Citi Turn More Positive on Microsoft Corporation (MSFT) Ahead of Fiscal Q3 Results

We recently compiled a list of the 10 Most Popular Stocks on Robinhood in 2026. Microsoft Corporation is one of the most popular Robinhood stocks.

TheFly reported on April 22 that MSFT had its price target reduced by Citi from $635 to $600 while the Buy rating was maintained. Despite the lower target, the firm expressed a more positive outlook ahead of the company’s fiscal Q3 results after reviewing its reseller survey. Citi noted that investor sentiment remains subdued, but underlying fundamentals are showing improvement. It also expects Microsoft’s growth trajectory to strengthen through fiscal 2027. The price target adjustment was attributed to multiple compressions rather than weakening business performance, suggesting continued confidence in the company’s long-term expansion potential.

Additionally, on April 24, Microsoft Corporation (NASDAQ:MSFT) considered acquiring AI coding startup Cursor in recent weeks but ultimately did not proceed with an offer, according to reports. The company has been focused on strengthening its own developer tools, particularly GitHub Copilot, as part of its broader AI strategy.

Citi Turn More Positive on Microsoft Corporation (MSFT) Ahead of Fiscal Q3 Results

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Separately, Cursor secured acquisition rights in a $60 billion transaction announced by SpaceX. The developments highlight increasing competition in AI-assisted coding tools, with major tech players investing heavily in developer-focused artificial intelligence capabilities. Microsoft continues to prioritize expanding the adoption of its existing AI coding products rather than pursuing an external acquisition in this instance.

Microsoft Corporation (NASDAQ:MSFT) is a global tech company founded in 1975 and headquartered in Redmond, Washington. It leads in software, cloud computing (Azure), and AI, with products including Windows, Office, LinkedIn, and Xbox.

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