Overview
- Wall Street’s consensus remains a Moderate Buy with a one-year average price target near $309, even after recent volatility.
- Barclays reiterated an Overweight rating with a $310 target on Dec. 16, while RBC cut its target to $250 and kept Sector Perform on Dec. 11.
- Fiscal Q2 delivered an EPS beat at $2.26 but missed on revenue and RPO, and guidance for Q3 growth disappointed versus estimates.
- Capital spending surged to $12 billion last quarter with full-year capex guided to roughly $50 billion, alongside negative free cash flow of about $10 billion and total debt reported at $124 billion including leases.
- A large AI backlog features a widely reported $300 billion OpenAI commitment starting in 2027, though HSBC projects OpenAI may need about $207 billion in funding as it remains free cash flow negative in coming years.