One driver for achieving EPS closer to $14 or $15 per share next year would be the upgrade to Office 365 Copilot, which brings an AI assistant to automate tasks for office workers.

It would be shocked if MSFT were to get anywhere close to $14 EPS next year let alone $15, even $13 EPS would be a tremendous performance. The last four quarters where $2.99 + $2.69 + $2.45 + $2.32 = $10.42. Getting to $14.00 would mean EPS growth of 35% next year.

Getting to north of $12.00 EPS would be IMO a solid year for them - and unsurprisingly from this I have a stock price target that is pretty flat from current levels. The biggest variable is unlikely to be their business performance but rather market sentiment - which is notoriously hard to predict. The highest EPS multiple they have traded at (in the past 7 years) was 37x which would put the BULL case at $445 (+20% from current levels); with the more conservative at 28x which would suggest a target of $336 (-10%).

tecmo
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PS: I am a long term MSFT shareholder and don't plan on selling nor adding at current levels. It would consider adding if prices got below / near $300 again.

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