Citigroup: After releasing strong financial results, Microsoft's stock price may pump nearly 20%.

Jin10 data reported on May 15th that Citigroup stated Microsoft (MSFT.O) is ready to further strengthen its already strong performance in 2025. The firm raised its target price from $480 per share to $540. This implies a 19% rise from Wednesday’s closing price. Citigroup also maintained a buy rating on the stock. Microsoft’s stock has risen 7% this year. Analyst Tyler Radke emphasized Microsoft’s strong earnings report and revenue growth, along with robust cost efficiency and the ongoing improvement in Azure’s cloud business. Microsoft announced on Tuesday that it will lay off about 6,000 employees, accounting for 3% of its total workforce, which Radke said is beneficial for the stock. Analysts estimate that these layoffs could ‘help generate over $1 billion in incremental net savings in fiscal year 2026 to help offset incremental depreciation/capital expenditure costs. The saved funds will be partially reinvested in R&D, focusing on the top priority projects in the artificial intelligence portfolio.’