Technology | Equity Research | February 19, 2026
Target: $495.7
$405.0
32.0x
$12.64
2.11%
Conviction: Medium
Microsoft's Azure cloud division is gaining market share, driven by AI integration. Copilot adoption across the Office suite provides a new recurring revenue stream. Microsoft Corp. is positioned to benefit from secular tailwinds in the Technology industry.
Risks: Enterprise spending slowdowns could impact shorter-term bookings. AI infrastructure costs are significant and may weigh on margins initially.
| Year | 2022 (A) | 2023 (A) | 2024 (A) | 2025 (E) | 2026 (E) | 2027 (E) |
|---|---|---|---|---|---|---|
| Revenue | $402.5 | $432.3 | $468.4 | $499.3 | $537.1 | $583.3 |
| Consensus Rev | - | - | - | $503.2 | $536.7 | $562.7 |
| System Rev | - | - | - | $491.5 | $559.8 | $621.4 |
| EBITDA | $176.3 | $175.6 | $125.3 | $109.6 | $235.6 | $117.2 |
| EPS | $17.79 | $17.72 | $12.64 | $11.06 | $23.78 | $11.82 |
Breakdown: 15 Buy / 5 Hold / 5 Sell
The street remains generally buyish on the name.