Microsoft defended at Goldman after yet another unconvincing print

Goldman Sachs defended Microsoft after its Q3 fiscal results, keeping a Buy rating and $610 12-month target despite the stock trading down. Microsoft beat estimates with $82.9B revenue (+18% YoY) and $4.27 non-GAAP EPS (+23% YoY), and highlighted strong Azure guidance (39–40% constant-currency growth for the fiscal fourth quarter). However, the company flagged a sizable capex plan — $190B for calendar 2026 (implying roughly $120B in H2) well above Street expectations — and the report was described as “unconvincing” by markets, pressuring the share price. Goldman pointed to Copilot adoption (20M seats) and internal silicon efficiency gains as constructive AI catalysts, calling the quarter a potential turning point for the stock.