Bank of America analyst Brad Sills raised Microsoft's (MSFT, Financial) price target to $585 from $515 ahead of the company's fiscal fourth-quarter results, set for July 30.
According to partner checks, deal activity appears to be tracking in line with last quarter, with notable strength in Azure momentum. Office performance also looks solid, thanks to ongoing E3 and E5 upgrades and the early rollout of Copilot. Meanwhile, better-than-expected desktop shipments are providing a lift to the mobile personal computing segment.
Sills is modeling full-year fiscal 2026 revenue growth at roughly 14%, with Azure expected to contribute more than 30% of total sales. He also notes that capital spending is stabilizing as a percentage of revenue, while margins are continuing to expand.
Investors have already pushed Microsoft shares up about 30% since those partner conversations began. Now, all attention turns to the July 30 earnings report to see if Microsoft can beat expectations and prove that Copilot is a true growth catalyst.
