmark information available. Goldman now reports that computational performance matches Amazon’s Trainium and Google’s TPU offerings.
Goldman views this development favorably for Azure’s AI computing profitability over time. Microsoft presently maintains a 69% gross profit margin alongside a 34% return on equity.
The investment bank noted certain constraints — production-scale performance data remains limited, and the supporting software environment for Maia requires further development.
Wall Street Consensus View
Among 50 analysts tracking MSFT, 41 assign Strong Buy ratings, four recommend Moderate Buy, and five maintain Hold positions.
Revenue projections show growth from $281.72 billion in fiscal year 2025 to $591 billion by fiscal 2030. Earnings per share estimates climb from $13.64 to $31.84 across that timeframe.
Microsoft unveiled its Maia 200 processor on January 26, 2025, with CEO Satya Nadella stating it provides over 30% enhanced cost efficiency compared to its predecessor.
