Overview

• The European Commission accepted Microsoft’s legally binding commitments on Teams, requiring versions of Microsoft 365 and Office 365 without Teams at a lower price, interoperability with rivals, data portability, and options for long‑term customers to switch.
• Truist reaffirmed a Buy rating with a $675 price target, citing improved visibility from the updated OpenAI partnership and large AI infrastructure agreements.
• Morgan Stanley reiterated Overweight and highlighted a 10% dividend increase to $0.91 per quarter, more than $55 billion in remaining buyback authorization, over $90 billion in cash, and an outlook for more than $70 billion in fiscal 2026 free cash flow.
• A non-binding agreement between Microsoft and OpenAI sets the stage for OpenAI to raise capital and potentially pursue a public listing, with more details expected in the coming weeks.
• Market commentary pointed to renewed data center demand, with Jim Cramer naming Azure as a likely beneficiary alongside other large AI and cloud platforms.