Update shared on04 Aug 2025
Fair value Increased 10%The upward revision in Microsoft's consensus price target reflects slight improvements in expected annual revenue growth and a modest increase in its forward P/E multiple, raising the fair value estimate from $549.90 to $601.67.
What's in the News
- Microsoft expanded automation capabilities in security operations through BlinkOps integration with Microsoft Sentinel, now available via Azure Marketplace, enabling no-code AI-driven security workflows and procurement through existing Microsoft agreements.
- Microsoft joined the Global Signal Exchange alongside Meta and other tech leaders to enhance data sharing and accelerate the fight against global online scams and cybercrime, addressing a trillion-dollar annual fraud challenge.
- Microsoft continued aggressive share repurchases, buying back 11.86 million shares for $4.65 billion between April and June under two separate ongoing buyback programs.
- MNP deepened its partnership with Microsoft, launching the MNP AI Foundry for mid-market clients to accelerate AI adoption using Copilot and Azure, with measurable efficiency and productivity gains, and received multiple Microsoft partner awards.
- Esri, Space42, and Microsoft formed a strategic alliance for the Map Africa Initiative, leveraging Azure’s cloud and AI to deliver comprehensive geospatial data across Africa, supporting infrastructure, energy, and security sectors.
Valuation Changes
Summary of Valuation Changes for Microsoft
- The Consensus Analyst Price Target has risen from $549.90 to $601.67.
- The Consensus Revenue Growth forecasts for Microsoft has risen slightly from 13.9% per annum to 14.6% per annum.
- The Future P/E for Microsoft has risen slightly from 34.60x to 35.82x.
Disclaimer
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