On January 12, 2026, 95% of Wall Street analysts expressed bullish sentiment toward Microsoft Corporation (NASDAQ:MSFT), with a consensus price target of $630.00. That same day, Barclays reduced its price target on Microsoft from $625 to $610, maintaining an 'Overweight' rating. The firm adjusted its 2026 outlook for the software group, citing a positive setup for the sector. Barclays noted confidence in the software sector for 2026, with macro and IT spending stabilizing and stock valuation levels remaining low. The firm described the current opportunity as compelling, with investors staying underweight on software stocks.
Four days earlier, Wells Fargo also reduced its price target on Microsoft from $700 to $665, while keeping its 'Outperform' rating. The firm remains bullish on AI growth, which it projects to continue in 2026. Wells Fargo named infrastructure providers, established incumbents, and innovation-led platforms as three key areas of interest, as secular tailwinds are projected to improve performance despite adoption concerns.
Meanwhile, Microsoft shared an update on January 5, 2026, strengthening its AI ecosystem. The company acquired Osmos, an agentic AI data engineering platform that breaks down data workflows and converts raw information into AI-ready assets in OneLake, the core of Microsoft Fabric. This follows a multi-year partnership with Cognizant announced in mid-December, which involves embedding agentic AI and Copilot capabilities into enterprise workflows across healthcare, retail, life sciences, financial services, and manufacturing. With these developments, the company enhances its operational resilience, productivity, and analytics unification.