Oppenheimer: Azure and M365 Commercial Could Accelerate in Fiscal 2027, Raises Microsoft Corporation (MSFT.US) Price Target to $570

Oppenheimer raised its price target on Microsoft Corporation (MSFT.US) from $515 to $570 after meeting with the company's management, maintaining an "Outperform" rating. Oppenheimer analyst Brian Schwartz wrote in a note to clients: "Following our meeting, we are convinced that our thesis of accelerating growth and capital discipline for Microsoft Corporation still holds. In our view, Azure and M365 Commercial could sustain business acceleration in fiscal 2027, as Copilot monetization remains strong, more compute capacity comes online, and customers increasingly adopt Microsoft Corporation as their primary enterprise AI platform standard. Additionally, efficiency gains and capital discipline are key focus areas, driving more predictable capital expenditures and positive free cash flow this year, which sets it apart from some hyperscaler peers." Schwartz added: "Overall, multiple risks exist: AI-driven disruption, as well as the pull-forward of some 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 margins, and/or lead to reduced capital expenditure efficiency."