Goldman Sachs Lowers Microsoft (MSFT) Price Target but Maintains Buy Rating

2 days ago

Goldman Sachs has reiterated its "Buy" rating on Microsoft (MSFT, Financial), though it has adjusted the price target from $500 to $450. This change aligns with market valuation multiples. The firm anticipates Microsoft's revenue to grow by 11%, with Azure cloud services expected to rise by 31%. Earnings per share are projected at $3.23.

Investors are likely to focus on Azure's growth and the impact of artificial intelligence on the platform. Additionally, guidance on capital expenditure growth and detailed figures for revenue and earnings in the 2026 fiscal year are of interest. For the current fiscal year's third quarter, Microsoft is predicted to see an 11% annual increase in revenue, reaching $68.6 billion, with Azure's quarterly revenue growing by 30.5%.

The overall annual revenue for the current fiscal year is expected to rise by 12% to $277.1 billion, while earnings per share are set to increase by 11% to $13.15.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

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