Oppenheimer: Azure and M365 Commercial Edition expected to accelerate in fiscal 2027; Microsoft (MSFT.US) target price raised to $570

According to Jinse Finance APP, Oppenheimer raised its price target for Microsoft (MSFT.US) from $515 to $570 after meeting with the company's management, while maintaining its "Outperform" rating.

Oppenheimer analyst Brian Schwartz wrote in a report to clients: "After our meeting, we are convinced that our judgment regarding Microsoft's accelerated growth and capital discipline remains valid. In our view, Azure and M365 commercial editions are set to maintain business acceleration into fiscal year 2027, as Copilot monetization remains strong, more computing capacity comes online, and customers increasingly adopt Microsoft as the main enterprise AI platform standard. Furthermore, efficiency improvements and capital discipline are key focus areas, leading to more predictable capital expenditure and positive free cash flow this year, which differentiates Microsoft from some other hyperscale cloud peers."

Schwartz added: "Overall, there are multiple risks: disruption brought by AI, and some pull-forward of enterprise IT spending in the second half of 2026, could slow Azure and M365 commercial revenue growth as we enter calendar year 2027, compress cloud business profit margins, and/or reduce capital expenditure efficiency."