Is Microsoft Stock About to Rebound After UBS’s Target Cut to $480?

UBS trimmed the Microsoft stock price target on July 27, 2026, when analyst Karl Keirstead cut his number from $510 down to $480, though he kept a Buy rating on MSFT in place. The change lands two days before Microsoft’s fiscal fourth quarter earnings, due after the close on Wednesday, July 29, 2026, and it has brought fresh attention to the UBS Microsoft rating and to what a Microsoft stock rebound could actually look like once the numbers come out. Shares closed at $393.56 at the time of writing, which is well under what a few models call fair value, and the Microsoft stock price target 2026 conversation now comes down to whether Azure growth, and the AI spending behind it, can turn things around.

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Microsoft Stock Price Target for 2026 And Rebound Outlook

UBS Lowers Price Target While Keeping Buy Rating

The cut itself works out to about 5.88%, from $510 to $480, and it came even as the UBS Microsoft rating held steady at Buy. Keirstead’s note pointed to Microsoft’s recent pullback in price, which he figures has already soaked up some of the risk tied to the earnings report. UBS named rising capital spending, alongside steady Azure growth guidance, as the main reason behind the lower Microsoft stock price target, since bigger AI infrastructure costs next to fairly measured revenue growth just haven’t sat well with the market this year.

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