Microsoft (MSFT) Set to Gain $11B in Free Cash Flow from Tax Changes

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Jul 08, 2025
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Welcome to the latest insights on Microsoft Corp (MSFT, Financial), where we delve into the potential financial uplift and market projections surrounding this tech giant. Here’s a quick summary:

  • Microsoft anticipates an $11 billion free cash flow boost due to tax changes.
  • Analysts predict a one-year average stock price target of $518.95.
  • GuruFocus's GF Value suggests a 3.03% upside from current trading levels.

Potential Financial Windfall from Tax Adjustments

Microsoft Corp (MSFT, Financial) stands on the brink of a significant financial enhancement, potentially realizing an additional $11 billion in free cash flow, which equates to $1.50 per share. This anticipated surge is attributed to tax adjustments concerning research and development (R&D) and capital expenditures under the U.S. President's impactful legislative initiative, the "One Big Beautiful Bill," as analyzed by Evercore ISI.

Wall Street Analysts’ Forecasts and Perspectives

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Analyst projections regarding Microsoft Corp (MSFT, Financial) reveal a diverse range of outlooks. With input from 49 analysts, the consensus one-year price target averages at $518.95. The estimated high reaches $650.00, while the low stands at $423.00. This average forecast suggests an upside potential of 4.51% from the current market price of $496.55. For further insights, explore the detailed Microsoft Corp (MSFT) Forecast page.

The collective judgment from 62 brokerage firms currently bestows Microsoft Corp (MSFT, Financial) with an average brokerage recommendation of 1.8, signaling an "Outperform" status. This rating is derived from a scale of 1 to 5, where 1 indicates a Strong Buy and 5 points to a Sell.

Assessing Microsoft’s GF Value

According to GuruFocus estimates, the projected GF Value of Microsoft Corp (MSFT, Financial) in the forthcoming year is calculated at $511.57. This projection intimates a potential upside of 3.03% from the present price of $496.54. The GF Value reflects GuruFocus's appraisal of the stock's fair trading value, grounded in historical trading multiples, prior business growth, and future business performance forecasts. Access more elaborate data on the Microsoft Corp (MSFT) Summary page for a comprehensive analysis.

For investors keen on understanding market dynamics and making informed decisions, these insights on Microsoft Corp provide valuable clarity into its financial health and market positioning.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.