Citi cuts Microsoft PT on weak PC market forecast, OpenAI-related costs

Citi cuts PT on Microsoft MSFT.O to $660 from $690; still implies ~49% upside to stock's last close

Brokerage remains "constructive" on MSFT and is positive on cloud business Azure's long-term growth, but expects a weaker PC market and higher expenses related to OpenAI

Adds that while Q2 may be a mixed set-up, expects more constructive H2 given strong bookings and ramping computational capacity

Says it is modeling OpenAI losses to ramp ~8 billion in FY26 on rapid growth and increasing computational demand for the startup's AI models

However, Citi expects 2026 EPS to advance on higher revenue growth

Of 60 brokerages tracking the stock, 57 rate it "buy" or higher and three "hold"; their median PT is $630 - LSEG-compiled data

MSFT up 0.9% at $448.05 premarket; stock rose ~15% in 2025