Morgan Stanley anticipates strong performance for Microsoft ahead of its Q4 earnings announcement

Morgan Stanley sees Microsoft stock as an attractive investment opportunity ahead of its fiscal 2026 Q4 earnings announcement, setting a price target of $600, which suggests a potential upside of approximately 54% from current levels.

The bank is betting on continued strong growth for Azure, along with accelerating revenue for Copilot and disciplined expense management, which could support strong returns for the stock. It also expects Azure growth to exceed expectations and the addition of more than 6 million paid users for Copilot, with confirmed growth acceleration in fiscal 2027, to further boost the stock's gains.

Microsoft is expected to announce its results on July 29, 2026, after the market closes, while Morgan Stanley predicts Azure will grow by 41% in constant currency terms, supported by improved availability of graphics processing units (GPUs) and increased demand for the company's solutions, at a time when surveys of chief information officers indicate continued growth in spending on Microsoft products.