Quick Read – Microsoft’s $678 billion commercial backlog and Azure’s explosive growth underpin a $590 price target implying 22% upside. – MSFT’s $332 billion in recurring revenue tops NVDA’s total, while GOOGL trades cheaper at a forward P/E of 17 versus MSFT’s 24. – Microsoft…
ASDAQ:MSFT) has spent the last year alongside NVIDIA (NASDAQ:NVDA) as the two poster children of the AI trade. But Microsoft has one thing Nvidia does not: a $678 billion contracted commercial backlog that turns AI demand into recurring, subscription-grade revenue
Our 24/7 Wall St. price target for Microsoft is $590.43, and that backlog is a big reason the model sees room to run. 24/7 Wall St. Price Target Summary Our proprietary model rates confidence high on Microsoft, with implied upside north of 22% over the next twelve months. That is a base case built on the assumption that Azure, Copilot, and the commercial backlog continue converting into revenue at the current pace.
Azure Crosses $100 Billion, and the Backlog Explodes Microsoft closed fiscal 2026 with $331 billion in annual revenue, up 18%, and Azure crossed $100 billion in annual revenue for the first time, growing 41%. Q4 revenue of $90.01 billion beat consensus, and non-GAAP EPS of $4.74 beat by 11.81%, extending the beat streak to five quarters. Commercial RPO jumped 84% to $678 billion.