New York, Jan 12, 2026, 16:21 EST — After-hours
- After hours, Microsoft shares slipped roughly 0.4%, settling at $477.22
- Goldman Sachs restarted coverage, issuing a Buy rating and raising its price target to $655
- Barclays cut its target, shifting investor focus to Tuesday’s CPI data and Microsoft’s earnings report on Jan. 28
Microsoft Corp shares (MSFT) slipped about 0.4% after Monday’s close, landing at $477.22, with intraday moves ranging from $474.45 to $480.88. Goldman Sachs analyst Gabriela Borges resumed coverage, assigning a Buy rating and lifting her 12-month price target to $655 from $630. She noted Microsoft stands out among megacaps to capitalize on “compounding AI product cycles.” The company’s market cap sits near $3.85 trillion. 1
The analyst moves came amid a market still uneasy over interest rates, as investors focused on Tuesday’s U.S. consumer price index (CPI) report—a crucial inflation measure that could shift expectations for Federal Reserve policy. “The market is taking it in stride,” said Peter Cardillo, chief market economist at Spartan Capital Securities, commenting on the recent Washington chatter about the Fed. 2
Microsoft plans to release its fiscal second-quarter results after the market closes on Jan. 28. The earnings call is set for 2:30 p.m. Pacific time, the company announced last week. 3
Barclays maintained its Overweight rating on the stock, signaling expectations for the shares to outperform. However, the firm trimmed its price target to $610 from $625, according to a research note summary. 4
Societe Generale is ditching its own AI tool and switching to Microsoft’s Copilot, Bloomberg reported, citing sources close to the situation. The move follows staff grumbles that the bank’s internal system “wasn’t up to date,” the report added. 5
Microsoft expanded its push into AI for regulated industries, announcing that Anthropic has rolled out new tools, connectors, and skills for Claude within Microsoft Foundry, targeting healthcare and life sciences. The company positioned this update as a step toward creating “agentic workflows” on Azure, complete with enterprise-grade controls and compliance features. 6
Investors are watching familiar dynamics: Copilot monetisation within workplace software, alongside Azure’s capacity to maintain market share as clients upgrade applications and boost AI spending. This positions Microsoft squarely against other cloud giants, with intense focus on how fast its AI offerings turn into lasting revenue.
Ahead of Tuesday’s session, traders are focused on the CPI data, Treasury yields, and the initial earnings reports for signs on whether rate cuts remain on the table. For Microsoft, the key will be if management can demonstrate consistent demand for cloud and AI services without rattling investors over their spending plans.
The setup is double-edged. With AI expectations running hot, even a slight slowdown in enterprise demand or rising costs for data centre expansion can hit the stock sharply—especially if bond yields start climbing against long-duration growth shares.
Tuesday brings the CPI report, with Microsoft’s January 28 earnings and guidance coming later this month. These events are key drivers behind investors adjusting their MSFT positions ahead of February.
