Earnings revisions have led to an upward Microsoft stock price forecast, with consensus estimates indicating 15% year-over-year revenue growth, heavily weighted towards cloud infrastructure services. The stock is soaring because the robust demand in cloud infrastructure will grow its total revenue by 16% in fiscal 2026 on a constant-currency basis, indicating accelerating growth. This justifies the stock's high P/E multiple. AI is creating a more sticky relationship with Oracle's cloud database customers, setting up excellent return prospects for investors. That aligns with the company’s guidance for “ double-digit earnings growth on a constant currency basis .” However, it also means that analysts are slightly more bullish about earnings expectations for Microsoft, which largely explains the outlook for 15% stock price growth. Microsoft stock price forecast now factors in recent acquisitions aimed at expanding AI solutions; analysts note synergies could add 3–5% to annualized revenue over the next two fiscal years.
