Shares of Microsoft (NASDAQ:MSFT) gained in after-hours trading after the tech company reported its Q3 results. Earnings per share came in at $2.94, which beat analysts’ consensus estimate of $2.82 per share.
Sales increased by 17% year-over-year, with revenue hitting $61.9 billion. This beat analysts’ expectations of $60.8 billion. Microsoft’s Intelligent Cloud division, which includes Azure, made up $26.7 billion of the revenue. In addition, Azure sales grew by 31% year-over-year compared to estimates of 29%.
What Is the Price Target for Microsoft?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSFT stock based on 32 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. After a 34% rally in its share price over the past year, the average MSFT price target of $477.41 per share implies 21.29% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
Is It Wise to Allocate $1,000 Toward MSFT Stock Right Now?
Before you hurry to invest in MSFT, think about the following:
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