Goldman Sachs Raises Microsoft’s Price Target to $655
Goldman Sachs analyst Gabriela Borges, who replaces Kash Rangan as the firm’s analyst covering the sector, reiterated on January 12, 2026, a ‘Buy’ rating on Microsoft, with a price target of $655.
“We assume coverage on Microsoft with a Buy rating and a 12-month price target of $655 (37% upside).
Microsoft turned 50 in 2025 and the stock has been publicly listed since 1986.
Even in the context of a long history, we believe there are several areas of discovery value in the stock today tied to AI, where the perception is more bearish than our understanding of the reality of Microsoft’s competitive positioning.
We see Microsoft as best positioned in our coverage universe to benefit from compounding AI product cycles, beginning with its leadership position in AI compute, and extending to copilot and agent orchestration leadership at the platform and application layers.
Vertical integration has translated to better unit economics and more predictable growth cross cycle for many years now in the technology ecosystem; we expect this to be true with AI to an even greater extent because the most effective agentic workflows will likely span the traditional IPA construct.
In addition, given the unknowns in how the AI ecosystem will evolve, Microsoft has taken steps to succeed in multiple ways while limiting its downside to any one particular vendor or approach, conceptually maximizing its “sharpe ratio” of earnings power.
Taken together, we see a path to >$35 in EPS in FY30 (ends June 2030) in our upside scenario, implying >20% EPS growth vs. median mega cap peers at mid teens.”
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