Not One Analyst Rates Microsoft a Sell. Is the Consensus View Right?
Not One Analyst Rates Microsoft a Sell. Is the Consensus View Right?
Trey ThoelckeThu, November 5, 2026 at 2:05 PM UTC
0
PeopleImages / iStock via Getty Images (PeopleImages / iStock via Getty Images)Quick Read -
Microsoft's analysts are nearly unanimous bulls, with a $633 consensus target implying about 14% upside, backed by a sixth straight earnings beat and Azure growth of 48%.
Jim Cramer calls megacap tech leaders like Microsoft "millstones around investors," and capital spending that doubled to $39 billion in the quarter lends his complaint some support.
Azure growth for the quarter ending December 31 settles the debate: a result below the 49% to 50% guidance would favor Cramer.
Building a portfolio and living off one are two completely different skills, and almost nobody teaches the second. This problem is what The Definitive Guide to Retirement Income helps, and it is free today. Read more here. (Sponsor)
Wall Street is bullish on Microsoft (NASDAQ:MSFT), and the verdict is close to unanimous. The consensus target of $633.13 implies about 13.6% upside from the $557.22 premarket quote on November 5, 2026. Shares closed at $555.80 on November 4.
MSFT Analyst Ratings — 24/7 Wall St.What Bulls Are Paying for at Microsoft
The fiscal first quarter, reported October 28, 2026, supported the sentiment. Non-GAAP EPS of $4.89 exceeded the $4.72 consensus, the sixth consecutive beat. Revenue reached $92.28 billion, up 18.8%. Azure expanded 48%, and commercial remaining performance obligations rose 73% to $677 billion. Management guided Azure to 49% to 50% growth in constant currency next quarter, and CFO Amy Hood said, "Customer demand continues to exceed available supply."
MSFT Earnings Explorer — 24/7 Wall St.
Estimates are rising. The fiscal 2027 EPS consensus of $20.0232 was $19.7613 seven days ago, with five upward and no downward revisions over 30 days. The fiscal 2028 consensus is $24.1416. On those numbers, the stock trades at a forward P/E of 25 and a PEG of 1.5.
Cramer's Case Against Megacap Tech
Jim Cramer took the opposite view on November 3, listing Microsoft among the tech leaders that "have almost been millstones. Millstones around investors." He added that he would "wait for the crescendo before I commit too much money back to tech."
Now Available: The Definitive Guide to Retirement Income
Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years.
That is exactly what The Definitive Guide to Retirement Income helps answer. It covers what your retirement could actually cost, which income sources are worth using, and the withdrawal math that decides whether the money lasts. It is free today from Fisher Investments. Read More Here ›
Advertisement
The one-year chart backs part of his complaint. Microsoft gained only 9.6% over 12 months, and capital spending reached $39.37 billion in the quarter, up 102.99%, with calendar-year capex expected near $170 billion (that spending has to be powered, cooled, and networked by somebody, and we covered seven of those suppliers in a free AI infrastructure report). Commercial bookings fell 12%, and Windows OEM and devices revenue dropped 22%. Recent momentum cuts against him, though. Shares rose 2.8% in a week as hyperscalers rallied after election results removed investor uncertainty, leaving the stock just below its 52-week high of $559.15.
When Everyone Agrees on One Stock
A unanimous Buy list works as a contrarian warning for a simple reason: once nearly every analyst is already positive, few upgrades are left to draw in new buyers, and any stumble forces the whole group to revise at once. A crowded consensus also reflects what is already priced in.
It also reflects a business that keeps beating estimates. Institutional positioning is less unified than the ratings. Institutions own 75.7% of shares, yet among 20 tracked hedge fund filers as of June 30, 2026, nine trimmed, six added, and three exited. Millennium Management and Coatue Management increased their stakes, while D. E. Shaw and Viking Global reduced theirs.
What the Signal Means for Retail Investors
The analysts have the better evidence. Upward EPS revisions, a $677 billion backlog, and accelerating cloud growth outweigh a lagging one-year return, and the stock trades well above its 50-day average of $513.39 and its 200-day average of $438.18. The tradeoff is a modest 13.6% gap to the target from a price already near its 52-week high, so the remaining return depends on execution, with little help from a rerating.
MSFT Price Target — 24/7 Wall St.
One verifiable trigger settles the debate: Azure growth for the quarter ending December 31, 2026. A result below the 49% to 50% constant-currency guidance would show that $170 billion in spending is outpacing demand, supporting Cramer's view. A result inside or above that range keeps the consensus intact. Until then, the data favors Wall Street.
Released: The Definitive Guide to Retirement Income
(Sponsor) Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out.
It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan. That is exactly what The Definitive Guide to Retirement Income helps answer. It is a free guide from Fisher Investments covering what your retirement will really cost, where the cash flow should come from, and how much you can safely withdraw each year. Learn more here. Learn More Here ›
Contact editorial@247wallst.com for any questions or corrections.
Source: “AOL Money”
