Microsoft’s stock had a strong 2025, rising about 17% to $490 per share. Despite this, it lost to the S&P 500’s 18% rise. Looking ahead to 2026, can Microsoft outperform the market? With a neutral role in AI and Azure’s rapid growth, Microsoft’s stock price could reach $560 by year-end.

In the AI realm, Microsoft plays a facilitator role, benefitting from Azure’s 40% revenue growth. Its diversified AI models and popular Copilot add-on for Office products have driven growth. Analysts project 16% sales growth for FY 2026 and 15% for FY 2027, supporting Microsoft’s long-term success and predictability.

While Microsoft’s stock is currently at $485 per share, a 15% growth rate could see it reach nearly $560 by year-end. Despite its underperformance in 2025, Microsoft’s consistent growth rates make it a solid long-term investment. The Motley Fool’s Stock Advisor team has identified other top stocks for investors to consider for potential high returns.

Read more at Nasdaq: Prediction: This Will Be Microsoft’s Stock Price at the End of 2026