While disclaimers are usually meant to be a footnote, I'll start this article with one. Analyst ratings are by no means a perfect indicator, and more often than not, changes to target prices are a lagging indicator. However, they help reveal the Street sentiment.
That out of the way, Microsoft (MSFT) was pretty much in the analyst community’s bad books in the first half of the year and mostly faced downgrades and target price cuts. However, sentiment changed following Microsoft’s fiscal Q4 2026 earnings in July, which I noted had plenty to cheer about.