Microsoft Reiterated Buy With $540 Target Ahead of April 29 Q3 Report
Microsoft enters its April 29 Q3 earnings report with consensus EPS of $4.06 and revenue of $81.43 billion, up 16.2% year-over-year, as TD Cowen reiterates a Buy rating with a $540 target on stronger AI-driven cloud demand. The Elon Musk-Sam Altman trial has begun, raising scrutiny over OpenAI ties.
1. TD Cowen Buy Rating and Cloud Outlook
TD Cowen reiterated a Buy rating on Microsoft with a $540 price target, raising its longer-term cloud revenue assumptions. The brokerage cited accelerating enterprise AI adoption, rising workload demand and stronger product cycles as drivers for expanding Azure and cloud services growth into 2026.
2. Q3 Earnings Preview
Microsoft reports Q3 earnings on April 29 with analysts forecasting EPS of $4.06 and revenue of $81.43 billion, reflecting a 16.2% year-over-year increase. Investors will focus on Azure performance amid supply constraints, GPU allocation challenges and mounting AI competition around its Copilot offerings.
3. Elon Musk-Sam Altman Trial and OpenAI Risks
The trial of Elon Musk and Sam Altman has commenced, spotlighting leadership disputes at OpenAI and potential governance risks. This litigation introduces uncertainty around Microsoft’s strategic AI partnership and could influence future collaboration dynamics and investment in OpenAI projects.