UBS: Raises Microsoft's target price to $500 and raises its earnings forecast per share for fiscal year 2026.

UBS released a research report stating that Microsoft has announced revenue performance far exceeding expectations, and that as of the end of April, there has been no significant demand pressure due to macroeconomic or tariff issues. This is reflected in the strong performance of the entire product portfolio, especially with cloud computing service Azure growing by 35% in the third quarter ending in March, and forecasted to grow by 34% to 35% in the fourth quarter ending in June. UBS has raised Microsoft's earnings forecast for the fiscal year ending in June 2026 from $14.31 to $14.92 per share, maintaining a "buy" rating. UBS stated that due to Microsoft's high leverage in the field of artificial intelligence, they still believe that the stock price is reasonable, with a "buy" rating and a target price raised from $480 to $500.