Key Stats for Microsoft Stock
- YTD price change for Microsoft stock Today: -21%
- $MSFT Stock Price as of Apr. 3: $149
- 52-Week High: $345
- $MSFT Stock Price Target: $250
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What Happened?
Microsoft (MSFT) stock has had a rough start to 2026, down 21% in the first quarter.
A big reason? Investors have been skeptical about whether the company’s AI products are actually gaining traction with businesses.
That narrative may be starting to shift.
- Judson Althoff, who runs Microsoft’s commercial business, told employees in a town hall meeting this week that Copilot adoption among business clients has surged.
- He said the targets he and CFO Amy Hood set for the March quarter were met.
- He also said he feels “very confident” in the ambitious goals set for the June quarter.
The comments are significant.
- For months, analysts have described Microsoft 365 Copilot adoption as slow.
- The product costs $30 per month on top of existing Microsoft 365 subscriptions, and as of January, Microsoft had 15 million paid seats — about 3% of its standard commercial bundle.
- After that disclosure, UBS analysts said they had expected more.
Microsoft has since overhauled its go-to-market strategy after getting that feedback. The new approach appears to be working, at least based on Althoff’s comments.
For context, CEO Satya Nadella noted on the Q2 earnings call that there are “multiples more” enterprise users on the free Copilot Chat tier.
The goal has been to convert those users into paid seats — and it sounds like that conversion is now accelerating.
See analysts’ growth forecasts and price targets for Microsoft stock (It’s free) >>>
What the Market Is Telling Us About Microsoft Stock
Microsoft stock has been caught in a broader selloff, hitting software companies this year.
The concern is that generative AI is intensifying competition and eating into margins, while the payoff from massive data center spending hasn’t fully materialized yet.
Microsoft spent $37.5 billion on capital expenditures in Q2 alone, mostly on AI infrastructure.
Investors want to see that translate into revenue growth — and Copilot is one of the clearest ways that happens.
If Althoff’s comments hold up when Microsoft reports Q3 earnings, it could be a meaningful catalyst for Microsoft stock.
Paid Copilot seats increasing from 15 million to something materially higher would show that AI spending is working.
The June quarter targets will be the next real test. Watch Microsoft stock closely as that earnings date approaches.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
