Microsoft's $392B AI Backlog and 112% Bookings Growth Fuel $608–$722 Target

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Microsoft's Q1-FY2026 commercial bookings surged 112% year-over-year, contributing to a $392 billion remaining performance obligation backlog. Azure revenue grew 40% year-over-year, underpinning margin resilience and driving blended valuation models that suggest 113% upside with price targets of $608–$722.

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