Morgan Stanley Reiterates Overweight Rating on Microsoft (MSFT)

Morgan Stanley analyst Adam Wood reiterated an Overweight rating and $600.00 price target on Microsoft (NASDAQ: MSFT).

The analyst comments "Microsoft’s 4Q26 results delivered broad-based upside, with $90.0B revenue (+18% YoY) and operating income of $40.60B beating consensus by 4.2%. Azure growth accelerated four points sequentially to 43% (cc), beating the 39– 40% guide, with management citing CPU/GPU efficiency and faster build times. Azure’s outlook strengthened, with guidance for ~45% constant-currency growth in 1Q27 and a reiteration that F1H27 growth should accelerate vs F2H26. M365 Copilot reached over 30MM paid seats, up from over 20MM last quarter, as ~10MM net adds beat expectations closer to ~6MM by a wide margin. Margins held up despite AI build: gross margin 67.2%, operating margin 45.1%; FY27 calls for double-digit EBIT growth and margins down less than one point."

For an analyst ratings summary and ratings history on Microsoft click here. For more ratings news on Microsoft click here.

Shares of Microsoft closed at $390.54 yesterday.

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