Microsoft CorporationMorgan Stanley sets $600 price target implying 54% upside, and highlights potential revenue tailwinds from price increases and Copilot adoption ahead of earnings.

Morgan Stanley has assigned a $600 price target to Microsoft ahead of its fiscal fourth-quarter earnings, implying roughly 54% upside from current levels. The bank estimates Azure revenue will rise about 41% at constant currency, slightly above the Wall Street consensus of around 40.5%, and says even a minor beat could boost investor sentiment despite ongoing capacity constraints. Paid seats for Microsoft 365 Copilot reached 20 million in the fiscal third quarter, up from 15 million in the prior period, and Morgan Stanley sees potential revenue uplift from seat expansion, consumer migration to higher-priced plans, and increased consumption-based AI usage. The firm also flagged Microsoft’s July 1 price increase for Microsoft 365 as a possible revenue tailwind over the next three fiscal years, while noting that heavy AI infrastructure investment is driving higher capital expenditure, with management expecting capex of roughly $190 billion in calendar 2026. Investors will focus on Azure growth, Copilot adoption, and fiscal 2027 guidance when Microsoft reports on July 29.
Microsoft CorporationMorgan Stanley sets $600 price target implying 54% upside, and highlights potential revenue tailwinds from price increases and Copilot adoption ahead of earnings.
Morgan Stanley