Key Facts on Microsoft’s Stock Performance
Microsoft (NASDAQ: MSFT) saw its stock price rise from approximately $420 at the beginning of 2025 to about $490 by December, marking a 17% increase. In contrast, the S&P 500 (SNPINDEX: ^GSPC) experienced an 18% rise during the same period, resulting in Microsoft underperforming compared to the broader market.
Looking ahead to 2026, analysts expect Microsoft to achieve a 16% sales growth for fiscal year 2026, ending June 30, 2026, and a 15% growth for fiscal year 2027. The company’s Azure cloud computing segment reported a notable 40% revenue growth year-over-year in Q1 fiscal year 2026, significantly outpacing Amazon Web Services’ (AWS) 20% growth.
Currently trading at around $485, projections suggest that if Microsoft maintains a 30 times forward earnings valuation along with a continuous growth rate, its stock price could potentially rise to nearly $560 by year-end 2026.
