From Morningstar:

Microsoft released impressive second-quarter results, reflecting a 18% YoY revenue growth and a significant upside. With Azure growth being meaningfully better than expected, including a 600 basis point contribution from AI, the outlook for Azure continues to be encouraging. This has led analysts to raise their revenue growth and margin estimates by approximately one point each, thus increasing the fair value estimate for Microsoft stock to $420 from $370. Good sales execution and quarterly results reinforce the proliferation of hybrid cloud environments and show signs of an improved demand environment.



Read more: Microsoft Earnings: AI Steals the Show