UBS: Raises Microsoft target price to $500 and increases earnings per share forecast for fiscal year 2026

Zhitong
2025.05.04 13:47

UBS published a research report stating that Microsoft reported revenue performance that far exceeded expectations and indicated that as of the end of April, it had not yet felt significant demand pressure due to macroeconomic or tariff issues. This is reflected in the strong performance across its entire product portfolio, particularly the cloud computing service Azure, which grew by 35% in the third fiscal quarter ending March 31, and is forecasted to grow by 34% to 35% in the fourth fiscal quarter ending June 30. UBS raised its earnings per share forecast for Microsoft for the fiscal year 2026 ending June 30 from $14.31 to $14.92, maintaining a "Buy" rating. UBS stated that given Microsoft's high leverage effect in the phenomenon of artificial intelligence, it still believes the stock price is reasonable, maintaining a "Buy" rating and raising the target price from $480 to $500

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