tech
January 29, 2026
‘Not seeing the forest for the trees’: Analysts look past Azure miss as Microsoft slides post-earnings
Wall Street analysts remained overwhelmingly bullish on Microsoft, even as the stock dipped 12% post-earnings.
TL;DR
- Microsoft exceeded earnings and revenue estimates for the quarter.
- Azure cloud growth slowed to 39%, falling short of some investor expectations.
- Analysts believe investors are overly focused on Azure growth and missing the bigger picture of AI investments.
- Microsoft is prioritizing GPU capacity for its own AI initiatives, like CoPilot, over maximizing short-term Azure revenue.
- Despite the stock dip, analysts remain overwhelmingly bullish on Microsoft, with most maintaining buy or overweight ratings.
- Several analysts lowered their price targets slightly but still see significant upside potential for the stock.
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