Overview
- Wedbush’s Dan Ives reaffirmed an Outperform rating and a $625 price target, projecting Azure and Copilot could add about $25 billion to Microsoft’s fiscal 2026 revenue.
- Microsoft’s enterprise push includes a new multi-year partnership with Cognizant to embed agentic AI and Copilot in workflows across healthcare, retail, financial services, and manufacturing.
- Public-sector adoption is expanding with the confirmed statewide rollout of MahaCrimeOS for Maharashtra police, built on Azure OpenAI Service and Microsoft Foundry.
- The company has outlined large AI infrastructure commitments, including $17.5 billion in India and more than $5.4 billion in Canada, after reporting nearly $35 billion in quarterly capex.
- Valuation debates persist as a DCF analysis pegs intrinsic value near $601.65 and consensus targets cluster around $635–$650, while bears flag datacenter costs, potential commoditization, and Copilot cannibalization risks.