Goldman Sachs Reaffirms Microsoft (MSFT) Buy Rating with $500 Target

🗝️ Key Points

• Goldman Sachs has released a report highlighting Microsoft's (MSFT, Financial) critical position in the innovative artificial intelligence infrastructure Cycle.
• Despite this, Microsoft's performance has lagged 19% behind the Nasdaq over the past 12 months.
• The firm reaffirmed a "buy" rating and set a price target of $500.The report noted that Microsoft is at an earnings per share (EPS) turning point.

Goldman Sachs has released a report highlighting Microsoft’s (MSFT, Financial) critical position in the innovative artificial intelligence infrastructure cycle. Despite this, Microsoft’s performance has lagged 19% behind the Nasdaq over the past 12 months. The firm reaffirmed a “buy” rating and set a price target of $500.

The report noted that Microsoft is at an earnings per share (EPS) turning point. It Projects an upward potential for EPS of at least 2% for the fiscal year 2026 and 3% for 2027. Regarding the second quarter of the 2025 fiscal year, the firm expects Microsoft’s revenue to reach $68.9 billion, reflecting an 11% year-over-year growth, which aligns with market expectations. The EPS is anticipated to be $3.13, marking a 7% annual increase, also in line with predictions.

For the entire 2025 fiscal year, Goldman Sachs predicts Microsoft’s revenue will hit $279.6 billion, demonstrating a 14% year-over-year growth.

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