Goldman Sachs: Lowered Microsoft's target price to $500, maintaining a "buy" rating
Goldman Sachs has lowered its target price for Microsoft from $515 to $500 while maintaining a "buy" rating on the stock. After Microsoft announced its artificial intelligence capital expenditure forecasts for the 2026 and 2027 fiscal years, Goldman Sachs slightly lowered its free cash flow expectations for the company. However, in a research report, Goldman Sachs stated that with the rollout of capabilities and the continued growth in artificial intelligence revenue, Microsoft's performance should outperform Goldman Sachs' 14% revenue growth expectations. Goldman Sachs added that Microsoft's profit growth still outpaces the S&P 500 index by 300 basis points, demonstrating that the stock's valuation is reasonable
According to the Zhitong Finance APP, Goldman Sachs has lowered its target price for Microsoft (MSFT.US) from $515 to $500, while maintaining a "buy" rating on the stock. After Microsoft announced its artificial intelligence capital expenditure forecasts for the fiscal years 2026 and 2027, Goldman Sachs slightly lowered its free cash flow expectations for the company. However, in a research report, Goldman Sachs stated that with the rollout of capabilities and continued growth in AI revenue, Microsoft's performance should outperform Goldman Sachs' 14% revenue growth expectation. Goldman Sachs added that Microsoft's profit growth still outpaces the S&P 500 index by 300 basis points, demonstrating that the stock's valuation is reasonable