Microsoft’s post-earnings call has reset the button as MSFT surged nearly 3 points on Wednesday’s trading session. The tech giant reported strong Q2 fiscal 2026 results as revenue grew about 17% to $81 billion. Despite dipping nearly 24% in the charts in six months, MSFT still remains in the game for the long term. Experts predict the equity could soon bottom out and ignite a fresh rally in the charts.

The $750 million deal with AI search startup, Perplexity, has ignited fresh enthusiasm for its Azure cloud services. Their cloud business has already exceeded $50 billion in quarterly sales for the first time and is expected to grow further after the Perplexity deal. The enterprise demand remains high, and the partnership is expected to gain further large-scale operations. This makes Microsoft stock a strong contender for long-term performance.

Microsoft’s posting of double-digit revenue and profit growth, all driven by cloud and AI, offers a glimpse into the future. AI is becoming a bigger business layer, and the tech giant has already invested billions into the tech. This proves the firm’s commitment to the technology and could generate bigger returns next. Microsoft stock will be the first to benefit when the AI tech takes over next. AI will be a massive revenue engine, taking the tech giant into a new direction.

Also Read: Google Stock Price Strengthens After Earnings Crush Expectations

Citi Gives Buy Rating For Microsoft Stock: See MSFT Target

Citi has given a ‘buy’ rating for Microsoft stock with a bullish price prediction. According to the estimates from Citi, MSFT is projected to rise to a high of $635. The equity is currently trading at the $415 level and Citi’s estimates forecast a rise of 54%. Therefore, an investment of $1,000 could turn into $1,540 if the price prediction turns out to be accurate. All of these indicate that MSFT is a must-own stock in 2026.